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Archive for the ‘Insurances’ Category

unit linked investment instruments. Unit linked investment instruments is a fairly safe with the yield rate of investment is quite interesting. Safe enough, because on the unit linked there are elements of protection in the form of life insurance, so if there is a risk of life such as sickness, disability, or death, unit linked could provide benefits for holders of policy.
In addition to providing life insurance benefits, the rate of yield investment products is also interesting, although it will be very dependent on where the funds are invested. Funds or fund his investment portfolio for distinguished, namely in money markets, fixed income, balanced/mixed or equity. And differences in the investment portfolio is causing the yield and the risk level is also different between fund with one another.
Actually, the unit linked products is still relatively new in Indonesia, which began to develop around the year 2000s. However, with the development of the knowledge society on the investment unit linked products, more and more interest. Because, in addition to still provide protection, policy holder can enjoy the yield level in accordance with the conditions of the market, whether in the money market or capital market. Unit linked products this is itself a product of the development of mutual funds. The difference with a mutual fund, the unit there is a link element protestation. This is because the unit linked is a development of insurance products.

Mutual funds are investment products that are getting more and more known in Indonesia, since it was first published in 1996. Mutual funds is quite safe from the risks and the return on investment can be very interesting results. Why is this so? Since mutual funds are managed in a professional manner by people who their fields, that we know as deputy manager of the investment. Published mutual fund companies that have licensed as investment management company or commonly known fund manager or fund management company.
Like unit linked, mutual fund investment portfolio over the distinguished. In Indonesia there is a division of four types of mutual funds, money market mutual funds (money market fund), fixed income mutual fund (fixed income fund), mutual fund shares (equity fund), and the mutual fund of mixed (balanced or mixed fund). The level of risk and the returns on its investments among different fund-fund. The lowest level of risk and the returns are money market mutual funds and the most high level risks yet with the highest rate of return is the mutual fund shares. In addition to mutual funds which are already mentioned, there is now a special mutual funds such as mutual funds, structured (structured mutual fund), index mutual funds, mutual funds, foreign currency mutual funds, mutual funds, sectoral, local unit trusts and mutual funds ETF (exchange traded fund).
After mutual funds, then there’s the bond. Bonds can be divided according to the type and level of risk. Starting from government bonds are also known as ORI (Indonesia Retail Bonds) and corporate bonds. Corporate bonds yield or coupon give higher interest rates but lower levels of security. Bonds are typically rated by independent rating agencies that are known to fail to pay the level of risk (default risk) to what extent. Higher ranking  little risk.

Some less common example:

• Ensuring a part of the body . The legs , the chest , the nose , etc.
• Ensure a draw . If it pays out winning the insurer and unless the insurer has won out.
• Insurance car one day duration. For example vehicles which are driven past one or a few days a year.
• Real estate title insurance . Also known as title insurance, is a type of insurance created in the United States to protect any kind of purchase real estate or lien on property . According to Carlos Odriozola author of the first book written on the subject in the Castilian language “Real Estate Title Insurance, title insurance is an agreement of indemnity , as collateral for a major operation, which may be the sale or mortgage , the insurance agrees to indemnify the insured in the event that it had any loss resulting from actions brought by third parties.

In some cases it is required by law to have insurance such as:

• Insurance mandatory for vehicles, which is basic insurance sector wider car insurance
• Insurance for dogs considered dangerous .
• Insurance hunting .

Property damage insurance or surety , in such cases the government understands the danger of certain activities is sufficient to force the caller’s to take out insurance to protect third parties from harm that they cause. Other contracts may come bound by a prior contract. It is very unusual for a mortgage have to ensure the mortgaged property in favor of the creditor .

Types of insurance There are many kinds of insurance, but after doing an analysis of the classification are different authors on the subject, the more accurate classification is as follows: Security interests: On the subject: interest in an asset can be identified on a particular right to a good or derived from a well and above all the heritage . For the class of the insured .- may be over the interests of capital and interest of profit. Personal insurance: Strictly speaking, the human life insurance – insurance in case of death , survival , etc. Broadly, insurance covering an event that affects the health or bodily integrity. Cumulative Security: Those in which two or more insurance companies cover independently and simultaneously a risk . Full insurance: one in which you have included all the guarantees normally applicable to a particular risk . Group Insurance: That contract of insurance on persons , which is characterized by a single contract covering multiple policyholders who make up a community homogeneous. Supplemental insurance: one who joins another in order to provide the insured person in both a new warranty or extend the coverage preexisting. Accident insurance: He who seeks the provision of compensation for accidents involving the death or disability of the insured , because of activities covered by the policy . Travel assistance insurance: One sure toward resolving the effects of different nature that have arisen during a trip . Auto Insurance: The right for the provision of claims arising from accidents caused as a result of the movement of vehicles . Health insurance: It is that virtue, in the case of illness of the insured , is given a compensation previously provided in the policy . Fire insurance: One who guarantees the secure delivery of compensation in case of fire of property identified in the policy or repair or compensation for them. Insurance orphans: one who seeks the grant of a pension holiday for children under 18 years for death of father or mother who are financially dependent. Theft Insurance: One in which the insurer undertakes to indemnify the insured for losses suffered as a result of the disappearance of the insured. Transport insurance: One for whom an insurance company agrees to pay certain compensation as a result of damage incurred during transportation of goods. Life insurance: It is one in which the payment by the insurer of the amount stipulated in the contract is made ​​depending on the death or survival of the insured at a particular time. The range is very wide and may even negotiate contracts not covered by insurance .

Insurance being an issue that affects the whole community, and that is directly connected with the welfare of this and whose base is essential to confidence and credit. The entities that wish to act as insurers will require a double set of formalities as well as legal and economic entity’s obeying those who want to be to provide insurance.
The policyholder is the person or entity “that engages and supports the policy of insurance, employment or a third party assuming the obligation and right down the LCS” seeks to move a particular risk to a third party (insurance company) to effect that will be compensated to him or a third party for damages or losses that may result from the occurrence of an uncertain event the date of the insurance contract. To this end must pay a fee (premium) to the insurer.
The insured may be defined as the global head of interest concerning insurance coverage and the right to compensation is paid at the time that in certain cases, you may transfer to the beneficiary. Is the natural or legal person to whom the occurrence of the incident will affect you more directly. In short, is he on whose head will either fall the consequences of the accident. The figure of the insured is essential in the insurance contract. Because the same thing that there can be a contract of that nature without the existence of a risk to cover or not it conceivable legal business of the nature mentioned without a person or final recipient of the guarantee is agreed, and whose interests protected in this way, are the efficient cause of the contract.
The beneficiary is the person who will receive the value of insurance when the event to occur in the same (without insurance). It is one upon whom fall the benefits of the policy agreed by the express will of the borrower. The payee responds to a forecasting approach to insurance under personal, special way to the life and accident insurance, in case of death of the insured. Article 84 of the LCS states literally that the policyholder may designate or change the beneficiary designation previously made, without the consent of the insurer. Thus it is clear that the ability to identify and revoke beneficiary is in the hand of the borrower. The insured has no right or provision on the subject, even to approve or reject the payee that the policyholder has chosen.

This element is important because it represents the cause of the obligation assumed by the policyholder to pay the premium accordingly. Because this is bound to pay the premium because it sucks that the insurer assumes the risk and comply with pay compensation if the accident occurs. This obligation depends on the realization of the risk insured. This is not merely a consequence of the duty of the insurer to assume the risk insurable. And if you can not prove the claim , it does not lack the essential element of security that concerns us, because this is configured with the assumption of risk which the insurer to enter into the contract insured damages provision to be enforceable only in the event of the loss .
Subjects Within the contractual relationship we find the following subjects:
A. The insurer (insurance company)
B. The policyholder
C. The insured
D. The beneficiary
The insurance entity can be defined as “the legal person constituted under the provisions of the legislation, it is dedicated to take risks others, fulfilling what sets this effect those laws by charging a certain price called premium. ”
We noted in the figure of the insurer about specific profiles between we see the following:
• By law, it must be a legal person. There is even occasional person who, individually, perform hedging operations. The safe operating conditions and its projection in time and require, by themselves, that the insurer is a legal person;
• That person must take precisely one of the ways that the law considers only valid for the insurance industry practice;
• There must be earned prior approval of Public Administration, to act as an insurer;
• should be devoted exclusively to the practice of insurance or reinsurance, as the case is admissible without other activities, except fund management operations collective retirement
• They must adjust their status to the rules of insurance law, which regulate in detail the insurance practice, while being subject to inspection and control of public power.
Within the broad aspectro of possible legal persons are accepted as valid assumptions:
 Company.
 Mutual Company a fixed premium.
 Mutual welfare.
 Co-operative Society.

A contrarily, mensurable:
- The speculative risks (basic precept: “Compensation is not gain”).
- The objects of illicit trade.
- The things where there is no insurable interest
The impossible does not create risk. Must be uncertain, because if necessarily going to happen, no one would assume the obligation to repair. Without risk there can be safe , because when there is no possibility that the damaging event occurs, or may be hurt or think fit compensation whatsoever.

The risk has certain features that are:

• Is uncertain and random.
• Possible
• Concrete
• Lawful
• Fortuitous
• Economic content

The contract of insurance the insurer can not take the risk in an abstract way, but this must be duly individual because not all risks are insurable, is therefore to be limited and individualized, within the contractual relationship.

Key elements of the insurance contract

• Are those elements which, if not merge, do not allow the existence of the insurance contract:
• Insurable interest
• Insurable risk
• Premium
• The insurer’s obligation to indemnify
• Good faith

The insurable interest
For insurable interest is the relationship lawful economic value on a well . When this relationship is threatened by a risk is an insurable interest. In general you can secure all tangible property (cars, homes, businesses, etc..) And intangible (economic loss, cessation of activity, etc. ..) also can ensure the life and heritage.
So the thing is likely to be insured must meet the following requirements:
- It must be something tangible or intangible.
- The thing must exist at the time of the contract, or at least the time they begin to take the risks or damage
- The thing must be taxable cash
- The thing must be a lawful stipulation
- The thing must be exposed to miss the risk that the insured

The insurance contract is the means by which the insurer undertakes, by charging a premium to compensate for an injury or pay a sum of money to verify the event specified in the contract. The insurance contract may cover all sorts of risks if insurable interest, unless expressly prohibited by the law . The contractor or policyholder of insurance, which may agree or disagree with the policyholder, for its part, undertakes to make payment of the premium, in exchange for the coverage provided by the insurer , which saves you face a greater financial loss, if the incident occurs.
The insurance contract is consensual, the mutual rights and obligations of the insurer and the policyholder, starting since the convention was held even before the issuance of the “policy” or document that reflects details and conditions of the insurance contract.
By placing an insurance contract is sought financial protection of property or persons who may in future damage.

Insurers use actuarial science to calculate the risks they assume. Actuarial science uses mathematics, particularly statistics and probability, which can be used to cover risks to estimate the claim at a later date with reliable accuracy.

For example, many people buy insurance policies for housing and then they pay a premium to the insurance company. When you lose a protected place, the insurer must pay claims. For some of the insured, the insurance benefits they receive are far greater than the money they had paid to the insurer. Others may not make a claim. If it is averaged from all policies sold, the total claims paid out was lower than the total premiums paid to the insured, with the only difference is in cost and profit.