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The Insurance Times
(v) The loss should be accidental from the viewpoint of
the insured.
The insurer may impose additional criteria for
administrative reasons, such that their loss should be
relatively infrequent and should have a large impact on
the insured. E.g, fire coverage on the buildings.
Q13. What are the benefits to society from
insurance?
Ans. There are many societal benefits from insurance.
Because insurance contracts tend to be standard,
there are fewer problems with interpretation by the
insured, the insurer, and the courts. The insured is
indemnified for the specified financial losses. This
reduces the insured's uncertainty of the costs of doing
business.
The combining of the exposures to financial loss
done by the insurer reduces the insurer's
uncertainty as to the charge for transfer. So, the
insurers have more funds to invest than the
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