Page 21 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

The risks which have a major impact on the assets are known as important risk

and the risks which have a temporary impact are known as unimportant risk

Financial risk refers to a loss which is measurable in terms of money.

Non-financial risks are generally not insurable. However in certain cases like

award by court for harassment, mental agony are the examples of non-financial

risks which are paid in insurance

The risks which have an affect on the whole nation or a state is known as a

dynamic risk. Examples inflation, changes in political scenario, changes in

technology

Static risks on the contrary affects only a particular individual or a company. Like

a theft, fire, damage through accident

The fundamental risks are those which affect a large number of populations. Eg. A

train accident is a fundamental risk

Particular risk affects only some specific persons eg. death of an individual is a

particular risk

In pure risk there is only chances of loss and no gains

In a speculative risk there are chances of both losses and gains.

Insurance covers only pure risk and speculative risks are excluded

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