Classification by type of property insurance risks
Cl
1. Insurance against fire and other natural phenomena such facilities as buildings, facilities, equipment, products, materials, household goods, etc.
2. Insurance of crops from drought and other natural phenomena.
3. Cases of insurance or forced the slaughter of animals
Insurance against accidents, theft and other hazards of transport.
These links, also called the type of insurance under this classification, reflecting differences in the volume of insurance cover for insurance of the relevant objects. Classification by type of hazards used to develop methods of determining damages and compensation.
Basic terms and concepts:
Insured – natural or legal person paying the money (insurance) contributions, that is, by law or through treaty receives a monetary amount in the insurance case. Insured is defined insurable interest. Interest sold through insurance specific relationship in which the insurer enters with the insurer.
Insurer – an organization (entity) that provides insurance, undertakes to compensate the damage or pay the insured amount and the issue of costs and insurance fund. In Ukraine, insurers now are the joint-stock insurance company. In international insurance practice to designate the insurer also uses the term underwriter. The insurer shall enter into specific relationship with the insured. In their actions, creating this relationship, it is guided by existing in insured and in society in general insurance interests.
Insured – individual life, health and efficiency of which are subject to insurance coverage. The insured is a natural person to whom a contract of insurance. In practice may be insured while the insured if paying the money (insurance) contributions alone.
Insurable interest – a measure of material interest person or entity in insurance. Insurance carriers of interest are the insurers and insured. With regard to existing property insurance insurable interest is expressed in the value of insured property. In personal insurance, insurable interest is to guarantee receipt of the sum insured in case of events caused by conditions of insurance. Concretely existing insurable interest in the insurance amount.
Insurance amount – the amount of money which are insured assets (in property insurance), life, health, work (in personal insurance).
Of insurance – life, health, work of citizens – in personal insurance, buildings, constructions, vehicles, household goods and other tangible assets – in property insurance.
Insurance policy – a document standard form issued by the insurer of the policyholder (insured). Acknowledge a contract of insurance and includes all his conditions.
Insurance valuation – a criterion for assessing the insurance risk. Monetary system is characterized by measuring the object of insurance, closely correspond with the probability of occurrence. In quality insurance estimates can be used in the real value of property or some other criterion (stated value, starting price, etc.). In international practice, instead of the term “insurance score uses the term insurance cost.
Insurance coverage – insurance estimates regarding the level of value adopted for the purposes of insurance. The organization of insurance coverage are distinguished system of proportionate liability limit and the first risk system. The most frequently used in practice the system of proportional liability system and the first risk.
The system of proportionate liability – organizational form of insurance coverage. Provides for the payment of insurance in advance a fixed percentage (proportion). Insurance paid in the amount of damage to the part where the sum insured for the valuation ratio is the object of insurance. For example, if the insurance amount equal to 80% of assessment insurance object, then the insurance payment will be 80% damage. Part of the loss, the remaining (in this example 20%) remains at risk of the insured. The specified share of losses insured called Franchise, or holding its own insured.
Ultimate responsibility – the organizational form of insurance coverage. Provides for damages as the difference between the schedule agreed limit reached and income. If in connection with the occurrence of the insured income level was below the limit, it shall be refunded the difference between fact and limit profits.
First risk system – organizational form of insurance coverage. Provides for the payment of insurance in the amount of actual damage, but no more than a preset amount insured parties. Thus all the damage in the sum insured (the first risk) fully compensated, and loss over the sum insured (additional risk) do not refundable.