THE TERMS IDEAL TO BE INSURED
Insurance is created when a person or a company move their risks on the insurer. As a specialist insurer risk, insurance companies better able to foreseen the losses – losses instead of each insured. In addition, because he took the risk group of the insured and not the one, then his predictions were more reliable than individual forecasts. However, a tool called this insurance is not appropriate for all risk. as has been described previously, the speculative risks cannot be insured. Who can be insured risk is simply pure. But many are also pure risk because otherwise, cannot be insured.
The risks can be insured shall meet the following requirements:
1 potential Losses) is quite large, but the probability is not high, thus making insurance against it economically possible (viability).
2) probability of losses can be taken into account.
3 there are a large number of units) that are open to the same risks (and homogen mass).
4) losses that occur are a coincidence.
5) certain Disadvantages.
Economical Feasibility
To as an economically, then insurance losses that might occur must be large enough for the insured, whereas the cost of insurance do not too high compared to the possibility of such damages. If the possibility of that loss is not big enough for the insured, then they will not be interested in moving the risk to the insurer. A lot of the risk of being arrested by the insured and not insured because of the possibility of such damages are small so there is a burden.
Example, you certainly don't want to lose a valuable pens IDR 2000.00
but you will not intend this risk because insuring losses is not big
enough.
In addition to the possibility of losses it is large enough for the insured, it should also be quite large compared with the amount of premium. If the insurer paid losses plus operating costs equal or almost equal to the possibility of the loss, then the insurance was not economically feasible (may be, worthy). If the probability of loss is high, then budgeting better than insurance. That's why insurance companies selling certain types of insurance, only on the basis of deductible (reduction). An example is the automobile physical damage insurance. Deductible negate the claim against the loss – a loss that little such probability is high, so the premium for close it will be very large. Insurance that's best suited to the risk of possible loss is great but the probability is low. Big loss was important for insured because he was carrying it, while the low probability that allows a relatively small premium compared to the possibilities of it.
