Insurance Basics
February 2nd, 2010 | Author: Farid
All conditions are in the insurance contract. This clause must be read very carefully. Every year, insurers earn big money for services that come with the contract and are not claimed by the insured.
Insurance all over the world, has a dual role, the economic and social:
- Economic function: it eliminates the economic uncertainty about the future achieving greater efficiency, wealth stabilized, combat poverty and stimulate savings.
- Social function: it stimulates the forecast, contributes to improving health.
Essential conditions of insurance in Spain: It is regulated by law 50/80 Insurance Contract.
You can not assure (art. 19 LCS) to accidents caused by bad faith of the insured. The bad faith penalty is not assimilated, without more, to civilian, with important consequences (especially in automobiles)
under insurance .-The insured risk can not be significantly higher or lower than the actual value of the thing or the insured (sum assured), so it is essential to a prudent assessment of the insured object.In the first case, the casualty, the insurance only indemnify the damage to the real value of the thing, though the insured was older.In the case of underinsurance, Cia. compensated in the same proportion in covering the interest insured, if the thing was worth € 1000 and secured at 500, inflicting a damage of 500,indemnify half of it: 250 €. It applies in these cases, the clause entitled “provide compensation”. This clause applies to all types of insurance, except those referred to as first risk insurance.An example would be if a person having a life insurance before buying a home. When buying a home and should make a mortgage, is the norm for the banks to sign an insurance policy that pays the mortgage in the event of his death.The fact is that if you sign two life insurance, no compensation charged his family and another bank, but will split the payment between the two insurance and recovery between the family and the bank. With what the compensation will be half of the contracted and paid.It is therefore appropriate to recommend to any subscriber who advise policy with a Broker or Lawyer, to review the terms of the insurance contract.
