The author of the article: Elena Simakina
Voluntary insurance (DC) is an agreement between the policyholder (natural or legal person) and the insurer (insurance company), according to which the policyholder is obliged to make the contributions specified by the agreement, and the insurer is obliged to pay insurance compensation (security) in the specified cases. The main types of voluntary insurance include personal, property and civil liability. However, the insurance market today is not limited to classic types, but offers more and more new products.
The life of a modern person is more like a race.
Every morning we get into our “racing car” and rush along the track to work, from work – take the children to the sports section, then to the supermarket, from there – home, and so on in a circle.
But any race is an absolutely unpredictable and extremely dangerous thing. The role of protective gear in this race with life can be played by voluntary insurance.
This type of insurance differs from compulsory in the following features:
- Goodwill or, in other words, free will. Many argue that voluntary insurance requires a contract. This, indeed, is true, but after all, the obligatory is carried out between the parties in a contractual manner. Therefore, the fundamental difference lies not in the existence of a treaty, but in freedom of will: with a mandatory will comes from the state, with a voluntary – from the person himself.
- An object. What exactly to insure is decided by the person or organization.
- Deadline. Compulsory insurance can be unlimited, while voluntary insurance always provides for a specific time period.
- Terms. In the case of compulsory insurance, the conditions are determined by regulatory enactments. Voluntary relies on the agreement of the parties. However, the terms of any contract must be within the limits established by law.
- Insurer’s reaction. “Obligation” applies, as a rule, not only to the policyholder, but also to the insurer. In case of DS, the insurance company may refuse if it recognizes the case as non-insured, based on established practice or on the basis of its own corporate convictions.
What objects and interests can be protected by voluntary insurance?
Almost everything. There are the following main varieties:
- civil liability;
- other types.
Personal insurance implies a relationship that has developed in connection with a person’s desire to secure his personal interest in the event of a certain situation. In accordance with the Civil Code of the Russian Federation, this type is subject to the rules of a public contract. In other words, the insurance company must conclude a contract with any person who applies to it. Personal insurance includes such subtypes of insurance as:
- Life and health. As a rule, relations on this type of insurance are long-term (10 or more years). When issuing a policy, the age and gender of the policyholder, the presence of addictions, the type of activity, i.e. all features that may affect life expectancy and health.
- Medical. Under the VHI policy, you can get medical help in the best clinics and in a larger volume than with compulsory medical insurance. A huge number of different programs allows you to choose suitable services or create a package that meets your specific wishes.
- For a specific occasion. The agreement between the policyholder and the insurer concerns an event, upon the occurrence of which the agreed amount is paid. Most often, an event involves living up to a certain age, a wedding, the beginning of training, etc. This also includes the death of the policyholder before the date specified in the contract. Then the beneficiary will receive the security. This subspecies clearly demonstrates the peculiarity of personal insurance: the “face” of a person is associated not only with injuries and illnesses. Therefore, in relation to personal insurance, it is more correct to say “insurance coverage” rather than “compensation”, because there may not be any damage.
- Cumulative and investment. Similar insurance instruments in which the policyholder’s premiums are invested in some kind of safe asset. In the appointed period, you can get an amount that has significantly “overgrown” with interest. The amount of% and the term of the investment are determined by the contract.
- From accidents or illness. The contract for such a subspecies is concluded for a short period (for example, for 1 year) and obliges the insurer to pay money if the insurer is injured or disabled in an accident, “gets” a chronic disease (only if he did not have it before), etc.
- Baby. This insurance is dearly loved by many moms and dads, still: how often do children get injuries, sprains, bruises, fractures. In addition, both in kindergarten and at school, certificates are required, which means that you need to constantly conduct examinations. The voluntary insurance policy for the smallest covers these difficulties. And you can always consult a family pediatrician who is in touch 24/7.
- Tourist. Compulsory travel insurance can always be replaced or supplemented by a voluntary one that meets the wishes of the tourist to a greater extent.
- Sports. Someone who is not spared injuries are athletes. And they cannot do without voluntary insurance. Sports-specific injuries can be stipulated in the contract. The policy can be issued for one person or for a group (a sports club often insures the whole team). Insurance for a specific body part is gaining popularity (for example, Ronaldo’s legs are estimated at about $ 140 million).
Property is produced in order to protect a specific material object or interests from any encroachment, both human and natural.
This includes insurance:
- Personal or commercial property. You can insure any property subject to monetary value, from a house or garage to an antique item. Voluntary insurance for an organization or individual entrepreneur provides an opportunity to protect an office space with its contents from theft, arson and other destruction.
- Transport. Perhaps, one of the most demanded subspecies of voluntary property insurance, given the widespread distribution of cars. Policy CASCO will be a great addition to the required OSAGO… In this case, not only the liability of the owner will be protected, but also the car itself from theft and other troubles. Also, there is an opportunity to insure water, air and railway transport.
- Entrepreneurial or financial risk. Entrepreneurial risk means an event that had a negative impact on the entrepreneur’s work, for example, a disruption in the production process, failure to fulfill an obligation on the part of a partner, etc. Key points: only the entrepreneur himself acts as the insured, there can be no beneficiaries here. Financial risks can be inherent in any activity, not only entrepreneurial (change in the exchange rate, stock collapse, etc.).
- Cargo. Such insurance will protect the owner or carrier from loss or damage to cargo during loading, transport and unloading.
Liability insurance is an innovative and extremely convenient tool for the policyholder. The essence lies in the fact that the damage caused by the insured to third parties is reimbursed by the insurer (in whole or in part, depending on the terms of the contract).
This type includes voluntary civil liability insurance:
- Owners of cars (DSAGO), air, water and railway transport;
- For harm caused by defective goods, poor quality services or work performed;
- Professional (doctors, designers, tour operators and representatives of other professions, whose activities are associated with the risk of harm to third parties);
- By contractual obligations.
Other types include:
- Pension. They can be supplemented with compulsory insurance. The parties are a citizen and a non-state pension fund or an insurance company.
- Agricultural insurance. On the basis of the Federal Law “On the organization of insurance business in the Russian Federation”, you can insure crops, animals, plantings, agricultural crops.
- Deposit insurance.
- Specific types that have appeared recently, for example, insurance for exotic or pedigree animals, and more.
The ramified system of voluntary insurance demonstrates two sides: the first is an indicator of the development and civilization of the state, and the second is an indicator of the awareness and wisdom of its population.
The statistics of modern Russia show that the DS market is not being developed as actively as we would like. Many are put off by distrust of insurance, taxation, or low income. However, all doubts must be shattered about the benefits offered by voluntary insurance. No other institution will offer such wide and varied opportunities to protect the individual, property, interests.