Basic Principles of Insurance
The insurance industry, both general insurance and life insurance, have principles that guide the entire implementation of the activities of insurance anywhere
1. Insurable Interest (interest insured)
You are said to have interest in the subject matter insured if you suffer financial loss in case of a calamity that caused loss or damage to the object. Financial interests allows you insure your property or interests. In the event of disaster for the insured object and prove that you do not have any financial interest of the object, then you are not entitled to receive compensation.
2. Utmost Good Faith (Honesty Perfect)
What it means is that you are obliged to inform clearly and carefully about all the important facts relating to the subject matter insured. Even this principle to explain the risks that are secured or exempted, all terms and conditions of coverage are clearly and accurately. The obligation to provide essential facts are valid:
• Since the agreement concerning the insurance agreement is finished talking to the insurance contract was made, namely when we approve the contract.
• At the time of renewal of insurance contracts.
• In the event of a change in insurance contracts and about the things that have anything to do with those changes.
3. Indemnity (Indemnitas)
If the object to be affected, causing insured losses then we will give compensation to restore your financial position after the loss to be the same as immediately before the loss. Thus you are not entitled to damages greater than the harm you suffered. Example: The market price of 100 million vehicles, were insured for 100 million rupiah. In the event of disaster so that the vehicle is:
1. Lost, and the market price of the vehicle when it:
o 100 million dollars, then you receive an indemnity of 100 million rupiah,
o 125 million dollars, then you receive an indemnity of the insured value of 100 million rupiah,
o 75 million dollars, then you receive compensation at market price, which is 75 million rupiah.
2. Damage caused by accident, then the cost of repairs, replacement of spare parts, workshop fees will be entirely our responsibility so that a maximum of 100 million rupiah.
Some of the indemnity payment accepted:
• Payment by cash, or
• Repair, or
• Replacement, or
• Recovery again.
4. Subrogation
The principle of subrogation provided for in section 284 of Act Book of Commercial Law, which reads: "If an insurer has paid full compensation to the insured, the insurer will replace the position of the insured in all respects to sue third parties who have caused harm to the insured." In other words, if you experience losses due to negligence or a third party then we are, after providing compensation to you, will replace you in filing claims to third parties.
5. Contribution
You can only insure yanga same property with several insurance companies. But in the event that insured losses from the object then automatically applies the principle of contribution. Contribution principle means that if we had paid full compensation to your right, then we have the right sue other companies involved an insured (jointly-owned property insurance to cover you) to pay the losses of the magnitude of each comparable with total coverage of the closing. Example: You insure single unit residential buildings for 100 million dollars to the three insurance companies:
Insurance A =Rp 100,000,000.00
Insurance B =USD 50,000,000.00
Insurance C =RP 50,000,000.00
Total =200,000,000.00
When the building burned down (total loss) then the maximum compensation you get from:
Insurance A =(100,000,000 / 200,000,000) x 100 million = Rp. 50.000.000,00
Insurance B =(50,000,000 / 200,000,000) x 100 million = Rp. 25.000.000,00
Insurance C = (50,000,000 / 200,000,000) x 100 million = Rp. 25.000.000,00
Total = Rp 100,000,000.00
Means the amount of compensation you receive from the 3rd insurance company is not USD. But USD 200,000,000.00. 100,000,000.00 accordance with actual housing prices.
6. Proximate Cause (proximal movement)
If the interests of the insured suffered natural disasters or accidents, then first of all we will search for the causes of an active and efficient that drives an uninterrupted sequence of events that eventually came to pass disaster or accident. A principle that is used to find the cause of loss of active and efficient is: "Unbroken Chain of Events" is a series chain of events that are not broken. For example, the case of personal accident claims the following:
• A person driving a vehicle with high-speed toll diajalan so out of control and overturned cars.
• Victims of serious injuries and was taken to the hospital.
• Not long after the victim died.
From these events is known that the movement is a victim proksimalnya driving at high speed so the car out of control and overturned. Through the proximal movement will be known whether the cause of the disaster or accident insurance policy is guaranteed in the condition or not?
The insurance industry, both general insurance and life insurance, have principles that guide the entire implementation of the activities of insurance anywhere
1. Insurable Interest (interest insured)
You are said to have interest in the subject matter insured if you suffer financial loss in case of a calamity that caused loss or damage to the object. Financial interests allows you insure your property or interests. In the event of disaster for the insured object and prove that you do not have any financial interest of the object, then you are not entitled to receive compensation.
2. Utmost Good Faith (Honesty Perfect)
What it means is that you are obliged to inform clearly and carefully about all the important facts relating to the subject matter insured. Even this principle to explain the risks that are secured or exempted, all terms and conditions of coverage are clearly and accurately. The obligation to provide essential facts are valid:
• Since the agreement concerning the insurance agreement is finished talking to the insurance contract was made, namely when we approve the contract.
• At the time of renewal of insurance contracts.
• In the event of a change in insurance contracts and about the things that have anything to do with those changes.
3. Indemnity (Indemnitas)
If the object to be affected, causing insured losses then we will give compensation to restore your financial position after the loss to be the same as immediately before the loss. Thus you are not entitled to damages greater than the harm you suffered. Example: The market price of 100 million vehicles, were insured for 100 million rupiah. In the event of disaster so that the vehicle is:
1. Lost, and the market price of the vehicle when it:
o 100 million dollars, then you receive an indemnity of 100 million rupiah,
o 125 million dollars, then you receive an indemnity of the insured value of 100 million rupiah,
o 75 million dollars, then you receive compensation at market price, which is 75 million rupiah.
2. Damage caused by accident, then the cost of repairs, replacement of spare parts, workshop fees will be entirely our responsibility so that a maximum of 100 million rupiah.
Some of the indemnity payment accepted:
• Payment by cash, or
• Repair, or
• Replacement, or
• Recovery again.
4. Subrogation
The principle of subrogation provided for in section 284 of Act Book of Commercial Law, which reads: "If an insurer has paid full compensation to the insured, the insurer will replace the position of the insured in all respects to sue third parties who have caused harm to the insured." In other words, if you experience losses due to negligence or a third party then we are, after providing compensation to you, will replace you in filing claims to third parties.
5. Contribution
You can only insure yanga same property with several insurance companies. But in the event that insured losses from the object then automatically applies the principle of contribution. Contribution principle means that if we had paid full compensation to your right, then we have the right sue other companies involved an insured (jointly-owned property insurance to cover you) to pay the losses of the magnitude of each comparable with total coverage of the closing. Example: You insure single unit residential buildings for 100 million dollars to the three insurance companies:
Insurance A =Rp 100,000,000.00
Insurance B =USD 50,000,000.00
Insurance C =RP 50,000,000.00
Total =200,000,000.00
When the building burned down (total loss) then the maximum compensation you get from:
Insurance A =(100,000,000 / 200,000,000) x 100 million = Rp. 50.000.000,00
Insurance B =(50,000,000 / 200,000,000) x 100 million = Rp. 25.000.000,00
Insurance C = (50,000,000 / 200,000,000) x 100 million = Rp. 25.000.000,00
Total = Rp 100,000,000.00
Means the amount of compensation you receive from the 3rd insurance company is not USD. But USD 200,000,000.00. 100,000,000.00 accordance with actual housing prices.
6. Proximate Cause (proximal movement)
If the interests of the insured suffered natural disasters or accidents, then first of all we will search for the causes of an active and efficient that drives an uninterrupted sequence of events that eventually came to pass disaster or accident. A principle that is used to find the cause of loss of active and efficient is: "Unbroken Chain of Events" is a series chain of events that are not broken. For example, the case of personal accident claims the following:
• A person driving a vehicle with high-speed toll diajalan so out of control and overturned cars.
• Victims of serious injuries and was taken to the hospital.
• Not long after the victim died.
From these events is known that the movement is a victim proksimalnya driving at high speed so the car out of control and overturned. Through the proximal movement will be known whether the cause of the disaster or accident insurance policy is guaranteed in the condition or not?
Insurance Objectives
• Provide assurance of protection from the risks of loss suffered by one party.
• Improve efficiency, because it does not need to specifically hold the security and supervision to provide protection that takes a lot of energy, time and cost.
• Equitable cost, that is enough just to spend a certain amount and do not need to replace / pay for their own losses which amount is not necessarily and uncertain.
• A foundation for the bank to grant credit because the banks require collateral protection of the collateral provided by borrowers.
• For savings, because the amount paid to the insurance company will be returned in greater numbers. This is especially true for life insurance.
• Closing the Loss of Earning Power an individual or business entity at the time he was not able to function (work)
refference
http://www.fiskal.depkeu.go.id/webbkf/kajian%5Casuransisyariah.pdf
