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Information, Tips, Tricks About Insurance
How to pay an insurance premium of Sharia - Sharia Insurance is a risk management arrangements that comply with Sharia, please help mutually involving participants and operators. Sharia comes from the stipulations in the Qur'an and as-Sunnah.

Sharia Insurance Premium Payment Method

Elements of Sharia insurance premium consists of:
- Elements of tabarru ' and saving (for insurance)
- Tabarru ' elements (for insurance and term insurance)

Elements of tabarru ' on the soul, the calculations taken from the tables of mortality (life expectancy), the magnitude depending on the age and the period of the agreement. The higher the age and increasingly long times of his Covenant, the greater the value of tabarru'nya. The magnitude of the life insurance premiums (tabarru ') are on the range of 0.75 to 12 percent.

Some scholars of Sharia insurance such as m. Billah mentions this term with premium contribution (contribution). Billah dodged tabarru ' because in practice, the term insurance products in life insurance and all products in the insurance loss there for the results (mud} ar < abaad) If no claims occur, while the tabarru ' according to most Islamic scholars not justified hope of return.

Premium on Sharia insurance also called net premium because it consists only of mortality (life expectancy), and in it there is no loading elements (Commission agents, administrative costs, and others). It also does not contain elements of interest as in conventional insurance.

Abbas Salim said that the premium paid by buyers of insurance depends on the nature of the contract has been made between the insurance companies with the insured.

1. Premium increases (natural premium-increasing premium), the premium payment is the longer growing bigger. At the time of the commencement of the year, insurance premiums are paid low, but after that, the longer the high growing from year to year. Payment of premiums increase every year because:
-The age of the policyholder accrue long increased ride (old), it means that the risk increases as well.
-The possibility to die more quickly.

2. equitable Premiums (premium level), on the level of premium is the magnitude of the premiums paid by policyholders for every year (evenly). Indeed in the years of the commencement of payment of the premiums, bigger than on natural premium, while in the following years, the payment of premiums is lower when compared with the increasing premium.
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Understanding the Benefits and Insurance According to Experts - The notion of insurance quoted by Soeisno Djojosoedarso in his book entitled "the principles of risk management and insurance", namely:

Understanding the Benefits and Insurance According to Experts

"Insurance is the agreement by which one party, the insurer – committing yourself to others, to indemnify the insured – which can be suffered by the insured, because of the occurrence of an event which has been designated and which has not been naturally as well as by chance, by which the insured also promised to pay a premium ". (Soeisno, 1999:72)

The notion of it can be drawn the conclusion that insurance is a transfer of loss due to the risk that may occur upon the specified object from the parties concerned as the insured to the insurer as the insurer based on the agreement between the parties with the insurer the insured the insured parties with the terms of paying the premium amount of money to the insurer in return diversion of such losses and, if really incurred losses on the specified object, the insurer will pay to the insured an amount of money as damages.

Insurance Benefits For Life
Insurance is very beneficial for the socio-economic life of the society and the State. According to Soeisno Djojosoedarso in his book "the principles of risk management and insurance", insurance benefits for social life and in memproduktifkan economic activity was as follows:

1. to provide a sense of security
One that encourages the birth of insurance businesses is the instinctive impulse there as everyone, that desire will be a sense of security. In which case psychological aspects may be manifested in attitude or may also give rise to a new attitude, as they contemplated the existence of tools towards the fulfillment of his desire (to be renewed). With the security of insurance will be fulfilled and will get rid of worries and fear of uncertainty will be a particular hazard.

2. Mengeliminir dependency.
Development of unfavorable developments might be experienced by someone who caused by factors of economy/Finance experienced by others, to whom the person concerned is dependent.

3. The contribution to education
Life insurance companies have much give special attention in the provision of funds for the continuation of the education of children after parents or responsible fund it dies or declines his ability. On the situation of such children generally haven't been able to earn revenue on its own, so it will have difficulties to continue their education. To anticipate the fact that life insurance companies generally have been providing various forms of insurance.

4. Contribution to social institutions
Most of the needs of the operational funds of social institutions hang him from a donation from the donateur. In the condition of the economy is fraught with uncertainty, would probably result in the onset of doubt for donateur to keep donating money, due to the fear of losing property or not provided today. But when the donateur has been insuring itself against the risks in question, then the doubts and fears there will be no more, so that those concerned can still be a loyal donateur.

5. Stimulation of saving
Narrowly it may be argued that insurance is berubungan with the issue of punitive damages, but given in life insurance has added a clause which highlighted more penabungan element, then this element can not be ignored in the in discuss the role of insurance. Disampingitu has also started merging diintrodusir/pengombinasian insurance program with a savings account, for example, Taska (Savings Insurance futures) organized by the Government-owned banks (STATE-OWNED).

6. Provide the funds needed for investment
The activities carried out by insurance companies has developed in such a way, so that's a pretty important role in providing the funds needed in the various activities as well as economic development. In addition, individuals who are not willing or not able to handle its own utilization of funds, he can make use of those funds by way of channeling their funds by participating in the insurance program, which further such funds by insurance companies is channeled into various investment projects benrtuk.

7. Complete the credit requirements.
When a person or a specific entrepreneur in need of funds from a bank/lender, then the lender will usually require the existence of the insurance for the goods that are used as collateral or are there credit insurance for itself.

8. Accelerate the rate of economic growth
Contracts in general insurance/loss is usually a premium paid in advance in order for the mennyaratkan and the peruahaan millik Fund insurance. In the course of its life insurance companies have been able to mengakumulir funds in no small amount, the funds collected are usually implanted successfully in various fields of endeavor, either get a fee for the source the operation of the insurance activities as well as to increase income. So the funds collected by the insurance company is one of the sources of funds that are very meaningful in accelerating the pace of economic development.

9. Reduce the cost of capital
In order to be able to attract capital to finance business areas that the big risk, then the level of opinion/return/interest will be given to owners of capital should be higher. When the risks facing it can be redirected/insured then the risk faced by owners of capital into smaller, then the owners of capital will be willing to accept interest rates (return). This means the capital costs to be borne by the company (users of capital) will be smaller.

10. Guarantee the stability of the organization/company
When an enterprise includes employees in the insurance program, will carry the psychological impact that snagat meant for employees, which will be positively impact against their behavior that will be very profitable for companies, especially with regard to issues of human resource management and the achievement of efficiency and effectiveness of their work.

11. Encourages the efforts of prevention
Insurance companies doing punitive efforts encourage companies/individuals who become insured, to increase prevention efforts/protect themselves from hazards that can cause any harm.

12. Help increase conservation efforts of health
Other efforts are being made to avoid/minimize the causes of the incidence of losses is the campaigns conducted by life insurance companies to policyholders in particular or to society generally, relating with the efforts of prevention of death or health care.

With the insurance companies, from the services produced by insurance companies or other insurance activities of the insurance benefits would be greatly felt by both the parties directly involved in the activities of insurance or for which are not directly involved in it. At first the role of insurance just to satisfy human needs, namely the need for a sense of security from risk insurance in this case very felt by those involved in the activities of the insurance. Along with the development of the insurance business that is associated with a variety of aspects, such as economic and social aspects then the role of insurance insurance more felt by both the parties directly involved in the activities of insurance or by the other parties that are not directly involved in the activities of the insurance.
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Shariah Compliant Insurance Products [Takaful Family]

Shariah-compliant insurance actually happened is mutually responsible, bantu-membantu and protect the participants themselves. Takaful insurance company given (amanah) by the participants to manage premium participants, developed with the halal, provide compensation to those who suffered a disaster match the contents of the deed of Covenant Muhammad in Hilaliyah (2008:41).

Shariah-Compliant Insurance Products [Takaful Family]

In life, a man will surely experience a disaster or an issue in which the problem will cause a loss or a risk. Well in this case no such thing as insurance, which serves as a solution to address it.

As Muslims here we will discuss about the accounting transaction Insurance yag Islamic of course. So the existence of this discussion then we'll know and understand about Insurance accounting. Accounting of insurance that we will discuss here are used in Islamic finance institutions.

In the Islamic insurance accounting there are a few principles that exist therein should diterpakan include: mutual responsibility, mutual cooperation, mutual protect. And akuntnasi conventional and Sharia insurance has a difference. And with this we would present a paper that will expose these things.

Family takaful takaful is a form of protection in the face of disaster and accident death over death accident in takaful participants will receive appropriate compensation agreements are a family/heirs, or the designated person, in which case no heir. In the accident accident not resulting in death, the death benefit will be received by participants who have experienced a disaster.

According to Muhammad in Hilaliyah (2008:42), a type of takaful family include:

1. individual elements with a takaful Product savings, include:
a. Takaful plan/investment funds
b. the Takaful Fund of Hajj
c. the Takaful fund education/students
d. the Takaful Fund Office
e. Takaful hasanah

2. Products without individual item savings takaful, include:
a. individual health Takaful
b. the individual accident Takaful
c. Takaful Al-Khairat individuals

3. Collection of takaful Products
a. Accident Takaful Self Collection
b. Takaful Assembly ta ‟ lim
c. Takaful Al-Khairat
d. Takaful Al-Khairat + Savings of Hajj (Hajj Dues Takaful)
e. Financing Takaful
f. Student Accident Takaful
g. Takaful Tour and travel
h. Takaful Medicare
i. Takaful Hajj and umrah
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This is the source of 4 operational cost of Sharia Insurance

Operate Sharia insurance business which is shaped like a limited liability company (PT), a source of operational costs be very decisive in the development and acceleration of the growth of the industry. Another case with the Islamic social insurance, mutual or cooperative, here the role of Government should be dominant especially in ditahap its inception subsidizes insurance.

This is the Source of 4 Operational Cost of Sharia Insurance

Islamic social insurance are certainly not outrageously give priority to this aspect of the business or the acquisition of profit. But in prefer the benefits of most aspects to its members as the main function of Islamic insurance, that is, wataawanu alal birri wattaqwa ' mutual help in virtue and taqwa ‟.

1. For the Underwriting Surplus Results

According to Sula (2004:180) to outcome of underwriting surplus is for the results obtained from a surplus of underwriting, which are divided proportionally between the participants (shohibul Mall) and Manager (mudhorib) with a ratio that has been set before. Whereas, for products of non saving in life insurance, underwriting surplus is also a source of operational costs. Underwriting surplus obtained from a collection of Fund participants who invested, then reduced the costs or the burden of such reinsurance and insurance claims. The surplus then divided the results between participants and companies. Part of this is taken as a company operating expenses before becoming the company's profit.

According to Richard Bailey in Sula (183:2004), the purpose of underwriting to make estimates of risk and determination of the prospective insured into risk groups, the objectives of the company are underwriting approval and publish a policy:

Fair for the customer (Equitable to The Client):
One of the basic principle of insurance is that each insured pay premiums proportional to the risk insured against the company's reserves. With the receipt of the application of life insurance, the company shall assign a level of risk and premium burden should be equitably the risk.

Can be sold by the agent (deliverable by the agent):
The buyer makes the final decision whether a particular insurance policy is acceptable. If the buyer decides not to buy the insurance policy if the dealer trying to sell such policies, saying that the policy could not be sold (undeliverable) or not purchased (not taken). One of the reasons for a policy which is not purchased is due to unfavorable underwriting decisions with the result of the imposition of a premium to higher anticipation. For example, if the underwriter has decided to load the premiums are higher than the normal premium for one closure or limit the sum assured or an extra benefit or rider type is desired, then the prospective insured may reject the policy..

As for the conditions of admissibility of an insurance policy are:
 the policy must provide benefits that meet the needs of the buyer.
 the premiums set by the policy must be within the limits of the financial ability of the buyer.
 the premiums charged for insurance should compete with the market.

3. Profitable Company (profitable to the company)
Underwriter must make decisions that benefit the company. All insurance companies, whether it be a limited liability company, life insurance together, or fraternal twins, ask a healthy underwriting to assure a profitable financial results. Limited liability company paying dividends to shareholders. And in some cases, asuradur (the insurer) fraternal or mutual companies paying dividends to policyholders (participants).

2. For Hasi Investment

According to Sula (2004:180) to outcome of the investment is for the results obtained proportionally based on the results for the ratio has been determined, either from the results of investment and savings accounts as well as participants from the tabarru ' Fund account. After the Fund participant is payable, and accrued in total Fund participants, then invested. Profit from investments then conducted for the results between participants and managers or insurance companies.

3. Shareholders ' Funds

Shareholder funds are funds prepared by the shareholders as capital for companies, setor either in the early stages of the establishment of the company as well as the addition of funds after the company goes along investment results over those funds or by in other words, the accumulated capital plus earnings deposited by shareholders.

4. Loading (Cost Contribution)

According to Sula (2004:181) loading is the contribution charges that are charged to participants, who are normally on conventional insurance premium is taken from the first and second years. On some Islamic insurance in Indonesia, the loading imposed amounting to approximately 25 percent of the first year's premium over the knowledge of the participants and especially allocated for the cost of a Commission agent. As for the number of contributions taken passed away to each company's policy with regard to aspects of Justice and aspects of the market.

Shariah-compliant insurance companies like Syarikat Takaful in Malaysia, and most Islamic insurance in Indonesia such as Shariah-compliant Insurance Mubarokah not loading charge to participants for reasons contrary to rule syara ‟. While some others such as Family Takaful Shariah, MAA and other Shariah-compliant insurance, Shariah Supervisory Board (DPS) allow loading (for example a 3 percent) from the first year's premium, all done in a transparent and informed consent participants of the takaful contract early. It is considered not contrary to norms syara ‟.

According to Sula (2004:181) understanding the cost of loading on Sharia insurance is contribution charges that are taken from a small percentage of participants (premium) contributions the first year, for example, 20%-30% of the premium the first year. These costs are mainly allocated to Commission agents and billing costs (incasso).
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The difference in accounting system of Sharia Insurance and Conventional Insurance

The Difference in Accounting System of Sharia Insurance and Conventional Insurance

The concept of Islamic accounting and accounting of conventional nature and have different characteristics. Accounting basics: for the Islamic sharia was implemented among the muslim community, the process is handled by the accountants who combine the capabilities and skills of work with honesty. Based on the understanding of the Islamic Foundation, and the principles of Islamic accounting and information above, we can deduce the nature of the specific Islamic accounting including the following. :

• Basic accounting norms of Islam is derived from the Qur'an and Sunnah and Fiqh scholars

• Accounting of Islam enshrined the rule of the strong, faith, as well as the recognition that God is God, Islam is a religion, Muhammad is the Apostle, and also believe in the last day.

• Accounting of Islam based on the good morals. Therefore, a process of implementing accounting accounting should be able to have a trustful, honest, neutral, fair, and professional.

• In Islam, an accountant is considered responsible in front of the community and Muslims about how much economic unity that is affected by Sharia law, especially with regard to muamalah.

• Based on the privileges that are rules and morals in Islam also, accounting related to financial processes.

• Accounting in Islam is concerned aspects of behavior as an element and also plays a role in economic unity.

In the accounting system of Sharia has some differences with conventional accounting accounting system. Mohamed Arif bin Abdul Rashid, CEO of PT Syarikat Takaful Indonesia, in Eccounting Concept In Takaful Business explains some of the difference is as follows:

a) Cash Bases
In conventional accounting practices, insurance premiums are recognized as revenue, even though the insurance premium has not been paid. While the accounting practices in takaful or Islamic insurance, or installment premiums and profit from an investment is truly recognized as revenue if the companies have received it in cash. This accounting practice has an important meaning related to the business system berperinsip on the mudharabah contract which binds between the participants with the company in a deal for the results.

b) Technical Reserve
Technical reserves is part of the insurance premiums that have not been generated or is known as premium reserves that have yet to be produced. In takaful accounting system, backup techniques is calculated by using the 1/365 method. Premiums will be recognized as income as well as determined according to the actual number of days during the accounting period and the period of the agreement/contract Tafakul. The premiums were not used during the duration of the agreement is considered a backup.

c) load Retakaful
In conventional insurance practice load during the reinsurance treaties, recognized as the initial insurance dikover. This accounting practices in accordance with the accepted standards, i.e. the comparison of revenue with the burden that occurs during walking. In Takaful accounting system, the burden of retakaful Treaty during the period are recognized as debt until it is paid in installments or Takaful premiums by participants. However, the load will be recognized as this retakaful income juika whole premiums paid in advance by participants.

d) Surplus (life insurance)
In conventional insurance, investment of surplus ditrasfer to the shareholder as income. However, in family Takaful (soul), the company is not entitled to recognize this as a surplus of income. On Takaful family only profit from investment funds were shared between the participant and the company is exchanged (e.g. 70:30 or 60:40). After deducting the portion of profits for the company, the rest of this profit is income for participants of Takaful who dikreditan kerening participants.

e) Surplus (On Insurance)
Profit from the General Takaful (losses) are distributed based on the ratio of profit which has been agreed between the company and participants of Takaful. Benefit is payable if the participant is still bound to tafakul the agreement or contract. The technical aspects of insurance accounting, Tafakul describes the added value or profit expressed in a fair and transparent. So, neither the company nor the participants of insurance tafakul not feel aggrieved. Another advantage is that the existence of long-term values of community, tolong-menolong, and menaggung each other if among the participants happen to claim a loss. This is the side the possibility of Takaful insurance.
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The implementation of Islamic Sharia in Insurance Accounting

The Implementation of Islamic Sharia in Insurance Accounting

a. Shariah mudharabah contract with Accounting.
In this contract there is a separation of the management of funds between Fund shareholders (DPS) and the Fund participant insurance (DPA). The company acts as the holder of the mandate to manage the contributions received from participants who used when among the participants of the calamity.

On the other hand, participants agreed that the new funds deposited will be managed professionally by the operator. If at the end of the period, participants who do not get the disaster will earn for the results. Thus, in this contract funds deposited participants belong to the participant, and not to be used for the benefit of shareholders. Konsikuensinya, system accounting is applied must be separated between the Shareholder Fund Accounting (DPS) and accounting Fund Participant insurance (DPA).

b. Accounting wakalah contract with Sharia.
In this contract there is no separation between the shareholders ' funds of penegelolaan with Fund participants of the insurance. The company received funding from participants ' tabarru and reserves the right to use for all activities of the company. The funds came from shareholders with Fund participants are mixed together. So, consequently, the accounting should not be separated between the shareholder fund accounting with accounting Fund participants of the insurance.

Based on the description of the previous chapter the author can put forward conclusions as follows.
• Insurance is a Non-bank financial institutions aiming to provide protection or protection for losses inflicted by the financial events that were not previously thought.

• Islamic Insurance, is a system where the participants of the menginfaqkan or the grant of some or all of the contributions that will be used to pay claims, in case of accident experienced by most participants. The role of companies here only as insurance and investment management operations from funds or contributions received/assigned to the company.

• The principles of syariah insurance run in operte activities inter alia cooperate or bantu-membantu, protect from different distress and suffering each other, mutual responsibility, and avoid elements that contain gharar, maysir and usury.

• The most fundamental Differences between sharia insurance kovensional insurance is on the existence of the Surveillance Board of Syariah (PDS), Akkadian, Investment funds, ownership of funds, payment of claims and benefits.
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Premium is an amount of money that must be paid by the policyholder to the Insurer in accordance with the exchanged. Premium payment in personal accident insurance is based on annual premiums to be paid upfront, at the head office or any other place that is designated by the insurer and the insurer's approval can be over diangsur in accordance with the insurer.

How Much Premiums Personal Accident Insurance and Payout Procedures

In the grace period that the premiums paid the annual renewal premium payment is 30 (thirty) days calculated from the due date and if the premium is not paid, then the grace period for payment of the premium is 7 (seven) days.

In the assured grace period remains in effect and if the premium payment still not dilakukun sanpai expiration grace period, then the US policy but become null and void..

Payments made to the Insurer in a currency corresponding to the currency of the account.

Payment can be made by selling exchange rate by selling dollars and issued by the insurer at the time of payment.

The Validity Period Is Assured Personal Accident Insurance

Coverage will take effect from the date and time up to the date and time listed on your policy and premium which has been paid in full for any period in a given period of coverage.
In this policy the existence of a contract extension by way of renewing for next period and subsequent years based on mutual agreement between Penang gung and policyholders.

Coverage in this policy will be not valid after: participants died in the protection period expires, the contract, the premium is not paid until by the grace period as set forth in article 3 paragraph 2, at the end of the policy year in which the participants reached the age of 70 years.

The existence of extensive warranties policy accidents themselves:
1.100% Mortality
2. Lost for good vision both eyes 100%
3. Lost for good vision one eye 100%
4. Lost forever or lose the overall functions of two limbs 100%
5. Lost and for all functions of the overall loss or one limb 100%
6. Mental illness forever impossible can be healed back 100%
7. The paralysis of all limbs and for all that might not be 100% cured back
8. the overall Inability to forever: 100%

9. Loss of hearing for good
a. both ears 75%
b. one ear 15%

10. the overall loss of one eye lens for good 50%

11. Lost and for all the functions from all four fingers and the thumb of:
a. right handed 70%
b. left hand 50%

12. Lost and for all the functions of four fingers:
a. right hand 40%
b. left hand 30%

13. Lost forever the overall function of a thumb:
a. both sides right thumb 30%
b. a right thumb segment 15%
c. both sides left thumb 20%
d. one of the segments of the left thumb 10%

14. Lost forever the overall function of the fingers:
a. three-segment finger right 10%
b. two right fingers section 7.5%
c. one right finger segment 5%
d. the three sections of the left finger 7.5%
e. the two sections of the left finger 5%
f. one section left finger 2%

15. Lost forever the overall function of the toes:
a. entirely from both 15%
b. the second toe-thumb toe 5%
c. hallux-one sections toes 3%
d. in addition to the mother's toes, each toe 1%

16. Broken bones a foot or knee that Shell could not be reunified untu10% forever
17. The cutting away of at least 5 cm 7.5%
18. the actual cost of paying medical expenses for treatment/medical treatment as a result of injuries suffered by participants of maximal 10% of sum assured for each incident.

Personal Accident Insurance Claim Procedure
1. General Procedures
After experiencing kecelakaa, which should be done by the insured is:
* Contact the authorities Immediately (for certain cases
* Where possible save and keep yourself
* Contact the insurance through the fastest means of communication
* A description of the procedures and the completeness of the file a claim by claim
* The Survey will be held when necessary

Important things to be delivered the insured who have experienced misfortune is calming as well as tells that the insurance might help semaximal akin. Furthermore the insured should prepare the necessary documents. After looking at the legality of the polis, the complete survey data as well as documents that are necessary, the claim process will soon be completed by the insurance.

2. Settlement of claims
Based on the results that have been obtained, the insurance will give an explanation to the insured on the basis of the settlement of klaimyang asked questions. If the explanation is acceptable and approved then the next stage is the completion of its administrative HR and payment of claims.
In the payment claim, akin also accounted for own risk after all issues are resolved, the insurance obligations of the implementing member immediately akin claims, either in cash, by cheque or giro transfer or account.

Personal accident insurance coverage rates
Price protection (HP) is the amount of sum assured which use as the basis to determine:
 Limit maximal responsibility party Insurer against accidents self insured as a result of the occurrence of natural disasters over the importance that insured.
 Huge insurance premiums will be paid by the insured.

How is the determination of the magnitude of the Price Protection (HP)?

Determination of magnitude of HP is determined by the insured themselves, given the insured more know the importance of part of the body or the importance will be insured.
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Personal accident insurance is a type of coverage that guarantees the human self as an object of a certain amount of money to the insured in the event of the occurrence of the death, permanent disability or total care/treatment as a direct result of the accident.

The Sense Of Personal Accident Insurance

In terms of personal accident insurance policy referred to in article 1 is about:

-The insurer is PT. Asuransi Jiwa Central Asian Kingdom
-Polis is a letter agreement contains an insurance agreement between the insurer and the insured, the policy is also one of the first written evidence of the existence of a treaty akin assured an insurance agreement (Article 255 KUHD)

-Policyholders is the Body/Assembly/associations and the like in the form of a legal entity that made a Covenant group personal accident insurance with the insurer, the letter of Request is a letter in the contents with complete and correct by candidate policyholders and prospective participants/the insured that is the basis of this policy agreement, in this case performance, but in good faith with regard to a positive obligation to voluntarily disclose accurately and completely all the facts material regarding the risk/object that you want to insure either asked or not asked (article 251KUHD), related to the closing.

Participant List-is a list of the names of the insurance agreement held over him, the list of names is a part that is inseparable from the policy.

-Premium is an amount of money that must be paid by the policyholder to the Insurer in accordance with the exchanged.

-The slighted is the person or entity who is entitled to receive the sum assured/assured benefits based on the appointment in the polis.

-Sum assured is the amount of money specified in the policy will be paid in accordance with the requirements of the policy.

-Accident is Violence both physical and chemical nature, can be seen clearly, coming unexpectedly from outside and is the direct and sole cause of bodily injury.

In the provisions of article 1, which is included in the accident is Injured, which means a diterjadi body damage just by accident.
-Total Incapacity is a good body of injury that is fixed which is a direct cause of the inability of participants doing daily activities according to his profession.

-The inability of a portion of the Agency's injury is good which is fixed which is the direct cause of the inability of participants doing daily activities according to his profession.

-Permanent disability is a disability that lasts for twelve consecutive months and at the end of that period there is no hope to recover it back,.

-Loss of Limb is lost or amputation of limbs due to accidents are limited on hand at or above the wrist or of a foot at or above the ankles,.

-Lost fingers or feet is Terpotongnya or a River partially or completely due to accidents, above the last joints of the fingers and wrists, or last joints of the feet between the toes and ankles.

-Loss of function is losing his physical ability or effectiveness of the participants or the insured.

-Treatment costs are the costs incurred or paid by the participant or the insured to: treatment on doctors, hospitals and ambulance Services or medicines included; pembedahanmedis purposes of x-rays and hospitals but not include the cost of dental care, except the treatment needed to cure a tooth to its original state that is caused by injuries. when participants/tertanggung get a replacement part or entirely to that kind of treatment from another source, then the insurer is only liable for the membayarkelebihan sum of the limit that has been set. air travel is located inside a commercial aircraft for the purpose of the flight.
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Work accident insurance is insurance provided by workers when during a work accident or stricken with the disease who need health care more than 4 days, it will be given the care treatment, and if during the the period of the treatment of workers could not work then the 70% of the average wage will also be provided, and if the worker dies then the benefit for the left would refer to the social insurance institution in Korea.

The Sense Of a Work Accident Insurance

For foreign workers who are legally or illegally will be treated in a balanced way and if already eligible to apply for a work accident insurance and can receive benefits is expressed from the insurance, then even though the owner of the business does not give permission, workers can still register the employment accident insurance.

Employment insurance registration procedures for foreign workers

Welfare Service Center open, then complete the form for the service of treatment for accidents in the health institutions is available, then collect the forms in your work place jurisdiction branch
※ Process will ensure the accident investigation duties/work from the owner of the business and the worker concerned and may request supplementary documents if needed, so the process can take some time.
※ When registering for diseases suffered the consequence of work done then must wait for a decision from the Council for occupational diseases.

This type of insurance payments

Scr reimbursemenz payment: If the treatment process takes more than four days then treatment will be given by designated health institutions
Payment of wages while working: If a work accident or disease and during recovery does not work, then 70% of the average wage will be given
The retired corporal compensation: If after undergoing medical treatment for 2 years but there are still no signs of recovery, it will be given a pension in accordance with the kompesasi
Disability allowance: If after undergoing medical treatment, there is a disability incurred then based on 14 types of existing levels of disability will be given allowances in accordance with the level of disability suffered

Benefit for the left if the worker dies, it will be given a pension fund for the family left behind (in a round number) and will be given allowances for funeral process.
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It has become important to You asking for a period of time for the filing of insurance claim before buying it. Because each company will give a different period of time

You need to know, claim insurance is the official request addressed to the insurance company related financial protection or indemnification of the insured in accordance with the agreed contract agreement between the insured with provider of insurance services.

In a sense, financial protection or indemnification of the insured party given by real insurance companies have been set up in the insurance policy they have. Then, insurance claims submitted will be reviewed by the company to validitasnya and then paid to the insured party after approved.

However, in addition to the issue of the procedure of the claim, the customer also wondered about how the time taken for the filing of insurance claim? If you want to become a customer, certainly pentanyaan it is very important and relevant to be asked when you buy insurance.

Explanation Of Insurance Claims Filing Period
Because the service delivery of the claim for the costs incurred such as outpatient, stay, medical expenses, or other things is very important for the urgent circumstances. This is because not all insurance companies are working with many hospitals so that in an emergency should be hospitalised, it is not possible to contact the insurance company asks for cooperation with hospitals related issues.

For about the length of time the process claims and handed the melting, it's all back to the company. Each insurance company has a grace period differs in filing a claim. You should check the policy document and is also associated with insurance companies since the beginning You cared for. Generally the grace period for making claims is 30 days. However, there are also could serve up to 60 days. It all depends on the terms and conditions of the insurance company.

Examples Of Cases Of Insurance Claims
For example when you're hospitalized two weeks ago, supposedly there is still enough time to make a claim and not too late. Our advice, you immediately claim not to late to get health insurance benefits you need. You can also contact customer service or your insurance agent regarding grace period claim.

Related to the delay in taking care of or to report a claim, if it's already listed in the insurance policy that the delay would lead to not give the claim, it is the responsibility of the policy holder. For policyholders have already signed the policy which means agree with terms and conditions that apply. For that, it's good you can obey the target time is set.

With an officially licensed as an Insurance Broker, you can directly purchase the product range of insurance options at Fortunately again, Futuready will provide recommendations to you when choosing the best insurance products to suit your needs based on experience and knowledge of the insurance products of each of our partners. In fact, you can also consult for free when you need help to manage the process by which you submit insurance claims. Easy, you can do this online by way of insurance claims without the need for elaborate sets and spend a lot of your time. Learn about your insurance claim procedures. If you are less familiar, don't hesitate to ask us to help you.
Information, Tips, Tricks About Insurance
Historical Background of Insurance Companies of Bangladesh

Insurance is not new business in Bangladesh. Almost a century back, during British rule in India, some insurance companies started transacting business, both life and general, in Bangal. Insurance business gained momentum in East Pakistan during1947-1971, when 49 insurance companies transacted both life and general insurance schemes. These companies were of various origins like British, Australian, Indian, West Pakistan and local.

Historical Background and Problem of Insurance Companies of Bangladesh

Ten insurance companies had their head offices in East Pakistan, 27 in West Pakistan, and rest elsewhere in the world. These were mostly limited liability companies. Some of these companies were specialized on dealing in a particular class of business, while others were composite companies that dealt in more than one class of business. The Government of Bangladesh nationalized insurance industry in 1972 by the Bangladesh Insurance (Nationalization) Order 1972.By virtue of this order, saves and except postal life insurance and foreign life insurance companies, all 49insurancecompanies and organizations transacting insurance business in the country were placed in the sector under fie operations. 

Present position of insurance business in Bangladesh
In Bangladesh, the Insurance business, after an early stage of dislocation, adventure and experimentation through half a century has now being established as a nascent industry distributed between the public and private sectors. Insurance business evolved in the Indian subcontinent late in nineteenth century when several business companies started their business and a few Christian missionaries began to operate mutual funds to serve their own community members.

From Bangladesh perspective insurance business was not a promising sector in its early age but it is getting its pace day by day with the growth of overall economic condition of the country. The privatization policy adopted in the 1980s paved the way for a number of insurers to emerge in the private sector. This resulted in a substantial growth of premium incomes, competition, improvement in services, and introduction of newer types of business in wider fields hitherto untapped. Up to 2000, the government has given permission to 19 general insurance companies and 10 life insurance companies in the private sector. Insurers of the country now conduct almost all types of general and life insurance, except crop insurance and export credit guarantee insurance, which are available only with the Shadharan Bima Corporation.

Numerous institutions, associations and professional groups work to promote the development of insurance business in Bangladesh. Prominent among them is the Bangladesh Insurance Association (formed on 25 May 1988) having 30members. It aims at promoting, supporting and protecting the interests and welfare of the member companies. Another example is Bangladesh insurance academy. Surveyors and insurance agents occupy a prominent position in the insurance market of Bangladesh. 

Problem of Insurance Business in Bangladesh

In a developing country like Bangladesh, insurance companies are playing a very important role in the economy. Though insurance industry has very prospect in the economy but for some reasons it’s totally failed to achieve its goal. If we want to know the reasons behind this hen we should look forward the following according to Bangladesh General Insurance Company Ltd. In this report the major problems in performing insurance business has been classified into some major criteria which are social, economic, political, legal and other reasons. The actual problems are discussed in detail within these criterions.

There are several social problems. They are as follows..
 Less Public awareness
 Centralization
 Economic Problems
 Poor economic conditions
 Poor financial position of the insurance companies
 Higher cost of business
 Problem of economic bases and effective principals 
 Political Unrest
 Lack of supervision & Inspection
 Too much complexity
 Lack of qualified officers
 Traditional method
 Lack of proper training
 Lack of exposures
 Lack of Business ethics
 Lack of Information Technology

List of Insurance Companies in Bangladesh
1) Agrani Insurance Company 
2)  Asia Insurance Ltd.
3) Asia Pacific Gen Insurance Co. Ltd.
4) Bangladesh Co-operatives Ins. Ltd.
5) Bangladesh General Insurance Co. Ltd.
6) Bangladesh National Insurance Co.Ltd.
7) Central Insurance Company Ltd.
8) City Gen. Insurance Company Ltd.
9) Continental Insurance Ltd.
10) Crystal Insurance Company Ltd.
11) Desh Gen. Insurance Company Ltd.
12) Eastern Insurance Company Ltd.
13) Eastland Insurance Company Ltd.
14) Express Insurance Ltd.
15) Federal Insurance Company Ltd.
16) Global Insurance Ltd.
17) Green Delta Insurance Co. Ltd.
18) Islami Commercial Insurance Co. Ltd.
19) Islami Insurance Bangladesh Ltd.
20) Janata Insurance Company Ltd.
21) Karnaphuli Insurance Company Ltd.
22) Meghna Insurance Company Ltd.
23) Mercantile Insurance Company Ltd.
24) Nitol Insurance Company Ltd.
25) Northern Gen.Insurance Company Ltd.
26) Peoples Insurance Company Ltd.
27) Phonix Insurance Company Ltd.
28) Pioneer Insurance Company Ltd.
29) Pragati Insurance Ltd.
30) Pramount Insurance Company Ltd.
31) Prime Insurance Company Ltd.
32) Provati Insurance Company Ltd.
33) Purabi Gen Insurance Company Ltd.
34) Reliance Insurance Ltd.
35) Republic Insurance Company Ltd.
36) Rupali Insurance Company Ltd.
37) Sonar Bangla Insurance Company Ltd.
38) South Asia Insurance Company Ltd.
39) Standard Insurance Ltd.
40) Takaful Islami Insurance Ltd.
41) Dhaka Insurance Ltd.
42) Union Insurance Company Ltd.
43) United Insurance Company Ltd.

1) American Life Insurance Company (Foreign Company) 
2) Baira Life Insurance Company Ltd.
3) Delta Life Insurance Company Ltd.
4) Farest Islami Life Insurance Co. Ltd. 
5) Golden Life Insurance Ltd.
6) Homeland Life Insurance Company Ltd.
7) Meghna Life Insurance Company Ltd.
8) National Life Insurance Company Ltd.
9) Padma Islami Life Insurance Company Ltd.
10) Popular Life Insurance Company Ltd.
11) Pragati Life Insurance Ltd.
12) Prime Islami Life Insurance Company Ltd.
13) Progressive Life Insurance Company Ltd.
14) Rupali Life Insurance Company Ltd.
15) Sandhani Life Insurance Company Ltd.
16) Sunflower Life Insurance Company Ltd.
17) Sunlife Insurance Company Ltd.

1) Sadharan Bima Corporation(Gen. Ins)
2) Jiban Bima Corporation (Life Ins.)

About Green Delta Insurance
 Green Delta Insurance Company Limited (GDIC) is one of the leading private non-life insurance companies in Bangladesh. GDIC was incorporated in December 14,1985 as a public limited company, under the Companies ‘Act 1913.
 Actual operations started on 1st January 1986,with a paid up capital of BDT 30.00 million
 Now, Green Delta Insurance Company Ltd. is amassed about BDT 510.million.
 It has 38 branches around the country.
 After 27 years of glorious journey in the Insurance sector, Green Delta Insurance Company Limited has now become a big family of 13 respected board members, 600+ committed staff, numerous valued clients and thousands of esteemed shareholders.

Vision, Mission, Strength & Belief
 Vision Our vision is to mature into a sustainable, coherent organization, raise competitiveness to the highest level in the insurance industry, maintain high profit stability & balanced quantitative growth and exceed customer’s expectations by off erring legendary services, embrace a new corporate identity and creative corporate culture.
 Mission Our mission is to create shareholders value through customer’s satisfaction and employee’s commitment to excellence.
 Strength Constant pursuit of suitable strategies has made the company the leading insurer of Bangladesh for over two decades.
 Belief We believe that client must stand at the center of our all activities. We have the ability to optimally fulfi ll the client’s needs based on risk management with minimum cost and personalized services.

Products and Services
 Risk Management                                                 
 Industrial All Risk Insurance including
 Machinery Insurance
 Business Interrupt
 Property All Risk Insurance including
 Business Interruption
 Electronic Equipment’s and 
 Computer Insurance
 Professional Indemnity Insurance
 Comprehensive Machinery Insurance
 Comprehensive General Liability (CGL)
  Product & Public Liability Insurance
 Directors and Officers Liability (D&O) 

 Cash-in-safe, Cash-in-transit & 
 Cash-on-counter Insurance
 Portfolio Cover
 Credit Card Indemnity Insurance
 Bankers Blanket Insurance
 Bank Lockers Insurance
 A.T.M. Booth Insurance
 Ban assurance

 Fire and Allied Perils Insurance
 Marine Cargo and Hull Insurance
 Aviation Insurance
 Automobile Insurance
 Personal Accident, Miscellaneous Insurance
 Workmen Compensation Insurance
 Engineering Insurance 
 Health Insurance
 Overseas Mediclaim Insurance
 Crop Insurance
 Micro Insurance
 Micro Health Insurance

Impact of GDIC in the economy of Bangladesh

The GDIC is providing different service to the economy of Bangladesh. The activity which affects the economy of Bangladesh is below:    

 Higher GDP: The GDP of our country is increasing than the previous years which results in increase of per capita income. So this growing GDP and income holds bright prospects for insurance companies. The major problem is the incapability of our people to pay the premium charged by the insurance companies. With the growth in the income more and more people are now willing to take an insurance policy for safeguarding themselves from any danger. The GDIC is directly influencing the GDP because of its large share in the market

 Employment facility: The population of our country are increasing day by day. The GDIC is recruiting a huge number of employees every year. So for that the unemployment problem is decreasing to some extent. It improves their standard of living

 New business’s individual insurance: There are so many new businesses starting every day and manufacturing sector is booming with global demand. Every business is insured under an insurance company to protect its company from any kind of accident. The GDIC is giving service to a huge number of companies. The company is being secured & economy is enriching. 

 Micro insurance: The GDIC is giving different macro insurance service to much small & median enterprise. As most of the industry in Bangladesh is small & medium, the macro insurance policy is much importance for the economy. 

 Scope in non-traditional sector: Nowadays, along with traditional insurance services, the GDIC is offering various non-traditional insurance services to their customer. Target market of insurance company may expand and they can offer different types of non-traditional insurance services such as health insurance, personal accident insurance, travel insurance, burglary insurance and pension scheme.

 Scope of investment: Insurance companies can usually make more profit from investment activities than from their regular insurance business. The GDIC is realizing this fact and playing role in the financial market. GDIC is making large investment in government bonds, ICB projects and in private sector business.

 Service diversification: Insurance is not just a tool of risk coverage. It is also an attractive instrument of savings. The mixture of risk coverage with savings gives the opportunity for innovative product designing which means service diversification. The GDIC is diversifying their service.

 Agriculture sector: The economy of Bangladesh is predominantly an agrarian one, with most people engage in farming and fishing. The uncertainty of agriculture due to crop failure caused by climate variation, drought, cyclone, flood and pests affects farmer income as well as government revenue. Furthermore, in the last few years commercialization has occurred in some sections of the agricultural sector. So for that the GDIC is providing insurance in agriculture sector.

 Business sector: Nowadays in Bangladesh the SME plays an important role in the economic development. But they are deprived from taking loans from bank for large amount. The GDIC is focusing this section in Bangladesh & the SME is being able to contribute more in the economy .Thus GDIC  has a bright prospect in business sector in a developing country like Bangladesh

 Education sector: GDIC is providing different types of scheme to expand education plan insurance.

Impact of GDIC in the money market of Bangladesh

 The Green Delta Insurance Company has a lot of influence in the money market of Bangladesh. DDIC invests a huge sum of money to various individuals, business organizations, institutions and Govt. agency. GDIC provides them fund with short maturity that less than one year. Nowadays GDIC is an excellent field of investment. There is a possibility of loss beside profit in business. Policyholder get full amount with bonus when it is matured.
 GDIC has a lot of influence the call money market. Because most of the speculator of various business especially security business are required short term financing. And the major portion of this fund is supplied by the GDIC. Thus GDIC plays an important role in call money market.
 Besides this the GDIC invest in mutual fund. Thus GDIC provides long term investment.
 GDIC has a underwriting department that has experience and efficiency in underwriting activities. Thus GDIC facilitates the flow of fund from surplus unit to deficit unit.
 GDIC collets many small unit of premium from many retail investors and they invest these amount of fund to the institutional borrowers. Thus they contribute to the enrichment of money market. 

Industry Structure & Profitability

A) Threat of Substitutes: Industries are more attractive when the threat of substitutes is very low. Here the threat of substitutes is very high because there are many banks and non-banks financial institutions. So the profitability is not up to the mark. That is why the insurance industry is less attractive.  

B) Threat of New Entrants: Industries are more attractive when the threat of new entrants is low. There are several factors. They are as follows-

B-1) Economies of Scale: The more the area of services the more the profitability due to the economies of scale. So the profitability is higher.

B-2) Product differentiation: The more the product differentiation will be, the more the profitability will be. As an old company GDIC has a good product differentiation than the other company in the market.

B-3) Capital Requirement: As it has a strong capital position in the market, so the new company may fail to compete due to shortage of capital.

B-4) Cost Advantage: As it was established earlier in the industry, it has a significant cost advantage. So there is good profitability in the market.

C) Rivalry among Existing Firm: The less the rivalry will be, the more the profitability will be.

C-1) Number of Competitors: Here the number of competitors are more so the profitability will be lower.

C-2) Growth rate of industry: The competition among firm in a slow growth industry is stronger than among in first growth industry. As insurance is slow growth industry it must fight for market share which may tempt them to lower price or increase quality ton get customer.

D) Bargaining power of supplier: As the customer is less, switching cost is lower; attractiveness of substitutes is good and thereat of forward integration is higher. So profitability will be lower.

E) Bargaining power of Buyer: There GDIC’s products are standard so the profitability is higher.
Information, Tips, Tricks About Insurance
List of insurance companies in Bangladesh:

List of Insurance Companies in Bangladesh and Top 10 Insurance Company in Bangladesh

Public Sector (Life)
• Bangladesh Jiban Bima Corporation

Public Sector (Non-life)
• Bangladesh Sadharan Bima Corporation

Private Sector (Life)
• Surja Life Insurance Company Ltd.
• MetLife Bangladesh (Foreign Company)
• Baira Life Insurance Company Ltd.
• Delta Life Insurance Company Ltd.
• Farest Islami Life Insurance Co. Ltd.
• Golden Life Insurance Ltd.
• Homeland Life Insurance Company Ltd.
• Meghna Life Insurance Company Ltd.
• National Life Insurance Company Ltd.
• Padma Islami Life Insurance Company Ltd.
• Popular Life Insurance Company Ltd.
• Pragati Life Insurance Ltd.
• Prime Islami Life Insurance Company Ltd.
• Progressive Life Insurance Company Ltd.
• Rupali Life Insurance Company Ltd.
• Sandhani Life Insurance Company Ltd.
• Sunflower Life Insurance Company Ltd.
• Sunlife Insurance Company Ltd.
• Zenith Islami Life Insurance Ltd.
• Mercantile Islami Life Insurance Ltd.
• NRB Global Life Insurance Company Ltd.
• Guardian Life Insurance Ltd.
• Chartered Life Insurance Company Ltd.
• Best Life Insurance Company Ltd.
• Protective Islami Life Insurance Co. Ltd.
• Sonali Life Insurance Co. Ltd.
• Sawdesh Life Insurance Co. Ltd.
• Diamond Life Insurance Co. Ltd.
• Alpha Islami Life Insurance Ltd.
• Trust Islami Life Insurance Co. Ltd.

Private Sector (Non-Life)
• Agrani Insurance Company Ltd.
• Asia Insurance Ltd.
• Meghna Insurance Company Ltd.
• Asia Pacific Gen Insurance Co. Ltd.
• Bangladesh Co-operatives Ins. Ltd.
• Bangladesh General Insurance Co. Ltd.
• Bangladesh National Insurance Co.Ltd.
• Central Insurance Company Ltd.
• City General Insurance Company Ltd.
• Continental Insurance Ltd.
• Crystal Insurance Company Ltd.
• Desh General Insurance Company Ltd.
• Eastern Insurance Company Ltd.
• Eastland Insurance Company Ltd.
• Express Insurance Ltd.
• Federal Insurance Company Ltd.
• Global Insurance Ltd.
• Green Delta Insurance Co. Ltd.
• Islami Commercial Insurance Co. Ltd.
• Islami Insurance Bangladesh Ltd.
• Janata Insurance Company Ltd.
• Karnaphuli Insurance Company *Ltd.
• Mercantile Insurance Company Ltd.
• Nitol Insurance Company Ltd.
• Northern Gen.Insurance Company Ltd.
• Peoples Insurance Company Ltd.
• Phonix Insurance Company Ltd.
• Pioneer Insurance Company Ltd.
• Pragati Insurance Ltd.
• Paramount Insurance Company Ltd.
• Prime Insurance Company Ltd.
• Provati Insurance Company Ltd.
• Purabi General Insurance Company Ltd.
• Reliance Insurance Limited.
• Republic Insurance Company Ltd.
• Rupali Insurance Company Ltd.
• Sonar Bangla Insurance Company Ltd.
• South Asia Insurance Company Ltd.
• Standard Insurance Ltd.
• Takaful Islami Insurance Ltd.
•  Dhaka Insurance Ltd.
• Union Insurance Company Ltd.
• United Insurance Company Ltd.
• Sena Kalyan Insurance Company Ltd.
• Sikder Insurance Company Ltd.
Top 10 Insurance Company in Bangladesh:
1. American Life Insurance Co
2. Jiban Bima Corporation
3. Delta Life Insurance Co Ltd
4. Popular Life Insurance Co Ltd
5. Shandhani Life Insurance Co Ltd
6. Meghna Life Insurance Co Ltd
7. Takaful Islami Insurance Ltd
8. Pragati Insurance Co Ltd
9. Padma Life Insurance Co Ltd
10. Sunlife Insurance Co Ltd

Insurance Development and Regulatory Authority of Bangladesh (IDRA) is the only government body for regulating and developing the insurance sector of Bangladesh since 2010.

The Parliament of Bangladesh on 3 March 2010 has passed two insurance laws in a bid to further strengthen the regulatory framework for the insurance industry. 

77 insurance companies have been operating in the country. The companies are to be regulated under comprehensive laws and guidelines, and to be supervised by IDRA. The IDRA Act 2010 has paved the way for better regulation of the sector by reducing business risks, and by harmonizing local and international insurance laws for the Economy of Bangladesh. IDRA attempts to protect the interest of insurance policy holders, beneficiaries and ensuring stability of the insurance sector.Two state-owned insurers -Sadharan Bima Corporation (SBC) and Jiban Bima Corporation (JBC) are also regulated by IDRA.
Information, Tips, Tricks About Insurance
What is Insurance?

Insurance Contract and Functions of Insurance

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. ... A person or entity who buys insurance is known as an insured or policyholder.

Insurance Contract
In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. 

Some definition of insurance Contract 
1. Insurance may be define as a contract where by one party agrees to indemnify the other party against a loss which may arise or to pay a certain sum of money on the happening of a certain event, in return of compensation called premium -M.K. Ghosh & A.N. Agorwala

2. Insurance is that in which a sum of money as a premium is paid in consideration of the insurer’s incurring the risk of paying a large sum upon a given contingency - M.N. Mishra 

Characteristics of insurance contract:

1. Two parties are involved in insurance contract. One party transfer the risk of his life and property to another and the other party gives assurance to bear the risk.
2. To transfer risk, the insured pays premium to the insurer. That means, price of risk taking is called premium.
3. Terms and condition of the policy are enumerated in insurance contract. 

Functions of Insurance
The functions of insurance can be studied into two parts. Such as follows: 

a. Primary Functions: The primary functions of insurance are as follows:
i) Insurance provides Certainty: Insurance provides certainty of payment at the certainty of loss. The uncertainty of loss can be reduced by better planning and administration. Insurance removes all these uncertainty and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty.

ii) Insurance provides Protection: The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain are at the happening of risk, the person will suffer loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from sufferings.

iii) Risk-Sharing: The risk is uncertain, and therefore, the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons who are exposed to the risk.

b. Secondary Functions: Besides the above primary functions the insurance works for the following functions:
i) Prevention of Loss: The insurance joins hands with those institutions which are engaged in preventing the losses of the society because the reduction in loss causes lesser payment to the assured and so more saving is possible which will assist in reducing the premium.

(ii) Insurance provides Capital: The insurance provides capital to the society. The accumulated funds are invested in productive channel. The death of capital of the society is minimized to a greater extent with the help of investment of insurance. The industry, the business, and the individual are benefited by  

iii) Insurance improves Efficiency: The insurance eliminates worries and miseries of losses at death and destruction of property. The carefree person can devote his body and soul together for better achievement. It improves not only his efficiency, but the efficiencies of the masses are also advanced.

iv) Insurance helps Economic Progress:  The insurance by protecting the society from huge losses of damage, destruction and death, provides an initiative to work hard for the betterment of the masses. The next factor of economic progress, the capital, is also immensely provided by the masses. The property, the valuable assets, the man, the machine and the society cannot lose much at the disaster.