What is insurance?
An accident can happen to anyone. Before that can protect you only to a limited extent. Insurance protection but at least from the financial consequences that brings with it a misfortune.
They say you learn from your smart. But damage can also be very expensive. And they may occur in everyday life everywhere: your house is struck by lightning and burns off. You become ill and need expensive treatment. Or create by a brief inadvertence a car accident, and must pay all damage your accident opponent. The probability of such events is low. But when one enters, which can ruin a single person financially. Just before that protect insurance.
Insurance operate on the principle of solidarity. An individual can make a huge damage not carry alone. But a community can, by each carries a small part of the cost, and therefore one for the other stands for.
To stay with the example of lightning: The risk of a house fire after lightning strike is low, but every homeowner has. So close many homeowners together into a community and shoulders the risk together. For this purpose, everyone pays contributions into a common pot. The damage now actually occurs in a Member, the Community may pay the claim from the full pot. So work insurance.
Manage the common pots by the insurance companies. They lay down the conditions of insurance. Beware that the members pay their contributions so that they are entitled to the money in case of damage. Check claims, and pay as needed the funds from.
To make this work, risk of damage and loss amount in advance must be calculable. From the insurer can then calculate how much money should be in the common pot to pay could cause actual damage. And this in turn calculate the insurance contributions to be paid by each member. Plus a reserve for random clusters, plus the cost of the insurer, and plus a share of profits for the insurer.
This insurance is not misused (the famous "hot demolition"), there are exclusions, ie conditions under which non-pay insurance. These include in principle deliberately, and often damage caused by gross negligence.
You can take out insurance for every conceivable risk of professional and private life. Some insurance companies are indispensable to recommend some, others optional. So you should be well informed, which insurance companies offer what services, and which ones you need.
They say you learn from your smart. But damage can also be very expensive. And they may occur in everyday life everywhere: your house is struck by lightning and burns off. You become ill and need expensive treatment. Or create by a brief inadvertence a car accident, and must pay all damage your accident opponent. The probability of such events is low. But when one enters, which can ruin a single person financially. Just before that protect insurance.
Insurance operate on the principle of solidarity. An individual can make a huge damage not carry alone. But a community can, by each carries a small part of the cost, and therefore one for the other stands for.
To stay with the example of lightning: The risk of a house fire after lightning strike is low, but every homeowner has. So close many homeowners together into a community and shoulders the risk together. For this purpose, everyone pays contributions into a common pot. The damage now actually occurs in a Member, the Community may pay the claim from the full pot. So work insurance.
Manage the common pots by the insurance companies. They lay down the conditions of insurance. Beware that the members pay their contributions so that they are entitled to the money in case of damage. Check claims, and pay as needed the funds from.
To make this work, risk of damage and loss amount in advance must be calculable. From the insurer can then calculate how much money should be in the common pot to pay could cause actual damage. And this in turn calculate the insurance contributions to be paid by each member. Plus a reserve for random clusters, plus the cost of the insurer, and plus a share of profits for the insurer.
This insurance is not misused (the famous "hot demolition"), there are exclusions, ie conditions under which non-pay insurance. These include in principle deliberately, and often damage caused by gross negligence.
You can take out insurance for every conceivable risk of professional and private life. Some insurance companies are indispensable to recommend some, others optional. So you should be well informed, which insurance companies offer what services, and which ones you need.
What is insurance?
Reviewed by Unknown
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10:06 PM
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Reviewed by Unknown
on
10:06 PM
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