Insurance companies

Insurance companies

Insurance companies

 People turn to insurance companies to take advantage of the amount that these companies offer them as compensation for some of the dangers they are exposed to, such as burning their homes, or exposing them to theft, or in cases of illness, disability, etc., and these companies are among the most important economic sectors in these days, including The topic of the article revolves around insurance, we must define it clearly, as insurance is defined linguistically as security, reassurance, and the disappearance of fear, while the legal definition of it is that it is a contract whereby the insured undertakes to compensate the losses suffered by the insured by an amount The cash paid by the insured is called (the insurance premium), and insurance companies have emerged to achieve the desired goal of insurance for people, and they are defined as commercial companies that obtain sums from their subscribers, either directly, as in some cases of life insurance, or indirectly, through Pay the insurance premium, and in turn invest these funds, like the idea of ​​commercial banks, and they have a dual role, as they receive the money, invest it, and pay it to the participants in case the risk is realized.

The insurance appeared in its current form since the 19th century AD, but its origin dates back to ancient times. The ancient Egyptians were paying a social amount to secure the cost of their burial and embalming, just as the Arabs were old cooperating to provide insurance for those who suffered losses during their commercial trips, and with the beginning of the century 12 A.M., insurance began to take the form of gambling and betting, as they entered into a so-called (marine loan contract), which includes an amount of money that the shipowner would take, and if he returned soundly, he would return it to the owner with exorbitant benefits, but the idea of ​​insurance changed at the beginning of the 14th century CE, and became Built Li idea of ​​cooperation rather than gambling.

Principles of insurance companies

 Insurance companies follow a set of principles that they adhere to while providing a service to the customer, in order to maintain customers and attract other subscribers to the company, and some of these principles guarantee no loss to insurance companies. The system of principles is based on technical and legal foundations to make the partnership safe for both parties, These principles are:

 The principle of good faith:

 This principle is intended to state the company and the customer with all the essential facts, and not to mislead the facts, and the most important fundamental facts that may increase the risk ratio, which must be disclosed are the following:
A comprehensive description of the object to be insured.
 Show any documents that offer insurance against the same risk.
 Provide a breakdown of past insurance losses and claims.
Explaining the customer’s actions, or any facts that may put the insured person at a higher risk than normal.

 The principle of insurance interest:

And that is that the person who receives the insurance benefit is the one who is liable to financial loss at the time of the damage to the insured thing, and the insured thing is subject to the principle of the insurance interest if it is the property of the customer, is insured on it, or is leased to it.

Principle of compensation:

The principle of compensation is based on the idea of ​​returning the insured after his loss to his previous financial condition. To achieve this, the customer must determine the actual value that he lost after his loss, and compensation can be presented to the customer in several ways, including:
Cash payment by the company to the customer, which is often the most appropriate method.
The company repairs the damaged parts at their expense. Some companies have their own repair shops, in addition to the workers, and they may also have a financial interest in the repair workshops, which helps to control the costs required for repair.
 Replacement of damaged, irreparable or lost items, which enables the company to benefit from discounts.
The restoration of buildings and machinery to their former status by the company, such as the new damaged building construction, which is called (reparation).
 The principle of solutions: The principle of solutions is based on providing compensation to the customer when exposed to damage by another person, then the company replaces the customer in the claim from the other person who caused the damage by providing the necessary compensation, and this principle is applied in the event of breach of trust, theft, or fire, Or in the case of marine insurance and income insurance.

The principle of participation in compensation:

The right of an insurance company means asking other insurance companies to participate in the payment of the necessary compensation, as this principle is applied in the event that the customer has participated in more than one insurance company on the same thing to be insured.

 Principle of direct cause:

The cause of the loss must be determined when it occurs, because the loss may be the result of more than one reason, as knowing the direct cause of the loss determines whether there is compensation for the insured or not.