SafeLinks.cf - Insurance is a term used to refer to an action, system or business in which financial protection (or financial compensation) for the life, property, health and so on gets reimbursed from unforeseen events that can occur such as death, loss, damage or illness, which involves regular premium payments within a certain period of time in exchange for a policy that guarantees such protection.
Public interest in the insurance program is still low. It is allegedly the cause of the low level of interest of the public, especially the Indonesian people, to these non-bank financial institutions is the incompleteness of information obtained by the public regarding this institution in an effort to improve the quality of life in the future. A short definition of insurance is a term that refers to any action, system or business that is liable for compensation for the life, property, and health of unforeseen events such as damage, loss or death. Insurance is widely regarded as a consumption product for upper class people who have more funds and assets that are deemed to need more protection. In fact, insurance has benefits and other advantages for all circles of society.
|Benefits of Insurance|
The basic principle of insurance
In the insurance world there are 6 kinds of basic principles that must be met, namely:
The right to insure, arising from a financial relationship, between the insured and the insured and is legally recognized.
Utmost good faith
An action to express accurately and completely, all material facts about something to be insured whether requested or not. The meaning is: the insurer must honestly explain clearly about the extent of the terms / conditions of the insurance and the insured must also provide a clear and true description of the object or interest insured.
An active, efficient cause that leads to a chain of events that results in a consequence without the intervention of an active and initiated start from a new and independent source.
A mechanism in which the insurer provides financial compensation in an attempt to place the insured in his / her financial position immediately prior to the loss.
Transfer of claim rights from the insured to the insurer after the claim is paid.
The right of the insurer to invite other insurers who both bear, but not necessarily the same obligation to the insured to participate in giving indemnity.
General Insurance Benefits
Here are the benefits of signing up for insurance that you will get in general or overall.
1. Giving Serenity
We never know the possibility of what will happen tomorrow. Every day we pass by the possibility of events that could require unexpected expenses. If you include someone who is ready for something, the risk of losses caused by these unexpected events can be minimized easily. But what about you who realize that you are not the type of person like that? The presence of insurance service providers can provide answers and lighten the burden when the unexpected events came.
Insurance has the benefit of providing protection from the risk of uncertainty and is believed to be more able to increase the confidence for the individual holder. The reimbursement to be provided by the insurer will at least partially cover up to all of your payment obligations for an incident. Insurance is also known as an alternative to control loss or loss controldeng by conducting field surveys and provide recommendations to policyholders to perform preventive and mitigating actions.
2. As Investment and Savings
By registering as a policyholder customer in an insurance service provider, you will be guaranteed a return on investment at the end of the contract. Insurance intended for investment also provides flexibility and flexibility in choosing the coverage period. Usually there will be three choices of coverage time of policyholders, 5, 7, and 10 years. In addition, the premium is a single premium that is relatively affordable and can be exempt from administrative costs.
3. Help Minimize Losses
In accordance with their respective types, the function of general insurance ownership is to assist policyholders to minimize losses from possible unforeseen events such as the cost of disaster losses, accidents, and hospital costs. Minimize the losses for these unexpected events can be seen from the following case example:
You are someone who has a house worth Rp3 billion. In addition, you also have an investment in the form of buildings used as rental rooms for students in the area around the campus. You only give more protection to your home while not for the boarding house owned. When there is a fire caused by a gas explosion at home, you can get cover fees from the insurer. Meanwhile, if the fire occurred in your boarding house, you will lose big losses due to loss of buildings and must bear the loss of property belonging to students because of a fire caused by a gas explosion that is actually yours. From this it is seen the importance of having insurance as a guarantee of protection either for yourself or for your property and investment.
4. Helping to Manage Finance
Your obligation to pay premiums on a regular basis actually indirectly forces you to provide a reserve fund that is used when an unexpected event occurs. Even so, when the unexpected event actually happens and requires you to spend a lot of money to cope with it, the insurance will help you to reduce unexpected expenses that are usually much higher than your daily or even monthly routine expenditure. By having insurance, you do not have to pay the full cost of the losses suffered because the insurer will provide compensation.