The Insurance

Insurance can be described simply as a mechanism for transfer of financial risk from one party to another party. Natural means can not risk going on but your financial risk that arises as a result it is natural that by the insurance company. Usually bear the financial risk should be incorporated. Why? Because the necessary institutions that can be trusted to have a mechanism to pay claims when losses occur. Of the role of government is very important as determining what the company can bear the insurance risk.

Before more about the insurance, it's good you know the definition of insurance according to insurance law in Indonesia. This definition are listed in the Law of the Republic of Indonesia Law No.2 of 1992 which read:

"Insurance or guaranty is an agreement between two or more parties, with which the insurer tie themselves to the Insured with insurance premiums, to provide reimbursement to the Insured for any loss, damage or loss of the expected benefits, or legal responsibility to third parties who may be Insured suffered, arising from an event that is not certain, or to provide a payment based on life or death that someone be "

This definition further clarify the purpose of insurance than the existing definition in KUHD Article 246.

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