Mastergp
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According to some reachers the view that insurable risks must meet the following conditions before it can be covered they include the following:
Large group:
This implies that for a risk to be covered , it mist be predicted that large number of people must have the likelihood of suffering from such peril. Hence, the of large number must prevail because the premium paid by other will be used to indemnify others if the risk covered occurred.
Definite loss:
There must be a real value for the loss if it occurs. Hence for risk to insurable, the value of such risk should be determinable though this may not be easy. The easier it is to determine the value of the risk, the earlier it is to settle claims without fracas.
Large loss:
The loss to be covered must be sizeable in nature and should be such that firm can like by. It has been said that business tend to self insure against minor risks. They buy risks that could threaten their survival and for the fact That many of such losses are covered, firms are able to cope if any one occur. Hence, losses covered take care of any one occurring. Insuring small losses are uneconomical because of the high cost associated with writing and administering insurance policies.
Large group:
This implies that for a risk to be covered , it mist be predicted that large number of people must have the likelihood of suffering from such peril. Hence, the of large number must prevail because the premium paid by other will be used to indemnify others if the risk covered occurred.
Definite loss:
There must be a real value for the loss if it occurs. Hence for risk to insurable, the value of such risk should be determinable though this may not be easy. The easier it is to determine the value of the risk, the earlier it is to settle claims without fracas.
Large loss:
The loss to be covered must be sizeable in nature and should be such that firm can like by. It has been said that business tend to self insure against minor risks. They buy risks that could threaten their survival and for the fact That many of such losses are covered, firms are able to cope if any one occur. Hence, losses covered take care of any one occurring. Insuring small losses are uneconomical because of the high cost associated with writing and administering insurance policies.
