Understanding Insurance 09

CLASSIFICATION OF INSURANCE COMPANIES

Based on the classification of insurance companies located in Indonesia, can be grouped as follows:

1. According to an insurance company branches

     a.    General insurance (loss) on property and fire.

    b.    Insurance miscellany of marine insurance, accident, car insurance, and theft.

    c.    Life insurance is about death and disability.

2. According to John H. Magee (Abbas A. Salim, 1985, p.. 1)

    a.    Social Insurance (social security) is a compulsory insurance which indicated that any person or resident

           must have in order to have security for old age (Old Age). Carried out with such force to cut salaries. 

           Other social security treatment of the sick, accident.

    b.    Voluntary insurance is an insurance that carried no force.

    c.    Government insurance is an insurance run by government

    d.    Commercial insurance is insurance that aims to protect a person or family as well as companies from

            the risks that may cause harm. While the insurance company's objectives in this regard is to make

           a profit.

Understanding Insurance 08

TARGET INSURANCE

Micro-economic actors (Domestic) and macro-economic actors (World Business and Government) that have a desire to reduce the likelihood of losses that are not known for certain in the future through insurance business.

Understanding Insurance 07

PURPOSE OF INSURANCE

The purpose of the community as a customer insurance companies to reduce certain risks (eg death) and possible (eg accident) occurred in the community with a means of taking the risk on insurance companies or the risks that occur in society will be borne by the insurer. The objective in detail, namely:

1.  The coverage can be avoided losses that would provide certain benefits in the form of reduced losses and reduced costs related to insurance coverage.
2. Prevention and protection to minimize the losses that occur can be pengeliminiran causes that may cause harm, protection of the product or person to be harmed, harm reduction, and protection for products that have been damaged are not getting damaged.
3. Provide certain benefits to the community who follow the insurance because by knowing the amount of risk that happen to know the amount of losses suffered.

Understanding Insurance 06

OBJECT INSURANCE
 

Object is the object of insurance and services, body and soul of human health, legal liability, and all other interests that could be lost, damaged, compensation and / or diminished their value

Understanding Insurance 05

PROHIBITION OF THE INSURANCE BUSINESS

 

1. Insurance Broker Company, are prohibited from placing insurance coverage on insurance companies that do not have permission
2. Insurance Broker Company, are prohibited from placing insurance coverage to an insurance company as an affiliate of the insurance brokerage firms in question, unless the prospective insured has been aware of any such affiliation
3. Insurance Loss Appraisal of the Company, are prohibited from assessing insurance objects are insured with insurance companies as an affiliate of the company concerned insurance loss adjusters
4. Actuarial Consultant Company, prohibited from providing services to insurance companies as an affiliate of the relevant actuarial firm
5. Insurance agents, are prohibited from acting as an agent of an insurance company that has no business license

Understanding Insurance 07

PURPOSE OF INSURANCE

The purpose of the community as a customer insurance companies to reduce certain risks (eg death) and possible (eg accident) occurred in the community with a means of taking the risk on insurance companies or the risks that occur in society will be borne by the insurer. The objective in detail, namely:

1. The coverage can be avoided losses that would provide certain benefits in the form of reduced losses and reduced costs related to insurance coverage.
2. Prevention and protection to minimize the losses that occur can be pengeliminiran causes that may cause harm, protection of the product or person to be harmed, harm reduction, and protection for products that have been damaged are not getting damaged.
3. Provide certain benefits to the community who follow the insurance because by knowing the amount of risk that happen to know the amount of losses suffered.

Understanding Insurance 04

SCOPE OF INSURANCE BUSINESS

 

1. Insurance company can only organize the business in general insurance including reinsurance.
2. Life insurance company can only conduct business in life insurance, health insurance, personal accident      insurance, annuity business, as well as a pension fund management institution in accordance with laws and regulations.
   
3. Reinsurance company can only organize a re-insurance business.
   
4. Insurance brokers to conduct business only with the act represents insurance companies in the context of transactions relating to insurance contracts.
   
5. Reinsurance brokers to conduct business only with the act represents a reinsurance company in the context of transactions relating to reinsurance contracts.
   
6. Insurance company loss adjuster can only organize a service business valuation losses against loss or damage that occurs in object insurance.
   
7. Actuarial consulting firm may only conduct business in the field of actuarial services.
   
8. The company can only organize insurance agent insurance marketing services for insurance companies who have permission of the Minister of Finance of the Republic of Indonesia.

Understanding Insurance 03

TYPE OF BUSINESS

Type of business insurance are:

1. General insurance business, provide services in risk control against loss, loss of benefits, and legal liability to third parties arising from events uncertain.
2. Life insurance business, provide services in risk reduction associated with the life or death of an insured person.
3. Reinsurance business provides services in insurance coverage against the risks faced re-insurance companies and insurance companies.

Types of supporting insurance business consists of:

1. Insurance brokerage business, providing services keperantaraaan in handling insurance coverage and indemnity insurance settlement by acting for the interests of the insured.
2. Reinsurance brokerage business, providing services keperantaraaan in reinsurance and indemnity reinsurance handling of the settlement by acting for the interests of insurance companies.
3. Business insurance loss assessment, provides an assessment of the losses on the object of insurance.
4. Actuarial consulting business, providing actuarial consulting services.
5. Business insurance agents, providing brokerage services in the marketing of insurance services for and on behalf of the insurer.

Understanding Insurance 02

BUSINESS INSURANCE

Insurance business is a business activity engaged in insurance business and supporting business insurance.

1. Business insurance is a financial services business who collect funds from the public through insurance premiums by providing protection to members of the public service users insurance against possible losses due to something that is not inevitable or against life or death of someone. Form of compensation in the form of insurance payments to service users unfortunately insurance.
2. Supporting insurance business is a business that provides services for brokerage, insurance loss appraisal, and actuarial services to support business activities of insurance companies in insurance activities.

Understanding Insurance 01

According to Republic Act No. 2 of 1992 on Insurance Business, Insurance or coverage is
agreement between two or more parties, where the insurer is binding to the insured, by accepting the insurance premium which aims to provide:

 
1. Reimbursement to the insured for loss, damage, or loss of expected profit.
2. Legal liability to third parties that may be suffered by the insured, arising from an event that is uncertain.
3. Payment of money based on death or life of an insured person.

While business insurance is a form of non-bank financial institutions which promised protection to the insured (the insured party something) so if anything happens to the insured in the future, the insured will get the money to change (reduce) the loss of the insurer (insurance agency).

About Insurance

There are various types of insurance, of insurance you should take the law, such as car insurance, with policies that it's a good idea to have for those who are 'nice to have' rather than necessity.

When you take an insurance policy, then you have to pay premiums to your insurance company. If you have never filed a claim, then you never get the money back, but the money was collected with a premium of others who have taken insurance with certain companies.

but the idea behind insurance is that everyone pays the money, knowing that only some of them will need to file a claim. If you have to make a claim, the money that comes from your pool of other policies and premiums.

There are two kinds of insurance are life insurance and general insurance.

Another principle applies to all types of insurance:

Insurance can provide compensation only for the value of assets. He could not cover the entire value losses, losses may not be accidental and not inevitable. Obviously, you can not buy fire insurance for homes that have been burned as well as life insurance for someone in his bed.

There are some risks which have financial implications so large that they can be handled only by the state. These risks (mainly arising from war or the major escape of nuclear or radioactive material) is usually not covered by insurance.