An insurance contract is an agreement between an
insurance company and a customer (policyholder). The insurance company accepts the contract by sending an insurance policy and insurance conditions to thecustomer. In these documents you will find the answers to a variety of questions, for instance:
– What property have you insured?
– What losses will the insurance company compensate you for, and what losses will not be reimbursed?
– Where does the insurance cover geographically, and what is the sum insured?
– How long will the insurance be in force, and when is the contract terminable?
– How much does the insurance cost?
When you receive your insurance policy and insurance conditions, you should carefully check thedocuments
to verify that everything is as you have agreed with the company. From the date you receive the insurance conditions, you are entitled to cancel the insurance contract within a period of 14 days. If you want to exercise your right of cancellation, you should do so in writing.
The purpose of insurance
An insurance policy cannot prevent the occurrence of any loss, damage, injury or accident, but it can offer you a source of financial relief. The purpose of insurance is to restore you to the same financial situation as before you sustained the loss.
Preconditions for insurance
In principle everything is insurable, but the following preconditions have to be met:
– The person taking out the insurance must have a legal interest in the property
– Many people have to be exposed to the same risk
– The loss must occur by chance
– The insurance company must be able to calculate the risk and cost of the loss.
Coverage under your own insurance
The insurance company can compensate for damage to property in various ways. The insurance company can:
– Take over the damaged property against payment of cash compensation
– Take over the damaged property against replacing it with a similar item
– Restore the damaged property to the same condition as before the damage occurred
– Compensate for the reduced value if the item is still in working order.
In case of permanent injuries, the company will pay the agreed amount of benefits. On the death of the insured, benefits will be payable to his relatives or beneficiaries.
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