Page 119 - RISK Management IC86 Ebook
P. 119
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Permanent loss of an individual
Under the situation, most of the previous questions may be relevant
with additional investigation on the following:
a) Does it require to make major changes in the operating
procedures? If so, what will be the additional costs?
b) Does it call for abandoning any special projects for which
the individual only possessed the necessary knowledge
and expertise? What are the cost implications?
Normal vs. Abnormal
A) Normal personnel losses - These are expected losses whose
frequency and severity are predictable for the organization as
a whole. Illness, injury, at times death are personnel exposures
which are inevitable. Only uncertainty being whom it will
strike. Financial effect of such eventualities are well within
predictable parameters.
B) Abnormal personnel losses - The losses can be termed
abnormal when they occur from random events, costs exceed
normal predictions.
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