Advantages of insurance companies - Insurance companies also benefit from investments. This comes from a premium investment received until they have to pay a claim. This money is called "float". Insurers can gain profit or loss from floating price changes as well as interest rates or dividends in buoys. In the United States, the loss of property and deaths recorded by insurance companies was US $ 142.3 billion in the five years ended in 2003. However, the total profit in the same period was US $ 68.4 billion, due to buoys.
Business Insurance
The basic principle of insurance
In the world of insurance there are 6 kinds of basic principles that must be met, namely:
Interest that can be insured
The right to insure arises from the financial relationship between the insured and the insured and is legally recognized.
Very good faith
The act of expressing accurately and completely, all material facts about something that should be insured whether asked or not. This means that the insurance company must honestly explain clearly about the extent to which the condition / condition of insurance and the insured must also provide a clear and true picture of the object or interest that is insured.
The immediate cause
Active and efficient causes leading to sequences of events that result in consequences without the initiation and active intervention of new and independent sources.
Compensation
The mechanism by which the insurer provides financial compensation for placing an insured person in his / her financial position shortly before the occurrence of a loss (KUHD section 252, 253 and affirmed in article 278).
Subrogation
Transfer of claim rights from the insured to the insurance company after the claim is paid.
Contribution
The right of the insurance company to invite another insurance company that both bear, but not necessarily the same obligation to the insured to also provide compensation.