Definitions and types of insurance

Understanding insurance

In Indonesia, for a term frequently used term insurance coverage, the two terms seem to follow the terms in the Dutch language, ie Assurantie (insurance) and verzekering (insured). It stems from the Indonesian insurance in the Netherlands. In the UK used the term insurance and assurance that has the same understanding. Term insurance is used for insurance losses uuurance while the term used for life insurance.

Based radix Purba, understanding insurance terms of understanding the economy is Insurance is a financial institution because through insurance can gather large amounts of funds, which can be to finance the construction in addition to benefit the people who participate in the insurance business, because the real insurance aims to provide protection (protection ) for monetary damages (financial loss) caused by unforeseen events. (1992: 40).

According to article 246 the Code of Commercial Law (Commercial code), insurance has an idea as follows: Insurance or coverage is suafu approval, which the insurer losses themselves to the insured, to receive the premium, to compensate for loss of loss or of not obtaining an expected gain , which may be suffered due to events that are not known beforehand.

Definition of Insurance according to the Law of the Republic of Indonesia Number 2 Year 1992: "Insurance or the Insured is an agreement between two or more parties, with which the binding to insured to receive insurance premium, to reimburse the insured for loss, damage or loss of profits expected, or legal liability to third parties which may be suffered by the insured, arising from an uncertain events, or to provide a payment based on death or life of an insured person.

Kinds of Insurance

Insurance can be divided into several kinds, among others:

Two major branches of transport insurance, ie:

1. Marine Cargo Insurance.

2. Inland Marine Insurance.

Fire insurance is insurance that aim to protect from fire hazards.

Credit insurance, types of insurance credits, ie:

l. Accounts Receivable Insurance.

2. Deposit Insurance.

3. Loan Insurance.

4. Insurance Bonds.

5. Insurance Guarantee International business.

6. Merchandise Credit Insurance in the State.

Health Insurance, Interest cost of health insurance is paying hospital fees

treatment and mengsanti insured losses for the loss of income because of injury due to an accident or illness.

Social insurance is a tool to raise the risk of moving them to organizations that normally is a government organization, which is required by law to provide financial benefits or services to or on behalf of the insured person was in Wakfu occurrence of certain losses

has been designated.

Liability Insurance.

Liability insurance is insurance to protect the insured against losses arising from any third party claim due to the negligence of the insured.

Car insurance.

Car insurance is insurance that is used to protect the car as a result of an accident or loss.

Reinsurance.

Reinsurance is an insurance contract in which an insurance company to move all or part of the risk to another company. The main purpose of the insurance company that removes the risk is to protect themselves against losses in certain cases that exceed a certain amount.

Understanding Life Insurance

According to J. High Sianipar (1990: 5), the definition of insurance can be seen from the economic angle is a way / means of risk transfer from one person to another with their risk transfer is conducted through insurance, so if in the future there are losses suffered by a person due to the risks it faces, if any, referred transferable to another person, that is, to whom he has transferred the risk, so the complete definition of insurance is a contractual agreement between the insurer by the insured in the agreement which the insurer promises to replace any losses suffered by the insurer as a result of a risk that is mentioned in the agreement, where the risk of unknown or has not occurred at the time the agreement was held (uncertain). for agreeing

the insurer provides replacement as mentioned above, he received a relatively small amount of money called a premium.

Interest Life Insurance

1. Ensuring real suafu where the heirs can earn if

the head of the family died.

2. To save money as part of one's life estate held for income in the future.

The purpose of the first so-called protection or protection while the second is the need for savings.

Principles of Life Insurance

In principle, life insurance is a form of cooperation between people who want to avoid, or at least reduce the risk caused by:

a) The risk of death.

b) The risk of old age.

c) The risk of accident.

Life Insurance Products

Life insurance products are basically three:

1. Term Life Insurance (Term Life)

This insurance is a type of life insurance where we pay a certain amount to the insurance company, and the company will protect us for a certain period of risk of death. In the event of risk during that time period heirs We will receive the sum assured. If the period of time it was completed and

not a risk that the contract is finished and we will not get anything.

2. Life Insurance Dwi Guna (Endowment Life)

This type of insurance is similar to term life insurance is only the difference at the end of the insurance if there is no risk to us then we still get money

coverage.

3. Life Insurance (Whole Life).

This insurance is the same as insurance Dwi Guna only difference, waktumya term lifetime. It means we dirindungi forever (or until age 99 years).