Thursday, October 25, 2012

Car And Health Risk Management Using Insurance

By Mike Goldberg

Most activities in life have an outcome that may not be accurately determined. In this case the uncertainty may also be associated to some kind of risk. As such the higher the chances of the risk occurring the greater the need to observe care during the process. Generally an insurance process enables the financial obligations or compensation from such a risk to be transferred to a service provider.

This process which is typically a risk management one is provided and available to the client at a stipulated fee. Generally this procedure is initiated between the parties involved to transfer liability. This is common practice in the car and health insurance where the compensation requirements in each category can be met by a service provider. This is in relation to the typical risks in each of the categories.

The automobile cover policy specifically includes a number of risks. Most general are those related to damage from accidents and repair of the vehicle. There may also be cover for risk like theft in which case the insurer will replace the stolen automobile with one of equal value as indicated in the agreement.

The general process is based on a contract entered into by the client and provider. Also included is a policy that contains the conditions and circumstances by which a client can demand financial compensation. All this is defined by general practice principles that must be observed to legally qualify the process.

Based on this arrangement it can be inferred that different risks will attract different cover rates. This is especially true for the case for automobiles. As such some service providers within this field operate car insurance quotes online to advice clients on what rates they are required to pay. This is derived and certified through a query process that also includes the motor vehicle department among other state agencies.

Generally the cover scheme process has particular characteristics. When comparing the automobile and health procedures it can be seen that there is a slight difference between the two. In the latter there is a contract that involves the provider and customer. In this case the client may be an individual or their employer or sponsor. This also includes a policy that enumerates the areas that the contract will cover.

This health cover scheme requires the person being covered to fulfill a number of requirements. Such a person must buy the premium which indicates the amount of the cover. There are various ways to achieve this including coinsurance co-payment or by deduction. Other arrangements of the scheme like capitation will also be described in the policy. This is a common arrangement with national health policies where a health provider caters for clients under a blanket cover.

Generally there are many benefits that are experienced by the insurance company and those who are covered by such a scheme. On one hand the providers are able to carry on business with consistent investment capital derived from the premiums by the clients. On the other hand the client will transfer the liability to the provider and as such attain the desired peace of mind

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