Insurance is a willingness to set small losses (a bit) that it is definitely a replacement (substitution) large losses that have not been definitive.
From the above formulation can be concluded that, people are willing to pay a bit of a loss for the present, in order to face large losses that may occur in the future. Such as:
- Fire. In fire insurance, insuring one's house to the insurance company. In this case the person pays a premium to an insurance company. Whenever there is a fire, the company will reimburse losses caused by fire.
- Maritime Transport. In Marine Insurance is to underwrite the ship, cargo or cargo and others.
- So, in this case it turns out that, any losses that may occur in the future are dating, we move it to the insurance company. If we look at the branches of an existing insurance company, the insurance forms generally can be classified as follows.
- Insurance (General Insurance), which is on property, fire, and others.
- Variant Insurance (marine insurance, accident insurance, car insurance and theft).
- Life Insurance. Ie insurance related death, illness, disability and others.
The whole point of buying an insurance policy is the financial security that it provides. No one can predict the mishaps, and in spite of all the preventions or precautionary measures, you never know when you’ll fall prey to one. Having insurance protection means that the financial losses will be compensated to some extent at least. Expenses run high when an individual falls ill, or becomes disabled, or gets involved in an accident. The costs not only involve losses due to material damage, there might be bodily injuries, medical bills etc.
ReplyDeleteWell, fire damages can cause extensive loss, and standard home insurance policies don’t offer protection against fire. For that extra amount of security, a homeowner needs to buy separate coverage.
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