Principles of organization of the insurance business

The economic essence of insurance is to create insurance funds through contributions from interested in insurance of the parties and intended for the compensation of damage (more often in individuals participating in the formation of these funds). Because the potential damage is probabilistic in nature (insurance risk), then there is a redistribution of the insurance Fund as in space and in time. We can say that the damages have affected individuals is due to the contributions of all who participated in the formation of these insurance funds. There are three main forms of organization of the insurance Fund: Centralized insurance (reserve) funds created at the expense of budgetary and other public funds. The formation of these funds is carried out both in natural and in cash. State insurance (reserve) funds are at the disposal of the government. Self-insurance as a system of creation and use of insurance funds of economic entities and people. These decentralized insurance funds are created in bulk and in money terms. These funds are designed to cope with temporary difficulties in the activities of specific producers or person. The main source of the formation of decentralized insurance funds are revenues of the enterprise or the individual.



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Types ofinsurance

There are different approaches to the classification of insurance business. In most countries of the world there are two kinds of insurance: life insurance and types of insurance that are not associated with life insurance. This classification is used in the development of legal documents, analysis of the insurance market and other issues. Chapter 48 of the Civil code provides two types (two types of contracts) of insurance: property and personal. In the practice of insurance companies, analysis, insurance, teaching and learning materials are also divided into three branches of insurance: property, personal and liability. The basis of division of the insurance industry are the differences in the objects of insurance. In personal insurance the object of insurance are property interests related to the life, health, disability and pension insurance of the insured or of the insured person. Personal insurance includes: The life insurance. Insurance against accidents and diseases. Health insurance. In property insurance the object of insurance is the property interests associated with the ownership, use and disposal of property. Property insurance includes: Property insurance; Liability insurance; Insurance business risks; Insurance of financial risks. Property insurance includes: Insurance of property of enterprises and organizations; Insurance of property of citizens; Vehicle insurance (transportation and supplies). Insurance other assets than those listed above; In liability insurance the object of insurance are the property interests connected with compensation by the insurer of the harm caused to a third party. Liability insurance includes: Insurance of civil liability of vehicle owners; Insurance of civil liability of the carrier; Insurance of civil liability of the enterprises sources of the raised danger; Professional liability insurance; Insurance of responsibility for default of obligations; Other types of insurance of a civil liability. The basis of division of the insurance industry are fundamental differences in the objects of insurance. The division of the insurance industry to identify those specific interests of the insurance of individuals and legal entities that allow insurance. To concretize these interests emit from the insurance industry sub-sectors and types of insurance. Type of insurance is called insurance specific homogeneous objects in a certain amount of liability insurance under the relevant tariff rates. Insurance relationship between the insurer and the insured are carried out by insurance types. Here is just a sample of some of the most common types of insurance.



Forms ofinsurance

If we are talking about the division of insurance on both public and private, here the criterion for the selection is a form of property insurance organization. If such organization is held by private persons (legal and/or physical), its ongoing insurance refers to private insurance. If the insurance company is owned by the state, such insurance, in accordance with historically established in our country a tradition, called state. However, it should be remembered that the Russian civil code in article 969 defines the state insurance as compulsory insurance, which is carried out with funds specially allocated for it from the appropriate budget to the ministries and other Federal bodies of state power, which act as insurers. Therefore, meeting the term "state insurance" in domestic publications, it must be remembered that in modern Russia, the term is used in different meanings