INSURANCE: Types of Insurable Risks


Not all risks can be insured.

Insurable risk must meet the following characteristics:

Losses are definitive (definitive)

such as: death, sickness, disability, and old age, including identifiable conditions, such as destroyed buildings, submerged ships, fallen planes, and others

Losses occur due to accidental factors

such as: suffering from late stage critical illness, accident, or natural disaster

Loss are convincing

such as: someone who can no longer work because of a work accident, the machine does not work anymore because it is severely damaged

Objects insured can be assessed and converted to the value of money

The risk should be natural

occurred by accident and not planned beforehand

The risks that occur do not violate the public interest

Insurance premiums charged are fair

The insurer must have an insurable interest


Also Read:

INSURANCE: Basic Principles of Insurance

INSURANCE: Planning an Insurance Program

INSURANCE: Insurance Functions and Purposes

INSURANCE: What is Insurance?

INSURANCE: Term In Insurance

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