V. Svyatukha, V.Shyryaeva

Donetsk University of Economics and Law, Ukraine

Development of life-insurance in Ukraine

       

 

Essential element of any successful economy is the effective system of insurance and social protection   of population. In countries with developed market economy insurance business protects all sides of economic and social life of society, and also represents an important mechanism for attracting investment resources into the economy.

The insurance companies in the modern world, takes the possibility of financing   measures to prevent or reduce the probability of insurance claims, softening insurance risk, damage reduction. Such programs have social character and assist the increase of living standard. Insurance stimulates STP, ensuring the protection of new knowledge-intensive production.

By law of Ukraine "On insurance", life-insurance is the type of the personal insurance, which ensures the insurer's obligation to carry out insurance payment under the contract of insurance in case of death of the insured and also, if it is provided in the contract of insurance, in case of reaching of the insured person to the insurance contract termination date and (or) achievement by the insured a certain contract age.

        Terms of life-insurance can also foresee the duty of insurer to carry out insurance payment as a result of accident that happened with the insured person, and (or) illness of the insured person. In case if at the offensive of insurance event regular successive lifelong insurance payments (insurance of lifelong pension) are foreseen, obligatory is a presence in the insurance contract  the risk of death of the insured person during a period between beginning of action of insurance contract  and first insurance payment from a number of lifelong insurance payments. In another cases,


covering the risk of death of the insured person is obligatory during all term of action of contract of life insurance.

The contract of life insurance  necessarily foresee the increase of size of amount covered and (or) size of insurance payments on sums (bonuses) that is determined by an insurer once a year on results the received investment profit from placing of facilities of backlogs of life-insurance instead of charges of insurer on conducting business in a size to 15 percents the received investment profit and obligatory contribution in mathematical backlogs of  investment profit part, that corresponds to the size of investment profit that is used for the calculation of insurance tariff by this insurance agreement  and in case of indexation of  amount covered size and (or) insurance payments size after the official index of inflation, contribution, in mathematical backlogs of investment profit part, that corresponds such indexations.

According to the economic calculations due to development of life-insurance it is possible to provide 60-70% of pension profit of citizens, in addition to the joint and funded pension in the three-level pension system of Ukraine.
          However, a dominant place in the pension system of Ukraine belongs to operating the current joint system, the sense of which is in that the money paid by ones, and got by others. And this is the main lack of this system.

           Thus, it is possible to do the next conclusions:
- the development of life-insurance will assist strengthening of insurance defence and social interests of citizens of Ukraine;
- creating conditions, according to the European and international requirements; also fair competition can stimulate the decline of insurance tariffs and upgrading of life-insurance.

Literature

1.     http://www.provassn.com/insurance.htm

2.     http://justukraine.org/ukraine/insurance-in-ukraine.asp

3.     http://www.encyclopedia.com/topic/Ukraine.aspx

4.     Article 2 of the Law of Ukraine "On Insurance"