2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The concept of insurance value is used to regulate the legal relationship between the insurer and the insured, an individual or legal entity.
Determining the insurance value
Insured value is a value that determines the amount of premium payments and the total cost of the policy. This is the actual value of a particular property used for the purpose of its insurance. In order to objectively determine this indicator, they resort to an insurance assessment. The objects of evaluation can be:
- Individual items of property.
- Vehicle.
- Housing.
- Land plots.
The result of the assessment is indicated in the insurance contract by mutual agreement and cannot be disputed by the parties, except in cases of deliberate misleading of the firm - the service provider by the client. If the fact of falsification of the insurance value is revealed, a criminal case may be initiated against the insured.
The insurance value and the amount of insurance payments cannot be higher than the actual price of the insurance object.
Methodsinsurance value estimates
To accurately determine the insurance value, the following assessment methods are used:
- The actual cost of the object at the time of its acquisition is determined. To do this, the insured is obliged to submit documents confirming payment: checks, receipts, sales contract, price list of the dealer company, customs declarations for imported goods.
- It is possible to determine the value of the goods according to the catalog of the manufacturer, as well as other reference periodicals.
- When assessing real estate, an analysis is made of the average market price for similar properties in the region.
- It is possible to involve an independent expert to assess the value of the object.
Concluding an insurance contract
After determining the insurance value of the object, a contract is concluded, which indicates:
- Insured value of property.
- The cost of the insurance policy.
- The amount and procedure for paying contributions, their size.
- Term of the contract.
- The amount of payment in the event of an insured event.
The insurance contract comes into force on the day following the payment of the insurance premium, if payment is made in cash. For non-cash payments, the document comes into effect after the payment of the premium is credited to the account of the insurer.
Insurance policy
The cost of the insurance policy varies depending on the object of insurance, the current insurance rates, the selected coverage programrisks, the duration of the policy, the probability of an insured event.
Compulsory insurance programs are regulated through the adoption of special federal laws. For example, the state sets tariffs for compulsory pension insurance, OSAGO programs.
For voluntary insurance, the insurer has the right to set and regulate insurance rates, as well as the amount of insurance premiums.
It is necessary to take into account the cost of the insurance year, that is, the total cost of voluntary insurance policies for 12 months. Contracts for a short period will cost more, with a term of 12 months, you can save money.
Pension insurance
There is still pension insurance. The insurance value of the year here is the total of all payments to the pension fund that the employer will make for the employee during the year.
When concluding a contract, it is important to pay attention to the restrictions specified in the text:
- Number of payments for the insurance period.
- List of exceptions in which no payment will be made.
- Violations by the policyholder that may result in denial of service and termination of the contract.
Car insurance value
Auto insurance contracts are concluded especially often. For a car, the insured value is a value that is calculated depending on the followingindicators:
- Make and year of manufacture of the car.
- Initial cost.
- Mileage.
- Technical condition.
When concluding an agreement on the provision of a service, the car owner must provide a technical passport of the car, certificates of inspection, policies for previous periods. To assess the condition, it is necessary to undergo an examination by a specialist of the insurance company. Vehicles older than ten years are not covered by insurance.
What affects the cost of car insurance?
When determining the cost of a car insurance policy and the amount of insurance coverage, the base rate is used and additional coefficients are taken into account:
- Driver's age and driving experience.
- Territorial coefficient is individual for each region of the country and depends on the frequency of road accidents within the territorial unit. The indicator is higher in megacities, lower in rural areas, with a high value, issuing a policy will cost more.
- Seasonal factor.
- The bonus coefficient is calculated if the owner of the vehicle takes out insurance in the same company for a long period of time. With a constant transition from one firm to another, the malus coefficient will be calculated, and the cost of the policy will increase.
- Factor of occurrence of an accident due to the fault of the driver: if in previous insurance periods the driver got into accidents through his own fault, registration will cost more.
- Engine power factor is calculated fromthe number of horsepower registered in the technical passport of the car.
- The limiting factor varies depending on how many people drive the vehicle.
When issuing a CASCO policy, it is additionally taken into account whether the vehicle is under warranty service at the dealer store or the warranty period has expired, the prices for repairs and components. It must be remembered that many companies take into account when issuing CASCO what kind of anti-theft alarm is installed on the car, and the price of the service will vary depending on the degree of reliability of the anti-theft complex.
Insurance premium cost
The amount that the client pays to the insurer in payment for the insurance service is called the insurance premium. By premium, the insurance value is a value that is calculated based on the cost of the policy, and can be paid either as a lump sum or monthly during the entire insurance period. It is possible to pay the insurance premium in cash, as well as by bank transfer.
When the insurance premium is paid monthly, its size is calculated at the tariff rate:
- Net rate is determined by the probability of an insured event.
- The gross rate includes a correction factor, as well as a load, that is, the insurer's expenses for the provision of services, unforeseen expenses not related to the formation of the insurance fund.
Net rate goes to the formation of the insurance fund, from which, in the event of an insured eventpayment will be made to the insured.
Insurance payment
In terms of payment, the insurance value is the amount of money that is paid to the insured person upon the occurrence of an insured event. As a rule, it represents a certain percentage of the insured value of the property. The indicator depends on the cost of the policy, the coverage program and the tariff rate and insurance risks specified in the contract. The amount of insurance payment varies depending on the amount of damage caused to property, taking into account depreciation. The procedure and amount of payments are specified in the contract. To assign a payment, the insured is obliged to submit documents confirming the occurrence of the insured event.
The insurer is obliged to accept the documents for consideration and, after a period of 30 calendar days, make a decision on the appointment of the payment.
The insurer has the right to refuse payments in the following cases:
- If the insured event occurred as a result of illegal actions of the insured person.
- The insured did not provide the necessary documentation for the insured event within the time specified in the contract.
- The insured intentionally damaged property in order to receive a payout.
- Insurance payments are not made if the insured property is subject to seizure or confiscation by decision of the competent authorities.
If the resulting damage requires immediate elimination, the insured has the right to apply for advance payment before the deadline established by law. The preliminary insurance payment is entered by the company in the individual card of the client. If, after the expiration of the consideration period, it turns out that the damage is not subject to compensation, the policyholder is obliged to return the previously paid amount.
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