What does commercial insurance mean?

What does commercial insurance mean?

Buying insurance has become a fashion in modern society, which is mainly divided into two categories: policy insurance, social insurance, and commercial insurance. Among them, commercial insurance has a wide variety of advantages, such as flexibility and voluntary nature, and is a powerful supplement to policy insurance and social insurance. So, what does commercial insurance mean?

 What is commercial insurance?

 Commercial insurance refers to the form of insurance that operates through the conclusion of insurance contracts and is operated for the purpose of profit and is operated by specialized insurance companies. A commercial insurance relationship is a contractual relationship concluded voluntarily by the parties. The insured pays the insurance premium to the insurance company according to the contract, and the insurance company is responsible for the compensation for the property damage caused by the possible accident according to the contract, or When the insured dies, is disabled, sick, or reaches the agreed age and time limit, he is responsible for paying the insurance benefits. The so-called social insurance refers to the collection of insurance premiums and the formation of social insurance funds, which are used to provide basic living security for members who have lost their ability to work or lost job opportunities due to old age, disease, maternity, disability, death, and unemployment. a social security system.

 Features of commercial insurance

 1. The main body of commercial insurance is commercial insurance companies.

 2. The insurance relationship reflected in commercial insurance is reflected in the insurance contract.

 3. The objects of commercial insurance can be people and things (both tangible and intangible), and the specific objects are people‚Äôs life and body, property, and property-related interests, responsibilities, credit, etc.

 4. The operation of commercial insurance should be aimed at making profits, and it is necessary to obtain maximum profits, to ensure that the insured enjoys the greatest degree of economic security.

Types of commercial insurance

 Insurance is divided into property insurance, life insurance, and health insurance.

Property insurance

 Property insurance includes motor vehicle insurance, enterprise property insurance, family property insurance, ship insurance, liability insurance, guarantee insurance, cargo transportation insurance, accident insurance, agricultural insurance, engineering insurance, credit insurance, etc.

Life Insurance and Health Insurance

 1. According to the number of policyholders, it can be divided into individual health insurance and group health insurance.

 2. According to the length of the insurance period, it can be divided into short-term health insurance and long-term health insurance. The length of the insured period is also combined with the number of insured persons to form group short-term insurance and group long-term insurance, and it can also be combined with individuals to form individual short-term insurance and individual long-term insurance.

According to the classification of insurance liability 

a) Disease insurance refers to the insurance that pays insurance benefits based on disease, that is, as long as the insured suffers from a disease listed in the insurance clause, no matter whether or how many medical expenses are incurred, the insurance can be Get fixed compensation. b) Medical insurance, also known as medical expense insurance, refers to insurance that compensates the insured for expenses incurred when receiving medical services. c) Disability insurance, also known as income loss insurance and income security insurance, refers to a type of insurance in which income, property, etc. are lost due to the inability of the insured to work.

According to the type of loss

 it can be divided into medical expense insurance, disability income loss insurance, and long-term care insurance.

Classification according to the payment method

 a) Expense-based insurance: The insurer will compensate the insured for all or part of the medical expenses based on the reasonable medical expenses incurred by the insured in the process of medical diagnosis and treatment, as stipulated in the insurance contract.

 b) Subsidy-type insurance (fixed payment insurance): 

Subsidy-type insurance refers to the insurance that pays the insurance money at the standard agreed in the insurance contract regardless of the actual expenses of the insured.

 c) Provision of service-oriented products: 

During the provision of such products, the insurer directly participates in the management of the medical service system. The insurer selects medical service providers (hospitals, clinics, doctors) according to certain criteria, and organizes the selected medical service providers to provide medical services to the insured.

There are strict and formal operating rules to ensure the quality of services, the use of medical services is frequently reviewed, and the insured can enjoy economic benefits when looking for a designated medical service provider for treatment according to the prescribed procedures.

 What does commercial insurance mean? Commercial insurance refers to the form of insurance that operates through the conclusion of insurance contracts for the purpose of profit. It is divided into three forms: property insurance, life insurance, and health insurance, and is operated by specialized insurance companies.

By aamritri

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