Definition of Insurance

Insurance is an agreement by which a person is binding to the insured to receive a premium, to provide reimbursement to him for a loss, damage or loss of expected benefits that may be suffered due to an event that is not certain.Law No. 2 of 1992 on insurance companies that have been promulgated on 11 February 1992 provides a definition of insurance as insurance or coverage is an agreement between two or more parties, with which the party is binding to, by receiving insurance premium, to provide replacement to the insured because they loss, damage or loss of expected benefits or legal liability to third parties which may be suffered by the insured, arising from an uncertain occurrence, or provide a payment based on death or life of an insured person.Basic and insurance elementThe basis of an insurance agreement is to circumvent a risk by handing / membebankanya to others. Juridical elements of an insurance are:1. The insured party (the party whose interests are insured)2. The existence of the insurer (the insurance company will pay compensation guarantees)3. The existence of the insurance agreement (between the insurer and the insured)4. The presence of premium payment (by the insured to the insurer)5. The existence of loss, damage, or loss of profits (suffered by the insured).6. The existence of an occurrence of uncertain eventsPrinciple of InsuranceAccording to the Code of Commerce which is a basic principle of insurance or coverage is as follows:1. Principle of interest to insured (Insurable Interest)The principle of insurable interest or the insured is contained in the provisions of Article 250 KUHD which basically determines that in order for an agreement can be implemented, then the object is insured shall constitute an insurable interest (insurable interest), which is of interest that can be valued in money. In other words, according to this principle one may insure the goods if the person concerned has an interest in the goods insured.2. The principle of greater openness (Utmost Good Faith)The principle of openness (utmost good faith) is contained in the provisions of Article 251 KUHD which basically stated that the new insurance coverage valid if the closure is based on good faith.3. The principle of indemnity (Indemnity)The principle of indemnity contained in the provisions of Article 252 and Article 253 KUHD. According to the principle of indemnity that were the basis for the restitution of the insurer to the insured is equal to the actual loss suffered by the insured is equal to the actual loss suffered by the insured in the sense of unjustified profit from insurance compensation. In other words, the core of the principle idemnitas is balanced, which is balanced between the losses actually suffered by the insured to replace the number of losses. In connection with this, the principle of compensation applies only to insurers whose interests can be valued in money, yakitu insurance.In KUHD allowed the occurrence of multiple insurance, all insurance is done in good faith. But the good faith is not described further in KUHD.4. Principle of SubrogationSubrogation is the substitution position of the insured by the insurer that has paid compensation, in implementing the rights of the insured to the third party that may lead to losses. The principle of subrogation is contained in the provisions of Article 284 KUHD which basically stipulates that if the insured has been reimbursed on the basis of other principles, although obviously there are other parties are also responsible for the losses suffered. Replacement of the other party must be submitted to the insurer who has indemnified in question.But there is the possibility of the loss suffered by the insured are not replaced entirely by the insurer. If Article 284 KUHD carried out strictly the cause injustice to the insured for losing the right to sue for damages to third parties. To resolve the problem, then it should be applied according to Emmy Simanjuntak subrogation is limited.5. The Principle of Cause and Effect (Proximate Cause)With the closing of the insurance agreement, the insurer's liability to provide compensation for insured losses. For it must be determined whether the events that cause losses are covered by the insurer. In other words, should be reviewed with regard to the events of the losses incurred. If the loss is caused by events that do not include the cause of the loss recognized in insurance, the insurer released from its obligations.6. Principle of Mutual-HelpThis principle means solving problems arising done by together.Type and Classification of InsuranceArticle 247 specifies KUHD insurance in five types:• Fire InsuranceFire insurance is all kinds of goods can be insured, what is important is the items in the house you should note or declare in writing in the policy.Sample case:When someone buys fire insurance policy for a family house he would pay the money (premiums) that have been determined by the insurance company, at the same time the insurance company will bear the financial risk in case of fire on the dwelling house.For example andi is a private employee in a company located in the golden triangle area in Jakarta. Andi already married and blessed with two children who are toddlers funny. This incident was not unexpected advent. The fire occurred in one night before the morning, where the family Andi was soundly asleep. Because the house with each other then the flame huddled together very quickly spread to almost all the houses in the vicinity. In a short time, over 20 houses burned down, including Andi homes and families. Because he had bought fire insurance policy then the insurance company will bear the financial risk of a house fire andi.1. FIRE caused by inadvertent or fault insured or other party, or causes another fire to the extent not excluded in the policy, caused by:The spread of fire or heat that builds itself or because of the nature of the goods themselves; short-circuit; fires since other objects around the fire with a fire conditions other objects are not the result of an excluded risk Polis; including loss or damage as a result of water or other tools that are used to hold or extinguish fires and or dimusnahkannya all or part of property and or interest insured at the behest of the authorities in efforts to prevent spreading of the fire.2. LIGHTNINGDamages directly caused by lightning. Especially for electrical machinery, electrical and electronic equipment and electrical installations, the loss or damage is guaranteed by this policy where the lightning caused the fire in objects intended.3. EXPLOSIONderived from the insured property, the notion of an explosion under this Policy is any release of energy suddenly caused by the expansion of gas or vapor.With conditions against the risk of explosion if the insured is also covered with other types of special policy for the Insurers only cover the remainder kerugiandari amount that should be paid by the policyholder other types when the policy is considered as if it did not exist.4. THE FALL OF AIRCRAFTFall of aircraft that are guaranteed in this policy is a physical clash between the aircraft including helicopter or anything that fell from him with property and or interest insured or the building that contains the property and or interest insured.5. ASAPoriginating from fire property insured in this Policy or any other policy that runs a series with this policy for the benefit of the same insured.

Definition of Insurance Part 2