TYPE OF INSURANCE

Tuesday, August 2nd 2011. Posted in Finance by admin

Broadly speaking, insurance consists of three categories, namely:

Insurance

Consisting of insurance for the property (property, vehicles), financial interest (pecuniary), legal responsibility (liability) and self-insurance (accident or health).

Life Insurance

Essentially a form of cooperation among people who avoid or at least reduce the risks posed by the risk of death (which would happen but not sure when it happened), the risk of old age (which is inevitable and predictable when it happens, but it is uncertain how old) and the risk of accidents (which are not inevitable, but not impossible). Where cooperation is coordinated by the insurance company, which works on the basis of law of large numbers (the law of large numbers), which spread the risk to people who want to cooperate. Included in programs such as life insurance: insurance for education, retirement, investment, stages, health.

Social insurance

Social insurance is compulsory insurance program organized by the government under the Act. The aims and objectives of social insurance is to provide a basic guarantee for the public and are not intended for commercial gain.

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