Whatever activity that is carried out has some uncertainty associated with its outcome. At times this uncertainty can be equated to a risk. In this event the higher the probability of this risk occurring during the activity or process the greater is the requirement to be careful in carrying out the process. Alternatively an insurance process can be adopted to transfer the liability to a service provider that will provide financial compensation.
The other party involved in this risk management [youtube:ggWY7OPag0s; [www.rachelinsurance.com/health-insurance/individual-family:Health Insurance];www.youtube.com/watch?v=ggWY7OPag0s&feature=related]process normally charges a stipulated fee for such services. This service can be carried out in many of the areas in life with an intention to transfer the liability. Among the areas commonly included are car and health insurance. The former covers automobile risk whereas the latter deals with personal medical expense risks.
The cover scheme for the automobile will take care of a number of risks. Such risks will include damage from accidents and fixing processes of the vehicle that is covered. Sometimes the vehicle can also be insured against theft. And so in the event of the vehicle being stolen a compensation claim for a vehicle of equal value will be made by the client.
The general process is based on a contract entered into by the client and provider. Also included is a policy that contains the conditions and circumstances by which a client can demand financial compensation. All this is defined by general practice principles that must be observed to legally qualify the process.
Based on this arrangement it can be inferred that different risks will attract different cover rates. This is especially true for the case for automobiles. As such some service providers within this field operate car insurance quotes online to advice clients on what rates they are required to pay. This is derived and certified through a query process that also includes the motor vehicle department among other state agencies.
While the underlying principles in cover scheme are the same those for automobile and health vary in that the former involves a contract between a provider and a client. The client here is either an individual or their sponsor who may be their employer. This contract will also specify the areas covered in the health policy.
Within such an agreement the person to be covered has several requirements. A premium is one such requirement indicating the amount that must be paid for the cover. This payment can be accomplished using various approaches. This may include deduction coinsurance or co-payment. Apart from the approach used the policy will also highlight such matters like capitation. This is where the provider enters agreement with a healthcare provider to provide umbrella services for its members. This is what is commonly practiced under the national health scheme.
The insurance process benefits the client and service provider in varied ways. For the client they can have a peace of mind because liability for the risk is transferred to a different party giving them a peace of mind. On the other hand the service provider has a steady capital source from the premiums by the customer. In this way the provider can be able in a sustainable business
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