Self-insurance

Self-insurance is that institutions and companies make a reserve of funds (by providing funds) to meet the expected losses without the risk insurance, although the term reserve refers to the obligation, but in this case refers to assets (reserves), reserves Free reserves are not intended to meet obligations.

A self-insured term refers to a risk management method whereby a pool of money is created to be used in case of expected loss, and any expected loss may be self-insured. However, the majority of people choose to conclude insurance with the insurance company. Self-insurance is a distinction from the professional insurer (insurance company).
Self-insurance is a misleading name because the person who saves the money to meet the expected loss does not include any insurance. However, we use the term self-insurance as a distinct distinction from the insurance company's pure insurance.

Self-reinsurance is that insurance companies establish a reserve (reserves) to meet the expected losses instead of re-securing them.

Self-insured retention / Self-insurance retention / SIR
Retention or self-retention / retention The self-insurance is a percentage of the risk that the person retains for his own account without being insured or reassured. Self-retention is a sum specified in the liability insurance policy that must be paid by the insured before the insurance policy pays any loss, The insured pays the legal expenses to defend him in court and pays the awarded compensation until the retention limit is exhausted and after the retention limit is exhausted the insurance company begins to pay up to the maximum liability of the insurer (cover), and the self-retention may be called the term non-insurance in terms of conditions document.

Retention of self-insurance may be in the form of deductible or non-insurance, non-insurance is not to take any financial action in advance to meet the expected loss means there is no insurance and no self-insurance, endurance is a specific amount deducted by the insurance company from the claim, Less than endurance, the compensation will not be based from the foundation.

Umbrella insurance or umbrella document for civil liability insurance is a liability insurance policy that pays only losses greater than a specified amount under underlying policies / basic policies, yet may also act as an initial (basic) insurance to cover losses not covered under underlying documentation (Basic), and there are two types of parachute documents are the documents of the Umbrella to ensure the personal responsibility issued to individuals, and the umbrella documents to ensure the commercial responsibility issued to institutions and companies.

An umbrella document pays only the excess liability that exceeds the limits of the underlying documents. In this case, it acts as a document that exceeds the losses or pays the losses that are not covered under the basic documents up to the limit of the umbrella document. If the compensation exceeds the ceiling, the insured will be responsible for the increase. The case acts as a basic document, meaning the umbrella document has two functions as follows:

1. Cover is granted when the covers of the underlying documents are exhausted, thus covering the losses of the disaster liability, for example, imagine that a car accident resulted in multiple bodily injuries exceeding the limit of liability in the vehicle document.

2. The insured shall protect against losses not covered by the underlying documents, provided that such losses are covered by the umbrella document. The umbrella document has multiple coverings, covering the property damage to the third party, bodily injury and personal injury such as libel, defamation, false imprisonment, The wrong land, the invalid dismissal, etc. of the damage to the third party, the awning document requires that the underlying documents are in force, if not in force, the liability of the umbrella insurer shall not change as if the underlying documents are in force.

 The awning document contains self-retention (endurance) and is applied only when the parachute document acts as a basic document, but does not apply when the umbrella document works as a document.

 For example, let us assume that the insured has concluded an umbrella document with a maximum liability of LE 100,000 and a self-retention of LE 5,000. He has concluded a document document (basic document) with a maximum liability of LE 40000 per person and LE 80,000 for one incident. A judgment against the insured will be awarded in the amount of one hundred thousand pounds to a person injured by the insured in the car accident, so the document of the car pays first 40000 pounds, the maximum per person per liability limit and then the umbrella document pays the rest 60000 pounds, Acts as a document exceeding losses in this case ,,

 In continuation of our previous example, suppose another scenario is that a judgment was issued against the insured for compensation of LE 100,000 for defamation and libel against Yasmin, and since the car document does not cover the liability arising from libel and libel, so there is no underlying documentation to cover loss, The canopy is 5000 pounds, the insured pays first 5000 pounds and then pays the parachute document 95,000 pounds,

• Other types of insurance :

Auto Insurance (Vehicle insurance or Motors insurance)

The comprehensive insurance policy on the car covers three types of risk as follows:

1. Property Risks Where there is a department that provides property insurance that provides for the loss or physical damage to the insured vehicle

2 personal risks where it contains a section that provides a personal insurance coverage covering the personal injuries of the insured and the passengers inside the insured car, for example medical expenses and loss of wages and funeral expenses

3 Liability Risks Where there is a section that provides a liability coverage that provides legal liability for injury to others or damage to their property due to a car accident.

"One document may include more than one type of insurance, for example the above-mentioned vehicle document, and another example is the business insurance / business owners' policy. BOP is a document for small businesses that have a property cover And cover civil liability and legal and medical expenses."