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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INSURANCE: Insurance Functions and Purposes

  An accident or misfortune can happen at any time. Therefore it is good we consider to follow the insurance program, or in everyday language is said: enter insurance. It is intended to minimize or reduce the risk arising from the accident. With insurance we can transfer the risk to the insurance. In other words […]

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INSURANCE: Planning an Insurance Program

  To follow an insurance program you should plan to get maximum results. Among other things we need: Setting Insurance Objectives. In managing risk, there are things that are underlying, such as the possibility of damage or loss of property you have. Your decision to buy a new car should be balanced by protecting against […]

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