Mutual insurance is a non-profit form of insurance fund organization

Mutual insurance - this is one of the protective forms, based on an agreement on the reimbursement of accidental losses. It is implemented through a special fund consisting of contributions. The insurers organize a society in which they are responsible for the execution of various operations.

Product Creation

Mutual insurance is a popular method for the formation of related products. For its characteristics, we can distinguish some features of the process:

• Consolidation of finance by the main participants;
• Formation of a fund acting as a joint association;
• No member of the organization can dispose of his funds alone;
• Members have the right to exercise control;
• They bear a liability for liabilities.

Mutual insurance involves the pooling of resources with those who have the same intentions regarding the realization of their own property interests. Such an organization carries out its activities on agreements and at its own expense.

The right of ownership from one participant becomes joint. Thus, each insured person can participate in the formation of products. In the form under consideration, the principle of reciprocity operates, where the mutual right to the funds available in the fund is realized.

The peculiarity of this method is that a person can be both a purchaser of a service and an owner of a fund created on the basis of a contract. Then there is a certain relationship between the insured and the insurer.

The fund is used through joint decisions at the general meeting. The main responsibility rests with the insurer-the organization. But in some cases, if the fund's resources are insufficient to realize the obligations, members of the fund bear subsidiary responsibility for its implementation.

In Russia, the organizational form in question is non-profit. Its main goal in the implementation of activities is the formation of its own product.

Thus, it turns out that the method becomes the basis of activity for companies where various forms of mutual insurance are implemented. After all, the formation of a product is realized by a whole society, where the right to use appears with the agreements reached in advance. Such rules are possible only for mutual CS, dealing directly with its participants. As an example of an organization, one can cite an institute such as developer insurance.

Features of the industry at the beginning of its development

Let's consider some features of this kind.

1. The right to an insurance product does not have a basis in the form of a contribution, since it was created only after the appearance of a loss.
2. There is no special organization dealing only with its education.
3. The product was created together.
4. All members who are part of society are responsible for his education.
5. Layout takes place only after the occurrence of an insured event.

With the foundation's preliminary education

In order to achieve stability and reliability, the policyholders began to form a fund in advance. Thus, the return of funds was more guaranteed in case of loss. The system proved to be more perfect than in the case of the layout. Then there was a need for an organization specializing in the formation of an insurance fund. It can be managed at a general meeting. And the right to own the fund is realized according to the concluded agreements.

Historical reference

This kind of insurance is not at all new. It was known back in ancient times. This insurance was allocated in several stages:

• Distribution of losses falling on one person or several;
• The emergence of the SC engaged in this as the main activity;
• Active participation of the state.

Implementation at all stages

As mentioned above, at first there were no organizations engaged in this activity, and the corresponding product appeared only after the occurrence of the insured event. But over time, specially established companies began to function, in which there was a benefit.

The first insurance company originated in America in 1735. The idea arose among potential buyers, therefore the state at first did not participate in it. It only regulated this area. But then this institute became interesting to him economically.

And what today?

At the moment, this species is quite common. The number of organizations in our country has increased especially in the last years of the existence of the Soviet Union. To date, an impressive number of companies are involved in property insurance in different countries.

1. 50% of the Swedish market.
2. 40% in Finland.
3. 30% in the USA.

Clubs that create a mutual insurance society are well-known.

In addition, organizations that insure property from fire and other hazards are known. In order to exchange information and take appropriate decisions on certain issues, they must be united in alliances acting at both the national and international levels.

Development in Russia

Mutual insurance in Russia developed gradually. This process can be divided into several periods. At first, this institution was only being formed. Then all organizations involved in this activity were liquidated. After that they began to develop unofficially. But at the present time their activities are supported at the legislative level.

In each of these periods, the state had an active position on the introduction of the institution in broad sections of society. At the same time there were many societies at the city and sectoral levels.

In the period of liquidation, development for obvious reasons stopped. This was present not only in the insurance field, but also in all economic sectors. Later, when reforms were carried out, the state abolished its monopoly on this type of activity. And in the last new period, the law regulating mutual insurance came into force. In Russia, activities are carried out by special societies.

Order of procedure

This type of insurance is implemented in the interests of all parties.

1. Is a collective agreement.
2. In the process, only property interests are affected.
3. The established organization is obliged to make a payment upon the occurrence of an appropriate case.

Mutual Insurance Company

So, these companies do not have paid authorized capital. The extraction of profit is not their main activity. They can also form reserves and determine their size by different methods.

Thus, the organization of mutual insurance societies provides for the creation of commercial and non-profit associations. They can exist with the conclusion of a special agreement or without it. They are attended by organizations and individuals, both members of the organization and not having this status.

Society activities

The companies carry out insurance, reinsurance, mutual insurance. They are engaged in brokers and activists. But first of all, these activities are carried out by insurers.

It is implemented on a voluntary basis, on the basis of a contract and rules, where conditions are determined. The latter are approved by the association of insurers, contain provisions on subjects and objects, occurrence of cases, risks, tariffs, bonuses and so on.

To ensure insurance liabilities, reserves are formed, which can be used only when making appropriate payments. They can not be confiscated in favor of the budget of the federation or its subjects.

Previously, the company of mutual insurance of civil liability could carry out its activities without licensing. However, since mid-2007, after the adoption of the relevant law, organizations are required to obtain licenses.

The main activities in this direction are the following.

1. Life insurance.
2. Transport clubs.
3. Branch pools.

In Russia, there are also associations that are aimed at making insurance for developers.

Transport clubs

This species is found most often. The most famous among them are the clubs of marine mutual liability insurance. Protection here seems preferable in view of the fact that:

• Requires a special escort system and emergency commissioners ;
• There are specific risks and a large expression of value in a small implementation;
• Savings are achieved if you take into account the medium and long-term prospects.

The first club of this direction was founded in 1855. Today there are about 70 organizations in the world. The leader among them is the Bermuda Shipowners Association of Great Britain and Northern Ireland. Ingosstrakh works in Russia according to the rules of this organization.

In all clubs, the annual insurance policy begins to operate on February 20 from 12 hours. The basis for this is a special agreement. Under it, the insurance policy ends at the same time in the next calendar year.

Branch pools

Another common direction of the system are industry pools. Their specificity is as follows.

1. Risks here, though unlikely, but have disastrous consequences.
2. They are unevenly distributed. In addition, there is no necessary data for underwriting. Therefore, sufficient coverage can be realized only in case of a pooled relationship.

In Russia, an anti-terrorist insurance pool and a corresponding nuclear one are known.

Among the negative aspects of this institution are the following.

1. Contributions to insurance funds are of uncertain size.
2. Portfolio is highly specialized, because of what risks are accumulated.

Double insurance

In addition to the above-mentioned species, the direction in question can have other directions.

So, in Russia the consumer society of mutual insurance can function. But in addition to activities, it should be distinguished from some specific forms. Sometimes they confuse mutual and double insurance. The latter means concluding a contract on one occasion and at one time at once in several companies. It is realized with incomplete insurance. Then one company gets a part of the payment. The other is carried out the so-called pre-insurance. Signs of this kind are object identity. In addition, this is the case and the term of insurance, as well as its availability at once from several companies.

It is noteworthy that this institution is banned in some countries. Then, if this fact is found, one of the contracts is recognized as invalid. However, in most countries the institution is allowed. This is caused by the desire to increase insurance coverage. But the main principle here remains unchanged, wherever this form is applied. It consists in the fact that the total amount to be paid should not exceed the insured value. Also, it should not be higher than the loss that has occurred as a result of the corresponding case.