INSURANCE LAW AND ITS SECTIONS
Insurance has emerged as a reflection of the ideas of taking precautions by foreseeing the future and helping against common dangers. In order for this system to function, an organising institution (insurer) is needed.
INSURANCE LAW AND ITS SECTIONS
Insurance law is divided into two as private insurance law and social insurance law.
Private insurance is a risk assurance that people voluntarily create in order to secure their private interests against various dangers.
For example, if a person applies to an insurance company in order to have his/her workplace insured against fire and theft, this is private insurance.
On the other hand, insurances that are offered to the society through public institutions established by law in order to provide social security for a certain group of people such as workers, civil servants and pensioners, and which are often compulsory, are considered as social insurance.
For example, the insurance of workers against occupational accidents is this type of insurance.
WHAT ARE THE DIFFERENCES BETWEEN SOCIAL INSURANCE AND PRIVATE INSURANCE?
1-Social insurance is carried out by institutions established by law, while private insurance activities are carried out by independent insurance companies belonging to the private sector.
2-There is freedom in private insurance. Social insurances, on the other hand, are compulsory.
3-Social insurances arise from the law, while private insurances arise from the insurance contract.
4-In order for a person to benefit from social insurance, it is necessary and sufficient for him/her to be in a certain status such as labourer or civil servant. In order to benefit from the rights and guarantees attached to private insurances, it is possible for individuals, regardless of their status, to apply to the insurance company and obtain insurance assurance.
5- As a rule, the risks covered by social insurance are different from the risks covered by private insurance. The risks covered by social insurance are hazards such as illness, occupational disease, unemployment, occupational accident, disability, old age, death and maternity, which are difficult to cover for people with low income levels. On the other hand, private insurances include life insurances as well as property insurances such as fire and theft, which provide assurance to everyone regardless of their income level.
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