by fatman » Mon May 01, 2006 06:58 am
Mutual Insurance is a form of insurance that enables the policy holders to become the shareholders of the company and get a fair share of its profits. The policy holders are supposed to deposit a certain amount into a fund which enables them to achieve indemnification in case of loss. Hence it could be defined as a process that also makes a good use of the insurance fund in the event of a surplus to purchase the shares of the company and then retires the shares. Thus the company is exclusively owned by its policyholders.
Posted: Fri May 05, 2006 05:25 am Post Subject:
Whatever little knowledge I have about this form of insurance truly depicts that the people who come under this form of insurance are mostly the cooperative groups those do not pay the profits to anyone else.
Posted: Fri May 05, 2006 05:42 am Post Subject: mutual insurance
In the professions like accountants, lawyers the Mutual Insurance is common. Also in the marine market, the claims are paid from a common fund which is build by the Ship owners. If there are no enough funds to reimburse the claims, an additional call can be made in that event. And the remaining surplus is paid back to the members.
The mutual insurance provides the protection against the third party liabilities to the ship owners. Ship owner mutuals are also known as Protection and Indemnity Clubs.
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