Many questions about insurance that arise from people who do not know about the world of insurance. Following is the understanding of insurance. Insurance comes from English, assurance or insurance, which means guarantee or protection.
Based on the definition of Apprindo, By law, Insurance is an agreement between two parties, namely the insurer (insurance company) and the insured (individual or business entity). The insured pays a sum of money to the insurer in the form of a premium and the insurer binds himself to provide compensation to the insured, if a disaster is guaranteed in the policy.
Insurance can be seen from 3 points of view, namely:
Ekonomy:
managing a risk until a loss caused by disaster, can be overcome by obtaining compensation from insurance.
Social: a kind of mutual cooperation activities, where the insurer collects a sum of money in the form of insurance premiums from the insured / participant / policy holder, and manages it professionally and then is used as a fund to pay for losses incurred by the insured / participant / policy holder. Or in other words, an activity to help each other between the insured / participant / policy holder, in the event of a disaster that causes losses
Law: an agreement that is reflected in a variety of insurance product policies, where each party is the insured and the insurer is bound to a provision / condition / condition stated in the policy
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