Insurance and risk management - Essay Example

Blue Cross and Blue Shield Insurance Blue Cross and Blue Shield Insurance Introduction America has witnessed an increased growth in the insurance industry in the last couple of years. This is because many people have seen the need to take security for their lives, properties among others. Among the insurance, companies that provide insurance cover to American citizens are the Blue Cross and the Blue Shield insurance. Despite the fact that both the companies specialize in the provision of insurance cover, some differences exist.

The objective of this paper is to explore the differences between these insurance companies. It will also discuss the similarities and differences that exist between Blue Cross insurance and other kinds of insurance. Blue Cross and Blue Shield insurance companies differ in a number of ways, among them being the services that they offer. For instance, Blue Cross insurance specializes in the provision of medical and travel insurance. As a result of the rising cost of hospitalization and medical treatments, Blue Cross insurance, ensures that these uncertainties are covered to safeguarded American citizens.

The Blue Cross travel insurance plan takes care of any medical emergency costs to ensure that people do not worry while travelling (Blue Cross Insurance Inc., 2012).. Blue Shield, on the other hand, specializes in the provision of insurance cover for buildings, equipments found both in and outside the building, coverage for company vehicle for staff, company stock as well as commercial liability. These forms of insurance cover are not provided by blue Cross insurance. Ways in Which Blue Cross Insurance is Similar to Other Insurance CompaniesBasically, Blue Cross Insurance is similar to other types of insurance with regard to the type of contracts.

Firstly, just like any other form of insurance, it offers personal contracts (Blue Cross Insurance Inc., 2012). In this regard, it insures person or persons, instead of the property of these persons. This is evident from the travel insurance and its medical covers. Secondly, Blue Cross contracts are unilateral just like other types of insurance. This is evident as it makes an agreement with the insured who is expected to pay some premium, thus forcing it to perform its side of the bargain by indemnifying the insured in case of any lose suffered such those than happen in the course of a journey.

Thirdly, it is evident that the contracts provided by Blue cross are conditional just like those of other insurance. This is because, before an individual enters into a contract with Blue Cross, first the insured is required to fulfill certain terms and conditions which the insured must perform in the event of a loss. Failure by the insured to meet these terms excuses Blue Cross insurance from performing under the contract terms (Feldstein, 2011).The fourth similarity is seen with respect to almost good faith principle.

In this case, Blue Cross insurance just like other insurance contracts ensures that it complies and does perform its responsibility with utmost good faith. This has made it build its reputation as one other the best insurance provider in the US. Finally, Blue Cross also observes the indemnity principle especially as regards the travel insurance cover. In this case, in case an insured suffer any loss, Blue Cross comes in and indemnifies for the loss. This principle is also applied in other kinds of insurance contracts (Feldstein, 2011).

What Makes Blue Cross Different From Other Kinds of Insurance?Blue Cross insurance differs from other insurance providers from its Blue Cross Traditional health insurance plan that is available to groups and individuals. Here, the coverage includes surgical, hospital and medical care (Moisio 2010). Moision notes that according to this plan, subscribers are not required to have personal care physician, and may obtain specialist services by referral. A personal care physician is only responsible for the entire management of a person’s medical care.

This makes Blue Cross unique and different from other insurance providers.ReferencesBlue Cross Insurance Inc. (2012). Blue Cross Insurance Inc. Retrieved from:http://www.bluecross.com.ph/Feldstein, P.J. (2011). Health Care Economics. New York: Cengage Learning.Moisio, M.A. (2010). A guide to Health Insurance Billing. New York: Cengage Learning