Insurance - Life is full of unexpected by rowndivision69



More Info
									Insurance - Life is full of unexpected risks or unexpected, that's why we
need to understand about insurance. Some natural events that occurred in
recent years and takes a lot of casualties, both fatalities and property,
such as reminding us of the need for insurance. For every member of
society including the business world, the risk for experiencing
misfortune (misfortune) are always there (Kamaluddin: 2003). In order to
overcome the losses incurred, humans developed the mechanism which we now
know as insurance.

The main function of insurance is a mechanism to transfer risk (risk
transfer mechanism), which transfer risk from one party (the insured) to
another party (the insurer). Risk transfer is by no means eliminates the
possibility of misfortune, but the insurer to provide financial security
(financial security) and tranquility (peace of mind) to the insured. In
return, the insured pays the premium in a very small number when compared
with the potential losses that may be suffered (Morton: 1999).

To top