Page 84 - M1_Insurance Introduction Notes

 In case the loss arises from the happening of the

event cannot be valued in terms of money, such

risks are not insurable.

 Another important limitation is that the premium

rates are higher in our country & as such, certain

category of people cannot avail the advantage of

insurance. The main reason for the higher rate of

premiums is the higher operating cost.

 There are certain people who mystify the

insurance plans for their self-interest by claiming

false claims from insurance companies.

 It is prone to fraud as it is a contract of utmost

good faith.

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