THE PRINCIPLE OF INSURANCE AND THE PRODUCT

A. THE PRINCIPLE OF INSURANCE

There are some basic principles of insurance is very important that must be filled either by the insured and the insurer for the contract / agreement applicable insurance (not canceled). The PRINCIPLE  OF INSURANCE   will be explained as follows:

a.       THE PRINCIPLE OF GOOD FAITH

b.      THE PRINCIPLE OF INTEREST TO THE INSURE.

c.       THE PRINCIPLE OF INDEMNITY.

d.      THE PRINCIPLE PF SUBROGATION.

            e.       THE PRINCIPLE OF CONTRIBUTION. 

            f.       THE PRINCIPLE OF CAUSE AND EFFECT.

B. INSURANCE PRODUCTS

a. Insurance Closing.

The coverage for loss due to damage or obliteration insured property due cause - a cause or event insured (because - cause or danger - the danger referred to in the contract or insurance policy). In general insurance, the insurer receives the premium from the insured and the event of damage or obliteration of the insured property, the compensation will be paid to the insured.

b. Life insurance

Closing the coverage to pay some compensation for death or survival of a person within the period of insurance.

In life insurance, the insurer receives the premium from the insured and if the insured dies, the benefit (sum assured) is paid to the beneficiary or a person designated as a recipient of benefits under the policy.