Insurance is not important during corona? ~ Insurance Academy

Corona makes every country think about revising its economic growth targets. Finance Minister Sri Mulyani predicts Indonesia’s economic growth this year will only be 2.3 percent, far below the pre-coronavirus prediction of 5 percent.

The correction of the economic target is in line with the decline in the supply chain of raw materials and demand for finished goods in the manufacturing industry. The home industry was also disrupted. The restaurant only serves take away. Coffee shop closed. Even Indomaret, Alfamart, and the like limit their operating hours.

Under these circumstances, is insurance still necessary? To answer this question, we need to know what insurance is. According to the KUHD, insurance or coverage is an agreement in which an insurer binds himself to an insured, by receiving a premium, to compensate him for a loss, damage or loss of expected profit, which he may suffer due to an unspecified event.

With very small premiums, insurance protects assets worth thousands of times the premium you pay.

So, does this corona reduce the risk of our assets? Of course, the risk never goes away. Because there are fewer visitors, for example, it doesn’t mean that hotels or shopping centers are no longer at risk or that your car and motorbike are free from danger. The risk of flooding and earthquakes remains. In fact, the risk of violent theft may increase.

Indeed there are some risks that are much reduced. Gadget insurance may reduce the potential for claims because it is always used at home. The same goes for your car and motorcycle. Because it is rarely used, the risk of accidents is reduced.

So, does insurance become unimportant during Corona? Please comment in the comments column and we can discuss further.

aan // image from Finance.Detik.com