The APESEC (Peruvian Association of Insurance Companies) is a system for the protection of man and his assets against various events that threaten his integrity, his life, his interest and his property. The Insurance guarantees the compensation of capital to repair or cover the loss or damage that appears at any time, receiving as consideration an advance price for the protection service it offers.

And basically fulfills the following functions:

compensation function.

The Insurance guarantees the compensation of a capital to repair or cover the loss or damage that may occur at any time both to the man and to his assets.

Compensation is the amount of money disbursed by the insurance company in favor of the insured, when an event occurs that may damage the insured person or his assets.

The insurer can comply with the obligation to indemnify in various ways:

Paying in cash the assessed amount of the damages.

Repairing or replacing the damaged item at your expense.

Providing services: health insurance, treatment in hospitals.

Financial Function: It fulfills this function to the extent that it efficiently manages the money it receives in the form of premiums until the moment in which the payment has to be made.

The Insurance Broker is an Anglo-Saxon terminology to refer to a broker or

intermediary whose function is to advise the client on everything related to insurance, put the insured (client) in contact with the insurer (insurance company) and carry out an insurance contract. With extensive technical, commercial and risk management knowledge, whose. Duties and Obligations are detailed in Art. No. 14 of Resolution SBS 809 – 2019 (SBS Superintendence of Banking and Insurance).

The service fees of an insurance broker or brokers are paid by the Insurance Company, which assumes the commission to the broker for each compensation provided or each client, said to be considered within the premiums, according to Law. The service it doesn’t cost the customer anything, instead it saves them time and gives them peace of mind when taking out insurance.

The insurance company is the one that provides financial coverage to insured clients in the event of a contingency. According to the APESEG, it is the legal entity that professionally assumes the risk by receiving a price called a premium. Its activity consists of assuming and managing external risks, directly through insurance contracts, or indirectly, as occurs in accepted reinsurance.

Characteristic:

It must be a legal person, that is, an entity or company, not a natural person.

Authorized by the Superintendence of Banking and Insurance to operate in the national territory.

In the case of contracting a foreign company, domiciled in another country, there is no impediment to contracting these services. However, it is necessary to keep in mind that in the case of defending your rights as an insured, you cannot resort to the Superintendence.

Historically, insurance is divided into two types: Patrimonial insurance and personal insurance.

Patrimonial or Damage Insurance

They refer to the coverage of things or goods such as Fire, Theft; Hulls, Maritime Transport. This group is characterized by having an insured sum limit up to its real value. These damage insurances are strictly indemnity, being necessary for its validity that at the time of contracting there is an insurable interest.

Personal Insurance

It includes the different modalities of insurance on life and others linked to the human person, such as illness, medical assistance, personal accidents, disability, among others. They are characterized by being contracted for variable and practically unlimited sums insured.

It is the proportional part between what an Asset is really worth vs. what was declared in the policy and at the time of a claim that has coverage, it will be applied equally, on the amount of the loss.

It is the assignment of risk by the insurer (assignor) to another entity called reinsurer, according to the prescriptions indicated in a Special Agreement called Reinsurance Contract. If coinsurance is the horizontal distribution of risk, reinsurance is the vertical distribution of risk. A co-insurance share can also be reinsured.

The deductible is an amount that corresponds to the insured in case of an accident covered by the policy. It can be a fixed amount or a percentage of the sum insured or the amount to be compensated.

The Commercial Value is the replacement value to new in case of an accident or eventuality, at the moment of which its depreciation for use, condition, age and characteristics is subtracted. In vehicles it is also known as market value.