General Insurance Benefits in Human Life

           We live with risk management. Starting from our eyes open until we fell asleep and woke up again, we bear the burden of risk on themselves, their families and not behind all of our belongings.Someone wisely said that if he could take into account the existing risk in the future and anticipate starting from scratch. Simply put, this is the principle underlying the birth of General Insurance.
            Like a bear Life Insurance soul / life, general insurance cover and transfer the risk of losing our wealth, health and everything that is not covered by Insurance. Awareness of insurance depart from the human experience that a lot of undesirable things can change direction later in life. The situation that seemed brilliant at once can become so bleak and difficult. It would be futile, for example, if the events that happen outside our control, such as floods, fires, riots destroyed the results of our hard work in the blink of an eye. Without a thorough risk control, is not impossible that the events that are not desirable in the future (unforseen events) are forcing us to collect the treasure we start from point zero (start from the scratch) because of damage caused.
            In practice, the scope of General Insurance including home insurance, car insurance, travel insurance to. Unlike life insurance which covers the events that must happen sooner or later, such as retirement and death, general insurance was to shield us from things that are uncertain but may occur, such as accident, fire or theft. To that end, the main objective is to take an insurance policy to compensate us after the occurrence of a loss (loss), so that our lives will generally just as good (as well off as) before losing it to happen.

Understanding Insurance

Life is full of unexpected risks or unexpected, because of that we need to understand about insurance. Some natural events that occurred in recent years and takes a lot of casualties, both fatalities and property, such as reminding us of the need for insurance. For every member of society including the business world, the risk for experiencing disadvantage (misfortune) are always there (Kamaluddin: 2003). In order to overcome the losses, people develop a mechanism that we now know as insurance.

The primary function of insurance is as a mechanism to transfer risk (risk-transfer mechanism), which shift the risk from one party (the insured) to another party (the insurer). Transfer of risk is by no means eliminates the possibility of misfortune, but the insurer to provide financial security (financial security) and tranquility (peace of mind) for the insured. In return, the insured pays a premium in a very small number when compared with potential losses that may be suffered (Morton: 1999).

Basically, the insurance policy is a contract that is a legal agreement between the insurer (in this case the insurance company) with the insured, whereby the insurer willing to cover some losses that may arise in the future in return for payment (premium), some of the insured.