The concept and types of insurance coverage. Social insurance

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Insurance is the most important financial industry. Relations in this area are always associated with money and the concept of risk that may occur. The principle of operation is based on the probability of a negative event.

Subjects of insurance relations

They are:

• Insurers (authorized individuals or legal entities that implement the agreements drawn up by paying the promised amounts to insurers).
• Insured (the concept is identical to the object of insurance relations, that is, what may be at risk in the event of an insured event).
• Beneficiaries (an entity or individual who is designated to receive a benefit under an insurance agreement).

Description of the concept

The practical embodiment of risk is manifested in the occurrence of an event with negative consequences. Insurance coverage is the amount of payment sent in the form of compensation for the outcome of an incident that causes a loss specified in the agreementmaterial or moral damage. The amount is transferred to the policyholder by the insurer.

Another name for this phenomenon is insurance compensation, which indicates the valuation of the property that became the reason for signing the agreement.

Insurance provision is not only the amount of funds paid out. It is also a kind of obligation of some subjects to others.

The term is used to activate the payer's obligations in the framework of the implementation of all kinds of insurance coverage. Citizens most often encounter them in the context of compulsory social insurance.

Circumstances

It can be said that this kind of organization is an offshoot of the state system for protecting the population. Types of insurance coverage are aimed at solving problems in the following cases:

• urgent need for medical assistance;
• temporary disability;
• injury following work obligations;
• motherhood;
• due to disability;
• old age;
• in case of loss of family breadwinner;
• in case of obtaining the status of unemployed;
• in the event of the death of the insured or disabled family members who were supported by him.

Typology of insurance coverage

Types of such activities for different categories of social insurance are as follows:

• Reimbursementcosts to the medical institution that were associated with the provision of appropriate assistance to the insured party.
• Paying old-age pensions.
• Paying disability pensions.
• Pension payments due to the loss of a breadwinner in the family.
• Temporary unemployment benefit.
• Benefit in connection with labor or production injuries or serious injuries.
• Paying maternity benefits.
• Monthly payments within a year and a half after the birth of the child.
• One-time payment to pregnant women registered early.
• One-time payment at the birth of a child.
• Social benefit for burial.
• Payment for he alth resorts for employees and their families.

Basic concepts related to the process

Insured risk and insured event are the main concepts here. The first is a reason to insure the object, the second is a reason to receive payment under the concluded agreement.

An event expected with a certain degree of probability, due to which the insurance process is implemented, is called insurance risk. The occurrence of such a situation should be random and have a certain degree of probability.

An insured event is an event specifically indicated in the contract, upon the occurrence of which there is a need for the insurer to make a payment.

For example, the onset of death is the case that is an insured risk with all its characteristicsrandomness and probability.

In personal insurance, the objects of insurance are often the life and he alth of citizens.

Property insurance is a way to protect against material losses, where vehicles, residential premises, expensive things and other objects of the material world around can act as an object.

Insured risk and insured event are the fundamental starting points. They are called the main steps in this kind of process.

What is Social Security?

Among the citizens of any country there are unprotected segments of the population who, for certain reasons, are limited in rights and opportunities. Therefore, they have additional benefits that are provided for by law and help them better adapt to society.

Different types of social insurance are aimed at providing financial assistance in cases of illness, complete or partial disability, loss of a minor child of one of the parents, unemployment.

Social insurance is state, collective and mixed.

What is social insurance and what types of it are provided, we will consider further, based on the law of November 27, 1992 No. 4015-1 "On the organization of insurance business in the Russian Federation" with amendments and additions.

Types of social insurance

Compulsory social insurance is designed to protect various segments of the population, to defend themsocial interests. This happens both in relation to working and non-working categories of the population in order to provide them with a material basis for further life and functioning in society. The motivating forces for this are possible changes in their material or social situation.

The types of social insurance include the following:

• general social;
• auto civil liability;
• pension;
• medical;
• passenger insurance.

Sources of funding under social conditions

Sources of funding for social insurance are:

• Compulsory Medical Insurance Fund.
• Pension Fund of the Russian Federation.
• Social Security Fund.

How to calculate damage

Insurance valuation is a determination of the value of property, which is determined to achieve the ultimate goals of the insurance process. This kind of work is called the evaluation process.

In practice, the following types of insurance assessments are mainly used:

• according to the actual value;
• according to the declared price, but not more than the limit set by the insurer;
• According to market prices.

To conduct constructive evaluation activities, it is worth involving qualified experts in the work.

As part of the insurance assessment, a medical insurance examination may also be carried out, which illustrateshe alth contraindications for concluding a contract and issues a medical certificate.

Depending on the principles and objects of insurance, valuation procedures may either coincide with the insurance value, which expresses the real value of the type of property, or be less than this indicator. Information about its book value is also used as an assessment of an object.

For various types of insurance coverage, such evaluation measures are carried out by insurance institutions at the time of drawing up the agreement (for example, in the agricultural or construction industry).

In this article, we reviewed various types of insurance and the possibilities of providing for them.