Insurance is one form of risk control is done by way of transfer / transfer of risk from one party to the other party in this case is an insurance company.
What is the sense of Insurance?
According to article 246 Commercial code "Insurance is an agreement by which one is binding to an insured, to receive a premium, for reimbursement to him for damage to or loss of expected benefits that might be experienced as an event that is not necessarily" .
Understanding the other insurance is a transfer of risk from the first party to the other party. In the transfer is controlled by the rules of law and the enactment of the principles and teachings universally adopted by the first party and the other party.
The economics of insurance means a fundraiser that can be used to cover or provide compensation to those who suffered losses.
What are the benefits of insurance?
Besides, as a form of risk control (financially), insurers also have a variety of benefits which are classified into: the main function, secondary functions and additional functions.
The primary function of insurance is risk transfer, fundraising and balanced premium. Insurance secondary function is to stimulate business growth, prevent loss, damage control, and social benefits as savings. While insurance is an additional function as investment funds and invisible earnings.
What are the Risks?
Definition of 'risk' insurance is "uncertainty about the occurrence of an event that can cause economic loss".
Any forms that risk?
Forms of risk include pure risk, speculative risk, particular risks and risk fundamentals.
Pure risk is the risk that as a result there are only two kinds: a loss or break even, for example, theft, accident or fire.
Speculative risk is the risk that as a result there are three kinds: loss, profit or break even, for example gambling. Particular risk is the risk that comes from individuals and local impacts, for example, a plane crash, car crash and the ship ran aground.
While the fundamental risk is the risk that is not derived from the individual and the impact area, for example, hurricanes, earthquakes and floods.
Are all risks can be insured?
Not all risks can be insured. The risks can be insured are: risk can be measured by money, homogeneous risk (the risk of the same and pretty much guaranteed by insurance), pure risk (the risk is not profitable), particular risk (the risk of individual sources), the risk that occur suddenly (accidental), insurable interest (the insured has an interest in the object insured) and risks that are not contrary to law.