Important information about insurance

 

:Meaning of insurance

Insurance is a social system that aims to create a reserve to face the uncertain losses that individuals and institutions are exposed to by transferring the burden of risk from one person to several people or a group of people.

:The benefit of the insurance

Achieving the principle of cooperation between a group of individuals exposed to the same risk and securing their future by participating in bearing the risks to which they are exposed

- Preserving the wealth of the establishments by compensating them for the outcomes of the dangers to which these resources may be exposed, such as fire and theft....... Preserving production capacity

Creation and expansion of credit through loans secured by documents, which contributes to achieving economic growth for projects.

Insurance contract and its parties

An insurance contract is a contract of agreement between two parties, one of whom is the insurer (the insurance company) and the other is the customer

(The Insured) by obligating the second insured party to pay a premium called the insurance premium to the first party, provided that the first party undertakes to pay the appropriate compensation to the insured or his beneficiaries in the event that the insured risk is realized.

:insurance fee

The premium is the main source of revenue, and it is the amount owed by the insured under the insurance contract concluded between the two parties, and he is obligated to pay it to the insured in return for his obtaining or for the beneficiaries to obtain the appropriate compensation when the insured risk occurs.

:compensation

Appropriate compensation is that material compensation that the insured pays to the insured in the event that the insured risk is realized so that it maintains the financial position of the insured and places him in the same financial position before the insured risk is realized, provided that the amount of compensation does not exceed the value of the insured amount.

:Types of insurance

1Optional Insurance

It is the insurance that a person contracts to personally benefit from in securing himself from a certain risk, and it is due to the desire of the insured himself.

its types:

Its risks vary as follows:

Accident injury risks covered by personal accident insurance

Sickness risks covered by Medicare insurance

Death risks covered by life insurance

1 - life insurance

2 - General Insurance

Its risks vary as follows:

Fire hazards covered by fire insurance9-

Aircraft Accident Hazards Covered by Aircraft Insurance-

Risks of theft covered by insurance against theft and burglary-

Risks of drowning accidents covered by marine insurance-

The risks of natural disasters are covered by insurance against earthquakes and hurricanes-

Risks of loss and loss of profits and covered by loss of profits insurance-

Downtime hazards covered by downtime insurance-

Civil liability risks covered by civil liability insurance, especially business owners, cars, ships, and  others

2Compulsory insurance

It is a compulsory state-imposed insurance that covers the civil liability of the insured towards others. There are three types:

Compulsory insurance against civil liability for car accidents.

Compulsory insurance against civil liability arising from the use of elevators.

Compulsory insurance against third party civil liability arising from construction works.