Understanding Insurance in Life and General

UNDERSTANDING INSURANCE

understanding-life-and-general-insurance
Impossible is nothing! There are no events that are impossible to happen in this life, including things that have the potential to harm us. Examples are accidents, natural disasters, or even death. To reduce losses from unexpected events, we must be very clever about this. One of the most appropriate steps for this problem is to invest in insurance.

Understanding insurance when viewed from the origin of the word, namely from English language insurance, the understanding of insurance is coverage. According to the Big Indonesian Dictionary, the definition of insurance is coverage or agreement between two parties. The first party is obliged to pay contributions, while the second party is obliged to provide full guarantee to the fee payer if something happens to him or the property of the first party in accordance with the agreement made.

Based on the understanding of insurance, there are many things that can be insured. Starting from objects and services, human health, legal responsibility, soul, and other interests that can be lost, damaged, lost, or reduced in value.

Understanding insurance according to Law No. 2 of 1992 is not much different. According to this law, the definition of insurance is explained more on the understanding of insurance as a form of business entity. Understanding insurance according to Law No. 2 of 1992 concerning insurance business is an agreement between two or more parties, whereby the insurer binds itself to the insured, by receiving an insurance premium, to provide compensation to the insured because of loss, damage or loss of expected profits or third party legal liability that may be suffered by the insured, arising from an uncertain event, or giving a payment based on the death or life of an insured person.

According to the definition of this insurance , the party who distributes premiums is referred to as the insured, while the party receiving the premium is called the insurer. In terms of insurance , the premium is the cost paid by the insured to the insurer for the risk borne. The agreement between the two parties, still in terms of insurance , is called policy. The policy in the sense of insurance is understood as a legal contract that explains each term and condition that is protected.

The Commercial Law (KUHD) also has its own understanding of insurance. According to article 246 KUHD, the definition of insurance is an agreement, whereby an insurer binds himself to the insured by accepting a premium, to give reimbursement to him for a loss, damage or loss of expected benefits, which he may suffer because of an indefinite event.

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