Get premium membership and access questions with answers, video lessons as well as revision papers.

What are the features of insurable risks?

      

Give the features of insurable risks.

  

Answers


Maurice
(i) Indemnity: The insured would be compensated in such a way that he/ she is put back to the financial position he/she she was just before the risk insured took place.

(ii) Subrogation: Whatever remains after the insured has been compensated becomes the property of the insurer.

(iii) Utmost good faith: The person taking out insurance cover should disclose all the relevant information/ facts relating to the property or person insured.

(iv) Proximate cause: For the insured to be compensated there must be a very close relationship between the loss suffered and the risk insured against.

(v) Contribution: If the insured has taken policies with more than one insurance company covering the same risk, in the event of loss the insurers contribute proportionately to indemnify the insured.
maurice.mutuku answered the question on July 7, 2017 at 15:04


Next: What items are included when computing national income using the expenditure approach?
Previous: What are the features and characteristics of chain stores?

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions