The function of insurance:
First, there must be risks in insurance. The purpose of establishing insurance system is to deal with the occurrence of specific dangerous accidents. Without risk, there is no insurance.
Two, insurance must give economic compensation for the losses caused by dangerous accidents. The so-called economic compensation means that this kind of compensation is not to restore the destroyed original things, nor to compensate the real things, but to make monetary compensation. Therefore, the losses caused by accidents must be economically calculable. In life insurance, people's own value is incalculable, but people's labor can create value, and people's death and disability will lead to the loss of labor, thus reducing the income of individuals or families and increasing expenses. Therefore, life insurance is to make up for this economic increase in the form of economic compensation or payment, rather than ensuring people to recover their lost labor or lives.
Third, insurance must have a mutual assistance relationship. The insurance system is to allocate losses to many units to reduce the losses of the affected units. Through insurance, the insured * * * jointly pays the insurance premium, establishes an insurance compensation fund, and * * * is jointly guaranteed.
Four, the insurance payment must be reasonable. The insurance compensation fund shall be shared by the insured. In order to make everyone's burden fair and reasonable, it is necessary to calculate the contribution scientifically.
First, voluntary. The legal relationship of commercial insurance is established by the insured and the insurer voluntarily concluding an insurance contract on the basis of equality, mutual benefit and consensus according to the principle of autonomy of will, while social insurance is enforced according to law.
Second, it is profitable. Commercial insurance is a kind of commercial behavior. No matter what organizational form a company takes, the purpose of commercial insurance is to make profits, while social insurance is to protect the basic needs of members of society.
Third, from the perspective of business scope and the principle of compensation for insurance benefits, commercial insurance includes both property insurance and personal insurance. If you invest a corresponding amount of insurance premium, you can get a corresponding amount of insurance benefits within the scope of insurance value, which embodies the principle of investing more and protecting less, while social insurance is limited to personal insurance, and it does not differ according to the amount of insurance premium invested, which embodies the principle of basic social security.
From the perspective of economics, insurance is a way of loss distribution. The insurance fund is established with the premiums paid by most units and individuals, so that the losses of a few members are shared by all the insured.
Insurance is an economic system. It is manifested in: (1) the commodity exchange relationship between the insurer and the insured, and (2) the income redistribution relationship between the insurer and the insured. Insurance belongs to the economic category, which reveals the essence and essence of insurance.
Legally speaking, insurance is a kind of contractual behavior, that is, by signing an insurance contract, the rights and obligations of both parties are clarified, and the insured obtains compensation within the scope stipulated in the insurance contract by paying the premium, while the insurer has the right to accept the premium and the obligation to provide compensation.
① Insurance is a contractual legal relationship;
The insurance contract is binding on both parties;
(3) Whether the accident or event agreed in the insurance contract occurs must be uncertain, that is, accidental;
(4) accidents beyond the control of the insured and the other party to the insurance contract;
The insurer promises to pay money or other similar compensation after the insured accident;
⑥ Insurance should be operated in the form of insurance policy.