What is an insurance policy?

 When you take out insurance, whatever your class, they give you documentation like the insurance policy. A copy is left for you and another one is kept by the person who has completed the process, that is, the insurance company will also keep a copy. This is what we see in practice, day to day.

In this article, I would like to go a little bit further than the practice and tell you about your insurance policy (if you already have one, and if not, it will be very important and useful information for you when you have to obtain one) from a more technical way.

• I guarantee you that it will be extremely valuable information!

• So we will ask the big question: insurance policy, what is it?

Technically, an INSURANCE POLICY is a legal, justifying or probative document. It is the instrument that certifies the benefits that the insured accesses when he pays a premium for it.

The insurance policy is your insurance contract, since it sets the terms by which the insurance agency is obliged to compensate an injury or to pay a sum when an eventuality foreseen in the contract is verified; while the insurance contractor, on the other hand, agrees to pay a premium in exchange for the coverage.

Thus, the logic indicates that the premium will allow the insured to avoid greater economic damages in case the loss takes place.

What elements should be present in my insurance policy?

The insurance policy consists of several elements:

Insurable Interest: that is, what is insurable. For example, in an auto insurance policy, the insurable interest is the vehicle. Thus, the insurable interest will protect the value of the insured.
Insurable Risk: is the risk that can be covered by an insurance policy for meeting the essential requirements: be uncertain, possible, concrete, legal, fortuitous, quantifiable and economic.

Since there are multiple insurable risks, we can find, for example:

• life insurance policy

• liability insurance policy

• popular insurance policy

• insurance policy against fire

• auto insurance policy

• international insurance policy

• medical insurance policy

• caution insurance policy

• insurance policy against all risk

Premium (the value that you will pay monthly to obtain the coverage established by the insurance policy).
Obligation of the insurer to indemnify (the agreed benefit in case that the established thing is fulfilled so that the indemnity runs).

In addition to everything mentioned, always check that the formal elements of the insurance policy are present: personal data of the contractor and the insurance company; insurance fee; duration of the insurance contracted; nature of the insured risks.

With all the information granted, you can already do with confidence your insurance policy!

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