Global Business Concepts

Archive for the ‘Business Insurance’ Category

the definition of insurance or coverage is an agreement between two or more parties, with which the person committing yourself on the insured, by accepting the insurance premiums to give reimbursement on the insured due to loss, damage or loss of profits expected, or legal liability to third parties which may be suffered by the insured, arising from an event which is uncertain, or to provide a payment based on the life of someone who died or placed.

In order for a potential loss (which is probably the case) can be insured (insurable) then it must have the characteristics: 1) occurrence of uncertain loss, 2) losses should be limited, 3) losses should be significant, 4) ratio of losses can be foreseeable future losses and 5) are not catastrophic (disaster) for sharing.

There arose the question; death is something that definitely, why can be insured? Even though it is something containing certainty, but exactly when the death of a person residing outside the control of the  wake of the events of death that is completely uncertain this is what causes it to insurable.

There are two forms of agreement in setting the amount of the payment at maturity of insurance, namely: contract value (valued contract) and contractual indemnity (contract of indemnity). The contract value is the amount of the payout agreement which has been set in advance. For example, the value of sum assured (UP) in life insurance. Indemnity contract agreement that the number is based on the actual amount of financial loss. For example, the cost of hospital care.

That insurance in terms of law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Narrowly insurance is a system to transmit afflict lose financially with the risk of losing of someone or entity to another.

 explained that Insurance is a tool to reduce financial risk, by way of collection units adequate amounts of exposure, to create in order for individual losses can be estimated. Then the unpredictability that losses shouldered by them are incorporated evenly “.

insurance or coverage is an agreement, by which a person committing yourself on the insured by receiving a premium, to provide the replacement to him for a loss, damage or loss of profits expected, that may be sustained for a certain event “

Insurance according to law No. 2 Th 1992 regarding business superannuation is an agreement between two or more parties, with which the person committing yourself to the insured, by accepting the insurance premium, to provide the replacement to the insured for loss, damage or loss of profits expected or legal responsibility for third-party which may be suffered by the insured, arising from an event which is uncertain, or provide a payment based on the life of someone who died or placed.

C. Arthur William Jr. and Richard m. Heins, revealing an understanding of insurance based on two viewpoints, namely:
a. “insurance is a safety net against financial losses made by a person”.
b. “insurance is an agreement by which two or more persons or entities raise funds to tackle financial losses”.

Prof. Mark r. Green explain that insurance is an economic institution that aims to reduce the risk, by way of a management combines the object is large enough in number, so that losses can be thoroughly foreseen in certain limits.

Morton (1999) lays out the main functions of insurance is as a mechanism for transferring the risk (risk transfer mechanism), namely the transfer of risk from one party (the insured) to another party (the person). This does not mean the transfer of the risk of eliminating the possibility of misfortune, but rather the person providing financial security (financial security) and peace (peace of mind) for the insured. In return, the insured paying a premium in the amount is very small when compared to the potential losses which may be sustained

Whereas the notion of Shariah-compliant Insurance business is mutual and mutual help among later defended a number of people/parties through investments in the form of assets and or that provide pattern  returns to face certain risks through (the Alliance) that comply with Sharia. Shariah-compliant insurance is one of the Islamic-based economic system that is Universal and applies to all societies.

Understanding Insurance

Insurance is a system to transmit afflict lose financially with the risk of losing of someone or entity to the other.

Insurance in law regarding business superannuation is an agreement between two or more parties, with which the person committing yourself to the insured, by accepting the insurance premium, to provide the replacement to the insured for loss, damage or loss of profits expected or legal responsibility for third-party which may be suffered by the insured, arising from an event which is uncertain, or provide a payment based on the life of someone who died or placed.

The agency that distributes the risk is called the “insured”, and the Agency which accepts the risk of so-called “responsible”. The agreement between the two bodies is called policy: this is a legal contract that outlines any term and conditions are protected. Costs paid by the “ungulate” to “responsible” for the risks borne by the so-called “premium”. This is usually determined by the “responsible” for funds that can be claimed in the future, the administrative costs, and profits.

before it can be insured, the insurance company must consider the insurable interest and the selection. Insurable interest with regard to the relationship between the insured with the recipient charities/benefit – in the event of potential losses. For example, the insurance company will not sell fire insurance policy in addition to the building owners were insured. Insurable interest in this example is the ownership of something is insured. Similarly, family relationships, financial entanglement which reasoned, is also a form of insurable interest. Does anti selection (counter selection) refers to the existence of a greater tendency to get insurance because it has a level of risk is above average. For example, people who have a record of bad health or hazardous work tend to want to risk buying insurance. To reduce the effect of anti selection, insurance companies should be able to identify and classify potential risks or losses. The process of identification and classification of the level of risk it is called underwriting or risk selection. But that does not mean their insurance filing led to the selection of anti rejected, because for the insured with the risk of losses above the average can be charged the premium sub standard (special premium) due to the risk of sub standard (special risk) unless the damages are likely much higher, perhaps their insurance application denied.

insurance is an agreement in which the parties pledged to guarantee the parties are guaranteed to receive a sum of money in lieu of premium losses suffered by the insured, as a result of an event which has not been clearly occurred. From understanding it can be concluded that the insurers involved two parties: the party that guarantees loss and those who suffer losses.
Reviewed in terms of the legal economy, insurance is protection, thus held between private parties, in which the clearly stated a number of premium pay of certain parties (the insured), then the other party  agreed to provide when he suffered losses. understanding above can be inferred that insurance is a financial loss protection.
Abbas Salim A (1989: 33) States that the insurance in the economy i.e. the collection of donations from them in case something easy to master a particular event the amount desired to someone among them who to the possibility of the occurrence of the events.
that insurance is an agreement, whereby the parties chiefly with enigmatic a premium given him against the insured to free themselves from losses due to loss or absence of expected profits.
In the Outer Office of Education Training (1982: 23) explained that insurance is a way the transfer of risk from one party to another with premium as their bonds.
stated that the insurance requirement stating terms together is if the property insured amount (placed) is lower than a certain percentage of the market price of these objects at the time of the occurrence of a fire, then the company will bear the losses due to the  fire by coverage amount with a certain percentage of the market price of such property.

Basic principles of insurance

In the world of insurance there are 6 kinds of basic principles which must be met, namely:

* Insurable interest the right to insure, arising from a financial relationship, between the insured and insured with legally recognized.

* Utmost good faith an act to disclose accurately and completely, all the facts of material (material fact) about something that would be insured either solicited or not. Meaning: the person should honestly explain clearly everything about the breadth of the terms/conditions of insurance and the insured must provide a clear and correct description of the object or the interests placed.

Proximate cause A cause * active, efficient that led to a chain of events that led to a result in the absence of an intervention that began and actively from new sources and independent.

* A mechanism where the sharing of Indemnity provide financial compensation in an attempt to put the insured in a financial position to which he had just prior to the occurrence of damages.

* Requires rights of Subornation Redirects to the insured person after the claim is paid.

* Contribution Of the Ministers responsible for inviting other sharing the same bore, but not necessarily the same obligations toward the insured to provide indemnity.

Life is full of risks that are unexpected and unpredictable, therefore we need to understand about the insurance. Some natural events that occurred in recent years and takes a lot of sacrifice, both loss of life and property, such as reminding us of the necessity of insurance. For every Member of society, including the corporate world, the risk to experience unfortunately (misfortune) like this there are always. In order to overcome losses arising, humans develop mechanisms that today we know as insurance.

The primary function of insurance is as a mechanism to transfer risk (risk transfer mechanism), namely the transfer of risk from one party (the insured) to another party (the person). This does not mean the transfer of the risk of eliminating the possibility of misfortune, but rather the person providing financial security (financial security) and peace (peace of mind) for the insured. In return, the insured paying a premium in the amount is very small when compared to the potential losses which may be sustained.

Basically, the insurance policy is a contract is a legal agreement between the person (in this case the insurance company) with the insured, where the person willing to bear a number of disadvantages that may arise in future in exchange for payment (premium) of the insured.

If we are in a business environment and we are interested in the good way of running things, we are familiar with the idea of insurance and even with the fact that our business needs one. But from theory to practice there is a long way as people are often undecided whether to ask for a quotes or just hope for the best. Unfortunately the best is yet to come and in many cases we might find our business in jeopardy. But we cannot claim that we did not have the possibility of getting such a useful policy.

In choosing the proper business insurance the problem of quotes makes us think twice and be aware of all that is going on in the area of insurance and on the market of polices. In many cases the business insurance quotes can take the decision of going to a company or another. Most insurance agents are ready to offer good quotes and we might even feel that we pay a small amount of money for the services offered. But we need to make thorough research on the companies in order not to be tricked.

The insurance quotes are really important because they tell us what the price we need to pay is and if this sum of money offers us a great deal of advantages. If these conditions are not met maybe it is time to search for more.