The difference between voluntary and compulsory insurance
Let us explain the difference between the two types in simple words
Compulsory insurance is a form of insurance in which the insurance relationship between the insurer and the policyholder arises by virtue of law. First of all, it is impossible to refuse from compulsory insurance (CI). Certain types of OS (for example, OSAGO) need to be formalized by citizens personally. The CI has a clear payout schedule.
For voluntary insurance, the same rules apply, only it differs in a more free form of the contract. The person and the insurer have the right to conclude a transaction for any insurance event and for any amount. Everything depends only on the consent and agreements of both parties.
Compulsory insurance and voluntary insurance cannot mutually exclude each other. On the contrary, they complement each other. In other words: mandatory forms of insurance are basic and voluntary – extended, complex
Другие
Insurance deductibles
We tell what it is, what types of deductibles are and give examples
Description of the type of insurance, example and formula
Incomplete insurance is insurance in which the amount insured is less than the insured value (fair market value). Upon the occurrence of an insured event, the amount of compensation is equal to a share of the amount of the insured amount of the insured value.
