.jpeg)
In insurance terms, there is a premium that participants must pay to the insurance company. Insurance premiums are an amount of money determined by the insurance company and agreed by the policy holder to be paid based on the insurance agreement and the provisions of the laws and regulations that underlie the insurance program to obtain benefits.
What is an Insurance Premium? Get to know the influencing factors and determine rates
What is an Insurance Premium? Get to know the influencing factors and determine rates
According to Law (UU) no. 40 of 2014 concerning Insurance, a premium is an amount of money determined by an insurance company or reinsurance company and approved by the policy holder to be paid based on an insurance agreement or reinsurance agreement, or an amount of money determined based on the provisions of the laws and regulations underlying the mandatory insurance program to obtain benefit.
The amount of insurance premiums paid varies depending on the type of insurance, the object of coverage, and the term of the insurance. Insurance premiums can be paid directly by the policy holder or participant to the insurance company or sharia insurance company, or paid through an insurance agent.
Factors influencing insurance premium rates
Several factors influencing insurance premium rates include:
Type of insurance. The type and amount of insurance benefits chosen will affect the premium that must be paid.
The amount of insurance money. The greater the sum insured, the greater the premium.
Determination of Premium Rates
Determination of premium rates and payments as a condition for insurance is stated in the policy preamble. Specifically for motor vehicle insurance business lines, the determination of premium rates is regulated in Minister of Finance Regulation Number 74 /PMK.010/2007 concerning the Implementation of Insurance Coverage in Motor Vehicle Insurance Business Lines.
In this regulation, the determination of premium rates is regulated as follows:
Determination of pure premium elements is carried out based on calculations supported by risk and loss profile data for a period of at least 5 (five) years.
Determination of the elements of administrative costs and other general costs is carried out based on calculations supported by data on administrative costs and other general costs that are part of the Motor Vehicle Insurance business line for a period of at least 5 (five) years.
Determination of the elements of acquisition costs is carried out in accordance with the provisions regarding acquisition costs as intended in this Minister of Finance Regulation; and D. Determination of reasonable profit elements.
Premium or Contribution Rates for Motor Vehicle Insurance Business Lines
Premium rates and contributions for motor vehicle insurance business lines are regulated in OJK Circular Letter Number 6/SEOJK.05/2017 concerning Determination of Premium or Contribution Rates for Property Insurance and Motor Vehicle Insurance Business Lines.
Posting Komentar untuk "What is an Insurance Premium?"
Silahkan Anda berkomentar dengan sopan. Saya harap Anda tidak memberikan komentar Spam. Jika komentar Anda mengandung Spam dengan berat hati akan saya hapus.
Posting Komentar