Insurance is a critical financial industry. Relations in this area are always associated with money and the concept of risk that may occur. The principle of operation is based on the probability of a negative event.
Subjects of insurance relations
They are:
- Insurers (authorized individuals or legal entities that implement the agreements made by paying the promised amount to the insurers).
- Insured (the concept is identical to the object of insurance relations, that is, that which may be exposed to risk when an insured event occurs).
- Beneficiaries (legal or natural person who is assigned to receive payment according to the insurance agreement).
Description of the concept
The practical embodiment of risk is manifested in the occurrence of an event with negative consequences. Insurance coverage is the size of the payment sent in the form of compensation for the outcome of an incident specified in the agreement that incurs a material plan loss or moral damage. The amount is transferred to the policyholder by the insurer.
Another name for this phenomenon is insurance retaliation, which indicates the value of the property that became the reason for signing the agreement.
Insurance coverage is not only the amount of funds paid. It is also a kind of commitment of some entities to others.
The term is used to enhance the obligations of the payer as part of all kinds of insurance coverage. Citizens most often come across them in the context of compulsory social insurance.
Circumstances
We can say that this kind of organization is an offshoot of the state system of protecting the population. Types of insurance coverage are aimed at solving problems in the following cases:
- urgent need for medical assistance;
- temporary disability;
- injuries subsequently fulfilling labor obligations;
- the onset of motherhood;
- due to disability;
- old age;
- in case of loss of a family breadwinner;
- in case of obtaining unemployed status;
- in the event of death of the insured or disabled family members who were on his maintenance.
Typology of insurance coverage
Types of this kind of activity in different categories of social insurance are as follows:
- Reimbursement of expenses to the medical institution that were associated with the provision of appropriate assistance to the insured party.
- Payment of old-age pensions.
- Disability pension payments.
- Pension benefits due to the loss of the breadwinner in the family.
- Temporary unemployment benefit.
- Benefit in connection with labor or industrial injuries or serious injuries.
- Payment of funds for maternity.
- Monthly payments for one and a half years after the birth of the baby.
- A one-time payment to pregnant women registered early.
- One-time payment at birth.
- Social payment for burial.
- Payment of sanatorium-resort rehabilitation of workers and members of their families.
Process Key Concepts
Insurance risk and insured event are the main concepts here. The first is an excuse to insure an object, the second is an excuse to receive payment under an agreement.
The event expected with a certain degree of probability, due to which the insurance process is implemented, is called insurance risk. The onset of such a situation should be random and have a certain degree of probability.
An insured event is an event specifically indicated in the contract, upon the occurrence of which there is a need for the insurer to make a payment.
For example, the onset of death is that case, which is an insurance risk with all its characteristic signs of chance and probability.
In personal insurance, insurance objects are often the life and health of citizens.
Property insurance is a way of protection from material losses, where the object may be vehicles, residential premises, expensive items and other objects of the material world around.
Insurance risk and insured event are the fundamental starting points. They are called the main stages of this kind of process.
What is social insurance?
Among the citizens of any country there are unprotected layers of the population who, for certain reasons, are limited in their rights and opportunities. Therefore, they have additional benefits that are provided by law and help them better adapt to society.
Various types of social insurance are aimed at providing financial assistance in cases of illness, complete or partial disability, loss of one of the parents by a minor child, unemployment.
Social insurance is state, collective and mixed.
What is social insurance and what types of it are provided, we will consider further, based on the law of November 27, 1992 No. 4015-1 "On the organization of insurance business in the Russian Federation" with amendments and additions.
Types of Social Insurance
Compulsory social insurance is designed to protect various segments of the population, to defend their social interests. This happens both for working and non-working categories of the population in order to provide them with a material basis for further life activity and functioning in society. The motivating forces for this are possible changes in their material or social status.
The types of social insurance include the following:
- general social;
- motor vehicle liability;
- pension;
- medical;
- passenger insurance.
Sources of financing in a social form
Sources of financing for social insurance are:
- Compulsory Health Insurance Fund.
- Pension Fund of the Russian Federation.
- Social Insurance Fund.
How to calculate the damage
An insurance assessment is a determination of the value of a property, which is determined to achieve the ultimate goals of the insurance process. This kind of work is called the process of conducting assessment activities.
In practice, these types of insurance ratings are mainly used:
- according to real value;
- according to the declared price, but not more than the limit established by the insurer;
- according to market prices.
To conduct constructive assessment activities, it is worth attracting qualified experts to the work.
As part of the insurance assessment, a medical insurance examination can also be carried out, which illustrates health contraindications for concluding a contract and issues a medical report.
Depending on the principles and objects of insurance, valuation procedures can either coincide with the insured value, which expresses the real value of the type of property, or be less than this indicator. Information on its book value is also used as an assessment of an object.
For various types of insurance coverage, such assessment measures are carried out by insurance institutions during the preparation of the agreement (for example, in the agricultural or construction industry).
In the article, we examined various types of insurance and the possibility of providing for them.