Net premium roughly equal to the insured risk it, however, the insured, though the greatest burden is to cover this risk, but it bears the burden of another, including:
- Commissions charged by intermediaries, because the insurer uses some people as an intermediary between him and the insured.
- Expenses collection of premiums, the believer is the one who seeks - Mostly - To the insured to collect the insurance premiums.
- Administrative expenses, which expenses incurred by the insured in the Department of Insurance Operations.
- Taxes and fees, the insured bears some taxes and fees paid for insurance activity.
- Shareholders' profits, if the insured in the form of a joint stock company, the shareholders receive a reasonable profit on their shares in the company.
A premium commercial = Net premium + percentage of the additional burdens (above).
التسميات
insurance premium