Personal
Injury Protection (PIP) is an extension of car insurance available in some U.S. states
that covers medical expenses and, in some cases, lost wages and other damages.
PIP is sometimes referred to as "no-fault" coverage, because the
statutes enacting it are generally known as no-fault laws, and PIP is designed
to be paid without regard to "fault," or more properly, legal
liability. PIP is also called "no-fault" because, by definition, a
claimant's, or insured's, insurance premium should not increase due to a PIP claim.
Showing posts with label Insurance. Show all posts
Showing posts with label Insurance. Show all posts
Kinds of insurance
The insurance can be divided from two angles:
first, from the business point of view & second, from the risk point of
view.
*** Business point of view:
The insurance can be classified into three
categories from business point of view: (i) Life insurance (ii) General
insurance (iii) Social insurance.
Functions Of insurance
The functions of insurance can be studied into two
parts: (i) Primary Functions (ii) Secondary Functions.
Primary Functions:
(i) Insurance provides certainty: insurance Provides
certainty of payment at the uncertainty of loss. The uncertainty of loss can be
reduced by better planning and administration. But, the insurance relieves the
person from such difficult task. Moreover, if the subject matters are not
adequate, the self- provision may prove costlier. There are different types of
uncertainty in a risk. The risk will occur or not, when will occur, how much
loss will be there.
Definition of insurance
The definition of insurance can be made from two
points: (i) Functional definition (ii) Contractual definition.
Functional definition: insurance is a
co-operative device to spread the loss caused by a particular risk over a number
of people, who are exposed to it & who agree to insurance themselves
against the risk. Thus the insurance is (A) a co-operative device to spread the
risk. (B) The system to spread the risk over a number of people who are insured
against the risk. (C) The principle to share the loss of each member of the
society on the basis of probability of loss to their risk. (D) The method to provide security against
losses to the insured.
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