Page 7 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

a. Static Risk: Which are connected with losses caused by the irregular action of

the forces of the nature or the mistakes and misdeeds of human beings.

b. Dynamic Risk: Which are associated with changes in human wants and

improvements in Machinery or Technological innovations.

E. Fundamental or Particular Risk

a. Fundamental Risk: Risks associated with groups, impersonal in original and

effect. These fundamental risks are in the form of Political or Economic

changes happening to a group.

b. Particular Risk: Which are associated with individuals.

Categories of Risks

A. Pure and Speculative Risk

Pure risks are events the occurrence of which result in either loss to the individual

or organization concerned.

Examples of pure risks include

Chemical : Fire, Explosion

Natural : Cyclone, Flood, Earthquake

Social : Riot, Strike, Theft, Fraud, Negligence

Technical : Machinery Breakdown

Personal : Death, Disablement, Sickness, theft, fraud

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