What is Loss Insurance? Insurance exists to provide guarantees for something that is not certain to happen. Because humans do not want to feel the bad effects of uncertainty. Insurance is further divided into several types according to the grouping of benefits.
On this occasion, we will discuss about one type of insurance, namely the type of loss insurance. What is loss insurance like? And what insurance is included in the category of loss insurance? Here’s the answer.
What is Loss Insurance?
Loss insurance is an insurance group that provides guarantees in the form of compensation for an object of insurance that experiences unexpected things or risks by the insurer.
In accordance with its understanding, loss insurance will provide financial compensation to its customers. This compensation is given if the object insured by the customer experiences an unexpected or risky event.
The insured object can be a car, motorcycle, house, and other objects. If the risks such as loss, theft, fire, damage, accidents, and even loss of benefits.
Then the insurance company will provide compensation to the customer. On the object that experienced the disaster. For the amount of compensation, it depends on the loss insurance product that the customer buys and the agreement of both parties contained in the insurance policy.
In this condition, the insurance company acts as the insurer for the loss. And the object of coverage is in the form of cars, houses, and so on which are insured by the customer.
You need to know, that loss insurance only provides compensation if the object of coverage experiences an unexpected event. And meet the requirements listed on the insurance policy.
Loss Insurance Principle
There are 6 principles of loss insurance, namely:
Principles of Good Faith (The Utmost Good Faith)
Principle of Insurable Interest
Principle of Proximate Cause
Principle of Subrogation
Types of Loss Insurance
What types of insurance are included in loss insurance? Here are some types of loss insurance.
Fire insurance or fire insurance is a type of loss insurance that provides compensation to the object of coverage for the risks caused by fire.
The objects of fire insurance coverage are houses, factories, buildings, hotels, offices, and so on. In PSAKI, fire insurance must provide compensation for risks in the form of fire, explosion, lightning, and falling aircraft.
Goods Cargo Insurance or marine cargo insurance is a type of loss insurance that provides coverage or compensation for risks in the form of loss and damage to goods when transporting goods by sea.
This type of freight insurance provides 2 guarantees at once, namely guarantees for ships and goods transported. Because both have been registered as the object of coverage.
If the ship experiences a risk such as an accident or fire and the ship is on its way. Therefore, the insurer will provide compensation for the ship and goods that have been insured under the insurance policy.
Miscellaneous Insurance or Misscellaneous Insurance is a type of loss insurance apart from fire insurance and freight insurance. Examples of miscellaneous insurance are:
All Risks property insurance
Machinery and Equipment Insurance
Personal Accident Insurance
Motor Vehicle Insurance
And other types of insurance that provide compensation except life insurance.
Thus the discussion about insurance losses. May be useful.