Insurance: the essence, functions, forms, the concept of insurance and types of insurance. Concept and types of social insurance

For today, insurance plays an important role in all spheres of citizens' life. The concept, essence, types of such relations differ in variety, as the conditions and content of the contract directly depend on its object and parties. A key element of insurance is risk. These words are understood as situations in which the object of the agreement is damaged. There are many risks that determine the diversity, which is different from the concept of insurance and types of insurance. The persons who conclude the contract have significant material interest - to protect themselves from losses related to causing significant damage to their health, life or property.

The concept of

The concept of insurance and types of insurance are generally known to everyone. It is a system of economic relations designed to reduce property losses in the event of adverse circumstances. In other words, such an agreement helps to protect oneself from the risk of losing a large sum due to an accident. Participants make contributions from which the reserve fund is formed . If the object of insurance (property, health, etc.) was damaged, the organization pays the amount necessary to recover damages.

However, the subject receives compensation not just in the case of various damages, but only in those situations that are previously specified in the contract. An event that leads to compensation for damage is called an insurance event. This term means a random situation that can lead to substantial material losses.

Legal entities providing similar services are called insurers. To carry out their activities, they must meet state requirements and obtain a license. The concept of insurance, its functions and types are specified in the relevant law of the Russian Federation. Thus, persons who have decided to sign a contract with an official company may not be afraid that rights will be violated. The activity of organizations pays off at the expense of the premium - remuneration stipulated by the terms of the contract.

Functions

In a primitive form, the concept of insurance and types of insurance appeared in ancient times, when people were stockpiled with grain and building materials in case of bad weather and natural disasters. To date, this type of agreement is the foundation of an economy that guarantees financial and legal persons financial stability. The modern concept of insurance and types of insurance have developed in stages, complemented by the emergence of new forms of economic relations. At the moment it is, first of all, the opportunity for entrepreneurs to secure their business, and for citizens - to provide themselves in case of temporary or permanent loss of efficiency. This type of relationship performs important functions, among which the following can be distinguished.

Classification

Insurance is divided into many types, which, in turn, are grouped into two forms: mandatory and voluntary. The main criterion for classification is the subject of the contract. For today, insurance covers almost all spheres of public life: material values, human health, labor activity. Different types of relations are combined into three branches, presented in the table.

Property insurance is important for both entrepreneurs and individuals. Damage to property due to a fire, accident and other unforeseen circumstances can entail large costs, which business owners are often unable to cope with their own means. For this reason, the conclusion of an insurance contract is a normal practice for entrepreneurs. In states that do not guarantee free medical care, personal insurance has become widespread. The concept and types of such a contract are directly related to the life of a person and his health. Also, there are combined types of insurance, which can be attributed directly to several types.

Life and health

Personal insurance is widespread in Western countries and among wealthy citizens of the CIS countries. The concept and types of this type of contract are difficult to cover in a general formulation: different companies around the world provide a wide range of services that cover a wide range of activities. We can say that this is a kind of relationship where the object of insurance is a property interest that relates to a person and his activities. The subject of the contract may be:

• a life;
• health;
• Risks of accident.

Health is the most common object of this type of contract, since serious diseases can lead to significant costs. The concept and types of medical insurance differ depending on the spectrum and, accordingly, the cost of the services provided in the clinic. The most unusual object of the contract is human life. This type of insurance provides for the accumulation of money that is paid to an individual after a certain period (for example, upon retirement) or heirs after his death. Thus, the agreement helps to protect the family and secure a comfortable old age. Accident insurance is valid for a short period. Compensation is paid when, due to an external reason, a person has died or lost ability to work. Such a contract is often concluded by passengers, employees of an enterprise or tourists.

Treatment

Various types of agreements related to human health are common, but the concept and types of health insurance that are common are different. First of all, this is the social protection of citizens, which manifests itself in the payment of medical services for the appearance of various diseases. There are two main types of such insurance:

• Compulsory (MHI);
• Additional (LCA).

The latter also includes treaties that citizens conclude when they leave the country. In most countries, including Russia, there is compulsory medical insurance. With its help, all citizens of the state have equal opportunities for treatment and medicines. Territorial fund of CHI transfers money to the account of insurers of local self-government, depending on the number of insured persons in a certain locality.

Let's consider voluntary medical insurance, concept, types, forms of which do not differ much from the state one. The difference is that with this type of relationship, additional services are provided to clients in selected treatment and prevention institutions. The contract operates on a commercial basis and allows to receive better treatment from narrow specialists. A medical insurance contract is also drawn up when you leave the country. For some countries, this procedure is mandatory.

Property Insurance

This type of contract is designed to protect material values - things, vehicles, real estate. Both physical and legal persons can issue property insurance. The concept and types of the contract are similar to the previous type of agreement, only the object of the contract are material risks, and not the life activity of a person. Property insurance is the protection of interest related to the possession, disposal and use of things. In case of damage to the material values indicated in the contract, compensation is paid to the client. As in the case of a personal contract, the agreement has two forms: compulsory and voluntary.

In case the property was destroyed and can not be restored, its owner is paid its full value. In case of damage to things, not the whole amount is compensated, but only a part necessary for their repair.

Liability Insurance

Sometimes this type of contract is not allocated when classified into a separate position, but is considered a component of the property agreement. Nevertheless, it has some distinctive features. The object of insurance for this type is the person's liability to third parties for causing them or their property harm. According to the legislation of the Russian Federation, in such situations it is necessary to compensate the damage caused. The company with which the client entered into the agreement, allocates the amount necessary to pay the compensation, thus satisfying the property interest. In addition, the concept and types of compulsory insurance includes contracts, the subject of which is liability, for example, for car owners.

Accidents during production

Agreements concerning the risk of pollution of the environment are called "environmental insurance". The concept and types of contract include positions of the positions of the previous classification. Such an agreement is aimed at compensation for damage caused by environmental pollution. In some accidents, the use of land and water can become impossible, and finding people in a certain area is not safe for health. Such situations entail high costs. Types of environmental insurance:

• Personal (life of citizens living or working in the zone of increased danger);
• Property (real estate, which may be damaged in the course of an environmental disaster or accident);
• Responsibility (enterprises whose activities are likely to damage the environment).

In some countries, environmental insurance is mandatory. This mainly applies to enterprises where production may cause failures that can cause severe damage to the environment (for example, oil leakage).

Reinsurance

Sometimes companies enter into agreements with customers with too much risk. To protect themselves, firms make a contract with another reinsurer. Part of the responsibility and reward remains with them, while the rest is transferred to the second company. Thus, insurers achieve financial balance. The procedure for transferring risks is called a cession. Such a chain can consist of any number of positions, for example, the secondary insurer has the right to transfer part of the responsibility to the tertiary. There are different forms of this type of agreement.

Classification of reinsurance by obligatory:

• Contractual (the company or a person independently chooses whether he wants to transfer part of the responsibility to another person, as well as the size of this share);
• Automatic (some firms contract with reinsurers, as a result of which all transactions falling under certain criteria are transferred to them).

The transferred share can be established in two ways. Proportional insurance provides for a proportionate distribution of liability, reimbursement and premiums. Thus, the benefits and expenses of the primary and secondary insurer coincide. Another way of determining the parts is disproportionate, since the interests of the parties to the contract are not proportional, in particular, one of them may incur large losses. Such are the concept and the main types of insurance, where responsibility and reward are distributed among several persons.

State compulsory agreement

It is possible to single out two forms of the contract, depending on the insurer with which it is concluded. When the organization is in the ownership of the country, then these agreements are called state, and if it belongs to legal entities - private. In this case, the first type of agreement, according to the legislation of the Russian Federation, is mandatory. The amount by which contracts are concluded is allocated by the state specifically for these purposes.

A major role in the sphere of the economy is played by state compulsory insurance. The concept, types, rules and tariffs of this form of agreement are clearly defined. Under the state compulsory insurance means relations that arise between the parties to the contract by virtue of the law. It covers the entire population of the country or large groups of people. There are such types of compulsory insurance:

• Medical;
• Social;
• Military personnel;
• Passengers;
• Responsibility of owners of vehicles (OSAGO);
• Owners of dangerous objects.

Voluntary insurance

This type of contract is not mandatory and is initiated by the subject. Unlike the form of relations already described, the rules under which voluntary insurance is carried out , the concept and types of such a contract are established by law only in general terms. Specific tariffs and conditions are determined by the parties to the agreement. Its types include insurance:

• Life;
• Health (continuous and when a disease occurs);
• From accidents;
• Vehicle;
• Cargo;
• From natural phenomena;
• Responsibility of TC owners;
• Financial risks, etc.

This kind of relationship is characterized by selective coverage of clients, that is, the company can refuse to the insured if it does not meet its requirements. At the same time, a voluntary agreement always has its terms. At the end of the contract you can re-arrange, again paying the fee.

Concept and types of social insurance

This type of agreement means a system of social protection, which is designed to provide financial support to citizens in case of disability, in case of illness, unemployment or loss of breadwinner. The concept and types of social insurance may differ, depending on the form of the agreement, which is distinguished by three:

• Collective (trade unions);
• State;
• Mixed.

In the first case, the conclusion of a contract is voluntary and is carried out in those situations when the state does not provide appropriate material protection. Relations are built on the principle of democracy, partnership and self-government. The amount of payments is not fixed and depends directly on the income level of employees.

The concept and types of compulsory social insurance are clearly regulated by the legislation of the Russian Federation. It is part of the state's social protection system aimed at providing employees with a deterioration in their financial situation. There are such types of compulsory social insurance:

• Medical;
• Pension;
• Temporary incapacity for work;
• From accidents;
• Motherhood;
• In connection with the death of a family member.

Conclusion of the contract

Before drawing up the document, the underwriting procedure takes place - the risk of the occurrence of the insured event is estimated. This directly depends on the size of the premium, and therefore the process requires careful calculations. An incorrectly assessed risk can lead to significant embezzlement and bankruptcy of the company.

The basis for the conclusion of the contract is the client's application, which can have both a written and an oral form. In this document, the policyholder must detail the facts that will help to give the most accurate risk assessment. The agreement is made in any of two forms: in the form of a contract or a policy. In the first case, the document is signed by both parties, and in the second case - only by the insurer.