Understanding Insurance In Our Lives

Understanding Insurance In Our Lives
Insurance is a system for financial loss by channeling lower risk of loss of a person or entity to another ..

Insurance in Act 2 Year 1992 on business insurance is an agreement between two or more parties, with which the insurer is binding to the insured, by accepting the insurance premium, to provide reimbursement to the insured for loss, damage or loss of expected profit or legal responsibility to a third party which may be suffered by the insured, arising out of an uncertain event, or provide a payment based on life or death of an insured person.

Agencies that distribute risk called the "insured", and the agency receiving the risk is called "insurer". The agreement between the two bodies is called the policy: this is a legal contract that explains every term and condition of the protected. Fees paid by the "tetanggung" to "insurer" for the risks covered by so-called "premium". This is usually determined by the "insurer" for funds that can be claimed in the future, administrative costs, and profits.