What is insurance?
In simple words, insurance is a monetary compensation that is paid by an insurance company to a person or enterprise, organization or institution of losses from a certain event that is incidental, subject to the conclusion of an agreement with the insurance company.
If to speak officially, then
- in accordance with Article 1 of the Law of Ukraine "On Insurance" of March 7, 1996, № 85/96-ВР, insurance – a type of civil law relations to protect the property interests of individuals and legal entities in case of occurrence of certain events (insurance cases), determined insurance contract or current legislation, at the expense of money funds, which are formed by payment of insurance payments (insurance premiums) by individuals and legal entities and income from the placement of funds of these funds;
- in accordance with Article 979 of the Civil Code of Ukraine (through the definition of an insurance contract), one party (the insurer) under the insurance contract undertakes, in case of occurrence of a certain event (insured event), to pay to the other party (the policyholder) or to another person specified in the contract, the monetary amount (insurance payment), and the policyholder undertakes to pay insurance premiums and fulfill other terms of the contract.
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