Page 23 - M1_Insurance Introduction Notes
P. 23
Hazards
The condition or conditions which increase the
probability of a loss or its severity, and thus influence
the risk is known as Hazard. When insurers make an
assessment of the risk, it is generally with reference to
the hazards to which the asset is subject.
Examples of link between risk, peril and hazards
RISK PERIL HAZARD
Loss due to death Cancer Excessive
Smoking
Loss or damage Fire in premises Pre Explosive
to factory material left
property unattended
Damage to car Car accident Careless driving
by driver
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