DAMAGES MUST BE RESTRICTED

GREETING INSURANCE ,

Hi all bloggers , we met again in our website that explore more about the insurance . This time we are still discussing the nature of the basic principle of insurance that insurance can be insured possible damage . This time we will discuss the nature of the latter , namely the loss should be limited .Losses can be insured must be limited in terms of time and quantity . Insurance companies should be able to determine when and how much benefit payments to be paid . Death , disability and reach old age , is a condition that is commonly known . Therefore , the amount of economic loss arising from a state that is the basic principle of insurance .To set the amount of the payment at maturity , the insurance company uses two forms of agreements :

    1. Contract Value ( valued contract)
    2. Indemnity contract ( contract of indemnity )

The contract value is an agreement whereby the predetermined payment amount . In life insurance , the amount specified in the policy death benefit .Indemnity contract is an agreement santunannya amount based on the amount of actual financial losses , as determined at the time of the loss .This indemnity contract states that the amount of compensation based on the amount of financial loss or the maximum amount of compensation set forth in the policy , whichever is smaller. Because the policyholder can not claim that the number is higher than the value of the actual loss .


GREETING INSURANCE


NATURE OF INSURANCE

    1. Losses must contain uncertainty .
    2. Losses should be limited .
    3. Loss must be significant ( mean ) .
    4. The ratio of the loss must be predictable .
    5. Loss is not a disaster for the party