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The Insurance Times

Hypertension (h)Influenza, Cough and Cold (i) all
Psychiatric or Psychosomatic disorders (j) Pyrexia
of unknown origin for less than 10 days (k)
Tonsillitis and upper Respiratory Tract Infection
including Laryngitis and Pharyngitis (l) Arthritis,
Gout and Rheumatism.

Q7.a) Why Re-insurance is considered a very
important activity of an Insurance Company?

Ans. Re-insurance is considered a very important activity of
an Insurance Company as it serves to underwrite the
risk liability of an insurer more or less in the same way
as insurance, to indemnify the insured with respect to
his interest.

The basic underlying principle is one of spreading
risk. Re-insurance fulfills this purpose by allowing
the insurer to restrict the size of his commitment so
as to limit his maximum loss on the risk to an amount
which he can pay without disturbing his finances.

The maximum amount of risk which an insurer keeps

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