The concept of insurance value is used to regulate legal relations between an insurer and an insured, an individual or a legal entity.
Determination of insurance value
Insurance value is the amount that determinesthe amount of contribution payment and the total cost of the policy. This is the actual value of a property used for its insurance purposes. In order to determine objectively this indicator, resort to an insurance assessment. The objects of evaluation can be:
- Separate items of property.
- Vehicle.
- Housing.
- Land.
The result of the evaluation is indicated in the contractinsurance by mutual consent and can not be disputed by the parties, except for cases of deliberate misrepresentation of the company - the service provider by the client. In case of revealing the fact of falsification of the insured value against the insured, a criminal case may be initiated.
The insurance value and the amount of insurance payments can not be higher than the actual price of the insurance object.
Methods for assessing insurable value
To determine the exact insurance value, the following evaluation methods are used:
- The actual value of the object onthe moment of its acquisition. To do this, the policyholder must submit documents confirming payment: checks, receipts, sales contract, price list of the dealer company, for import goods, customs declarations.
- Determine the value of the goods is possible by the catalog of the manufacturer, as well as other reference periodical literature.
- When assessing real estate, an analysis is made of the average market price for similar properties in the region.
- To evaluate the value of the object it is possible to involve an independent expert.
Conclusion of the insurance contract
After determining the insured value of the object, a contract is concluded, which states:
- Insurance value of property.
- The cost of insurance policy.
- The amount and procedure for payment of contributions, their size.
- Period of validity of the agreement.
- The amount of payment in the event of an insured event.
The insurance contract enters into force on the followingday after payment of the insurance premium, if payment is made for cash. In case of non-cash settlement, the document becomes effective after crediting the payment of the contribution to the account of the company-insurer.
Insurance policy
The cost of an insurance policy varies fromdepending on the insurance object, the current insurance rates, the chosen program for covering risks, the term of the policy, the probability of occurrence of the insured event.
Under compulsory insurance programsregulation through the adoption of special federal laws. For example, the state sets tariffs for compulsory pension insurance, compulsory motor third party liability insurance.
For voluntary insurance, the insurer company has the right to establish and regulate insurance rates, as well as the amount of insurance premiums.
It is necessary to take into account the cost of the insurance year,that is, the sum of the cost of voluntary insurance policies for 12 months. The conclusion of contracts for a short period will cost more, with a validity of 12 months will save.
Pension insurance
There is still pension insurance. The insured value of the year here is the sum of all payments to the pension fund, which the employer will produce for the employee during the year.
When concluding a contract, it is important to pay attention to the restrictions stated in the text:
- The number of payments for the insurance period.
- A list of cases of exceptions in which the payment will not be made.
- Violations by the insured, which may entail a denial of service and termination of the contract.
Car insurance value
Auto insurance contracts are particularly common. The car insurance value is a value that is calculated depending on the following indicators:
- Make and year of the car.
- Initial cost.
- The magnitude of the run.
- Technical condition.
The owner of the car at the conclusion of the agreementfor the provision of the service must provide a technical passport of the machine, certificates of technical inspection, policies for previous periods. To assess the condition, it is necessary to undergo an inspection by a specialist of the insurer company. Cars older than ten years are not subject to insurance.
What influences the cost of car insurance?
In determining the value of the car insurance policy and the amount of insurance coverage, the base rate is used and additional factors are taken into account:
- The age of the driver and his driving experience.
- The territorial coefficient is individual foreach region of the country and depends on the frequency of accidents within the territorial entity. The figure is higher in megacities, lower in rural areas, with a high value, the design of the policy will cost more.
- Seasonality factor
- Bonus coefficient is calculated if the ownerThe vehicle draws insurance in the same firm for a long period of time. With a constant transition from one firm to another, the malus coefficient will be calculated, and the cost of the policy will increase.
- Factor of the accident due to the driver: if in previous insurance periods the driver got into an emergency due to his own fault, clearance would be more expensive.
- The power factor of the engine is calculated by the number of horsepower prescribed in the technical passport of the car.
- The limiting coefficient varies depending on how many people drive this car.
When making a CASCO policy additionallyit is taken into account whether the vehicle is under warranty service at the dealer shop or the warranty period has expired, the prices for repairs and components. It must be remembered that many companies take into account when making CASCO, what kind of anti-theft alarm system is installed on the car, and the price of the service will vary depending on the degree of reliability of the complex anti-theft tools.
Cost of insurance premium
The amount that the client pays the insurer inpayment of insurance services is called a premium. By installment, the insured value is a value that is calculated on the basis of the cost of the policy and can be paid both once and monthly during the entire insurance period. You can pay insurance premium for cash, as well as for non-cash payment.
With the monthly payment of the insurance premium, its size is calculated at the tariff rate:
- Net rate is determined by the probability of occurrence of the insured event.
- Gross rate includes a correction factor, as well as the load, that is, the insurer's expenses for the provision of services, unforeseen expenses not related to the formation of the insurance fund.
The net rate goes to the formation of the insurance fund, from which upon the occurrence of the insured event will be paid to the insured.
Insurance payment
По выплате страховая стоимость — это размер cash that is paid to the insured person upon the occurrence of the insured event. As a rule, represents a certain percentage of the insured value of the property. The indicator depends on the cost of the policy, the program of coverage and the tariff rate and insurance risks prescribed in the contract. The size of the insurance payment varies depending on the size of the damage caused to the property, taking into account depreciation and amortization. The order and amount of payments specified in the contract. For the purpose of payment the policyholder is obliged to submit documents that record the occurrence of the insured event.
The insurer is obliged to accept the documents for consideration and upon the expiration of a period of 30 calendar days to decide on the appointment of the payment.
The insurer has the right to refuse payments in the following cases:
- If the insured event occurred due to unlawful actions of the insured person.
- The insurer did not provide the necessary documentation for the insured event within the terms specified in the contract.
- The insured intentionally caused damage to property in order to receive payment.
- Insurance payments are not made if the insured property is subject to arrest or confiscation by a decision of the competent authorities.
If the damage received requires immediateelimination, the insured has the right to submit an application for advance payment earlier than the period established by law. Preliminary insurance payment is entered by the company into an individual client card. If upon the expiration of the review period it turns out that the damage is not compensable, the policyholder is obligated to return the amount previously paid.
