The development of society is gradually contributing to improving the quality of daily life, people’s needs become much more diverse – buying a house, buying a car, owning more properties, traveling a lot. than. But with that, the risk of facing potential risks also increases. Therefore, choosing the right type of non-life insurance is the best way to prevent events that may happen to you and the most important things. Today, through this article, LSX Lawfirm will give you an article about “Features of non-life insurance according to Vietnamese law“, as follows:
Legal grounds
Insurance Business Law
What is non-life insurance?
Non-life insurance is any type of insurance that is not life insurance. Life insurance is tied to the life span of each person and can be divided into term and whole life insurance. In contrast, non-life insurance is divided into many categories related to almost all areas and activities of social life. Non-life insurance is also known as property and casualty insurance. This is a very popular type of insurance for both businesses and individuals.
Non-life insurance will protect the owner from possible contingencies as well as minimize the risk of your own economic being adversely affected.
Three types of non-life insurance are property insurance, including motorbike insurance, auto insurance, home and apartment insurance; civil liability insurance, and non-life personal insurance.
Benefits of joining non-life insurance
Some of the benefits and features when you join non-life insurance include:
The term of the insurance policy does not last as long as life insurance Insurance pays immediately when you have health problems
Travel non-life insurance plans also provide coverage for seniors and children. They can help solve problems such as lost luggage, accidents, lost documents… when the insured is abroad
Commercial non-life insurance benefits businesses with policies such as employee benefits insurance, shop owner insurance, property, and marine insurance…
Non-life insurance will insure the home or property in the home of the insured against any unforeseen events, such as fire, theft, natural disaster, etc.
Features of non-life insurance
General features
Non-life insurance is a type of insurance. Therefore, it carries the general characteristics of particular service industry:
The product of insurance is an intangible product
An insurance product is essentially a service, a promise, a commitment that the insurance company makes to the customer. Customers pay fees in exchange for promises of compensation or future payments.
To strengthen customer trust, insurers seek to increase product tangibles: pay attention to service-related benefits: use famous, reputable people to promote the service; develop a professional agent system; build the reputation of the insurance company; strengthen the role of marketing activities.
Insurance has a reverse business cycle
Unlike the normal production cycle of goods, when the price is decided after knowing the cost of producing that good. Insurance enterprises do not have to invest capital in advance, they receive premiums in advance from the contributions of the insured and perform later obligations to the insured when an insurance incident occurs. Therefore, it is not possible to accurately calculate the effectiveness of an insurance product at the time of product sale.
Psychology of shoppers who do not want to use this service
The policyholder does not expect a dangerous event to occur to receive insurance benefits, even though that benefit may be more than twice the amount of the premium to be paid.
Unique features
In addition to the general characteristics of insurance, non-life insurance also has the following basic specific characteristics:
Benefits of non-life insurance participants
The interests of the insured are always associated with specific risks. These risks are clearly limited and specified in the contract.
In addition to the above benefits, the policyholder is not entitled to interest and cannot get back the premium paid when there is no risk during the insurance policy term. Non-life insurance products have no return on investment element and are non-refundable.
Term of non-life insurance
Non-life insurance is a type of insurance that is independent of a person’s lifespan. Therefore, the coverage period is usually short, from 1 to several years. However, participants can usually renew each time an insurance policy expires easily, without having to go through the entire process again when starting a new policy.
Non-life insurance premium payment
Because of the short term, the premium usually paid once at the time of signing the contract. With multi-year policies, participants can pay a recurring fee every half-year or every year, depending on the agreement in the insurance policy. Premiums for the following years will be subject to change. Non-life insurance premiums depend on the level of risk.
Benefits of joining non-life insurance
Non-life insurance participants will enjoy some of the most practical benefits, namely:
Minimizing the unfortunate risks that occur in life.
Bringing absolute safety to the insured.
Create more working environments for employees.
Contributing to increasing revenue for the national budget.
At the same time, creating a large capital mobilization channel.
In addition to the general benefits that policyholders enjoy, each non-life insurance product package has special benefits for its customers.
Factors affecting non-life insurance premiums
Factors that can directly affect non-life insurance premiums:
Risk probability. Every insurance company will assess the risk of the insured. Usually the higher the level of risk, the higher the corresponding fee will also increase and vice versa.
Insurance money. The larger the contract value, the larger the insurance contribution and vice versa.
Customer value insured. The higher the value of the insured object, the higher the premium will also increase.
Consulting service of LSX Lawfirm
Above is LSX Lawfirm’s advice on the content of the problem “Features of non-life insurance according to Vietnamese law“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
Both life and non-life insurance can be used in tandem; without any constraints from the law as well as insurance companies. Thus, a person can use both life and non-life insurance products at the same time; To increase the ability to protect yourself and your family. The important thing now is to find out; and compare insurance to get the best choice for you and your family.
Bao Viet Insurance Corporation PVI
Insurance Corporation
Petrolimex Insurance
Joint Stock Corporation
Post and Postal Insurance
Joint Stock Corporation
Bao Minh Joint Stock Corporation
Bank for Investment and Development of Vietnam
Insurance Corporation Vietnam Joint Stock Commercial Bank for Industry and Trade Insurance Joint Stock Company
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