What Is Property Insurance?

Property insurance means that the insurer pays the insurance premiums to the insurer according to the contract, and the insurer is responsible for the losses caused by the natural disaster or accident due to the insured property and its related benefits as agreed in the insurance contract. Insurance. Property insurance, including property insurance, agricultural insurance, liability insurance, guarantee insurance, credit insurance, and other types of insurance with property or benefit as the object of insurance.

property insurance

(Basic meaning)

Property insurance is broad and narrow. Broad property insurance refers to insurance that takes property and its related economic benefits and damages as the subject of insurance; narrow property insurance refers to insurance that uses physical property as the subject of insurance. In insurance practice, the latter is commonly referred to as property loss insurance.

Article 95 of the Insurance Law of the People's Republic of China stipulates that property insurance business includes

1,

Property insurance originated from marine insurance in Italy, and it already contained regulatory provisions as early as the medieval maritime regulations. After the 16th century, in other

China resumed domestic insurance business since 1980, property insurance

The composition of property insurance premiums <br Same as the composition of other insurance premiums, it is composed of a certain amount of insurance, a certain insurance rate, and a certain insurance period. Its calculation formula is:
Commercial property insurance premium = insurance amount × insurance rate × insurance period The amount of insurance premium is proportional to the amount of insurance, the level of insurance rate, and the length of the insurance period. The larger the insurance amount, the higher the insurance premium rate, and the longer the insurance period, the more insurance premiums.

Commercial property insurance premium calculation method (1) Single discount algorithm. That is, multiply the insurance amount by the insurance rate to obtain the annual insurance receivable. The calculation formula is:
Annual insurance premium receivable for commercial property = insurance amount × annual insurance premium rate × term

(2) Duplex calculation method. That is, a method for comprehensively calculating insurance receivables considering other factors on the basis of a single calculation method, and the calculation formula is:
Insurance receivables = {basic insurance premium + (insurance amount × insurance premium rate) + third liability insurance fixed insurance premium}

First, the principle of maximum integrity

As with other home insurance, the insured must comply with

1. Keep various insurance certificates properly and inform the unit or family. A copy of the insurance policy should be handed over to the relevant personnel or family members of the unit for insurance as soon as possible. At the same time, the insurance policy, premium invoices and various insurance certificates should be stored in a safe and reliable place.

2. The insured are obliged to protect the safety of the insured property. Article 51 of the Insurance Law stipulates that: "The insured shall abide by the state's regulations on fire protection, safety, production operations, labor protection, etc., and maintain the safety of the subject matter of insurance." responsibility.

3. Renew premiums on time. Article 14 of the Insurance Law stipulates: "After the insurance contract is established, the insured pays the insurance premiums according to the agreement; the insurer begins to assume the insurance liability at the agreed time." Therefore, the insurer must be clear about the insurance contract delivery and insurance Provision of the relationship between the entry into force of the contract.

4. Insurers should be truthfully informed of changes in insurance objects. Article 52 of the Insurance Law stipulates: "During the validity period of the contract, if the danger of the subject-matter insured has increased significantly, the insured shall promptly notify the insurer in accordance with the contract." This facilitates the insurance company's timely approval procedures. Otherwise, the insurance company will refuse to pay for insured accidents that occur due to the increased degree of danger of the insured.

5. To change the content of the policy, you need to apply for correction of the contract content. Article 20 of the Insurance Law stipulates: "The insured and the insurer may change the contents of the contract through negotiation." For example, the insured may adjust the insurance period, the nature of property use, the insurer, the insurance amount and the insurance value, and may add additional insurance types.

1. Proportional compensation method

The proportional compensation method is also called the proportional liability compensation method, which calculates the compensation amount based on the ratio of the insurance amount to the actual value of the insured property at the time of insurance. Applicable to the calculation of under-insurance compensation in variable value insurance. Its calculation formula is: compensation amount = loss amount * insurance amount * characteristics of actual value proportion compensation method when insured property is in danger.
When the insured amount and the insured property are higher than the actual value of the insured property, the insured person s loss can also be fully compensated, but only a few more premiums are paid. No insurance money is paid; when the insurance amount is less than the actual value of the insured property, the insured's loss will not be fully compensated.

2. First danger compensation method

The first method of compensation for danger is also called the first method of compensation for loss. This method of compensation is to use the insured amount as the maximum amount of compensation. If the insured's loss is not equal to or exactly equal to the insured amount, the insurance company will pay the full amount; if the insured's loss is greater than the insured amount, the insurance company Only the insurance amount is compensated. The insured is responsible for the excess, and the insurance company will no longer pay extra insurance money. Therefore, when the property is partially lost, this insurance is a very economical investment for the family.

3. Limit liability compensation method

Refers to a method of calculating compensation for property insurers only when the property loss exceeds a certain limit. This compensation method is generally widely used in crop harvest insurance. The insurance compensation amount is the value of the underpayment between the crop harvest and the insurance-guaranteed harvest. ^[1]