The relationship between risk and insurance is a close relationship with each other. In terms of risk management, insurance even considered one of the best ways to handle a risk.
So because of insurance or coverage is an agreement, then at least it caught the two parties. Which one party is the party that should bear the risk themselves, but then turned it over to the other side, the first party is referred to as the insured lajim or in other words, the potential is a risk. As for the other party is willing to accept the risk of the first party to receive a payment called a premium. Those who accepted the risk that one party was commonly referred to as the agency (usually the company insured / insurance).
The main obligations of an insurance underwriter in the agreement actually is to give compensation. Nevertheless compensate obligation was an obligation conditional on happening or not happening of an event agreed that causes a loss. This means that the person in the implementation of obligations is still dependent on the happening or not happening of events that have been agreed by the parties before.
To arrive at a situation where the person / company should really give compensation to be fulfilled the following 3 conditions:
1. Events that must occur certain not insured.
2. Insured party to suffer losses.
3. There is a causal relationship between events with losses
If a loss occurs as a result of an event that is not certain that is not agreed, then the insurer must of course fulfill the obligation to provide compensation.
However, not every loss and every incident always ended with the fulfillment of obligations to the insured person, but must be in a series of events that have a causal relationship.
Insurance companies as an underwriter with the firm providing the criteria and limits the extent of protection or guarantees given to the insured. Criteria and limits are listed in the policy, in accordance with the relevant type of insurance. So that each policyholder listed what type of events are the responsibility of the insurer. so if there is damage caused by the events that insurer agreed to pay compensation.
Normally in daily practices, policies issued by insurance companies still must be added / changed to meet the various needs including the possibility of changing circumstances, removal of a hand, and so on. Any changes / additions, both of a condition / notification must be recorded in the relevant policy, so that these changes can be considered valid and binding on the parties.
Risk guaranteed losses Or Motor Vehicle Damage :
- Loss or damage due to motor vehicle:
- The collision, crash, overturned, slid off the road, as well as a result of material error, construction defects themselves or other causes of vehicle terse.
- The evil deeds of others.
- Theft, including theft, preceded, accompanied or followed by violence / threats of violence to people and / or the insured motor vehicle to facilitate the theft.
- Fires, including fires objects or other vehicles nearby, where the insured motor vehicle, or for water and / or other equipment used to contain or extinguish a fire: so also because of destroyable whole or in part on the order of authorities in efforts to prevent the fire spreading.
- Bolt of lightning.
- Loss or damage as mentioned above during the crossing by ferry or other means of formal crossings
- Wheel damage if the damage is also caused damage to the vehicle caused by accident.
In the United States, auto insurance covering liability for injuries and property damage done to others is compulsory in most states, though enforcement of the requirement varies from state to state. The state auto insurance in New Hampshire, for example, does not require motorists to carry liability insurance (the ballpark model ), while inVirginia residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance. Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.
Some states, such as North Carolina , require that a driver hold liability insurance before a license can be issued.
Arizona Department of Transportation Research Project Manager John Semmens has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees under the Disneyland model. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.
In its broadest sense, no-fault insurance is a term used to describe any type of insurance contract under which insureds are indemnified for losses by their own insurance company , regardless of fault in the incident generating losses. In this sense, it is no different from first-party coverage. However, the term no-fault is most commonly used in the context of state/provincial automobile insurance laws in the United States, Canada, and Australia, in which a policyholder (and his/her passengers) are not only reimbursed by the policyholder’s own insurance company without proof of fault, but also restricted in the right to seek recovery through the civil-justice system for losses caused by other parties.
In three U.S. states – Kentucky, New Jersey and Pennysylvania – policyholders are permitted to choose between traditional tort and no-fault recovery regimes. Under such systems, known as “choice” or “optional” no-fault, policyholders must select between “full tort” and “limited tort” (no-fault) options at the time the policy is written or renewed; once the policy terms are set forth an insured may not change his/her mind without rewriting the policy. In both Kentucky and New Jersey, policyholders who do not make an affirmative choice in favor of either full tort or limited tort are assigned the no-fault option by default; whereas in Pennsylvania, the full-tort option is the default.
In 2002, the New York State Insurance Department amended the no-fault regulations to shorten the time period in which claims must be reported, from 90 days to 30 days; the new regulations also reduced the time in which medical bills must be submitted to insurers, from 180 days after treatment, to 45 days. According to the Insurance Department, these revised regulations have helped to reduce the number of fraudulent claims. Nevertheless, no-fault litigation is reported to constitute 25 percent of all lawsuits filed in the New York City Civil Court.
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