General insurance Limitation to the scope of Insurance

[Mataracy]

Even when an Insured is willing to insure and the insurer is willing to provide cover, there are certain factors that will preclude( prevent) the two parties from entering into a contract of insurance. These factors are otherwise referred to as limitations to insurance and they are discussed hereunder:

1: PECUNUARY VALUE : The loss or damage suffered by an insured and covered by insurers must be capable of being expressed in monetary term.

2. LEGALITY: Any loss or damage suffered must be legally acceptable. A man who suffered a loss through his own deliberate or fraudulent act cannot claim for his fraudulent act. Also a professional cannot insure against the consequences of his being disqualified from practicing his profession.

3: LACK OF KNOWLEDGE: Any risk for which outcome cannot be predicted cannot be insured e.g. loss of profit through market fluctuations in prices, alteration in cost of production etc. cannot be predicted accurately.

4. INHERENT VICE : It is not possible to insure property against loss or damage resulting from its own nature or inherent vice.

5. PUBLIC POLICY: A policy of insurance on a risk must not be against public policy. E.g . Insurance cover on the risk attached to prostitution is illegal because prostitution is against public policy.etc

 

[uforwealth]

That means the above thread suggests that everything can't be insured and got reimbursement on them.g
Things that can't be accurately predicted such as the flunctuating price of cryptocurrencies like Bitcoin.
The nature of the things insured - durable or perishable
The policyholder can't get compensated for illegal activities intentionally caused by him or her.

Thanks for the enlightment!

 

[Mandy96]

These limitations are quite important to know about for anyone who is willing or thinking of getting insured. We individuals make some mistakes about the insurance policy, we let the insurance companies sweet-mouth us and they tell us what we want to hear not actually telling us about the limitations attached to it.

 

[btaliat]

Thanks for this kind of information. In fact most people do think is just there as a savior anytime there is problems or loss. But the actual fact is that insurance is only there to make profit and also to make it legally. That's why they cannot insure for some things against the law.

 

[Wisdom01]

Yeah legality should not be written off ,the property you are insuring against must actually contain a legal notation , because the insurance company would do all they could to make sure that you are not insuring in a illegal way ,so they would actually ask you to bring all the necessary evidence as proof of ownership

 

[Chibson]

Truth is that not everything is predictable and therefore not everything can be assured. This is actually a very good enlightenment from you about insurance policies and companies. some natural disasters cannot really be predicted and therefore they cannot be included in an insurance policy because the business or the insurance company may run losses.

 

[Wisdom01]

Truth is that not everything is predictable and therefore not everything can be assured. This is actually a very good enlightenment from you about insurance policies and companies. some natural disasters cannot really be predicted and therefore they cannot be included in an insurance policy because the business or the insurance company may run losses.

Yeah it's true some insurance company hardly insure anything related to natural disasters ,they believe it's bound to occur ,so why are they still going to insure such thing ,even if they want to insure any property to a natural disasters the premiums to be paid would be really high I think

 

[sincerem]

Insurance companies doesn't like individuals who are fraudulent when it comes to seeking insurance policy plan. You must abide by the rules of insurance if you truly wants to earn future benefits around the insurance company you secured your property, well-being with. Even an insured doesn't like a fraudulent insurance company, that's to say, no one likes scam.

 

[Augusta]

Definitely, there are limitations to what can be insured like your last point trying to insurance prostitution I wonder how that can even be measure when it comes to loss and moreover it is legal in some countries. So this is why everyone should know about limitations before indulging in any.