The insurance value is ... The value of the insurance premium

The notion 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 determines the amount of contribution payments 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 insurance assessment. The objects of evaluation can be:

• Separate items of property.
• Vehicle.
• Housing.
• Land.

The result of the evaluation is indicated in the insurance contract by mutual agreement 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 insurance value

To determine the exact insurance value, the following evaluation methods are used:

• The actual value of the object at the time of its acquisition is determined. 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 an insurance policy.
• The amount and order of 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 shall enter into force on the next day after payment of the insurance premium, if payment is made for cash. In the case of non-cash settlement, the document becomes effective upon crediting the payment of the contribution to the account of the insurer.

Insurance policy

The cost of an insurance policy varies depending on the insurance object, the insurance rates in effect , the chosen program for covering risks, the term of the policy, the probability of occurrence of the insured event.

Compulsory insurance programs are regulated by 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 tariffs, 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 also pension insurance. The insurance value of the year here is the totality of all payments to the pension fund, which the employer will pay for the employee during the year.

When concluding a contract, it is important to pay attention to the restrictions stated in the text:

• Number of payments for the insurance period.
• The list of cases-exceptions, under which payment will not be made.
• Violations on the part of the insured, which may result in denial of service and termination of the contract.

Insurance Value of Vehicle

Auto insurance contracts are made especially often. At the car insurance cost is a value which is calculated depending on following indicators:

• Make and year of release of the car.
• Initial cost.
• The amount of the run.
• Technical condition.

The owner of the car, when concluding the service agreement, must provide the vehicle's technical passport, vehicle inspection certificates, policies for previous periods. To assess the condition it is necessary to pass an examination with a specialist of the company-insurer. Cars older than ten years are not covered by insurance.

What affects the cost of car insurance?

When determining the cost of the car insurance policy and the amount of insurance coverage, the base rate is used and additional coefficients are taken into account:

• The age of the driver and his driving experience.
• The territorial coefficient is individual for each region of the country and depends on the frequency of road accidents within the territorial formation. The indicator is higher in megacities, lower in rural areas, with a high value, the design of the policy will cost more.
• Seasonality factor.
• The bonus factor is calculated if the owner of the vehicle signs insurance in the same company for a long period of time. With a constant transition from one firm to another, the malus ratio will be calculated, and the cost of the policy will increase.
• The factor of the occurrence of an accident through the fault of the driver: if in the previous insurance periods the driver got into emergency situations through his own fault, the registration will cost more.
• The power factor of the engine is calculated by the number of horsepower, prescribed in the technical passport of the car.
• Limiting coefficient varies depending on how many people drive this car.

When registering the CASCO policy, it is additionally taken into account whether the transport is on warranty service from the dealer store or the period of warranty service has expired, the prices for repairs and accessories. It must be remembered that many firms take into account when designing the CASCO, which anti-theft alarm is installed on the car, and the price of the service will vary depending on the degree of reliability of the anti-theft facility.

Cost of insurance premium

The amount that the client pays to the insurer to pay for the insurance service is called an insurance premium. By payment, the insurance value is a value that is calculated on the basis of the cost of the policy, and can be paid as a lump sum or monthly during the entire insurance period. You can pay insurance fee for cash, as well as for cashless payments.

With monthly payment of the insurance premium, its amount is calculated at the tariff rate:

• The net rate is determined by the probability of occurrence of the insured event.
• The gross rate includes the correction factor, as well as the burden, that is, the costs of the insurer for the provision of services, unforeseen expenses, not related to the formation of the insurance fund.

The net rate is for the formation of an insurance fund, from which, upon occurrence of an insured event, payment to the insured will be made.

Insurance payment

On payment, the insurance value is the amount of money that is paid to the insured person in the event of an insured event. As a rule, it represents a certain percentage of the insured property value. The indicator depends on the cost of the policy, the coverage program and the tariff rate and insurance risks prescribed in the contract. The amount of insurance payment varies depending on the amount of damage caused to the property, including depreciation. The procedure and amount of payments is specified in the contract. For the purpose of payment, the insured is obliged to submit documents recording the occurrence of the insured event.

The insurer is obliged to accept the documents for consideration and upon the expiration of the period of 30 calendar days to decide on the purpose of payment.

The firm-insurer has the right to refuse payments in the following cases:

• If the insured event occurred as a result of unlawful actions of the insured person.
• The policyholder did not provide the necessary documentation on the insured event within the time limits prescribed 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 decision of the competent authorities.

If the damage received requires immediate elimination, the policyholder has the right to file an application for a provisional payment earlier than the statutory deadline. Preliminary insurance payment is entered by the company into the individual client card. If, at the end of the review period, it is determined that the damage is not recoverable, the insured is required to return the previously paid amount.