Insurance is actually a financial product that is just as important as savings to have. Its existence provides protection for needs that may come at any time in the future. However, many are hesitant to have it because they do not understand the legal basis for insurance and the mechanism for its implementation. Ignorance often limits people from doing things, including having an insurance premium to provide better coverage. The existence of insurance provides protection assistance for the life of an insured person.
For example, vehicle insurance will at least provide repair assistance for the insured due to loss of damage to his car. While a health insurance policy gives you the right for insurance to cover medical expenses. Similar to other types of insurance, the insurer has a legal responsibility to cover costs arising from these events.
Maybe you are confused, how can that be? You only pay premiums on a regular basis, which is insignificant, but then there is money that is expected or responsibility from the insurance company when you need it. Maybe you are also wondering, where is the premium money you deposited being managed?
If one day a problem occurs, for example the insurance company does not fulfill its legal responsibility to the insured party, what will happen? Are we just going to lose the expected profit without any compensation. How does the law in Indonesia protect its people from policy defaults?
There are many basic questions including the basic insurance law that applies in Indonesia. It must be admitted that so far the public’s understanding is still limited. In addition, the socialization is still at least different from the understanding of the performance of banking products such as savings or time deposits, for example.
This of course will not happen if all policy owners understand the true laws and rules of the insurance game. How exactly is the definition of insurance law and how does it work? Check out this review from the editor of Ajaib to answer that question. Just like laws in countries, insurance also has the function of regulating the agreement between the two parties. Insurance law is functioned to resolve disputes that occur between insurance customers and insurance companies.
With the large number of insurance users, not a few of them feel disadvantaged by the insurance services offered. This occurs due to the lack of public knowledge about insurance laws or regulations Apart from a lack of knowledge about insurance law, there are also people who do not understand the importance of having insurance.
Basic Insurance Law
Insurance law is a written and unwritten regulation, and is intended to bind the two parties who enter into an insurance agreement. In the provisions written in the Article that insurance or coverage is an agreement that binds the insurer and the insured, by receiving a number of funds to guarantee compensation due to loss, damage, or loss of profit. Insurance or coverage is an agreement between two or more parties, in which the insurer binds himself to the insured by receiving insurance to provide replacement services to the insured.
Types of Insurance
Basically, insurance is divided into several parts, namely:
• Loss Insurance
• Fire
• Loss and damage
• Sea
• Credit
• Transportation
• Soul
• Health
• Accidents
• Life of Credit
Elements of Insurance
Insurance has elements that can make insurance legally recognized in the eyes of the law.
1. Legal Subjects
In insurance law, there are two legal subjects that are part of it, namely the insurer and the insured. The insurer is the party who receives the compensation from the insured by receiving a premium to then bear the risk burden of the events that occur.
The insurer itself is an insurance company that is under the auspices of a private or state-owned legal entity. Insurance can also be provided for the benefit of third parties listed in the agreement. The third party is the insured’s heir and the person appointed by the insured.
2. Agreement between the Insurer and the Insured
The insurance agreement will occur if there is an agreement, both from terms and whatever will happen at a later date. If there is no agreement, the insurance agreement is canceled. With this insurance agreement, both parties will be bound to carry out their respective obligations.
3. Insurance Objects and the Insured’s Interest
Is an object that will be insured, such as life, health, vehicle, house, and others. The objects above are covered if the insured person is the owner of the said objects.
Meanwhile, the interest of the insured is the insured person who has an interest in the object which has been insured. For example, a house owner mortgages his house to another party, so the pawning party has an interest in the house.