Insurance is coverage or agreement between two parties, where one party is obliged to pay contributions / contributions / premiums. The other party has an obligation to provide full guarantee to the contribution / premium / premium payer if something happens to the first party or his property in accordance with the agreement that has been made.
Insurance companies include non-bank financial institutions, but insurance companies still play an important role as one type of financial institution in a country. The function of the insurance company itself is a guarantee for the users of insurance services in anticipating the possibility of certain losses.
Losses caused by an event that is uncertain about life or even someone's death. Explanation of Functions and Benefits of Insurance more fully will be discussed below, there are also terms that are often used and examples of insurance that are generally offered.
Its main function is the risk transfer mechanism, which aims to divert risk from one party (the insured party) to the other party (the insurer). This transfer of risk does not mean eliminating the possibility of risk (misfortune), but the guarantor provides financial security or financial security facilities. In return, the insured is obliged to pay contributions (usually called premiums) in a relatively small amount when compared to the potential losses that might be experienced.
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