Lecture N 16

“Insurance”

Economic relations connected with acts of adverse natural, spontaneous forces, casual circumstances, production factors and compensation suffered by losses damage at the expense of money payments are allocated in an independent category of insurance.

The purpose of insurance is public or collective protection of citizens, property, processes of manufacture fir maintenance of a continuity of public reproduction.

Inherent features of insurance are:

1) probable character of relations;

2) extreme (not ordinary) character of relations (in any scale- state, regional, at a level of enterprise or its division, separate man).

Social insurance represents system of economic relations on redistribution of costs of a public product for material support of the citizens in case of loss of work capacity, job and protection of their health

Economic relations inherent to property and personal insurance are connected with compensation of damage during public manufacture, if this process is broken as a result of acts of nature and other extreme or unforeseen events. The arising damage is compensated on the solidary beginnings at the expense of insurance payments paid by the participants of the relations.