Saturday, January 22, 2011

A True Understanding of Insurance: The Best One

Many people have different views about the meaning of insurance, therefore, this is a true understanding of insurance.

Insurance is not gambling or investing. Indeed, in modern insurance there is a component of investment, but this should be seen as complementary rather than a major component. Insurance aims to offer protection against risks that may arise. It could be said in brief insurance is a system where we share our risk with others, the insurance company.

Existing insurance from time immemorial pilgrims. For example in the code of Hammurabi, ancient Babylonian law, no law that addresses credit insurance. This law is intended to allow the traders to obtain loans from investors. If there is an accident, like a sinking ship, the borrower does not have to repay their loans. While the trade if successful, they pay the loan with an interest.

Modern Insurance
In our day today, the concept of insurance is about sharing risk. Insurance companies in the world pay attention to the frequency of loss statistics. For example, the possibility of illness, critical illness, and treatment costs. This will be used to predict how much insurance premiums to be paid by the client.

Funds obtained by the insurance company will be used to pay claims presented by clients when they suffer losses.

Do you think you are free from any risk of loss? Which type of insurance that suits you best? How much mortgage you receive now? All this should be considered.

Wednesday, January 19, 2011

Definition: Auto Insurance

Auto insurance is a kind of insurance. As our learning media, this blog will provide you a definition about auto insurance. The definition is according to Insurance Information Institute. Or you can visit the website of Insurance Information Institute here.

What is Auto Insurance?
The auto insurance will protect you against financial loss if you have an accident. How it works? It works under  a contract between you and the insurance company. On the contract, you agree to pay the premium and the insurance company agrees to compensate your losses as defined in your policy. An auto insurance should provides property, liability and medical coverage:
  • Property coverage compensates for damage to or theft of your car.
  • Liability coverage compensates for your legal responsibility to others for bodily injury or property damage.
  • Medical coverage compensates for the cost of treating injuries, rehabilitation and sometimes lost wages and the funeral expenses.
So, is there any coverages we need? Basically, an auto insurance policy is comprised of six different kinds of coverage. But, most states require you to buy some, not all, of these coverages. for example, if you're financing a car, your lender may also have requirements for the policy. Then, most auto policies are for six months to a year. Do not forget that your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium of the auto insurance.

Friday, January 14, 2011

Issue of Insurance for Climate Changing

Climate change has been an issue recent years. The world becomes hotter, and hotter everyday. And we can get fresh air easily now. Pollution, glasses house effect, and so many other reasons of this changing. Usually, we call this changing as global warming. So many researchers has been studied this changing and the causes. So, is this changing will affect the insurance industry? Let's check this out.

Insurance industry groups are studying the effects of climate change on the industry.  The Geneva Association, whose members represent the world’s largest insurers and reinsurers, agreed in May 2009 to continue its CC+I research project on climate change and its economic impact on insurance. In a comprehensive report, “The Insurance Industry and Climate Change–Contribution to the Global Debate,” the Association sets out the issues and the role insurance can play in the process of adapting to the negative effects of change, particularly in developing countries.  In 2009 also, the National Association of Insurance Commissioners adopted a climate risk disclosure survey.  In February 2012, three states, California, New York and Washington State, announced they will now require companies writing more than $300 million in premium to respond to the survey. Previously only about a third of the larger companies participated. For smaller insurers, providing information on climate change risk is voluntary.  Responses will be available to the public.    

Public concern about climate change has led to litigation over carbon dioxide emissions. In June 2011 the U.S. Supreme Court said that states and conservation groups do not have the right to sue power plants to reduce emissions of greenhouse gases. That authority lies with the Environmental Protection Agency, it said. This and other lawsuits moving through the court system are based on the notion that emissions are a public nuisance. 

Public nuisance is a common law tort that imposes liability on an individual or entity that interferes with a public right—to health and safety, for example. In the past, the concept has been used in tobacco and gun litigation. But in a lead paint ruling in July 2008 in a case seeking damages from several paint manufacturers and their trade association for potential lead paint poisoning, the Rhode Island Supreme Court refused to allow the expansion of the public nuisance law to environmental and product liability cases, saying “public nuisance law simply does not provide a remedy for this harm.”

Other judges have said that public nuisance claims in such cases require the courts to make a policy decision about who should pay for global warming when almost everyone is responsible to some degree.

Furthermore, insurers are not responsible for defending their power company policyholders in court for releasing greenhouse gases because the release is not accidental but part of their ongoing business practices, the Virginia Supreme Court said in September 2011. The commercial liability policy that businesses purchase covers only accidents or, in insurance jargon, occurrences.

Sunday, January 2, 2011

Insurance: A Public Understanding

In Indonesia, insurance called as "asuransi". It is about risk management of uncertain loss. So, it will compensate of your financial problem from a loss. For example, when you got an accident (sorry, we hope that's not happened to us), the insurance company will pay the cost of your loss such as the hospital cost or cost for repairing your car.

The insurance company is the company who sells an insurance policy. In that policy, also called as contract, is about your agreement to buy the policy to insure the insured entity. Then, you should pay the premium to get compensate when you get loss.

Do we need to be insured? of course, we do need. Because we do not know what will be happened for the next second. For example, after playing futsal we can be hit by a Xenia with a crazy woman drove it. So, get your insurance to against the uncertain loss of your financial problem.