Basic Principles of Insurance-7 Basic General Insurance Principles
Providing protection from any financial crisis and avoiding future uncertainty is the main thing of any insurance, which is naturally done according to the terms agreed with the insurer.
However, these activities are based on different principles and as you know "many people, many minds", the same can be said about insurance, because there are many types of insurance and many policies. However, among them we find several reverse principles, namely the number 7. Presented below.
A) The principle of higher conscience . Basically, this policy states that the insured and the insured's child/member must sign the contract in mutual agreement and mutual trust. What does it mean that the insured must protect the property of the insured and both must follow all laws without cheating on the other?
b) Unsecured interest policy . Well, as we can clearly see, this policy focuses on the insured getting the right amount of benefit from the insured, which is really the word. Insurance itself.
c) Compensation principle . This policy clearly states that both the parties i.e. the insurer and the insured come with the insurance terms for future safety and security. It's not just a business to be done, or a profit making, or a major business. This does not apply to life insurance, because a person's life cannot be guaranteed as long as he wants and cannot be compared to the security of the whole world.
d) Investment policy. This is a consequence of the penalty principle. This means that the insurance company may, under the terms of the contract, claim the amount of legal damage protection when they experience the actual problem that they promised to insure.
e) Ejection policy. Likewise, it results in an expensive part. This is when the insurance company pays them what they were counting on if their insured item were damaged. And when they receive the amount of the loss, the insurer becomes the owner of the property.
f) Damage reduction policy. Therefore, the policyholder must protect the loss and always try to limit the loss.
g) The principle of immediate cause. This is the simplest principle to understand. When an insured person is injured or an accident occurs, the most appropriate remedy is the immediate cause and it is reasonable to assume that the insurance company will get what they need or not.
There are different types of insurance in the world. All types of insurance have their own principles according to their nature. But everyone should follow some principles that are the same in all insurance policies.
However, these activities are based on different principles and as you know "many people, many minds", the same can be said about insurance, because there are many types of insurance and many policies. However, among them we find several reverse principles, namely the number 7. Presented below.
A) The principle of higher conscience . Basically, this policy states that the insured and the insured's child/member must sign the contract in mutual agreement and mutual trust. What does it mean that the insured must protect the property of the insured and both must follow all laws without cheating on the other?
b) Unsecured interest policy . Well, as we can clearly see, this policy focuses on the insured getting the right amount of benefit from the insured, which is really the word. Insurance itself.
c) Compensation principle . This policy clearly states that both the parties i.e. the insurer and the insured come with the insurance terms for future safety and security. It's not just a business to be done, or a profit making, or a major business. This does not apply to life insurance, because a person's life cannot be guaranteed as long as he wants and cannot be compared to the security of the whole world.
d) Investment policy. This is a consequence of the penalty principle. This means that the insurance company may, under the terms of the contract, claim the amount of legal damage protection when they experience the actual problem that they promised to insure.
e) Ejection policy. Likewise, it results in an expensive part. This is when the insurance company pays them what they were counting on if their insured item were damaged. And when they receive the amount of the loss, the insurer becomes the owner of the property.
f) Damage reduction policy. Therefore, the policyholder must protect the loss and always try to limit the loss.
g) The principle of immediate cause. This is the simplest principle to understand. When an insured person is injured or an accident occurs, the most appropriate remedy is the immediate cause and it is reasonable to assume that the insurance company will get what they need or not.
There are different types of insurance in the world. All types of insurance have their own principles according to their nature. But everyone should follow some principles that are the same in all insurance policies.
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