An important element of the insurance contract is the indication of the applied risk system, on which the size of the final payments depends. In this article, we will consider what features insurance has under the first risk system.

Concept and legislative regulation

The first risk insurance system is understood as an insurance option according to which compensation is made in the amount of damage, but within the limits established by the contract.

There are two categories to consider:

• The first risk in insurance. The values ​​of the amount of compensation expressed in financial equivalent are accurately documented. In contractual criteria, this value is considered the insured amount. In a situation where it is necessary to pay compensation, this amount is the basic reporting point. Unprofitable values ​​that are below this value can be classified as the first risk. They are reimbursed in full.
• Second risk. This is an amount that exceeds the value stated in the documents. The policyholder does not have the right to receive it - payments beyond the first risk are not made.

Important! First risk insurance is formalized legally, secured by contractual agreements and provides for the protection of property and other specified interests of the parties in the event of an insured event. The regulation of this system is based on Federal Law No. 4015-1.

First-risk insurance is a way to ensure economic security, create reserves in the event of losses and the possibility of financial losses.

The conclusion of an insurance contract for the first risk is a mandatory element to protect the rights of the parties and obtain guaranteed payments in the event of damage or loss of property.

Main advantages

The specific features of the first risk system are provided:

• the amount of finance that is precisely specified in the agreed agreements is paid;
• the ratio of the amount and price of the property is not taken into account;
• the first risk is fully compensated to the policyholder;
• the entrepreneur independently forms the amount of the expected risk of loss; there is no link to the cost component (or it is insignificant);
• there is no need to conduct a monthly inventory of property and confirm warehouse balances.

Among the main advantages of this system are:

• for the insurer: after payment of the agreed amount, the contract is considered executed and closed;
• the first risk in insurance is the value precisely specified in the contractual agreements;
• simplicity of calculations and damage assessment;

Important! The main disadvantage is the fact that in a situation where the amount of loss is higher than the amount under the contract, a portion remains unreimbursed for the policyholder.

What types of insurance does it apply to?

First risk insurance is applicable for the following options:

• the likelihood of anticipated material damage is lower;
• there is no possibility of determining a constant price for the property for the entire term of the contract;
• the property is located in different premises, and the price of the remainder is variable;
• for first-risk property insurance located in a warehouse;
• in OSAGO.

Attention! In MTPL, the first risk is used less frequently. You can calculate the cost of insurance for your case and purchase a policy on our website using the calculator below.

How it is reflected in the contract

The contract for the first risk must stipulate:

• the chosen system (in this situation: the first risk);
• a tripartite scheme is possible: a third party is appointed as the beneficiary;
• the contract clearly states the amount that is the limit for payments that must be calculated;
• formula for calculating payments.

Formula for calculating the amount of compensation

The applied formula for the first risk system looks like this:

SV = RU – BF, Where

SV – amounts paid, t.r.;

RU – damage caused, etc.;

BF is an unconditional franchise, i.e.

When calculating the value of damage, use the formula:

RU = SI – I + RS – O, Where

SI – the value of property that can be obtained by appraisal, etc.;

I – wear (depreciation), t.r.;

RS – expenses for examination and other amounts for write-off, etc.;

СО – value of residues, t.r.

The franchise is understood as the amount of exemption of the insurer from payments under the contract, which does not exceed the established amount. This is the part of the loss that is not reimbursed by the insurer. Its meaning is established in contractual agreements.

Possible franchise options:

• precisely set value;
• relative unit from the value of the insured property;
• percentage of the damage caused.

Calculation example

Let's look at an example to clearly understand how these amounts relate to each other.

Two cars have the same insurance in the amount of 1 million rubles each. The cars were involved in an accident and received significant damage. For the first car, the amount of damage was 850 thousand rubles, for the second – 1 million 350 thousand rubles.

We will calculate the insurance amount using the first risk system. The amount of the first risk is 1 million rubles. In this case, the first car owner will receive full compensation for the first risk insurance under the contract in the amount of 850 rubles. The second owner will receive only the amount of 1 million rubles under the first risk insurance contract.

The first risk insurance system has its own laws for payments:

• The value of losses is divided into two parts. The division limit is the amount of insurance specified in the contract. The first part (up to the border) is the amount for the first risk, it is fully reimbursed. The second part (after the border) is the second risk, this value cannot be compensated.
• The relationship between the insured amount and the value of the property is not taken into account. The first category has an advantage.

What other insurance systems exist?

There are also other insurance compensation systems. Possible applications are specified in contractual agreements without fail. Let's consider the characteristics of other systems:

• Proportional reimbursement system. It is very common in modern insurance. Within its framework, not all damage is compensated, but only the percentage established in advance in the contract.
• Valid rating system. The actual damage received is assessed. It forms the basis of the amount of compensation.
• Restorative assessment system. The value paid is equal to the cost of acquiring the new item.

Thus, the use of the first risk insurance system is possible when difficulties arise in determining the insurable property value or when the expected amounts of expenses are insured. This system is applicable in cases where the likelihood of maximum damage is reduced. The system establishes liability for losses not exceeding the limit established in the contract.

If you have any questions, feel free to ask them to our online consultant on the website.

Insurance makes it possible to compensate for damage in its material terms in case of damage or loss of property.

But you need to take care of this in advance by concluding an agreement with the organization providing these services. It is extremely important that she is completely trustworthy.

The concept of risk is one of those used by insurance under the first risk system. It can be used in several meanings:

• as the possibility of damage to property or its complete loss due to the impact of various disasters, accidents or other events for which the contract was concluded;
• as objects to which the contract applies;
• as a liability assumed by the insurer;
• as the distribution of responsibility between the parties to the contract upon the occurrence of the event provided for in it.

Special risks are included in a separate group. They are discussed in a special order. These include, for example, possible dangers when transporting precious metals or works of art.

Risk assessment for insurance

To objectively assign an amount in a contract, it is important to correctly determine the amount of possible danger. For this purpose, study the insurance object itself, as well as the situation surrounding it.

Based on determining the probability of the expected event and the resulting financial losses, the amount (insurance premium) that the owner must pay is determined.

It must correspond to objective and subjective circumstances separately in each specific case.

To accurately determine the level of risk, the following are taken into account:

• statistics data;
• the strength of the influence of natural factors;
• actions of people;
• possible circumstances;
• amount of possible damage.

This type of protection is one of the systems of partial insurance. The total value of the property is not of decisive importance. The system allows you to distribute damage in case of loss or damage to property between the parties to the contract.

The policyholder does this deliberately in order to reduce the amount of required payments.

Determination of the first risk in insurance

The application of the system is based on the definition of two concepts: the first and second risk.

The parties involved in the execution of the contract assign a specific amount in monetary terms. In the text it is referred to as the sum insured and takes into account the actual value of the property.

If it is necessary to make compensation, the named amount becomes the starting point. Losses below the agreed limit are considered the first risk. They must be reimbursed in full.

The second risk is taken to be the amount of losses exceeding the agreed amount. The policyholder cannot count on her compensation.

Let's consider specific cases when the rules of this system apply.

The owners of two cars took out insurance for the same amount: 1 million rubles. After the traffic accident, both cars received significant damage. The damage to one car amounted to 700 thousand rubles, to the second – 1 million 200 thousand rubles.

The owner of the first car will receive compensation in full for the loss incurred - 700 thousand rubles. The second owner will also receive compensation. But it will not exceed 1 million rubles.

Insurance premiums and compensations

Insurance contributions can be made in advance or in advance.

Advance payments are paid before the date when the next payment is due. They are paid in installments according to the scheme specified in the contract.

The preliminary procedure consists of making the payment in advance in full or in parts. Interest may be charged on the amount paid under the agreement.

The difference between advance and preliminary payments is significant. Sometimes an insured event occurs before the end of the payment period. In this case, the balance of the advance payment will be issued to the policyholder in addition to the principal amount under the contract.

There are no additional advance payments. They serve as compensation for the sum insured.

Compensation for damage

When an event stipulated in the contract occurs, payments according to the rules of the first risk system are subject to special laws.

The losses incurred in their material terms are divided into 2 parts. The boundary of the parts is the value equal to the insured amount.

The first part of losses includes an amount less than this amount. The insurer is obliged to fully compensate it. All other monetary losses are a second risk. They are not compensated under this system.

Compensation under the contract does not take into account the relationship between two quantities: the insured amount and the value of the property. Only the first of these quantities is significant. Typically, the first risk system turns out to be more beneficial for the owner of the property specified in the contract.

Fractional system in insurance

Combining the action of two different systems: first risk and proportional liability is used in a special method of insurance.

When applying it, the value of property is considered in two forms: insurance and shown.

When designing a fractional part system, 2 options can be used:

• insurance equals 100% of the actual value;
• shown is a part (fraction) of the real one.

The value of the value shown is usually written in the text of the contract in the form of an ordinary fraction or percentage.

When applying the first option, the rules for compensation of damage apply as for insuring the first risk. The rules of the proportional system begin to work provided that the contract is drawn up according to the second option.

Insurance organizations and the insurance market are one of the most important aspects of the state financial system. and the insured allows you to minimize the risk from possible unfavorable circumstances, from someone else’s encroachment on property, from natural disasters.

The first risk system in insurance is just one of many ways to protect yourself and your property. Usually this system turns out to be more profitable for the owner than others.

It is used quite often and satisfies the desire for favorable conditions on both sides, both the insurer and the policyholder.

First risk system;

Proportional liability system;

Actual value system;

Insurance liability systems

Insurance liability system determines the relationship between the insured amount of the insured property and the actual loss, i.e., the degree of compensation for the resulting damage.

The following insurance liability systems are used:

1. When insurance based on the actual value of property the amount of insurance compensation is determined as the actual value of the property on the day the contract is concluded. Insurance compensation is equal to the amount of damage. Here full interest is insured.

Example. The cost of the insurance object is 5 million rubles. As a result of the fire, property was lost, i.e. the loss of the policyholder amounted to 5 million rubles. The amount of insurance compensation also amounted to 5 million rubles.

2. Proportional liability insurance means incomplete insurance of the value of the object.

The amount of insurance compensation under this system is determined by the formula

· SV - amount of insurance compensation, rub.;

· СС - insurance amount under the contract, rub.;

· Y - actual amount of damage, rub.;

· СО - valuation of the insurance object, rub.

Example. The cost of the insurance object is 10 million rubles, the insured amount is 5 million rubles. The policyholder's loss as a result of damage to the object is 4 million rubles. The amount of insurance compensation will be: 5*4/10 = 2 million rubles.

With insurance under the proportional liability system, the policyholder's participation in compensation for damage is manifested, i.e., the policyholder assumes part of the risk. The greater the indemnity at the risk of the insured, the lower the degree of insurance compensation. In other words, partial interest is insured here.

3. First risk insurance provides for the payment of insurance compensation in the amount of damage, but within the limits of the insured amount. According to this system, all damage within the insured amount (first risk) is fully compensated.

Damage in excess of the insured amount (second risk) is not indemnified.

Example. The car is insured under the first risk system in the amount of 50 million rubles. The damage caused to the car as a result of the accident amounted to 30 million rubles. Insurance compensation is paid in the amount of 30 million rubles.

Franchise- this is the release of the insurer from compensation for losses not exceeding a certain amount. The franchise amount means the portion of the loss that is not subject to compensation by the insurer. Determined by the insurance contract.

The franchise can be set:

· in absolute or relative values ​​to the insured amount or assessment of the insurance object;

· as a percentage of the amount of damage.

There are two types of franchise:

· conditional;

· unconditional.

Under conditional franchise refers to the release of the insurer's liability for damage not exceeding the amount established by the deductible, and its full coverage if the amount of damage exceeds the deductible. The conditional deductible is entered into the insurance contract using the entry “free from x%”, where x is the percentage of the insured amount. If the damage exceeds the established deductible, the insurer is obliged to pay the insurance compensation in full, regardless of the reservation made.

Unconditional franchise means that this franchise applies unconditionally without any conditions. With an unconditional deductible, damage in all cases is compensated minus the established deductible.

An unconditional deductible is drawn up in the insurance contract with the following entry: “free from the first x%”, where x is the amount of interest, the amount of which is always deducted from the amount of insurance compensation, regardless of the amount of damage.

With an unconditional deductible, insurance compensation is equal to the amount of damage minus the amount of the unconditional deductible.

Insurance premium is an insurance payment that the policyholder pays to the insurer for the obligation he has assumed to make an insurance payment upon the occurrence of an insured event. The insurance premium under the contract is determined as the product of the insurance amount and the tariff rate.

Insurance premium is the price of an insurance service,

The insurance premium is established upon signing the insurance contract and remains unchanged during its validity period, unless otherwise specified by the terms of the insurance contract, the amount of the insurance premium must be sufficient to:

Cover expected claims during the insurance period;

Cover the costs of insurance companies for conducting the case;

Ensure profit margin.

The insurance premium consists of four elements:

Net NET premium (this is the financing of payments upon the occurrence of insured events and the formation of insurance reserves)

Risk premium

The burden of covering the insurance company's expenses (this is payment of the insurer's expenses, including)

Profit bonus

The cost of a certain base is calculated. In property insurance - the cost of insuring the property, in life insurance - the insured amount.

11.The essence of the proportional insurance system.

Insurance according to the proportional liability system is incomplete, partial insurance of the object. In this case, the amount of insurance compensation is reduced in proportion to the share of the insured amount in the actual value of the object:

where Q is insurance compensation; S - sum insured under the contract; T - actual amount of damage; W - market valuation of the insurance object.

Example. A car worth 6 thousand dollars is insured for 3 thousand dollars. The actual damage was 2 thousand dollars. Insurance compensation will be 50% of the amount of damage, i.e. 1 thousand dollars.

12.The essence of insurance “for the first risk”, “for the first insured event”.

Insurance according to the first risk system. In this case, insurance compensation is paid in the amount of damage, but within the limits of the insured amount. Damage in excess of the insured amount is not paid at all

All damage within the insured amount (1st risk) is fully compensated, and damage in excess of the insured amount (2nd risk) is not compensated at all.

Example. A car worth 6 thousand dollars is insured for the amount of 3 thousand dollars. The actual damage was 5 thousand dollars. The insurance indemnity will be. 5 thousand dollars

13.Functions of state supervision over insurance activities.

Supervision is expressed in the study of finance. position of the insurer and its solvency for accepted contractual obligations to policyholders State. regulation of the insurance market is carried out through a special tax policy, the adoption of laws for certain types of business activity that reflect the procedure for concluding insurance contracts and resolving emerging disputes. The state also establishes compulsory types of insurance, taking into account the interests of the entire society. The regulatory role of the state. insurance supervisory authority should provide for the performance of mainly three functions

1. Registration of those who carry out actions related to the conclusion of insurance contracts is the main function. During registration, the professional suitability of the insurer and its financial situation are determined. The registration act is formalized by issuing the appropriate permit or license.

2. Ensuring transparency. Everyone who is professionally engaged in the insurance business is obliged to publish a prospectus containing complete truthful and clear information about finance. position of the insurer.

3. Maintaining law and order in the industry. State body The insurance supervisor may initiate an investigation into violations of the law, take administrative action against those who act contrary to the interests of policyholders, or refer the case to court.

The first risk system is one of the options for an insurance contract. The insurer pays for damage in the first case in the amount of the agreed amount; the second and subsequent insured events or loss in excess of the established amount in the first case are not subject to compensation from the insurance company. The meaning of this mechanism is revealed by the Law of the Russian Federation No. 4015-1 of November 27, 1992, dedicated to the regulation of the insurance business in the Russian Federation. The policyholder enters into an insurance contract, stipulating the amount of probable damage. It can be up to 100% of the price of the property. Such insurance is convenient for both parties when the value of the insurance object is dynamic over time, for example, when the amount of warehouse inventory is insured. In this case, it is impossible to say exactly what volumes of goods may be in storage at the time of the incident. The policyholder determines the average value based on warehouse accounting data. When insuring property against theft or loss, the possibility of loss of important documents (financial or technical), the first risk system is also used.

An example of the first risk system

Citizen A. insured his country house against fire for the amount of 500,000 rubles under the first risk system. Moreover, the actual cost of construction is 700,000 rubles. After the fire, it was determined that part of the house had burned down; the damage amounted to 600,000 rubles. The insurance company will pay compensation in the amount of 500,000 rubles.

There are also advantages for the insurer in such a transaction. After payment of a known amount, the contract is considered fulfilled. According to generally accepted terminology, the first risk will be a loss, the amount of which is indicated when drawing up the contract. Damage in excess of this amount will be called second risk. Another advantage of concluding insurance contracts using this method is that it simplifies calculations and assesses the damage caused. A potential downside could be that the policyholder will receive compensation that is less than the actual costs incurred.