Insurance is a term used to refer to the action, systems, or business where financial protection (or financial compensation) to life, property, health and others seek relief from the events that can not be expected that could happen such as death, loss , damage or illness, which involves the payment of premiums on a regular basis within a specific period in exchange for policies that ensure such protection.
The basic principle of insurance
In the insurance world there are 6 basic principles that must be met, namely:
* Insurable interest right to insure, arising from a financial relationship, between the insured with the insured and legally recognized.
* Utmost good faith An action to disclose accurately and completely, all facts material (material fact) about something that will be insured both solicited and unsolicited. The meaning is: the insurer must honestly explain clearly everything about the scope of terms and conditions of insurance and the insured must also provide clear and accurate description of the objects or interests of the insured.
* Proximate cause A cause of active, efficient cause a train of events that lead to a result without the intervention of which started and working actively from a new and independent sources.
* Indemnity A mechanism by which the insurer to provide financial compensation to put the insured in a financial position that he had immediately before the loss (Commercial code article 252, 253 and confirmed in article 278).
* Subrogation The transfer of demand from the insured to the insurer after a claim is paid.
* Contribution Rights of insurer to another insurer invite equally bear, but do not have the same obligations to the insured to participate provide indemnity.