Installment and the two face danger insurance process and that the first estimate based on the statistical accuracy of the study conducted by insurance experts to the second. Therefore intended Net installment is the financial equivalent amount to roughly the value of risk-set exact calculations of the insured.
A premium is for the insured amount necessary to cover the insured risk it without an increase or decrease (gain or loss). The premium is calculated on the basis of net unit ad valorem and the unity of time. Unity value represents the amount of money estimated by the insured as a thousand pounds, for example, and the unit of time is usually one year.
If we say that a believer gets every thousand pounds, five pounds a year, if the value of the insured fifty thousand pounds, it will get five times the 5 x 5 = 25 repeated in the number of years of insurance.
Take, for example, mathematically if the insured risk it achieved in the insurance auto accidents by 10 per 1000 car, meaning that out of every 1000 cars insured interfere 10 cars in accidents harmful to others, if the amount of insurance to be paid, on average, is 5000 pounds for each case if the risk insured him.
Percentage to verify the insured risk it
= 10 × 100 ÷ 1000 = 1%
Total deposits that are likely to meet by the insured =
Percentage x number of insured x average amount of insurance
1 ÷ 100 × 1000 × 5000 = 50000 pounds
Net value of the premium = Total deposits ÷ number of insured
50000 ÷ 1000 = 50 pounds.
However, the risk factor is not the only factor in assessing the value of the premium, but there are other factors that contribute to him as the amount of insurance amount, duration and interest rate which the insured would receive from the exploitation of the balance of payments has a community.
التسميات
insurance premium