General insurance Insurable and non-insurable risks.

[btaliat]

I have read through most posts centered on insurance on this forum. And it is not a gainsaying that they have covered most of the policies insurance can cover.


However, we need to know that there are some things that insurance can not cover. The reason why most of these things can not be insured is that they are not measurable or easily forecast.


The insurer will not want to waste his money since he knows that the likelihood of that incident happening is not certain. Examples of those things that can not be insured include : gambling, risks that's due to war, launching of new products., the poor location of a business.


Insurable risks are types of risks which the insurer can make provision for because it is possible that these incidents may happen because they can be calculated or even measured. Examples of this risk are motor, life and even marine.

 

[Mika]

Sometimes insurance companies find loopholes and do not provide the coverage. A long time ago, when the county was going into an insurgency, the insurance companies stopped providing coverage for the damages caused due to the act of terrorism. However, this clause was not included in the terms and conditions of the company.

 

[Setho]

This is actually one of the reasons why it is always advise that you should go in and read very well about the insurance contract before you sign. Insurable risk are actually what the company is willing to cover whenever an event happens and it is normally stated clearly in the insurance contract. The non insurable is the one that the company in the kids that they are not going to cover even if it happens.

 

[Mandy96]

You actually have a valid point in your post but I believe this is why the insurer or the insurance companies have something called insurance policy. In this policy there is definitely limits to which the insurance policy the insured is subscribing to. And I think there is limit to every insurance policy.

 

[Jamoflondon]

I never even knew that there are non insurable risks. Well I should have known better the moment I learnt that there is something called insurance policy and under every insurance policy, there are terms and conditions made for each of them. I really like your explanation on this particular issue

 

[Alexandoy]

I think a race horse jockey cannot be insured because of the risks that he is into with his career. My wife has 3 brothers who were jockeys and that's what she said to me. But that was a long time ago and probably now they are accepting anything to be insured as long as they have an actuarial studies on the subject.

 

[Nite]

Non-insurable risks are considered too high a risk for the insurance companies to assume the financial liability. There is a potential for a massive loss which would overwhelm the insurer’s ability to pay claims. So, the insurance companies decline to offer the coverage as these type of risks are not profitable to them.

 

[Wisdom01]

Yeah the insurance company dosent also want to end up in so much loss , so they would actually make sure they insure the risk that are worth it , and not risks that are not worth to be insured , gambling is part of it and any other hyip investment they won't insure it