Table of Contents

Contents Pages
1. Introduction..........................................................................................................................1
2. Definition and some terms used..........................................................................................2
2.1 Insurer....................................................................................................................................2
2.2 Insured....................................................................................................................................2
2.3Award......................................................................................................................................2
2.4 Policy.....................................................................................................................................2
2.5 Beneficiary.............................................................................................................................3
2.6 Franchise................................................................................................................................3
3.What is insurance for..............................................................................................................4
4.Characteristics of an insurance...............................................................................................4
5.Types of insurance..................................................................................................................5
5.1 Car insurance..........................................................................................................................5
5.2 Home Insurance.....................................................................................................................6
5.4Healtth Insurance....................................................................................................................6
6. Importance of Insurance........................................................................................................7
7. Insurance institutions in Mozambique...................................................................................8
8. Conclusion.............................................................................................................................9
9. Bibliography........................................................................................................................10

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 1. Introduction
In this present work, I will talk about insurance, some terms used by people or entities that are in
the insurance business such as the meaning of insurer, insured, premium, policy, beneficiary and
deductible, what is the insurance for, or in other words, we will talk about its usefulness in
people's lives, about the types of insurance and what each type comprises, and can also be
divided into individual and group insurance, the objective of each type, and some insurers
institutions in Mozambique, as well as the importance of insurance, another important aspect
that will be addressed is about the characteristics of the insurance, explaining words such as
random, onerous, bilateral consensual contract, adhesion.

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 2. Definition and some terms used
According Jaqueline Crestani Insurance “is a contract between a person, or company, and an
insurer, who agree to assume certain risks, for a defined period, in exchange for an amount paid
in cash”

2.1 Insurer

“The insurer or insurance company is the party that assumes the risks provided for in the
contract, upon receipt of the premium. To act as such and provide services in the segment, the
organization must have authorization from Susep.”( Jaqueline Crestani, Seguro de Carga)

2.2 Insured
“It is the beneficiary of the policy, that is, the individual or legal entity that has its insurable
interest and that, in most cases, contracts the insurance” it is also the person or company whose
interests are guaranteed by the insurance policy.( Jaqueline Crestani)

2.3Award
“Premium is the amount you pay for insurance is based on your risk assessment. Low risks have
low premiums and high risks have high premiums. Insurers collect information about those
interested in taking out insurance and statistically analyze the risk involved in each case, to arrive
at the premium value.”( Jaqueline Crestani)

The law requires both the insured and the insurer to use the principle of good faith. “This means
that the insured must provide truthful statements to the insurance company, so that it can trace a
correct risk profile before setting the indemnity and premium amount.” The terms of the contract
must also be clear and precise, indicating the conditions, restrictions and exclusions to the
insured.

2.4 Policy
“Document issued by the insurer, which establishes the rights and obligations of the insurer and
the insured, detailing the guarantees contracted.”( Seguro de carga, Jaqueline Crestani)

The text must contain:

 Clear identification of the insurer, the insured and the beneficiaries

 Description of the covered goods
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  The exclusions
 The value of insurance
 The conditions and value of the prize
 The general and specific conditions of the contract
 The responsibilities of the insured and the insurer
 Procedures in the event of a claim

2.5 Beneficiary
“It is the individual or legal entity to whom compensation is paid in the event of an accident”.

(Jaqueline Crestani, 2022) In some cases, the beneficiary is the stipulator, or even:

 Determined: when indicated by name on the policy

 Uncertain or indeterminate: if unknown at contracting. This is the case for beneficiaries
of current insurance or civil liability insurance.

2.6 Franchise
“The deductible is a joint participation of the insured and the insurer in the risk and value of the
indemnity. The higher the deductible, the lower the premium and vice versa”. Not all insurance
has a deductible. When it exists, it can be:

 Deductible: “the insurer indemnifies only the value of the loss that exceeds the
deductible”. For example, in an insurance with indemnity of 10 thousand and a
deductible of 2 thousand, in the event of a claim the insured will pay 2 thousand,
referring to the deductible, and the insurer, 8 thousand
 Simple: “the insurer is not obliged to pay amounts below the deductible, but if the
damage exceeds this total, the insurer pays the full amount of the loss”. (Jaqueline
Crestani) For example, in an insurance with an indemnity of 10 thousand and a
deductible of 2 thousand, in the event of a claim, if the value of the loss is up to 2
thousand, the insured pays. If the value is above 2 thousand, the insurance company pays
the total amount of the loss, and the insured does not pay anything

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 3. What is insurance for?
This contract is a very valuable tool, both for companies and for individuals, with regard to
protection against losses that may occur due, for example, to incidents. In this way, insurances
prevent or reduce losses in unforeseen situations and offer greater peace of mind for
policyholders.

In addition, these contracts can be signed to protect material goods and/or property, as in the case
of automotive or residential to protect people, such as life or personal accident insurance.

In addition, it is worth considering that “some types of insurance are mandatory by law and its
contracting guarantees compliance with the legislation.”(Carlos Roberto, Direito das obrigações)

4. Characteristics of an insurance
According Silvio Santos “the insurance is a random, onerous, bilateral, consensual contract, with
or without adhesion; the unilateral termination cannot yet occur;”

-“They are random, due to the risk element as it will always depend on an eventual fact.

- They are onerous, since, generally, each party seeks a patrimonial advantage, the insurer with
the amount to be paid by the insured, and the insured with the guarantee that their property will
be protected.

- They are bilateral as they require the expression of will from both parties, which are
reciprocally obligated.

- They are consensual, as they only require the consent of the parties, and no other solemnity is
necessary.

- If the contract is not binding, the contract rules must not be interpreted either by analogy or by
extension. In the case of an adhesion contract (it is that contract proposed by the insurance
company, with clauses that cannot be discussed, it being sufficient for the contracting
party/eventual insured to accept it or not), the rules must be interpreted in favor of the insured in
cases of doubt, due to the position of the insured in the relationship (it is lower, since the insurer
imposes those clauses)” ( Silvio Santos, Direito Civil, Volume III, Sexta edição)

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 5. Types of insurance
Insurance can cover risks relating to things, intangible assets, claims and other property rights
(damage insurance) or risks relating to a person's life, health and physical integrity (personal
insurance). Insurance can be individual or group.

 Individual insurance covers risks relating to a single person, a household or a group of

people living in a common economy.
 Group insurance is a contract whereby the insurer covers the risks of a group of people
linked to the policyholder by a relationship other than the insurance (for example, health
insurance for all employees of a company).

Group insurance can be contributory or non-contributory.

They will be contributory if the policyholders pay part or all of the premium and non-
contributory if the premium is fully borne by the policyholder (e.g. health insurance offered to
workers, who are the policyholders, by the company they work for, who is the policyholder).

There are several types of insurance, and we can highlight the following:

 Car insurance
 Home insurance
 Health insurance

5.1 Car insurance

The owner or driver of a vehicle is responsible for the damage it may cause and in the event of
an accident they may have to pay high compensation. To protect the interests of injured parties,
who are entitled to have their losses paid, regardless of whether the person responsible for the
accident has the financial means to do so or not, civil liability insurance for motor land vehicles
and their trailers is mandatory. A vehicle for which civil liability insurance has not been taken
out is in an illegal situation. By law, the vehicle can be impounded and its owner may have to
pay a fine. In the event of an accident, the driver or owner of the vehicle may be held responsible
for paying the damages due to the injured parties, Compulsory insurance ensures the payment of

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compensation for bodily and material damage caused to third parties and to the persons
transported, with the exception of the driver of the vehicle.

If the vehicle is sold, the insurance does not transfer to the new owner. The insurance ends at
midnight on the day of sale, so the new owner has to take out his own insurance. The
policyholder must immediately inform his insurer about the sale of the vehicle, being able to
choose between: ask the insurer to return the part of the premium corresponding to the time that
was still left for the contract to end, or keep the insurance and use it to insure another vehicle,
which will replace the vehicle sold. The replacement must be made within 120 days.

5.2 Home insurance

The owner of a floor is obliged to take out insurance that covers the risk of fire, in its fraction
and in the common parts of the building.

Fire insurance, which covers the risk of damage caused to the property by fire, is mandatory for
buildings under horizontal ownership. It must cover each autonomous fraction and the common
parts of the building (roof, stairs, elevators, garage, etc.). The insurance must be carried out by
the owners of each fraction (owners). If they do not do so within the deadline and for the amount
decided at the joint owners' meeting, the condominium administrator must do so, and will then
be reimbursed by the joint owners. Compulsory insurance covers damage directly caused by fire
in the autonomous fractions and common parts of buildings on horizontal property.

Damage directly caused to the insured property by: heat, smoke, steam or explosion resulting
from the fire; the means used to fight the fire; removals or destruction carried out by order of the
competent authority (firefighters, police, etc.) or for the purpose of rescue. Unless the contract
states otherwise, damage caused by lightning, explosion or other similar accident is still covered,
even if it is not accompanied by fire.

5.3 Health insurance

Choosing to take out health insurance can help cover expenses that may be necessary in the event
of an accident or illness.

Health insurance covers risks related to the provision of health care, in accordance with the
coverage provided for in the conditions of the contract, with the limits established therein.

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Guarantees can work by reimbursing the policyholder for healthcare expenses, paying directly to
healthcare providers, or a combination of the two. Payments for health insurance can be made
through a reimbursement system or a direct payment system to service providers who have an
agreement with the insurer in a reimbursement system, expenses are paid by the insured person
and then reimbursed by the insurer.

6. Importance of Insurance
There are risks that have serious consequences and a major economic impact on the lives of
citizens. An early death can seriously affect family resources, leading to reduced income. On the
other hand, greater longevity can result in increased costs for the elderly and their families.
These are risks that can be shared or transferred to an insurer through life insurance.

Thus, life insurance appears as a way to prevent, at an economic level, the consequences of death
or survival at a certain age.

Understanding the importance of having insurance is not complex. It is necessary to consider that
people and companies, in most cases, struggle for years to build their patrimony, acquire assets
(such as fleets, buildings in the case of companies or their own home) and structure their
financial life. Therefore, taking the risk of seeing all this effort being lost due to an unexpected
event, for example, does not match an ideal of a peaceful life. In this sense, "insurance is nothing
more than this protection, which brings peace of mind. Regardless of any eventuality from fire to
theft, any type of accident, the client is sure that his assets are protected, his family will have
financial support or that your business is free from major losses. They could make activities
unfeasible overnight, depending on the situation", he adds.

Insurance also demonstrates its importance in business segments where contracting this type of
protection service is a legal requirement. In other words, the law obliges companies to take out
insurance so that they can act. This occurs, for example, with cargo transport, passenger transport
and in certain financial operations. Thus, in general, the importance of insurance is manifested
differently, depending on the client's profile.

Insurance has a social and economic importance. Insurance is a source of balance and tranquility.
Contributing to eliminate the anxiety arising from insecurity in the face of the uncertainties of

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 the future. This reduces the risk of property losses to which one is subject. To be insured is to be
protected,

7. Insurance institutions in Mozambique

Some insurance institutions in Mozambique are:

 ASCA. Associação de Crédito e Poupança.

 BdM. Banco de Moçambique.
 BIM. Banco Internacional de Moçambique.
 GIZ. Deutsche Gesellschaft für Internationale Zusammenarbeit.
 IAIS. Associação Internacional dos Supervisores de Seguros.
 INSS. Instituto Nacional de Segurança Social.
 ISSM. Instituto de Supervisão de Seguros de Moçambique.
 IMF.

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 8. Conclusion
In this present work, it can be concluded that insurance is very important for our life, since it
helps us to have a more peaceful with the certainty that in the event of an accident we will not
lose our assets in full, and that for example if we have health insurance, all hospital expenses will
be paid by insurance, thus giving us the hope of surviving, in this way we can see that insurance
only brings benefits to us, and can be framed in any aspect of our life, thus allowing to have an
insured life.

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 9. Bibliography
 O que são seguros?

https://banco.bradesco/html/classic/novo-educacao-financeira/seguros/
template_ComoFuncionamSeguros.shtm

https://www.mutuus.net/blog/seguros-o-que-sao-quais-tipos/

https://www.direitonet.com.br/resumos/exibir/95/Seguro-I

 Tipos de seguros

https://www.todoscontam.pt/tipos-de-seguro-0

 Importância de seguros

https://modesttipittolseguros.com.br/blog/183/saiba-a-importancia-de-ter-um-seguro-e-por-que-
ele-e-um-servico-de-protecao-indispensavel
https://investidor.pt/importancia-dos-seguros/

 Principais instituições de seguro em Moçambique

https://cenfri.org/wp-content/uploads/Access-to-Insurance-in-Mozambique_Summary-
Guide_Port-version-final.pdf

 VENOSA, Sílvio de Salvo. Direito Civil - Contratos em Espécie. Volume III, Sexta
Edição. Editora Jurídico Atlas, 2006.
 GONÇALVES, Carlos Roberto. Direito das Obrigações - Parte Especial (contratos).
Coleção Sinopses Jurídicas. Volume 6, Tomo I, 8° Edição. Editora Saraiva 2007.

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