Want to Know the Function and Advantage of Insurance? Here’s the Explanation

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Understand the essential functions and benefits of insurance before deciding to use them. Especially understanding of insurance in Indonesia is still low. This can be seen from the amount of public participation to the insurance is still minimal alias is not so much peminatnya. In fact, general or special insurance has a lot of functions and advantages to provide compensation protection funds in term panajgn such as property / asset insurance, life insurance, and health insurance.


According to Kamus Besar Bahasa Indonesia, insurance is literally meaningful coverage. In the Law of the Republic of Indonesia or the Commercial Code (KUHD), insurance is defined as an agreement made by two or more parties, where there is mutual attachment between the insurer and the insured. The insurer receives insurance premiums from the insured as a form of the change of risk paid to the insured due to certain events in the future. This particular event is commonly understood as a risk if it leads to things we do not want.


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