Modern insurance is based on clear concepts that become the basis for the creation of basic regulatory documents. Operating with such terms gives an idea of the development of this area of activity as a whole. One of such concepts is the term “insurance objects”. This phrase is often found in policies that guarantee us compensation as a result of adverse circumstances. Let's try to reveal its meaning.
Insurance concepts
Modern life is filled with various risks that can jeopardize life, health or property. To mitigate the consequences of an unpleasant situation, a compensation mechanism was developed, called the "insurance". A convenient method of recovering losses from unforeseen events appealed to entrepreneurs. Damage arising from the insolvency of counterparties, unforeseen violation of credit and financial obligations, force majeure circumstances is compensated by the payment.
The person who benefits from insurance is called the beneficiary. Not necessarily the beneficiary and policy holder - the same person. In the case of liability insurance, the third party affected by the actions of the policyholder becomes the final recipient of compensation.
Classification
Modern schools do not give a clear definition of the term “insurance objects”. In some cases, objects are people or property. In other cases, the final beneficiaries specified in the policy fall under this concept.
Separation is carried out by type of service, if necessary, by type of insured object (person or property).
The set of all types of services offered by various insurance companies is called the "assortment of the insurance market." Various species in this list are formed by objects.
Property insurance
The first on our list is real estate and movable property insurance. In this case, the protective mechanism guards the interests and rights associated with the use, disposal and possession of certain material values.
Property insurance objects are:
- property of enterprises, institutions, organizations of various forms of ownership;
- objects of labor, equipment, crops and pets (i.e. agricultural insurance);
- houses, apartments, cottages, valuables, personal transport.
In this type of insurance, a separate line is the provision of property of individual citizens, commercial and state cargo during sea or air transportation.
Life and health insurance
When personal insurance objects of protection are health, life, and also disability. In addition, this type of service is partially related to social protection measures for each person. For example, unemployment insurance is personal. However, it is mandatory for every working citizen of the country. The objects of insurance in this case are health, life and material support of people.
Also included in this section are medical policies. They can be state-owned - this is a compulsory type of insurance, the contributions of which go to a special fund, from which sick-days, maternity, and health are subsequently paid. Voluntary health insurance (VMI) is the conscious choice of each of us.The person who issued the policy receives compensation for the use of medicines, reimbursement of funds spent on the restoration of health and performance.
Liability Insurance
The third type is liability insurance. It is slightly different from the previous ones. In this case, the objects of insurance are not only the insured person, but also a third party whose interests may be violated as a result of the actions of the insured entities.
Unlike property and personal, this type of service protects the interests of both the policyholder himself, since the insurance company compensates for the damage, as well as other (third) parties who are guaranteed payments for damage caused due to various actions or inaction. In the event of an insured event, damage is calculated objectively, without taking into account the property status of the victim. Thus, this type provides legal protection of tangible property of the likely culprits of the damage caused and the citizens who are harmed. Including:
1. Borrower's liability insurance for a late loan repayment. Compensation is drawn up between the UK and the borrowing company. The object is the size of the borrower's responsibility to the financial institution that provided the loan.
2. Liability insurance vehicle owners. It is carried out in the manner prescribed by law. The object of compulsory insurance is the civil liability of vehicle owners before the law in the event of an accident to the injured (third) person. Currently issued by CTP insurance policies.
Necessity and volunteerism
Each service may be voluntary or mandatory. The need for a particular type of insurance is regulated by legislative acts. For example, the laws of the Russian Federation are classified as mandatory:
- insurance of houses, buildings and constructions that belong to private individuals in the event that the complete or partial destruction of such objects may entail a violation of public interests;
- state insurance of passengers using land, air or water transport against accidents and various road traffic accidents;
- insurance of property and health of a person injured in road traffic accidents in the event that the owner of the insurance policy is the culprit of the accident (meaning motor civil liability);
- other types of insurance, the list of which is agreed with laws and recommendations of the Ministry of Finance.
It should be noted that the remaining species are voluntary and are concluded only at the request of private or legal entities.
Insurance market
Currently, the vast majority of these types of services are provided by insurance companies. The actions of the UK are controlled by the Ministry of Finance and the Central Bank. Thanks to the harmonious interaction of regulatory authorities, all such companies are obliged to fulfill the same requirements, offer all types of compulsory and voluntary insurance according to the same principles and tariffs.
