What is insurance. Forms of insurance. Objects of Insurance.
What is insurance?
Insurance represents a system of relations on protection of property interests of natural and legal persons at certain events (insured accidents) at the expense of monetary funds that are formed of insurance payments paid by them (insurance premiums).
Forms of insurance.
The insurance can be realized in the forms of voluntary and compulsory insurance.
- Voluntary insurance. Voluntary insurance is realized on the basis of a contract between the insured and the insurer. The rules of voluntary insurance that determines its general conditions and the order of voluntary insurance are determined by the insurer independently. Conditions of the voluntary insurance are determined by an agreement of the parties in accordance with the legislation.
- Compulsory insurance. The Insurance is compulsory if the insurance relations between the insurer and the insured are specified by the legislation acts. Compulsory insurance doesn’t require the making of a contract between the insurer and the insured.
Objects of Insurance
The objects of insurance can be valuable interests that don’t contradict the legislation:
- The interests that are connected with life, health, ability to work and provision of pensions of the insured or the insured person (personal insurance);
- The interests that are connected with possession, use or disposal of property (property insurance);
- The interests that are connected with legal claims against the insured or against the property of a natural person, and also the claims against legal person (liability insurance).
The insurance can be realized only by legal persons that have a license of exercise of insurance activities.
