Page 29 - CommerceMagazine_Sat_Vanijya

INSURABILITY

Risk which can be insured by private companies

typically shares seven common characteristics.

1. Large number of similar exposure units
2. Definite loss

3. Accidental loss

4. Large loss

5. Affordable premium

6. Calculable loss

7. Limited risk of catastrophically large losses

EXCLUSION

 Policies typically include a number of exclusions, including

typically:

 Nuclear exclusion clause, excluding damage caused by

nuclear and radiation accidents.

 Klar exclusion clause, excluding damage from acts of war

or terrorism.