Insurance is a form of risk control that is carried out by transferring or transferring from one party to another. In this case, it is a company that provides insurance services. Insurance itself has different benefits and purposes for each type. According to KUHD article 246, it reads that “insurance or coverage is an agreement whereby an insurer binds himself to an insured person, by receiving a premium, for compensation to him due to a damage or loss of expected benefits which he may suffer due to an uncertain event.”. Another definition of insurance is a transfer of risk from the first party to another party and the transfer is controlled by legal rules and principles that apply as well as universal teachings that are adhered to by the first party and other parties. From an economic point of view, insurance is a collection of funds that can later be used to cover or compensate people who have suffered losses. Each insurance has various types of insurance and various benefits so that members of insurance can choose the right type of insurance before subscribing. Why do we need insurance? Because, in addition to being a form of risk control, insurance also has various benefits that can be classified into 3 functions :
- Main function: As a diversion of risk, a balanced collection of funds and premiums.
- Secondary function: To stimulate business growth, prevent losses, control losses, and can have social benefits and savings for the future.
- Additional functions: Can be used as investment funds and invisible earnings.
So, insurance is not a form of necessity that everyone has but it depends on what functions the person needs and whether it is useful for that person because insurance also has different risks of each type. What are the risks? The definition of ‘risk’ in insurance is “the uncertainty of an event that can cause economic loss in the future”. So not only get the benefits of insurance but also some risks must be faced there are various forms of risk in insurance including:
- Pure risk: Where there are only 2 types, loss or break-even, for example, theft, accident, or fire.
- Speculative risk: Risks that result are of 3 kinds: loss, profit, or break-even, for example, gambling.
- Particular risk is the risk that comes from the individual and the impact is local, for example, a plane crash, car crash, and ship aground.
- Fundamental risks are risks that do not come from individuals and have a broad impact, for example, hurricanes, earthquakes, and floods.
How to Claim Insurance
Many people who have registered for insurance but feel that they are being lied to or cheated because they cannot claim their insurance. Indeed, understanding insurance is not easy, because there are so many things that need to be considered, especially when you want to make an insurance claim. But many people are often rejected because they do not understand and understand how to claim insurance procedures. Several things must be considered when making an insurance claim :
- Make sure your data is correct
- Your policy must be active
- Has passed the insurance waiting period
- Find out what cases can be claimed
- Make claims on time
- Collect Documents Completely
- The incident occurred during the period of protection
- The incident was not caused by a violation of the law
- The incident was not caused by the influence of alcohol or drugs
- The case was accidental
- Make sure the location of the incident is included in the insurance service area.
Differences in Each Type of Insurance
There are many choices of insurance, but which one is the most appropriate to be used or for us to use in the future. Due to the many choices in the types of insurance that exist in each insurance service company. Here are some of the types of insurance available:
- Education Insurance: Now it is considered very important because of this many people think that education insurance is smart insurance that can guarantee a better education.
- Life Insurance: Many people think that this type of life insurance is the same as health insurance. Life insurance is a type of insurance that provides coverage for the death of an insured person by providing financial benefits. Several insurance companies provide payment only after a person dies and some companies provide payment before a person dies.
- Health Insurance: This type of insurance is quite popular, where health insurance is insurance that provides coverage for health problems caused by illness. This health insurance company provides care services to its insurance members which include protecting and covering members who are sick, disabled, injured, and other things caused by illness or accident.
- Vehicle Insurance: Some people own luxury vehicles or cars including their private vehicles with vehicle insurance, where vehicle insurance is a type of insurance that provides insurance services for vehicles that have been damaged, lost, and so on.
- Business Insurance: This is an insurance service that guarantees the insured party with business activities. There is also this type of service which includes damage, loss, and loss in a large amount, but it is adjusted to the agreed insurance company policy. Business insurance is generally owned by companies such as manufacturing, service, trading companies, etc. which carry risks in their business activities.
- Property Insurance: Generally, provides services to protect homeowners from risks such as personal property, damage to the house such as fire, and damage to personal belongings. This service includes protecting and providing relief in the event of an accident at home or the insured items such as fire and so on.
Apart from the six types of insurance, there are still many types of more insurance with different features depending on the insurance services offered.
How to Choose the Right Life Insurance
Many types of insurance are offered by insurance providers when we want to register for insurance. Many people choose life insurance and many thinks that life insurance is the same as health insurance. Life insurance has a different nature. Life insurance has 2 (two) types, complete and term life insurance. As the name implies, term life insurance covers a certain period while life insurance covers the period until death. Whole life insurance is much death coverage and hospitalization coverage, and many people often take out life insurance in case. The greatest benefit is that the insurance will continue even after the insurance premium payment is completed, and can be used vary depending on the construction of the plan. Most term life insurance combines death and savings coverage, and premiums and coverage continue for a specified period, such as 10 or 20 years. For example, if you take out an insurance fund maturing 1 million yen for 20 years, you can continue to pay the premium for 20 years and receive a dividend of 1 million yen at maturity. If you die within 20 years, 1 million yen will be paid as death insurance. Both life insurers can have special contracts for hospitalization, so each premium will be very different depending on what you choose. Is it life insurance or regular insurance?
Insurance Denied, Why?
Many people think that insurance is a difficult thing when users want to make insurance claims. Automatic users feel very annoyed and disappointed, but what causes insurance to be rejected? Here are some things if you want to make a warranty claim :
- Make sure your data is correct: Make sure the personal data you fill in during registration is one of the crucial things during the claim process. This data can be in the form of the name, address, telephone number, age, health condition, and many others. If this is different, the insurance company will reject it because the data on the policy is different from what is listed.
- Your policy must be active: When making a claim, make sure your policy is still active so that when you can make an insurance claim. The way to keep your policy active is not to forget to make a payment on your policy. If you do not pay within the specified time, then the policy you registered will become lapse or canceled. If it is canceled, the claim will be rejected.
- Has passed the insurance waiting period: Some types of insurance have a waiting period, usually for health or critical illness insurance. So, the waiting period is a period where insurance is not active and is useful for reducing cases of pre-existing conditions, or cases of people who are already sick before insurance.
- Find out what cases can be claimed: When registering for insurance, be sure to be thorough and careful in examining the benefits and functions of the insurance provided. the insurance company, cover medical expenses, but what are these medical expenses for? Can it be for outpatient or inpatient specials? Can it cover treatment or lab examination results? Make sure again before buying or signing up for insurance.
- File a claim on time: Every insurance claim has a certain grace period for submitting a claim. If you file late, then your claim can be rejected.
- Collect Complete Documents: There are various kinds of documents that must be submitted when making a claim. This document must be complete and filled. If there is even one wrong information or incomplete documents, this could be the reason why your insurance claim is rejected.
- Events occurring during the protection period: The risks that occur must be during the protection period. If this risk occurs before the active period of insurance or after the active period of insurance, then a claim cannot be submitted. The way insurance works are only to protect you when the insurance itself is active.
- Incidents not caused by violation of the law: Cases caused by violation of the law are usually classified as exceptions. This means that if the insured has an accident because he is running from a theft case, then the insured’s accident insurance cannot make a claim.
- Incidents not caused by the influence of alcohol or drugs: As in cases of illegality, the incident must not be caused by the influence of alcohol or drugs. This case is an exception too. If the insured person experiences an accident due to driving under the influence of alcohol and dies because of it, it is unlikely that the claim for life insurance will be liquid.
- The case is accidental: An accidental case can also be rejected if, for example, injuring oneself or burning one’s own house for insurance benefits, it cannot be claimed. Cases like this can even be regarded as insurance crimes or a form of insurance fraud. If after an investigation it is found that something happened to be intentional, the insurance company will reject the claim.
- Make sure the location of the incident is included in the insurance service area: Not all insurance services can cover all regions or countries. If you experience risks that are outside the coverage of the insurance service area, then you may not be able to file a claim. For example, you have health insurance in Indonesia, but you fall ill while you are abroad and this health insurance service only covers Indonesia, so you cannot file an insurance claim.