Insurance | insurance definition | personal insurance

 

                           

ECONOMIC, SOCIAL AND LEGAL NATURE OF

SURE;

             insurance is an institution in that a person who is exposed to a risk pool their resources in a common fund to face the negative economic consequences that will occur for those in which the event constituting the risk actually occurs.

            Insurance does not prevent the existence of the risk or the occurrence of the risk, but by combining the economic resources of all those exposed to risk, the losses suffered by a few can be compensated.

              In this way, the premiums paid by each insured are combined in a fund managed by the insurer that allows the payment of claims. Hence the importance of knowing the risks, studying them, and grouping them into homogeneous classes - classifying them - to determine the probability of occurrence and that a premium proportionate to the risk of each one can be established.

                   Along with this concept as a private institution of an individual and economic nature, insurance also has a social component, as it is an instrument for diluting the economic losses that occur to a few out of the community as a whole.

               From the legal point of view, it is implemented as a contract, by which one of the parties, the insurer, assumes the consequences of the decrease in risks in exchange for a price - premium - that the other party pays.

              From this point of view, insurance consists of the transfer of risk to which a person is exposed, to another, which        is   the entity insurance carrier. Insurance, in this sense, is a bilateral contract whereby risk is transferred in exchange for a price.

              Insurance is defined as an institution of a socio-economic nature, legally regulated, which intends to dilute among the persons exposed to risk the economic value of the losses that occur to its members as a result of the occurrence of the same, and as a risk transfer contract to the insurance entity, the main issue to be resolved is the determination of the price or fee to be paid by each person to the common fund or insurance the entity in order that its amount is sufficient and adjusted to the risk to be covered.  

                                     

                Given the importance of this topic, we will dedicate to it within this work, but first, 

 

INSURANCE CLASSES;

                                               In addition to the differentiation of insurance into two classes, insurance Public and private insurance, we can also distinguish different classes of insurance based on various factors.

Thus we can distinguish between indemnity insurance or insurance benefit;

                                  OR between insurances in which the insurer's benefit is defined in monetary terms and those in which the benefit consists of service.

                 Now we are interested in studying the different kinds of insurance that They can be given, depending on the type of risk they cover, that is, depending on the object of the insurance.

 

·       personal insurance

·       damage insurance or on things

·       property or liability insurance

               The first, personal insurance, covers risks that affect people. The second, to risks that affect the assets, and the third to risks that can cause a loss in the assets of the person exposed to the risk.  

             We will see below the main characteristics of each of these groups and they're main modalities.

            

                                    types of insurance

PERSONAL INSURANCE;

                                    

personal-insurance

                                            Personal insurance includes those that cover risks that may affect the existence, personal or functional integrity, or the health of a person or a group of people.

       Therefore, the following are included within the concept of personal insurance:

                                     > Insurance on risks that affect the existence of people. It's life insurance.

                                      >  Insurance on risks that affect bodily integrity or functionality of people. They are disability insurance, injuries in the event of an accident, etc

                                      >  Insurance on risks that affect people's health. They are health insurance.

           The characteristic that distinguishes the insurance that covers the risk of The life of other personal, damage, and property insurance is the absence of the compensation principle, which is replaced by an agreed benefit. In other words, life insurance does not intend to repair or compensate the real economic damage or loss that occurs due to the occurrence of the risk, if not to provide, on the part of the insurer, the insured amounts or the provision of the arranged service. On the other hand, in other personal insurance, as well as in damage and property, the benefit always consists of the repair of a real economic loss. We will see below the most important classes of personal insurance.

 

Life insurances;

                                   

life-insurance

                             Life insurance covers the risk of a person  living or not living, providing the insurer with an economic benefit in the event that the insured event occurs within the agreed period.

                                     The risk covered by the insurance is homogeneous and variable (since the probability of death increases with age).

                                    We can distinguish three groups of life insurance:

                   >   Those that cover the risk of death of the insured. I know called life insurance, properly speaking, life insurance for death, death insurance, or risk insurance. For example, the payment of capital to the beneficiary in the event of the death of the insured within the term of the sure.

                      > Those that cover the risk of survival of the insured. I know called survival or savings insurance. For example, his payment by the insurer of a retirement income, if the Insured person lives on a certain date and for as long as he or she lives.

                          > Mixed insurance, which includes guarantees in the event of death and in case of life, jointly.

 

Disability insurance;

                                 

disability-insurance

                                        They are also called disability, and come to cover the risk of that, as a consequence of an accident, or due to natural causes, produces a situation of disability of the insured. This can be total (for all work and for the development without the help of life) or partial (affecting an organ or limb), temporary (that can be recovered), or permanent (irreversible). It is, therefore, a heterogeneous and variable risk.

           Disability insurance is generally contracted together with insurance life or accident coverage, referring in this second case to disability as a result of an accident.