When two parties enter into an agreement on the provision of each other any values (conditional or material), they enter into an agreement between themselves. In insurance, the role of such a contract is performed by the policy. This is a document certifying the relationship between the policyholder and the insured. The insurance contract becomes valid and begins to be executed only after the issuance of the policy. As a rule, this happens simultaneously with the payment of the insurance premium.
What does the word "policy" mean
The word fell into insurance from the French language. There it meant a receipt certifying the receipt of a certain amount of money. This word has become quite popular and is sometimes used in an unexpected way. So, the newspaper "Inform Policy" appeared in Buryatia, which has nothing to do with receipts and insurers. Here the word policy is present in the meaning of a flyer or a small ad. Well, the phrase "inform policy" lets you know that the leaflet contains topical and interesting information.
Insurance policy
But back to the classical understanding of this concept. An insurance policy is a document that can be issued for a specific person or bearer. This document certifies the fact of payment of insurance services and guarantees that the insurance organization fulfills its obligations upon the occurrence of an insured event. In most cases, the obligation of the insurer includes the payment of a mandatory agreed amount. The beneficiary is the beneficiary. It can be both an insured citizen and third parties. The insurance premium payable is called insurance compensation (or compensation).
What determines the policy in modern insurance
The main purpose of the policy is to list the conditions under which an insured event will be recognized as such. Therefore, it must necessarily indicate the rights and obligations of both the insurance organization and the policyholder.
The main value of the policy is that it is a document according to which the regulation of relations between the insurer and the policyholder is carried out. The system of modern insurance legislation defines an insurance policy as evidence of the signing of an insurance agreement. It is from this point of view that the insurance policy becomes important evidence when considering insurance disputes in court.
The main details of the policy
The Law "On Insurance" defines a list of basic details that must be indicated in each insurance policy. It:
- Detailed name of the document;
- full name and details of the insurance company;
- Name, date of birth, full address of the policy holder;
- if the insurance policy is concluded in favor of third parties, the details of the beneficiary are needed;
- detailed data on the insurance object;
- the agreed amount of the amount to be paid upon the occurrence of an insured event;
- a complete list of possible insured events;
- insurance rate indicating insurance premium;
- validity period of the insurance policy.
This is a basic list of details required for an insurance document. Consider the additional conditions that must be spelled out in the insurance certificate of compulsory medical insurance.
Medical policy
The MHI policy is designed to receive basic medical care throughout the Russian Federation. It is issued once and for free. In this case, the mandatory insurance contributions are taxes levied on wages and other income. The amount of contributions to the MHI policy is regulated by law. But the reimbursement for medical insurance is no longer paid to the holder, but to the medical institution or private doctor who provided medical services.
A medical policy entitles each holder to take advantage of medical care. The refusal to provide medical services in the presence of a policy is unfounded and may lead to criminal liability. A medical certificate is available to citizens of our country, foreigners or stateless persons. When issuing a policy, the main role will be played by how long citizens plan to stay on the territory of the Russian Federation. If the holder of the insurance certificate is in the country temporarily, then the MHI policy will be valid for a limited period.
Liability Insurance
At the beginning of the article, we examined the situation when the third party becomes the recipient of the insurance compensation not the policy holder. A classic example of this type of insurance is the insurance policy. This type of insurance, which must be issued by all owners of land vehicles.
In this case, the MTPL policy insures damage from an accident caused by the actions of the policyholder. Liability insurance is present in other services: for example, in the construction business insurance is between the developer and the insurer, and in the event of an emergency, third parties receive insurance benefits.