We all have some values that we would like to preserve. For some, it is an apartment or car, for someone – securities. But in addition to property, we all care about health and life, which we also want to preserve. Or, in extreme cases, get compensation if something happens. And this will help us insurance.
Let’s see what it is and what types of insurance are? Insurance protects our interests in case of trouble. Anything can happen: fire, flood, theft, accident, injury in sports, sudden illness. Of course, we must believe in the best, but it is equally important to be prepared for risks. You can choose insurance voluntarily, but there are types of insurance that we are obliged to have by law.
Here are the basic terms that you will encounter when you have to take out insurance:
- The insuredis a natural or legal person who wants to be insured.
- The insureris an insurance company.
- Insurance premium is the premium that the policyholder makes under the contract. For example, if you have a car, once a year you pay from 16,000 tenge for the civil liability insurance of the car owner. This is your insurance premium.
- Insured event – an event upon the occurrence of which the insurer is obliged to pay the insured money. Insured events may be unforeseen events (a rotten poplar fell on a car, or neighbors have a hole in the ceiling), or they can be expected (a person has retired and wants to go on a cruise).
- The sum insured is a monetary compensation, which is paid if damage has been caused to the property, health or life of a person. The amount of money you receive for insurance is specified in the contract.
This category is prescribed by law. Compulsory insurance is needed to protect not only your interests, but also the interests of others. Take, for example, compulsory insurance of civil liability (OSGPO) car owner. In the event of an accident due to your fault, it is not you who pay for the repair of the damaged car, but the insurance company.
This type of insurance applies to both individuals and organizations. So, be sure to insure passengers of any vehicles. Another example is enterprise environmental liability insurance. If the environment or people who live near hazardous production are damaged, insurance will help compensate for it. Similarly, under an annuity contract, a person injured at work and unable to work will be able to receive a pension as compensation.
Also recently in Kazakhstan earned imputed insurance . It is a type of compulsory insurance, in which the requirement of compulsory insurance, the types and minimum conditions of insurance are established by legislative acts of the Republic of Kazakhstan, and other conditions and procedures for insurance are determined by agreement of the parties.
Imputed insurance implies a social orientation. On the one hand, it removes the financial burden from the state and increases the responsibility of business entities, regulating civil law relations. On the other hand, it protects the population in case of accidents by paying compensation to the victims. It is assumed that the institute of imputed insurance may cover the areas of voluntary insurance of civil liability of producers, owners of catering establishments, shopping centers, restaurants, cafes and shops, elevator organizations, organizers of mass events, car sharing, and professional responsibility.
The classic example is that if you burned hot coffee or slipped on a wet floor, these insurance claims are covered.
Important point: from January 1, 2019, the introduction of online insurance is expected, that is, the insurance contract will be concluded through the exchange of electronic documents. The electronic policy or e-policy will be in uncertificated form. This is an analogue of a paper policy that a client can issue at the office, with an insurance agent and independently calculate and pay on the corporate website of the insurance company. After payment, the client will receive an SMS notification with the number of the insurance policy.
Through the insurer’s resource, the client will be able to send documents online in electronic form for execution, renewal and termination of the insurance contract; notifications about the insured event; determining the amount of harm and receiving insurance payment. Insurance companies will have to provide customers around the clock access to their site.
Another innovation in Kazakhstan will be the fact that from January 1, 2019 compulsory tourist insurance is introduced. The insurer will be a tour operator in the field of outbound tourism, and the insured – a tourist traveling abroad. The insurance contract will be concluded in respect of each tourist and will come into effect from the moment the insured receives border control checks on crossing the republic’s border. The cost of such insurance will be $ 1.12 for each day of the trip. The term of insurance will not be less than the duration of the trip, determined by the contract for tour services, valid until the time of crossing the border, except in the case of a flight delay. Thus, Kazakh tourists will be paid for expenses related to accidents and sudden acute illnesses.
Voluntary insurance is not a fad, but a real way to protect yourself and your family from risks. It is important to choose the right insurance program in accordance with your lifestyle. For example, an extreme sports fan will require accident insurance. The owner of the house is real estate insurance. Parents – insurance of children from injuries and illnesses. Business owner – insurance against financial losses.
Voluntary insurance includes CASCO – car insurance, accident insurance, cargo insurance. In addition, there is voluntary medical insurance. The contract for this type of health insurance is between the person and the insurance company. The state does not act as a mediator.
The purpose of voluntary medical insurance is to give a person access to services that are not provided as part of compulsory insurance. For example, cosmetic dentistry. Or complex medical examinations and analyzes. Also since 2016 there is insurance against oncology. The program covers the treatment of cancer, as well as aortic bypass surgery, heart valve replacement, neurosurgery, organ transplants and bone marrow.
Another important type of voluntary insurance is general liability insurance for third parties for causing harm. Imagine you flooded the neighbors. They are indignantly knocking on the door, and you open it without the slightest panic: you have insurance that will allow you to fully pay for the repair to your neighbors.
By purchasing this category of insurance, you insure a property interest related to life and health. This includes not only life insurance per se, but also annuity insurance. “Annuity” comes from the French word, which means “annual.” The annuity contract is mandatory and is an employer who insures his employees against accidents.
If an employee is injured or has died in the workplace, he or his family will receive periodic payments for a long time.
Not everyone knows that life insurance is a way to invest and increase money. The insured amount, which is much higher than the money you paid for insurance, is issued not only in the event of a person’s death, but also if he is alive and well and simply reached the age specified in the contract. This is called “survival”.
In addition to insurance of civil liability, this includes: insurance against accidents, in case of illness, pension, and also property insurance. You can insure movable and immovable property from damage, cargoes – they can be lost or damaged during transportation – as well as any vehicles from a motorcycle to an aircraft.
You can insure yourself against financial losses. An example is loan insurance. You borrowed a large amount of money to your neighbor, and he refuses to return it. You get insurance payments that compensate for your losses and discontent with your neighbor. You can even insure legal costs that you incur if you suddenly have to sue.
What is important to know about insurance:
- Some types of insurance you are required to have under the law: for example, compulsory insurance of civil liability (this includes car insurance) and social health insurance.
- Life insurance guarantees family cash compensation in the event of the death of the breadwinner, and also allows you to make a profit when the insured lives to the age specified in the contract.
- Insurance of movable and immovable property, cargo, all types of transport allows you to “spread straws” in case of trouble and sleep well, knowing that you have provided everything that was possible.
- A socially important category is liability insurance. This insurance helps us to live in a civilized world where there are clear rules, and the injured party receives compensation in case of damage incurred.