INSURANCE

INSURANCE INTRODUCTION

To understand the meaning of insurance, you may already understand the outline enough. However, knowing the meaning in depth is also not wrong, you guys!

By knowing what insurance real means, we can better understand why we need this one instrument. Because it should also be acknowledged that most people are skeptical (lack of trust or doubt) because they don't really understand.

Insurance itself comes from the old French word "enseurance" which comes from the word "enseurer".

The word has the equivalent in English to be "ensure". The word "ensure" itself means "to ensure" or "guarantee" in English.

In its development, the word "enseurance" was then absorbed into "ensurance" in Old English.

It was only around the 1800s, that the word was pronounced as "insurance". In Indonesian, the word translates to “insurance”.

Well this time

DEFINITION OF INSURANCE ACCORDING TO THE EXPERT

Insurance is a form of agreement between the insured and the insurer. The insured will have to pay dues to the insurer. The goal is to obtain compensation for financial risks that may occur.

According to M. Nur Rianto (2012:212) insurance is a protection mechanism for the insured if he experiences a risk in the future

will come where the insured party will pay a premium to get compensation from the insurer.

Julius R. Latumaerissa (2011:447) defines insurance as an agreement in which there is an insured party who pays a premium to the third party.

the insurer to get reimbursement because of a desire, damage, or loss of expected profits which are unlikely to occur in the future.

Meanwhile, according to Ktut Silvanita (2009:40) insurance is a request where one party has an incentive to transfer risk by paying a certain amount of funds to avoid the risk of losing some assets it has.

Insurance according to Undang-UndangNOMOR 40 TAHUN 2014 TENTANG PERASURANSIAN is an agreement between an insurance company and a policyholder which forms the basis for receiving premiums from the insurance company in return for:

a. provide compensation to the insured or policyholder due to loss, damage, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event; or

b. provide payments based on the death or life of the insured with benefits whose amount has been determined and/or based on the results of fund management.

From some of these definitions, it can be concluded that insurance is a mechanism for protecting assets owned in which there is an insured party who pays a certain amount of funds to the insurer to obtain compensation for risks that may occur in the future.

The insurer is an insurance company. Meanwhile, the insured is the customer or the owner of the insurance. There are 3 main elements in it, namely policies, premiums, and insurance claims.

The policy is a document that states the agreement between the two parties. The contents are in the form of benefits, premium amount, risks, and so on. Meanwhile, premiums are contributions that customers have to pay within the agreed period.

A claim is a formal submission to an insurance company when a risk occurs. The terms of any risk that can be covered have been written in the policy. So, if a disaster is included in the agreement, then you can rely on insurance to lighten the burden.

The insurance business is a business activity engaged in:

Insurance or risk management services.
Risk reinsurance.
marketing and distribution of insurance products or sharia insurance products.
Consulting and intermediary for insurance, sharia insurance, reinsurance, or sharia reinsurance, or
Insurance loss appraiser or sharia insurance.

The insurance business is carried out by:

1. Insurance Company:

a. General Insurance Company is a company that provides risk coverage services that provide compensation for losses, damages, costs incurred, lost profits, or legal liability to third parties that may be suffered by the insured or the policyholder due to an uncertain event.

b. Life Insurance Company, is a company that provides services in risk management that provides payments to policyholders, the insured, or other entitled parties if the insured dies or remains alive, or other payments to policyholders, the insured, or other parties who are entitled to a certain time as stipulated in the agreement, the amount of which has been determined and/or is based on the results of fund management.

c. Reinsurance Company, is a company that provides services in reinsurance against risks faced by Loss Insurance Companies, Life Insurance Companies, Guarantee Companies, or other Reinsurance Companies.

2. Insurance Business Support:

a. Insurance Broker Company, is a company that provides intermediary services in insurance coverage or sharia insurance and handles insurance compensation settlements by acting for the benefit of the insured.

b. Reinsurance Brokerage Company, is a company that provides intermediary services in reinsurance placement and handling of reinsurance compensation settlement by acting on behalf of insurance companies, guarantee companies, and reinsurance companies.

c. Insurance Loss Appraisal Company, is a company that provides assessment services on claims and/or consulting services on the insured object of insurance