Introduction
E insurance is a way of managing risks and is normally used to hedge against any losses that may occur in the future or today. It also hedges against any form of risk. E insurance can also be seen as a form of transferring losses and risks to another party who will compensate you in case of any unforeseen risks and losses. The insurance companies are normally considered to be the insurer and the one who will be compensated is considered to be the insured. The insured is actually required to pay a premium, money to be paid for the asset being insured, to the insurance company.
History
The principle of utmost good faith is required in any insurance practice. The principle requires that an asset should not be undervalued or overvalued by the insured so that the sum of money being paid for the asset should be enough for compensation in case of any unforeseen misfortunes. E insurance is an abbreviation for electronic insurance, and it is just the same as insurance, but the electronic finance is practiced online with the presence of a computer. All financial transactions are done through electronic payment systems such as the Society for Worldwide Interbank Financial Telecommunication, digital wallets, credit cards and digital cash.
Features
E Insurance is one of the new major developments of technology, and thus it may go hand in hand with electronic finance. Electronic finance is practicing finance services using electronic communication either through the computers with the help of the Internet or through mobile phones with the help of the Internet protocol.
Tips and comments
E insurance has various advantages; it stimulates business enterprises since many risks are transferred to the insurance company. It also promotes saving since the act of paying the insurer is in itself saving some money for the preparation unforeseen misfortunes and also reducing unemployment by giving employment to those seeking to work with that particular insurance company.
E insurance has some legal principles that have to be met in order for an individual to be insured. Principal of Subrogation, Principle of Indemnity, Principal of Insurable interests, Principle of Proximate Cause and Principle of Mitigation are some that must be put into consideration. These legal requirements are very important and individual have to meet all the requirements for them to be able to be insured by the insurance companies.
E insurance offers many types of insurance services, and individuals may choose from among the wide range of services been offered within the types of insurance. Different companies offer different services and in some cases, you are likely to find out that they offer similar services but the prices of these services may vary. This calls for some research at the initial stages. With the difference in prices comes with the quality of services given or offered. Types of insurance may be home insurance, auto insurance, health insurance and unemployment and sickness insurance.
In conclusion, e insurance is very important to our society and globally. With the constant development of technology, there is a high possibility of very many innovations and developments in e insurance. E insurance is here with us and is there to stay so let us embrace it.
