Insurance principles and the legal principles

Definition of insurance:

“Insurance is a system that aims to reduce the risk facing the individual or establishment and in which the insured gets a pledge in his favor or for the benefit of others from the other party, which is the insured and who pays a certain amount according to it when the risk is realized, in exchange for paying the insurance premium that the insurer collects similar risks and predicts the value of Financial obligations arising from their verification. “

Dear reader, I advise you to review this article entitled Insurance – Definition of insurance, the origin of insurance, its types and its importance.

Insurance Technical Principles

First: the principle of accidental loss

Second: The principle of financial loss

Third: The principle of the spread of danger

Fourth: The principle of proving the occurrence of the loss

Fifth: The principle of the possibility of calculating the expected probabilities

Insurance Technical Principles

First: the principle of accidental loss

An accidental loss means that the loss resulting from the realization of the risk phenomenon is in the form of a probable accident and that it is a future occurrence and that the risk owner does not intentionally cause or cause the loss intentionally, i.e. involuntarily by the side of the origin of the risk subject. Thus, the risk must meet the following conditions in order to be able to be insured.

1. The loss is likely to occur:

It is well known that the risk ceases to exist if its occurrence is in the form of an accident and consequently the resulting loss is certain to occur or impossible to occur, as the risk exists if there is a possibility of an accident that leads to a loss as the confirmed risks of occurrence cannot be insured because the financial loss will It is certain to occur and therefore the cost of the insurance protection service that the insurance company will receive (the insurance premium) will be greater than the value of the asset at risk because the premium is calculated on the basis of the expected loss plus the various loads represented in the production commission, administrative expenses and profit margin. As long as the loss is certain to occur, the expected value of the loss is equal to the entire value of the loss.

However, if the loss is impossible to incur, this means that the insured will pay a premium that is permissible in the form of permanently permissible downloads, and he will not receive any compensation from the insurance company.

2. The future loss is to occur:

The loss resulting from the verification of the risk must be in the future, and this requires that the subject matter of the insurance be intact when contracting the insurance. That is, it is not permissible to insure against a risk that has been realized in the past, and the loss has already occurred and before the insurance was contracted. As it is not a possibility of falling, but rather a certainty of falling.

3. To be the consequence of an unintentional accident by the person of danger:

In the sense that the accident is not voluntary on the part of the owner of the risk, with a view to enriching at the expense of others or taking insurance as a means of profit, the trustee who intentionally investigates the accident and causing the loss with a view to obtaining the amount of insurance or compensation is thus he has removed the accidental loss from its correct concept and transformed into a deliberate loss Consequently, the insured has the right to refrain from paying the value of the loss.

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