sum insured | The Insured Interest | Capital

 

                     The Sum Insured

                                                                      

sum-insured

 

THE INSURED INTEREST;

                                              In order for risk coverage to be carried out through insurance, the person exposed to risk must have an interest in the thing to be insured or, in the case of personal insurance, in the insured person.

              The insured or insurable interest is understood to mean "the relationship" that has to mediate between the insured and the thing (or person) exposed to the risk, according to whose relationship, if the loss takes place, an economic loss or injury will occur, either directly, if the consequences of the loss fall on his own person or patrimony (case of the owner or the insurance on his own life), either indirectly if in any way he has an interest or responsibility in what is damaged or destroyed (as responsible for his conservation, if it is a depositary, for example, or as a creditor, or as a usufructuary).

                  The interest must exist for the insurance to be contracted, because if there is no interest exposed to damage, it would be indifferent to the policyholder that the claim occurs.

                     The interest must be lawful and therefore derive from property or responsibility for the thing, and must also be assessable financially, in order to be able to value it for insurance purposes.

                        In personal insurance, the interest must be had by the policyholder and the consent of the insured is required, presuming the existence of the interest when insurance is taken out on one's own life, on the life of relatives or related persons (for example, for employees of a company) or when there is an economic interest (for example, from the creditor).

                         Insurance contract... is void if at the time of its conclusion there is no interest of the insured in compensation for damage. If the interest disappears once the insurance is contracted, this is cause for termination of the policy ".

The value of the interest is also the limit of value by which you can take out insurance, in order to avoid enrichment due to Sinister. The Insurance Contract Law indicates, in this sense, that "for the determination of the damage, the value of the insured interest will be taken into account at the time to the claim, since that will be the actual damage suffered by the holder of the interest.

 

 

THE CAPITAL OR SUM INSURED;            

                                                             The insured capital is the economic value in which the interest of the insured is evaluated. Said capital appears in every insurance policy, as the limit value of coverage that will be paid by the insurer in the event of a claim.

                                 The insured capital can be a determined,   determinable figure, Fixed or variable, or consist of the provision of a service.

                                  In most cases, the insured capital is an amount or sum, which corresponds to the value of the insured assets or the one that the policyholder wishes to contract in personal insurance.

                                   It can also be a determinable amount, depending on Reference figures, such as, for example, the amount of inventory in the warehouse, salaries paid, loss of rents in the event of a claim, etc.

                        When the capital is not fixed in the policy, but it is formulated According to its calculation method, the applicable premium will always be considered provisional, its amount being regularized once the exact amount of the insured capital is known. This is the case of the so-called "floating capital" policies, in which a minimum and maximum capital are set, which is adjusted a posterior based on the stocks actually stored, the goods transported, the trips made, etc.

                    There are types of insurance in which the insured benefit does not consists in the satisfaction of economic compensation, but in the provision of a service by the insurer. This occurs for example in travel assistance insurance, health care insurance, etc.

                      In these cases, the valuation of the insured sum is made by the insurer based on the estimated monetary cost of the insured service, in other words, there is always a monetary translation of the commitments assumed by the insurer, in accordance with the general principle of economic risk assessment.

                           The insured sum is stated in the policy. Therefore, it must include the capital or the system that will serve to determine it, or the scope of the coverage, stating the services that the insurer must provide in the event of a claim.

       In general, the following rules can be established so that it concerns the insured capital:   

 

         The insured capital constitutes the coverage limit;                   

                                     The insured capital constitutes the coverage limit for the insurer because if the insured capital is less than the real value, that will constitute the limit of the benefit to be satisfied because the price or insurance premium was calculated based on said insured capital. Likewise, in the event that the real value of the thing is less than the insured capital, the former will prevail, in order to avoid enrichment in the event of a claim.

                                  The sum insured represents the maximum limit of the compensation to be paid by the insurer in each claim. There can therefore be no enrichment due to the insurance.