insurance risk | Insurance Software development

Understanding Perils and Hazards in Insurance

Author - Webner
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2:07 pm
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In Life insurance the risk is that person may die before the insurance policy matures. In Car insurance the risk is that car may get damaged during the tenure of the policy. How can the person die? Person may die of fever, heart attack in an accident or by falling off a building for example. How can a car get damaged? A Car’s part may become faulty or it may crash for example. These possible causes of the occurrence of the loss or risk are called as Perils. So Perils are the causes that can result in materialization of […]

Understanding Speculative and Pure Risk in Insurance

Author - Webner
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2:49 pm
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Insurance is to cover the financial risk but what type of risk can be insured? Can risk in gambling be insured or a startup business or a stock investment? No because risk in such endeavours is with the intention to make gains. What if the gain is not made, should the insurance company reimburse in such a case? No, hence such risks cannot be insured. These are known as speculative risks in insurance terminology. What about risks that can be covered? Like a vehicle can be insurance, a person’s life can be insured and a building can be insured […]

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