Page 365 - IC38 GENERAL INSURANCE

Too many doors and windows constitute bad physical hazard.

e) Personal accident

i. The age of the person

Very old persons are accident prone; besides they will take longer to recover
in the event of an accident.
ii. Nature of occupation

Jockeys, mining engineers, manual workers are examples of bad physical
hazard.
iii. Health and physical condition

A person suffering from Diabetes may not respond to surgical treatment in
the event of accidental bodily injury.

f) Health insurance

i. Age of the person

Younger age bracket are less prone to falling ill frequently.

ii. Health status of the person i.e. if presently suffering from any illness

iii. Consumption of alcohol or tobacco

iv. Nature of occupation

Working in factories where there is an excessive exposure to smoke or dust.

3. Addressing physical hazards in rating

Underwriters use the following methods to deal with physical hazards:

 Loading of premium
 Applying warranties on the policy
 Applying certain clauses
 Imposition of excess/ deductibles
 Restricting the cover granted
 Declinature of cover
a) Loading of premium

There may be some adverse features in a risk exposure for which the
underwriters may decide to charge an extra premium before acceptance of
the same.

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