Understanding and Types of Insurance Is an Agreement

There are several different opinions on the definition and type of insurance. But all refer to one common definition. In terms of insurance, it is an agreement between two or more parties. Each of these parties is the insured and the guarantor.

Simply put, the insured is the one who pays the premium or fee. While the insurer in insurance is the one who provides services or compensation for losses. In general, insurance is included in the category of non-bank financial institutions. The goal is to minimize losses from the given risk.

Common Types of Insurance Provided

These risks are classified into several types of insurance below. The definition and types of insurance in Indonesia are quite diverse, ranging from life insurance to health, vehicles, and so on. Some terms that are often used in insurance such as premiums, insurance policies, and claims.

1. Education Insurance

The purpose of using education insurance is to guarantee the continuity of education for children. Education insurance claims can be made by contacting the agent concerned. The reason is, each agent often has different rules or conditions. You can also make claims based on an agreement or a certain period of time.

2. Life Insurance

This type of insurance is very popular and often used. Life insurance is done for the purpose of guaranteeing a person’s life. In general, there are 2 ways to claim this insurance. First, funds are given after the insured dies. Second, funds are given before the insured dies (based on the time period).

3. Vehicle Insurance

There are many types of vehicle insurance. Starting from the focus on covering other people’s injuries, damage to other people’s vehicles caused by the insured, and loss or damage to the insured’s vehicle. The most common type of vehicle insured is a car.

4. General Insurance

There are 2 main types of insurance, social and voluntary. Social insurance is usually given to guarantee old age and forced methods such as cutting wages. Meanwhile, the voluntary insurance premium payment method is carried out freely. If divided again, voluntary insurance is run by the government and some are run commercially.

5. Property Insurance

Property that is often registered in this type of insurance is a house or other personal residence. The goal is to reduce the risk in the event of a disaster such as fire, earthquake, or something else that results in damage to the property. The insurer will provide relief from damage to the house or property.

6. Business Insurance

The scope of business insurance is very broad. It can be in the form of protection against damage, natural disasters (earthquakes, floods, lightning), mass riots, and so on. This includes protection for employees (health and life), investment protection, and so on.

7. Travel Insurance

The period of travel insurance is relatively short, namely from when the insured departs until he returns home. While the protection provided includes accident costs, compensation, treatment, repatriation of bodies, protection of luggage, and so on. You can search for details regarding the agreement through a trusted insurance agent.

Actually, there are many more types of insurance such as marine, credit, theft, transportation, and so on. You should discuss every detail of the insurance service with the agent in question. If something is not clear, don’t hesitate to ask until you really understand. Starting from the premium amount, how to claim insurance, time period, or other important special events.

That’s all the information about the meaning and types of insurance that is popular and often used. In Indonesia and other countries alone, there are various kinds of insurance agents. For example, special guarantees in the scope of work, travel (accidents), health, and so on. Finding the right and trusted agent is very necessary.