Definition of Commercial Insurance, Benefits and Types

  Various risks of life can befall us at any time. These various risks range from suffering from a disease, accidents that cause serious injuries that must be treated, damaged cars, natural disasters, and so on.

When one of these risks comes, of course it costs a lot of money. Especially if there are two risks at once, then you have to prepare even bigger funds.

Seeing conditions like this, funds originating from savings alone may not be enough to cover the various risks of life. For that, how important it is to prepare life protection in the form of insurance, so that your finances will remain safe because the risk has been covered by the premium you paid to the insurance company.

Based on the variety of products, this insurance is divided into two, namely social and commercial. This social insurance is mandatory because of the protection programs provided by the government, such as BPJS Health, PT Taspen and others.

So, what is commercial insurance? What about the benefits and types of commercial insurance?

To find out and understand the information, see the full review below which Cermati.com has compiled from various sources.

Definition of Commercial Insurance

Commercial insurance is a company that provides financial protection to its customers in accordance with their respective protection needs while also carrying out the principles of buying and selling and investing. With this system, both the customer and the company can benefit.

These profits are distributed to shareholders or investors in commercial insurance for the development of insurance companies. Generally, insurance products like this are provided other than the government, aka offered by private companies.

However, all decisions in purchasing this commercial insurance policy are left to the customer. If the customer wants to be protected and can minimize the risk of life, then there is nothing wrong with buying an insurance policy and vice versa. The insurance company will not do any coercion. 

Commercial Insurance Benefits

Commercial insurance has different benefits that are adjusted to age, gender, level of disease risk, to the facilities and services chosen by the policyholder. For example, you want to buy health insurance for yourself and your parents.

You choose a policy with standard benefits. Meanwhile, parents choose a policy that can cover their illness as well as the required hospital facilities. With this different policy, of course, the premiums to be paid are also more expensive than social insurance.

However, with the premium paid, of course, it will be proportional to the benefits you will receive if the risk approaches, such as:

• Extra service
• Hospital facilities as needed
• Gives peace because it's protected
• Costs covered by insurance companies, etc

Advantages of Commercial Insurance

For commercial insurance customers, of course, have to pay a number of premiums ranging from hundreds of thousands of rupiah to millions of rupiah according to the policy selection. Although the premiums are expensive, there are several advantages of commercial insurance, including:

1. Greater Coverage

For those who have used social insurance or from the government, of course, the facilities provided are limited. For example, the inpatient class cannot choose, cannot wait for family members during hospitalization, the types of drugs that are obtained are not all free, and so on.

This is clearly different from commercial insurance which provides greater coverage. Insurance companies provide facilities that are in accordance with the policies chosen by their customers, starting from covering the needs of inpatient, outpatient, medicines and so on.

2. Overseas Participants Can Be Insured

For those of you who are currently abroad and already have commercial insurance, there is no need to worry anymore if there are risks such as falling ill suddenly. This is because commercial insurance has collaborated with many hospitals abroad.

3. More Commercial Insurance Products

Not just one, but more commercial insurance products. Considering that private companies see and take advantage of whatever opportunities the community needs. The following are some commercial insurance products, including:

• Health Insurance
• Vehicle insurance (car and motorcycle)
• Education insurance
• Life insurance
• Property insurance
• Property insurance, etc
  

4. Easy Claim

Commercial insurance provides protection with many facilities and services that policyholders need. Although there are many coverages, but when customers want to use insurance, you can claim easily. How to claim, starting from swiping the insurance card or just showing the membership card at hospitals, workshops, and so on.

Types of Commercial Insurance

The following are the types of commercial insurance based on their management along with the best variety of insurance products in Indonesia.

1. Conventional Insurance

Conventional insurance is an insurance product that has the principle of buying and selling risk. Or someone buys a policy and joins an insurance customer to get protection, then pays a premium.

Later the insured in the policy will be fully borne by the insurance company so as to minimize economic risk.