What is Insurance?
January 7, 2008What is INSURANCE? Basically, it is a PROMISE by one party to PAY another party for LOSS, DAMAGE or HARM sustained by the latter in return for a FEE.
The promiser is called an "INSURER" and the promise is written in a contract called an "INSURANCE POLICY".
Loss, damage or harm must be caused by a "RISK INSURED AGAINST", e. g., fire, typhoon, flood, collision, theft.
The promisee is called an "INSURED", and the fee is called a "PREMIUM".
The Insurance Code of the Philippines (PD-612) defines the Contract of Insurance:
Sec. 2. [1] A "contract of insurance" is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event.
Sec. 49. The written instrument in which a contract of insurance is set forth, is called a policy of insurance.
Previous Comments
I used to be involved with insurance too…that’s why my ICQ handle is Life Provider.
Posted by c5 at July 15, 2007, 6:51 amIt’s good to know there are insurance people in i.ph. I’d appreciate your comments on my posts.
Posted by insurance at July 17, 2007, 8:38 amAll comments are moderated. Your comments will not appear here unless approved by the blog owner. Thank you.
hey i used to work for an insurance group!
Posted by alohapenny at July 9, 2007, 9:07 pm