What is insurance?
Insurance enables people who have suffered an injury, loss or accident to compensate for the consequences of these unfortunate events. The damages paid to such people are covered by the money they pay to buy the insurance policy and by paying it, they share in compensating each other. In other words, all those who insure themselves, by participating in the capital that belongs to all insurance buyers, share in the compensation and losses of each insured person. Insurers are well aware of the potential risks and the likelihood of their occurrence so they can calculate the amount of premiums that each person must pay in such a way that the amount collected is sufficient to compensate for the damages that will occur. . Obviously, only a small number of those who have insured themselves will need to be reimbursed from the amount collected. Accordingly, the amount of insurance premiums for each person applying for insurance is calculated according to two important factors:
The first is, in general, what is the probability of damage in the future, and the second is that the probability of an accident for the insurer seeking insurance is more or less than the average risk. To clarify the issue, we give 3 examples:
1) In car insurance: A young person who has a high-powered car or a driver who has had several accidents before and who has been to blame, is a middle-aged and experienced driver who has a low-powered car and has not had an accident before. Is, pays more premiums.
2) In fire insurance: The owner of a sandwich shop pays a higher premium than the owner of a service office, that is, the higher the risk, the higher the premium will be.
3) It will be easier and healthier for a young and healthy person who has a safe job to buy life insurance than an elderly person who also has a high-risk job.
How did insurance come about?
Non-life insurance has a long history. A type of marine insurance was used about 3,000 years ago. Life insurance also has a long history, first appearing when Roman soldiers collected a portion of their wages in a fund to be paid to their families if they were killed in the war. .
Insurance in today’s world
Today, it is difficult to imagine any form of human activity without insurance. Especially in the twentieth century, technological, transportation, and communications developments have taken place with astonishing speed and breadth. The most prominent example of this is the development of car engines, after which car insurance has become one of the most important parts of the insurance industry.
Another important development is the increase in the number of single risks is very large. Giant tankers and very large planes are examples that show that the capital covered by insurance may be worth hundreds of millions of tomans. Problems with covering such huge investments have led insurers, with the support of each other, to redistribute a large risk domestically and internationally in the form of reinsurance and to be able to afford huge compensations. .
Along with the further development and complexity of human life today, insurance has also been developed from different angles and rapidly. Losses that may be unintentionally inflicted on others during the course of a person’s normal life and activities and are liable for them are covered by liability insurance. And manufacturers’ liability insurance pointed out. Newer examples include defamation insurance for journalists and radio and television stations and pollution insurance from oil spills from tankers. The same is true for flood, earthquake and computer failure insurance.
Life insurance has also made tremendous progress and has offered a diverse range of types of this type of insurance. In this regard, the types of pension, life and savings insurance have increased significantly. In addition, life insurers have been forced to To face new problems such as AIDS and think about advances in genetics.
Insurable interest is a basic principle of insurance. The implication of this principle is that a person seeking insurance must be legally entitled to insure property, accident or life. In other words, the occurrence of an accident that is covered by insurance, or the death of the insured must cause financial loss to the insured buyer. For example, Mr. Behzadi cannot insure Mr. Behrozi’s house because the demolition of Mr. Behrozi’s house will not cause financial loss to Mr. Behzadi. By the same token, you can not insure the lives of others unless you have an interest in the life of the insured, for example the father of the family can be other members of the family Covered by health insurance.
Other insurance principles
The principles of insurance, which include all insurances, are stated as follows:
A) The insurance only compensates for the damage as much as the real value of the property covered by the insurance. For example, insurance can not cover emotional losses or compensate for the loss of value caused by car accidents. .
B) There should always be a large number of homogeneous risks so that the similarity of risks can be distributed to all insurers.
C) It should be possible to calculate the probability of loss so that insurers can determine the premium commensurate with the relevant risk.
D) Damages must not be intentional and avoidable or occurred before insurance. Obviously you can not get insurance for a house that caught fire and the person who died.
E) The financial losses of some risks are so great that only the government is able to deal with them. These types of hazards (often from war or nuclear or radioactive radiation) are not normally insurable.
Insurance removes anxiety from danger from people’s lives and economic activities and reassures insurers that the insurer knows that in the event of an unforeseen accident, a loss occurs. It will be reimbursed financially from the collected premiums. In other words, the insurer gains peace of mind by paying the premium and receiving the insurance policy. So if there was no accident and no damage was received, buying insurance was not in vain.
The insurer is the insurance company whose specifications are stated in the insurance policy and is responsible for compensating for damages and compensation for possible accidents in accordance with the conditions stipulated in the insurance policy.
The insurer is a natural or legal person whose details are mentioned in the insurance policy and undertakes to pay the premium.
The insured is a person for whom the possibility of realization of the risk or risks covered by the insurance policy, causes the conclusion of the insurance policy.
Beneficiaries are the natural or legal person or persons for whose benefit the insurance policy is concluded and their details are mentioned in the insurance policy.
Premium is the amount that the insurer pays against the obligations of the insurer.
- Insurance capital or insurance compensation:
Insurance capital or insurance indemnity is the amount that the insurer undertakes to pay to the beneficiary in accordance with the terms of the insurance policy if the risk or risks covered by the insurance are realized.
- the accident:
An accident subject to insurance is any sudden event caused by an external factor that occurred without the intention and will of the insured, resulting in injury, disability, disability, death or other damage to the insured.
- Insurance term:
The insurance period is one full solar year and starts at 21:00 on the day mentioned as the start date of the insurance policy and ends at 21:00 on the expiration date of the insurance policy. Unless otherwise agreed between the parties. For example, in the case of car insurance, the starting time of the insurance policy is 42 hours from the day of concluding the insurance policy .
The principle of good faith
The insured and the insured are obliged to provide information about the subject of insurance to the insurer by observing accuracy and honesty in answering the insurer’s questions. If the Insured and the Insured in response to the Insurer’s question intentionally refuse to disclose or intentionally state the contrary, the insurance policy will be void and ineffective, even if the disclosed or contrary to the statement has no effect on the occurrence Do not have an accident. In this case, not only the insurer’s payments will not be refunded, but also the insurer can claim the premium balance.
The Insurer is obliged to pay the insurance premium in cash in return for receiving the insurance policy and to receive a receipt stamped and signed by the Insurer, unless the parties otherwise agree to pay the insurance premium. These are usually car premiums that are received in cash, for example insurance policy Third parties are required by law to pay in cash. But most other premiums, especially if the premium is high, in installments Paid. Like group insurance premiums. Of course, in the case of third parties, the representatives or brokers of the insurers can pay the premium directly Take action and then receive the insurance premium in installments from the insurer, of course This practice is associated with high risk due to possible accidents.
Compulsory and optional insurance
The main insurance activities in the country are the responsibility of the Social Security or the Health Services Organization, which is under the supervision of the Ministry of Health and Medical Education and includes only insurance coverage for individuals. This type of insurance is a type of compulsory insurance. Social security insurance covers insurance such as pensions, treatment, compensation, burial expenses, and so on. Those who use social security or health insurance coverage in some way and the insured have no option under insurance contracts and coverage ceilings, but there are insurances. The amount of insurance premiums and liabilities are set flexibly and with the agreement of the parties, Such as fire insurance, property and….
Insurance industry in Iran
Insurance activity in Iran professionally in 9621 AH and after the negotiations that An agreement was reached between the Iranian government and the Russian embassy, followed by an exclusive concession in the field Insurance and transportation were handed over to a Russian citizen for 75 years, it began. This person was not able to get the insurance company within the deadline (three years) to start operating Establish the opinion and he was deprived of points. After that, in 9821 AH, two Russian companies established insurance agencies in Iran They took action.
The beginning of serious activity in the field of insurance can be considered the year 0131, because in this year the law And the system of registration of companies in Iran was approved. Subsequently, many foreign insurance companies such as Ingstrakh, Alliance, Eagle Star, Yorkshire, Victoria, Swiss National, Phoenix, Ittihad Al-Watani and… established a branch or representative office in Iran.
Expanding the activities of foreign insurance companies, the Iranian government realized the need to establish an Iranian insurance company And the government established 4131 Iran Insurance Company with a capital of 02 million Rials on 61 September کرد. The official activity of this company started in November of the same year.
The establishment of the first Iranian insurance company was a great change in the history of the country’s insurance activity, because It was after this date that the government was able to take control with a proper executive body Market and supervise the insurance activities of foreign insurance companies. Two years later, in the year 6131, ((Insurance Law)) containing 63 articles Approved by the National Assembly. Then there are other regulations to control and monitor the activities of insurance companies By requiring them to transfer 52% of the insurance policies issued on a trust basis Compulsory was imposed on Iran Insurance Company. Obligation to insure imported and exported goods in Iran with one of the insurance companies Registered in Iran was one of these regulations. In line with government support for domestic insurance, foreign companies are gradually shutting down They started their activities. So that in 8131 Iran Insurance Company more than 57% of the insurance market in Had authority. Today, that figure is about 06 percent.
There are now several insurance companies offering services. Each insurance company has branches and agencies in different ways depending on the volume The company’s activities are active. There are also brokerage firms that are marketing and receiving fees from All insurances operate and are not limited to a particular company.