How does insurance work? What is the underlying insurance system? In life, the risks that happen to us can have an impact on financial or financial conditions. Without insurance benefits, we can experience losses and financial sustainability can be disrupted. Unfortunately, many people do not know the benefits of insurance, especially if they do not first know how insurance works, such as how life insurance, health insurance, and vehicle insurance work. So, how do the respective insurance companies work? To find out, let's see the following review. Insurance is a service in the financial services sector with the aim of taking over risk by the insurance company (the insurer) from the customer (the insured). The risk that results in financial losses is covered by using a collection of premiums paid by the customer. In summary, the way insurance works is linked in the insurance company's work chain, starting with creating insurance products. Generally, insurance products are created depending on current or previous conditions. Usually, to update the benefits offered through a new product, insurance companies conduct a number of polls and listen to the needs of customers.
The following is a general insurance work system.
The poll was conducted to find out the expectations of the desired insurance product. If it feels something needs to be updated, the insurance company will update the product. The following is a general insurance work system. The distribution channels of insurance companies are diverse. Insurance companies generally offer the types of insurance they have by relying on insurance agents, telemarketing, bancassurance, to online insurance brokers such as Lifepal. Insurance companies will offer and introduce types of insurance to their customers according to their needs. In order not to be rejected by customers when offering products, insurance companies should ideally know the targeted customers first. The content of the insurance policy agreement is the insurer's obligation to pay financial compensation or insurance benefits with the condition that the insured has paid the premium. The financial loss in question is a consequence of financial risks that have been mutually agreed upon with the insurance company as a condition for disbursing insurance claims by the customer. In short, an insurance policy is a contract between the insurer and the insured which determines the claims that the insurer must pay legally to the insured. It is better for insurance customers to read the details of the contents of the policy contract and understand it so that in the future there will be no problem with insurance claims being rejected. If it is difficult to understand the entire contents of the insurance policy, at least the four points of the insurance policy below can be understood properly. Policy data: Contains the name of the policyholder, the name of the insured or the beneficiary or heirs, the amount of the premium, to the amount of the insured. Policy data becomes basic information. So, check again whether the contents are in accordance with the requested or not. Insurance benefits: List the protection benefits received in the event of a risk.
If this type of insurance provides investment benefits at the same time, there are investment benefits that are obtained at the time of death. If you want to add benefits or riders to the type of insurance, the insurance policy will detail the additional risks covered. Exceptions: This is important to know so that customers really know and understand what is not included in the risk coverage in the insurance policy. For example, conditions, illnesses, and causes of death that are not covered. Submitting a claim: The insurance policy will write the procedure for submitting a claim, including the conditions that must be included. Pay attention to the time limit for submitting a claim in the insurance policy. Insurance customers as policy owners are required to pay a premium in order to receive insurance benefits. The premium payment schedule will be determined by the insurance company (usually monthly or annually). Receiving premiums from the insured means that the insurance company is obliged to fulfill its obligations regarding insurance benefit claims by customers. Usually, in the process of insurance claims from customers, the insurance company will conduct an examination of the events that occurred. The inspection is carried out after the insured's administration has been completed. Inspections of events that occur are usually carried out by verifying with the authorities, relevant agencies such as hospitals, families, and close relatives.
Not sure which insurance product suits your needs and budget?
This is done to ensure that the benefits received are right on target. The insured who submits a claim will get two answers, namely the claim is approved or rejected. Not sure which insurance product suits your needs and budget? Just consult the experts for free and get access to the best Indonesian health insurance products only at Lifepal! Although in principle conventional insurance companies and sharia insurance companies both provide protection to customers or the insured, the two are still different in principles and how they work. The difference is still aimed at ensuring that policy owners or insurance customers get insurance benefits from the types of insurance they have, whether it's health insurance, life insurance, or vehicle insurance. Just like conventional insurance companies, Islamic insurance companies are also supervised by the Financial Services Authority (OJK) which ensures that insurance companies fulfill their obligations to participants. Sharia insurance companies are also supervised by the Sharia Supervisory Board (DPS) so that sharia insurance companies work in accordance with Islamic sharia rules and principles.
39; contract as well as the agreed terms according to the type of insurance contracted.
For those who plan to have sharia insurance products, first identify how sharia insurance companies work. Here are the points of how sharia insurance works. Sharia insurance includes Ta'min, Takaful, or Tadhamun which means an effort to protect and help each other between a number of people or parties. The trick is through investment in the form of assets and/or tabarru' which provides a pattern of returns to deal with certain risks through a sharia-compliant contract or engagement. If in conventional insurance companies it is known as an insurance policy, then in Islamic insurance companies there is something known as a contract. The principle of contract in sharia insurance does not cover fraud, persecution, gambling, bribery, illicit goods, and immorality. Contracts made between insurance customers and sharia insurance companies consist of tijarah contracts and tabarru contracts which describe the rights and obligations of participants and the company. Then, the method and time of premium payment, the type of tijarah contract, and the tabarru' contract as well as the agreed terms according to the type of insurance contracted. Premiums are payments made by insurance participants which are then managed by a sharia insurance company with the principles of mudharabah and tabarru'. Furthermore, the claim payment which is the right of the participant will be paid in accordance with the existing contract between the participant and the insurance company.
For participants, claims based on the tijarah agreement are rights and obligations that must be fulfilled by the insurance company. Meanwhile, the claim on the tabarru' contract is the right of the participant and the company's obligations to the extent agreed upon in the contract. Sharia insurance companies as trust holders are required to invest from the collected funds. The collected funds must be invested in accordance with sharia principles. You will get sharia insurance benefits in the form of this investment. Islamic insurance companies must be trustworthy in managing the premiums of their members. The way it works is this, sharia insurance companies get profit sharing from the management of funds collected on the basis of a tijarah contract (mudharabah). Well, the acquisition of ujrah or fees comes from the management of tabarru' contract funds or grants. Sharia insurance companies are supervised by the Financial Services Authority (OJK) and the Sharia Supervisory Board (DPS). For those of you who want to buy sharia insurance products, make sure the company is registered and supervised by the two institutions. In addition, in making sharia insurance products, companies must first consult with the Sharia Supervisory Board (DPS). Furthermore, if there is a dispute along the way, the Sharia Arbitration Board will mediate. New risk management takes place after the customer is officially registered as a participant by signing a policy agreement.