sum insured insurance | The determination of the insured | insurer may affect the third party

 

                                                  The Sum Insured types2

                                          

Sum-Insured-types

The determination of the insured capital corresponds to the policyholder;

                                                                The decision on the amount of the insured capital generally corresponds to the policyholder, although there are exceptions, such as in compulsory automobile insurance in which the amount of the insured capital is fixed by a legal provision, or in the provision of services, in which the valuation of their economic cost is made by the insurer.

                                      The policyholder is, therefore, the one who decides the value to be imputed to the goods insured in the insurance on things, the patrimonial loss to which is exposed in the case of insolvency of the debtor in the credit insurance, the capital or income that you want for your life insurance, etc.

                              The capital a determination may be correct, coinciding with the real value of the interest, or erroneous, in which case the consequences of the underinsurance would fall on him.

                 It is therefore very important to know the criteria that must be taken into account to determine the insured capital that must be included in the policy. The criteria to be followed, depending on the case, are the following:

                                 > In the insurance of things in which you want to insure the value real of the insured assets, as a general rule, the policyholder should assess them using the same criteria that later will serve at the time of the loss, because in this way the fixation of the capital will be correct.

               In these insurances, it must be taken into account that what indemnify the company will be the value in use at the time prior to the loss and therefore the value of the goods but their depreciated value based on their state of conservation.

                                   > In things, insurance coverage can also be established based on the so-called "replacement value", which will have in consideration of the replacement price of the damaged item, for another of the same or similar state of operation and conservation.

                                      > In the loss of profit insurance, the insured sum usually corresponds to the overhead costs of the insured company.

                                         > In liability insurance, the sum insured will be equal to the maximum claim that is estimated to be suffered by the policyholder. As this is difficult to foresee, in many cases, these insurances are established for an unlimited amount.                                   

         > In personal insurance, the amount of the insured capital.

In personal insurance, the amount of the insured capital will coincide with the wishes of the policyholder in order to the benefits that the beneficiary wishes to receive if the events that affect the person of the insured provided in the policy occur, and their economic possibilities.

                            Taking into account the importance it has for full coverage of the correct determination of the insured capital, it is also necessary to update it over time. Often, therefore, insurance companies propose a review of the insured capital.

                                In many policies, on the other hand, procedures are introduced automatic updating of the insured capital, for example, following the price index, in order to keep them updated.

                            In insurance for the provision of services, the increase in their cost it will also be taken into account by the insurer to update the price of the insurance.

 

A different way of determining the insured capital in property insurance and personal insurance;        

                                                                  While in the insurance of things the insured capital must correspond to the real value of the insured property, in some personal insurance there is no possibility of objectively evaluating said real value for example, in life insurance in the event of the death of the insured - and therefore the insured capital is set independently and voluntary by the insured, that is, subjectively.

            In the former, therefore, the principle of compensation governs, that is, compensation for damages suffered, while the latter does not apply the principle of reparation.

 

          The insurer may affect the third party responsible;             

                               Once the compensation has been paid by the insurer, it can exercise the rights and actions that due to the loss corresponds to the insured in front of the persons responsible for it.

                The insurer can recover, in this way, claiming the third party that, where appropriate, is responsible for the loss. The recovery limit for the insurer is the value of the compensation.

     INSURANCE FORMULAS BASED ON THE SUM INSURED;

                    We can distinguish the following: 

                     Full value insurance;         

                                                            It is the most common formula. The full and the total value of the set of assets to be insured.

                In turn, this type of insurance can be contracted in the following modalities:

 

A real value;       

                          The goods are insured for their real value, as we have already commented in the previous section. In this case, three situations:

                                          That the insured value is equal to the real value, in which In the event of a claim, there would be sufficient compensation and adjusted to damage. It is also possible that the insured value is lower than the actual value. This situation is called underinsurance and gives place to the application of the proportional rule as we will see in the next section. Finally, over-insurance can occur when the insured value is higher than the real value. In this case, the compensation limit coincides with the real value and the return to the policyholder of the excess premium paid for it.