Many people don't really understand insurance, so there needs to be more socialization about insurance, its functions and types in simple terms. Many insurance agents commit fraud for personal gain, giving the word insurance a negative impression so people tend to avoid it. In general, the existence of insurance will really help protect financial conditions, especially in unexpected times.
Understanding Insurance
Quoted from the official website of the Financial Services Authority (OJK), insurance is an agreement that occurs between the insurance service provider (as the insurer) and the public (as the insured/policy holder). Where in this agreement the Insured must pay a certain amount of contribution to the Insurer to obtain compensation for financial risks that could occur unexpectedly in the future.
In this case, the Insurer is the insurance company and the Insured is the insurance customer. The rights and obligations of insurance service providers and policy holders have been regulated in such a way, so that they can get protection according to the agreement. However, the policy holder's rights will only be given when the policy holder has carried out his obligations, namely paying the premium to the insurer or insurance company.
Main Functions of Insurance
The main function of insurance is to minimize risks that arise unexpectedly in the future. However, there are at least several functions that insurance can provide, namely:
- To provide financial protection from various risks of loss that could arise unexpectedly
- To store funds safely to realize the plans you want to achieve in the future
- To provide guaranteed protection for the family's future, especially if death occurs
- To protect mental and physical health that can occur when experiencing the risk of an accident
- To help business people focus more on the business they run because every business definitely has risks in it
- To provide a guarantee of future protection for your investments
So, so that all the functions of insurance ownership can be obtained as expected, then get to know the existing types of insurance well, so that you don't make a mistake in choosing it. When buying an insurance policy, there are several things that are important for customers to pay attention to, namely the existence of an insurance policy that contains the rights and obligations of both parties working together.
The following are the functions of an insurance policy that is tailored to the interests of the user:
a. The function of an insurance policy for the Insured
- Become proof of payment of insurance premiums to the insurance company
- As authentic evidence that is useful for suing the insurer if at any time there is negligence when fulfilling the guarantee that is the customer's right
- Becomes written evidence of insurance coverage which is used for various types of risks and compensation for types of losses that could occur to the insured party as stated in the insurance policy
b. The function of an insurance policy for the Insurer
- Become written proof of the guarantee given to the Insured
- Becomes authentic evidence that can be used to reject claims submitted by the Insured if they do not meet the requirements of the insurance policy
- Become proof of receipt of insurance premiums paid by the Insured as stated in the insurance policy
Types of Insurance Policies Available in Indonesia
In Indonesia, there are many different types of insurance available that can be chosen according to user needs. The following is a brief review of several types of insurance.
1. Life Insurance
It is an insurance product that provides coverage for deaths experienced by insurance customers that have financial value. This insurance product can provide a financial function to the insured upon his death so that the policy holder will receive a certain amount of insurance money from the life insurance he has.
2. Health Insurance
A type of insurance that provides guaranteed protection for various health problems caused by illness or accident. This type of insurance can provide protection by providing coverage for health and care costs for the Insured if they fall ill or have an accident. This insurance is also generally provided as a facility from the company or office where you work.
3. Home and property ownership insurance
A type of insurance that provides guaranteed protection to the owner of a house or property if damage occurs. Home insurance also provides protection for items owned at home or if unexpected damage occurs due to fire, riots, theft and so on.
4. Education insurance
A type of insurance that provides guaranteed protection to the Insured to guarantee the education of the policy holder's children. This insurance is becoming increasingly popular as the cost of education becomes more expensive from year to year, so many parents choose to have education insurance as future savings.
5. Business Insurance
It is a type of insurance that provides guaranteed protection to a business or company if a risk occurs that causes financial loss, such as damage, loss, and so on.
6. Vehicle Insurance
This type of insurance provides guaranteed protection for motorized vehicles in the event of risks that could cause damage such as loss, accidents, damage by other parties and so on.
7. Travel Insurance
Then the type of insurance that is popular among Indonesian people today is travel insurance. This type of insurance is usually sold together with the travel ticket you buy which has a choice of insurance services for travel such as protection against risks in the event of flight delays or damage to passengers' luggage.
