Insurance: the nature, functions, forms, concept of insurance and types of insurance. Concept and types of social insurance

Today, insurance plays a large role in all areas of citizens' life. The concept, essence, types of such relations are diverse, since the terms and contents of the contract directly depend on its object and parties. A key element of insurance is risk. This word means situations in which the object of the agreement is damaged. There are many risks that contribute to the diversity with which the concept of insurance and types of insurance differ. The parties to the contract have a significant material interest - to protect themselves from losses associated with causing their health, life or property significant damage.

The concept

The concept of insurance and types of insurance are generally known to everyone. It represents a system of economic relations designed to reduce property losses in the event of adverse circumstances. In other words, such an agreement helps protect yourself from the risk of losing a large amount due to an accident. Participants make contributions from which a reserve fund is formed . If the insurance object (property, health, etc.) was damaged, the organization pays the amount necessary to compensate for the losses.

However, the entity receives compensation not just in case of various damages, but only in those situations that are previously indicated in the contract. An event that leads to compensation for damage is called an insured event. This concept means a random situation that can lead to significant material losses.

Legal entities providing such services are called insurers. To carry out their activities, they must meet state requirements and obtain a license. The concept of insurance, its functions and types are indicated in the relevant law of the Russian Federation. Thus, people who decide to sign an agreement with an official company may not be afraid that their rights will be violated. The activities of organizations are paid off at the expense of a bonus - remuneration stipulated by the terms of the contract.

Functions

In a primitive form, the concept of insurance and types of insurance appeared in ancient times, when people stocked up grain and building material in case of bad weather and natural disasters. Today, this type of agreement is the basis of the economy, guaranteeing financial stability to individuals and legal entities. The modern concept of insurance and types of insurance have developed in stages, supplemented with the advent of new forms of economical relations. At the moment, this is, above all, the opportunity for entrepreneurs to secure their business, and for citizens - to provide for themselves in the event of a temporary or permanent loss of performance. This type of relationship performs important functions, among which the following can be distinguished.

Classification

Insurance is divided into many types, which, in turn, are grouped into two forms: mandatory and voluntary. The main criterion for classification is the subject of the contract. Today, insurance covers almost all spheres of public life: material values, human health, and work. Different types of relations are combined in three sectors, presented in the table.

Property insurance is important both for entrepreneurs and for individual citizens. Damage to property due to fire, accident and other unforeseen circumstances can entail large expenses, which business owners are often unable to cope with their own resources. For this reason, the conclusion of an insurance contract is a normal practice for entrepreneurs. In countries that do not guarantee free medical care, personal insurance has become widespread. The concept and types of such a contract are directly related to a person’s life and his health. There are also combined types of insurance that can be attributed to several types.

Life and health

In Western countries and among wealthy citizens of the CIS countries, personal insurance is widespread. The concept and types of this type of contract are difficult to cover in general terms: different companies around the world provide a wide range of services that cover a wide variety of areas of activity. We can say that this is a type of relationship where the object of insurance is a property interest that relates to a person and his activities. The subject of the contract may be:

• a life;
• health;
• accident risks.

Health is the most common object of this type of contract, since serious diseases can entail significant costs. The concept and types of health insurance differ depending on the spectrum and, accordingly, the cost of the services provided in the clinic. The most unusual object of the contract is human life. This type of insurance provides for the accumulation of money that is paid to an individual after a certain period (for example, upon retirement) or to heirs after his death. Thus, the agreement helps protect the family and ensure a comfortable old age. Accident insurance is valid for a short period. Compensation is paid when, due to an external reason, a person has died or lost his ability to work. Such an agreement is often concluded by passengers, employees of an enterprise or tourists.

Treatment

Different types of agreements regarding human health are common, but the concept and types of health insurance, which are general, can be distinguished. First of all, it is the social protection of citizens, which manifests itself in the payment of medical services in case of various diseases. Two main types of such insurance can be distinguished:

• compulsory (compulsory medical insurance);
• additional (VHI).

The latter also includes contracts concluded by citizens when traveling abroad. In most countries, including the Russian Federation, compulsory health insurance exists. With its help, all citizens of the state have equal opportunities for treatment and receiving medicines. The territorial MHI fund transfers money to the account of the MHI insurers, depending on the number of insured persons in a particular area.

Consider voluntary health insurance, the concept, types, forms of which are not very different from the state. The difference lies in the fact that with this type of relationship, additional services are provided to clients in separate medical institutions. The contract is valid on a commercial basis and allows you to get better treatment from specialized specialists. A medical insurance contract is also drawn up when traveling abroad. For some countries, this procedure is mandatory.

Property insurance

This type of contract is intended to protect material values ​​- things, vehicles, real estate. Both individuals and legal entities can take out property insurance. The concept and types of agreement are similar to the previous type of agreement, only the object of the contract is material risks, and not human activities. Property insurance is the protection of interest related to the possession, disposal and use of things. In case of damage to the material values ​​specified in the contract, compensation is paid to the client. As in the case of a personal contract, the agreement takes two forms: mandatory and voluntary.

If the property has been destroyed and is not amenable to restoration, its owner is paid its full value. If things are damaged, not the whole amount is refunded, but only the part necessary for their repair.

Liability Insurance

Sometimes this type of contract is not allocated to a separate position during classification, but is considered part of the property agreement. Nevertheless, it has some distinctive features. The object of insurance for this type is the person’s liability to third parties for causing harm to him or their property. According to the legislation of the Russian Federation, in such situations it is necessary to compensate the damage caused. The company with which the client has entered into an agreement allocates the amount necessary to pay compensation, thus satisfying property interests. In addition, the concept and types of compulsory insurance also include contracts the subject of which is liability, for example, for car owners.

Production accidents

Agreements regarding the risk of environmental pollution are called “environmental insurance”. The concept and types of contract include the provisions of the positions of the previous classification. Such an agreement aims to compensate for damage caused by environmental pollution. In some accidents, the use of land and water may become impossible, and the presence of people in a certain area - unsafe for health. Such situations entail high costs. Types of environmental insurance:

• personal (life of citizens living or working in the danger zone);
• property (real estate that may be damaged during an environmental disaster or accident);
• responsibility (enterprises whose activities can harm the environment).

In some states, environmental insurance is mandatory. This mainly concerns enterprises where production failures can occur that can cause severe environmental damage (for example, an oil leak).

Reinsurance

Sometimes companies enter into agreements with customers with too much risk. To protect themselves, firms draw up a contract with another reinsurer. Part of the responsibility and remuneration remains with them, while the rest is transferred to the second company. Thus, insurers achieve a financial balance. The risk transfer procedure is called cession. Such a chain can consist of any number of positions, for example, the secondary insurer has the right to transfer part of the liability to the tertiary. There are various forms of this type of agreement.

Mandatory reinsurance classification:

• contractual (the company or person chooses independently whether he wants to transfer part of the responsibility to another person, as well as the size of this share);
• automatic (some firms enter into a contract with reinsurers, as a result of which all transactions that fall under certain criteria go to them).

The transferred share can be set in two ways. Proportional insurance provides for a proportionate distribution of liability, indemnity and premium. Thus, the benefits and costs of the primary and secondary insurer coincide. Another way of determining the parts is disproportionate, since the interests of the parties to the contract are not proportional, in particular, one of them may suffer large losses. These are the concept and main types of insurance, where liability and remuneration are distributed among several persons.

State binding agreement

Two forms of the contract can be distinguished, depending on the insurer with which it is concluded. When the organization is owned by the country, then these agreements are called state, and if it belongs to legal entities - private. Moreover, the first type of agreement, according to the legislation of the Russian Federation, is mandatory. The amount due to which contracts are concluded is allocated by the state specifically for these purposes.

A major role in the economy is played by state compulsory insurance. The concept, types, rules and tariffs of this form of agreement are clearly defined. State compulsory insurance means relations that arise between the parties to the contract by law. It covers the entire population of a country or large groups of people. There are such types of compulsory insurance:

• medical;
• social;
• military personnel;
• passengers
• liability of vehicle owners (CTP);
• owners of hazardous facilities.

Voluntary insurance

This type of contract is not mandatory and is concluded at the initiative of the subject. Unlike the already described form of relations, the rules by which voluntary insurance is carried out , the concept and types of such an agreement are established by law in general terms only. Specific tariffs and conditions are determined by the parties to the agreement. Its types include insurance:

• life
• health (continuous and when a disease occurs);
• from accidents;
• Vehicle;
• cargo;
• from natural phenomena;
• liability of vehicle owners;
• financial risks, etc.

This type of relationship is characterized by selective coverage of customers, that is, the company may refuse the policyholder if he does not meet its requirements. Moreover, a voluntary agreement always has its own terms. Upon completion, the contract can be reissued, again paying the fee.

Concept and types of social insurance

By this type of agreement is meant a social protection system that is designed to provide material support to citizens in the event of disability, illness, unemployment, or loss of a breadwinner. The concept and types of social insurance may differ, depending on the form of agreement, which distinguish three:

• collective (trade unions);
• state;
• mixed.

In the first case, the conclusion of the contract is voluntary and is carried out in those situations when the state does not provide adequate material protection. Relations are built on the principle of democracy, partnership and self-government. The size of payments is not fixed and depends directly on the level of employee income.

The concept and types of compulsory social insurance are clearly regulated by the legislation of the Russian Federation. It is part of the state social protection system, aimed at providing workers with a worsening of their financial situation. There are such types of compulsory social insurance:

• medical;
• pension;
• temporary disability;
• from accidents;
• maternity;
• in connection with the death of a family member.

Conclusion of an agreement

Before compiling the document, the underwriting procedure takes place - the risk of an insured event is assessed.The size of the premium directly depends on this, and therefore the process requires careful calculations. Incorrectly assessed risk can lead to significant waste and bankruptcy of the company.

The basis for concluding the contract is the client’s statement, which can be either written or oral. In this document, the policyholder must list in detail the facts that will help to give the most accurate risk assessment. The agreement is made in any of two forms: in the form of a contract or policy. In the first case, the document is signed by both parties, and in the second - only the insurer.