Strictly speaking, no insurance can fully reimburse medical expenses. Even medical insurance that can reimburse reasonable and necessary medical expenses caused by diseases or accidents still has the limitation of deductibles and exemption clauses. For example, medical expenses with deductible need to be borne by the insured himself, and medical insurance is not reimbursed.

If it is critical illness insurance, it can only pay for the diseases agreed in the insurance contract, and can only pay a fixed amount of insurance money, but it cannot reimburse all medical expenses incurred by the insured.

Insurance is a Chinese word, pinyin is b m 4 o xi m 4 n, and English is insurance or insurance, which means safe and reliable guarantee. Later, it was extended to a guarantee mechanism, a tool for planning life finance, a basic means of risk management under the condition of market economy, and an important pillar of financial system and social security system.

Insurance refers to the commercial insurance behavior in which the applicant pays the insurance premium to the insurer according to the contract, and the insurer bears the responsibility of paying the insurance premium for the property losses caused by the possible accidents agreed in the contract, or when the insured dies, suffers from disability, illness or reaches the age and time limit agreed in the contract.

From the perspective of economics, insurance is a financial arrangement to share the loss of accidents; From the legal point of view, insurance is a contractual act, a contractual arrangement in which one party agrees to compensate the other party for losses; From a social point of view, insurance is an important part of the social and economic security system and a "subtle stabilizer" for social production and social life; From the perspective of risk management, insurance is a method of risk management.

Compensation principle

The function of economic compensation is the foundation of insurance industry, which can best reflect the characteristics and core competitiveness of insurance industry. It is reflected in two aspects:

1. Property insurance compensation: Insurance refers to the compensation according to the scope of responsibility and insurance amount agreed in the insurance contract and the actual loss amount at the time of specific disasters and accidents within the validity period of insurance. Through compensation, the actual loss of existing social wealth caused by disasters and accidents is compensated in value, and the use value is restored, so that the process of social reproduction can continue. This kind of compensation includes not only the compensation for economic losses caused by natural disasters or accidents, but also the economic compensation for the insured's liability for economic compensation to a third party according to law, and also the compensation for economic losses caused by breach of contract in commercial credit.

2. Payment of life insurance: The insured amount of life insurance is determined by the insured through consultation with the insured according to the insured's needs for life insurance and the insured's ability to pay.