Page 17 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

The concept of insurance pools several people who face the same situation and

risk.

Insurance brings together a community of people exposed to similar kind of risk

and promises to pay the loss suffered by any of the individual members in the

community from that risk.

In life insurance the asset in question is the person himself because he earns for

himself and his family

A human life is an income generating asset. This asset can be destroyed by a

death or illness.

In case of a human being the earning stops on his retirement.

Living too long can be as much a problem as dying too young

Insurance does not protect the asset

Insurance cannot prevent the loss due to the peril

Insurance can only try to reduce the impact of the risk on the owner of the asset

and those who depend on that asset

Only economic or financial losses can be compensated

Insurance covers both tangible and intangible assets

Intangible risks are insurable

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