Insurers are Insurers: quality, responsibility and risks

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

People turn to insurance companies in search of financial protection in case of various unforeseen situations. In this article, we will understand in detail who the insurers are, what their role, essence and what responsibilities they have. Advice will also be given on choosing the most reliable company for concluding an insurance contract.

Concept and essence

Insurers are legal entities that have a license to carry out insurance activities, enter into contracts with policyholders and assume the obligation to provide financial assistance to them in the event of an insured event.

In simple words, you can say that the insurer in relation to you is the company to which you came to insure life or property (or any other value).

In Russian, the meaning of the word "insurers" comes from the word "fear". On a subconscious level, a service with that name scares away. Abroad, the opposite is true: in English, insurance is calledinsurance from the word sure, which translates as confidence.

Some marketers associate the level of development of insurance companies abroad and in the Russian Federation with this.

Given the framework of the legislation of the Russian Federation, the insurer (insurance company) must have one of the following legal forms:

• limited liability company;
• with additional responsibility;
• open joint stock company;
• closed joint stock company.

Share Capital

But not every "JSC" or "LLC" can become an insurer. First of all, the owners of the legal entity must have enough funds to form an authorized capital that meets the requirements below.

The calculation of its size is formed from a minimum of 30 million rubles. And then this amount is multiplied by certain coefficients, which depend on the future activities of the company. The odds grid is divided into the following areas:

1. Insurers who will insure risks related to life or he alth, medical care.
2. Same as 1, but together with property insurance related to ownership, liability, and business risks.
3. Insurers who plan to insure the life of citizens or survival to a specified age.
4. Insurance companies that plan to deal with life accident and he alth insurance.
5. Insurers who want to engage in reinsurance.

Types of insurers

According to the law, Russian insurers are divided into:

• insurance organizations;
• mutual insurance companies.

It is clear that insurance organizations are directly insurers who conduct their commercial activities, providing services to individuals or legal entities in taking risks.

That is, the main goal of such organizations is to make a profit from the services provided, which is then redistributed among their shareholders and owners.

Meanwhile, mutual insurance companies can't do business. They are an organization that includes several interested participants, and also reinsure each other's property interests on the basis of mutual insurance.

That is, such organizations are created by policyholders and function at the expense of their contributions. Their goal is to meet the needs of participants in insurance services at the best price. In the event of overpayments, all money remains in such organizations, that is, with the insurers themselves.

What should an insurer be like?

Insurers are not just commercial organizations that make money out of thin air. They must be fully responsible for their obligations. Not every one of them can boast of a good level of insurance payments.

First of all, the responsibility of the insurer is thatthe organization must guarantee its clients who have entered into an agreement with it, a certain level of financial protection in the situations specified in the agreement.

When choosing an insurance company, be sure to pay attention to its reputation. You also need to focus on the following qualities of the insurer:

• rating positions in the insurance services market;
• insurance premiums;
• presence and description of situations in which the insurance payment is not made;
• belonging to international insurance groups;
• customer reviews.

Rights of insurance companies

When studying insurers, it is necessary to pay attention to the contract that a particular company offers to sign to its customers. It clearly spells out the obligations and rights of the insurer, as well as its customers.

Of course, it all depends on the type of insurance product and the conditions under which it is provided. But you can highlight the main points about the rights of the insurer, which are found in most insurance companies:

• demand from the client timely payment of insurance premiums specified in the contract;
• receive information about the client in agreement with him, which is not a commercial secret;
• in agreement with the second party to the contract, make changes to it;
• unilaterally terminate the contract ahead of schedule in the manner prescribed by the document;
• when an insured event occurs, send requests tothe relevant authorities to ascertain the causes and circumstances of the incident;
• check the fulfillment of the terms of the contract by the insured;
• refuse to compensate for damage after the occurrence of an insured event due to violations by the insured of the terms of the contract and his failure to take actions to prevent, localize the circumstances that led to the occurrence of losses.

Each insurance company can add or remove the items listed above. It depends solely on its policy, which should not violate the requirements of the legislation of the Russian Federation.

What commitments?

It should also be noted the obligations of insurance companies, which are found in contracts for everyone:

• upon the occurrence of insured events specified in the contract, pay insurance compensation to the beneficiary in case of non-violation of all clauses of the contract;
• issue an insurance policy (contract) to the insured at the time of its conclusion;
• keep the confidentiality of the client's personal information obtained in the course of its service;
• reimburse expenses incurred by the insured to reduce the consequences of the insured event.

There may be other conditions. Read the contract carefully before signing it. Otherwise, you risk being left with nothing even if an insured event occurs.

People's opinions

There are different opinions and impressions about the need to let insurance into your lifecompany. There are superstitious people who believe that insurers are heralds of something bad. That is, by purchasing insurance, you automatically contribute to the fact that trouble will happen to you.

There are opposing views on such services. A lot of positive reviews about insurance companies. For example, there are many people who are faced with lending. As you know, borrowing is very expensive. But insurance companies recommend insuring the life of the breadwinner, otherwise, in this case, you can be left without the possibility of paying interest.

Decide for yourself

People who have suffered a loss believe that insurers are financial security and confidence in the future. Only in this way can you guarantee yourself help in difficult times. Of course, you will need to cover the risks of the insurer by paying a premium under the contract. But in any case, its size is much less than the financial difficulties that may arise from some tragic event or accident.

How to do it for you, you need to decide on your own. No matter how much we want, but in life there are situations that do not depend on our caution or attentiveness. There is always the possibility of a random event.