home Finance books Finance and Statistics - Kovalev AM

Finance and Statistics - Kovalev AM

Social insurance

Social insurance - an objective necessity, at a certain stage of development of society takes under its protection of individuals who for some reason can not work and get paid for the work.

A sound social security system - one of the prerequisites for social justice, creating and maintaining political stability.

The objectives of the social insurance include: formation of funds, of which covered the costs associated with the maintenance of disabled or persons who are not participating in the labor process; narrowing the gap in the level of material support of unemployed and working members of society.

Given the special importance of social security and its impact on social processes, the state in many countries creates a system of mandatory state social insurance, enabling a significant concentration of resources in a single fund, thereby providing a reliable social protection of the population. In Russia, the state compulsory social insurance funds represented by four;

• pension;
• compulsory health insurance;
• social security;
• employment.

In the formation of u- use of these funds has its own characteristics (see para. 2.3). Conceived as insurance, they are not always consistent with the principles of formation and use of insurance funds. These activities are obvious characteristics of the budget approach: compulsory and statutory deductions, the planned use of funds, lack of personalization of savings, etc. As the economic substance of these funds are not insurance, in the form they are extra-budgetary funds..

However, it should be noted that along with the obligatory state social insurance occur and gradually developed private pension funds; some insurance companies conclude health insurance contracts.

Liability Insurance

The object of insurance that the insurance industry acts liable to third parties who may be harmed as a result of any act or omission by the insured. The essence of such insurance - protection of economic interests of the potential tortfeasor and the persons to whom the insurance in the specific case of harm (damage). Currently, this is extremely important, but it is under-developed insurance industry created legal preconditions,

The beginning of the development of this type of insurance in Russia was the insurance of liability of borrowers. The share of premiums received from credit insurance in the total volume of insurance premiums increased significantly. Rapid growth in liability insurance is one of the specific features of today's Russian insurance market. This - the result of the formation and growth of the credit market, the huge size of the mutual debts.

Credit insurance is both risky and profitable enough. Most of the newly formed insurance companies prefer this type of insurance. In case of insufficient methodological study of responsible insurance

vennosti very likely disruptions in the timing and amount of payment of insurance compensation, which poses a serious threat to the civilized development of the insurance market.

. Objects of insurance of credit risks - commercial loans, commitments and guarantees on the loan, bank loans, long-term investments, etc. There are two forms of credit risk insurance; risk insurance loan amount and the liability insurance of the borrower for nonpayment of the loan.

credit risk insurance protects the interests and the borrower and the lender.

According to the rules of voluntary insurance of the risk of default on loans object of insurance acts as responsible borrowers (individuals and entities) to the bank for the timely and full repayment of the loan and interest for their use. Insured is the bank.

The responsibility of the insurer arises after a certain number of days after the due date if the policyholder has not received due credit contract amount. The specific limit of liability of the insurer, and it can range from 50 to 90% of the outstanding amount (insurance compensation), and the onset of his term responsibility are established by the insurance contract.

According to the rules of voluntary insurance for non-payment of loans the borrower liability insurance object is the responsibility of the borrower to the bank that issued the credit. The main conditions of this type are similar to the risk of default loans insurance.

Currently most acute problem is the introduction in Russia of civil liability insurance of vehicle owners. The population of the country and society is not protected from possible impacts and bear heavy losses due to the growth of road traffic accidents: the preparation of various injuries, loss of life, destruction of property. The current system of protection through the courts does not solve these problems.

Voluntary insurance of personal transport accident, and life does not solve all the complex problems in the occurrence of traffic accidents. In many countries, this type of insurance is mandatory. Here the object of insurance - the civil liability of the vehicle owner for any possible harm to other persons in the commission of a road traffic accident. Property damage and other costs associated with the application of the injury affected citizens, shall be reimbursed by the insurance organization. Under this insurance paid for material damage associated with the restoration of the affected vehicles and other property, the payment is made at the cost of treatment of the individuals, prosthetics, diet, retraining, compensation for loss of family income due to injury or death of the victims, including the payment of a lifelong pension for children or other relatives.

Insurance Fund for this type of insurance is formed by mandatory payments by all owners of vehicles in the country. The paid insurance indemnity may subsequently be recovered from those responsible for committing a traffic accident. This insurance allows you to provide compensation for the consequences of harm, even in cases where the offender has no real material possibilities for this. In addition, the expense of the insurance fund becomes possible to finance preventive measures to reduce the number and consequences of traffic accidents.

The absence of this type of insurance in Russia is explained by the low level of insurance culture, unawareness of insurance protection features in a developed insurance market.

In many countries a civil liability insurance in the event of harm to others in the course of economic and professional activities, as well as in the event of pollution.

Professional liability insurance associated with claims against individuals and companies engaged in the performance of his professional duties or provision of services. The basis for the claims can be careless (negligent), errors and omissions of the insured.

On professional liability insurance are two groups of risks can be insured. Firstly, the risks associated with the possibility of applying a third party bodily injury and damage to health. Such cases occur in practice, doctors, dentists, pharmacists, drivers, etc. Secondly, the risks associated with the possibility of causing pecuniary or economic loss. This series includes the activities of architects, civil engineers, consultants, lawyers,

It is extremely important liability insurance companies in the event of pollution.

The annual damage caused by nature, considered by many billions of rubles. According to doctors, environmental pollution is the cause of many serious diseases. Direct losses - injuries, diseases and mental disorders, damage to crops, water pollution, forests and damage to property. But there are also indirect losses is the loss of revenue from production downtime due to contamination, cleaning costs, waste disposal.

Experts have concluded that producers must be the introduction of the insurance liability in case of pollution of the environment. Obviously, the insurance may not be the only method of formation of economic assets. It is very important systematic approach and the budget involved, budgetary and charitable funds, the creation of effective tax incentives. However, the introduction of environmental insurance as a variety of liability insurance would allow insurers to impose payment of compensation laid by the law affected by the pollution. Through insurance can be carried out and control of the environmental measures on the conclusion of the insurance contract levels.

The development of liability insurance in our country - a new, promising direction of activity.

Insurance business risks

Since the main motivation of entrepreneurial activity is the pursuit of profit (income), the risk of possible loss of profit or revenue, reducing the level of profitability or even losses of Education and is the object of the insurance.

When insuring business risks insurance object - activities involving the investment of money and other resources in any kind of production, works and services, getting through a certain period of income.

In modern conditions of this type of insurance is very great significance. The market is full of risk and loss, respectively. However, it would be naive to believe that all business risks can be minimized. In fact, there are risks that are not taken to insure no serious insurance company.

This insurance is one of the most difficult.

The responsibility of the insurance company for this type of insurance is to reimburse the insured losses arising in the course of its business activities.

The sum insured as the limit of liability under the contract is determined by the application of the insured, but, of course, with the consent of the insurance company.

There are two variants of its establishment. Sum insured:

• defined within the capital investments of the insured;
• It includes not only capital costs, but also certain regulatory income, which is expected from the cost.

In a first embodiment, be reimbursed the cost of the insured, it can be called insurance investments. In the second - refundable and normative profit, ie, there is profit insurance (income).

Appointment of insurance is to compensate the insured for losses, if after a period of insured transactions will not give economic benefit provided. The insurance indemnity is calculated as the difference between the sum insured and the actual financial results of the insured activity.

Terms of individual contracts, they depend on the timing of payback of capital investment.

This type of insurance requires a lot of preparatory work before the whole project expertise.

One of the specific types of insurance business risks is insurance against losses due to interruptions in production. Stopping production entails the inevitable financial losses. Fear, as a rule, downtime caused through no fault of the insured. Simple can be caused by loss of or damage to equipment, non-delivery of electricity, water, fuel, and other factors. The amount of damage depends on the idle time.

To be reimbursed losses from downtime is made up of three components: expenditures incurred during the interruption; lost profits; additional costs incurred to reduce the damage prevails the second part, so talk about insurance for loss of profits.

When insuring business risks into account even the risk of new technology, as well as commodity and currency risks.

Insurance new technology has in common with non-life insurance, but, in addition, there is added insurance increased profit from the introduction of new technology. In general, payment of insurance amounts and rates similar to insurance in connection with interruptions in production.

The stock exchange and foreign exchange risks apply, as a rule, no insurance in its purest form, and an operation such as hedging, ie Finally, fixed-term contracts with the establishment of a fixed price for a currency or commodity. To reduce the risk of contract performance, in turn, reinforce the conclusion of contracts of liability insurance, This integrated approach helps reduce losses.

In conclusion, the market economy suggest a high risk business activities, as well as its high yield absolutely to hedge against market risks can not, can only reduce them to a reasonable minimum.