INSURANCE AS A TOOL TO ADDRESS THE RISK OF
The word
"insurance" is sometimes used by people for funds in the spool to
overcome losses – losses that are not necessarily. For example, a store that
sells seasonal merchandise selling price increases at the beginning of the
season to gather funds to cover possible losses on the end time should be taken
down to spend the price of goods. Methods of overcoming the risk like this is
not insurance. Insurance requires more than just gather funds to cope with the
losses – losses is uncertain.
Sometimes
the transfer of risk is called insurance. A shop that sells television
promising aircraft servicing for a year free of charge and will be replacing
the picture tube when not matched. The seller may refer to this agreement as
this is indeed the transfer of insurance risk but not insurance.
The
definition of insurance
The insurance
shall cover both the gathering together the funds or the transfer of risk, but
not necessarily both. In addition, it must include the incorporation of a large
number of units – the unit of 30 separate and stand alone that the same common
risk into an interconnected group.
Insurance
itself can be defined as a social tool to reduce risk by combining units – the
unit amount is enough for 30 minutes to make their individual losses – losses
together can be foreseen. Losses which can be foreseen is then divided equally
between all those who join. This definition means that the uncertainty is
reduced and losses also divided equally. This is the most important pollen core
of insurance.
From the
point of view of the person who is covered, the insurance is a tool that allows
its swap (substitute) for a small fee (premium) and that is not necessarily a
big loss (up to a certain amount of insurance) under an agreement in which they
(the many) a lucky escape from a loss will help them (the slightest) who had no
luck with indemnify they suffered it.
Indemnity
(Indemnity)
The purpose
of the contract of insurance is to provide indemnity. Webster formulate
Indemnity as compensation or remuneration for losses or injuries suffered.
"therefore, the insurance policy does not provide payment if no losses
suffered, and payment for something limited losses up to the amount of that
loss. For example, if someone buys fire insurance Rp 75,000,000 for his
valuable Rp 50,000,000 and then sell the House within the validity period, then
the insurance policy he would not accept anything from insurance companies, if
the House was on fire, because he did not suffer a loss of anything. If the
House was destroyed on fire before he sold it, he would only receive Rp
50,000,000 because that's the amount of the loss.
Indemnity
(indemnity) is the only legitimate use for insurance, because otherwise the
transaction will be gambling and means contradict with the policy and the
State.
Insurance is
clearly different from gambling. Gambling poses risks, insurers reduce or
negate the risk. For example, before betting begins in a race there is no
possibility of loss, risk of lost or the new loss after betting. But the risk
of loss of property which exists against the possibility of a fire are reduced
or abolished by insurance. So gambling and insurance it is fighting.
