Kinds of Insurable Risks


Insurable risk must meet the following characteristics:


Losses are definitive (definitive)

including: death, sickness, disability, and old age, including identifiable conditions, such as destroyed buildings, submerged ships, fallen planes, and others


Losses occur due to accidental factors

including: suffering from late stage critical illness, accident, or natural disaster


Loss are convincing

including: someone who can no longer work because of a work accident, the machine does not work anymore because it is severely damaged


Objects insured can be assessed and converted to the value of money


The risk should be natural

occurred by accident and not planned beforehand


The risks that occur do not violate the public interest


Insurance premiums charged are fair


The insurer must have an insurable interest

Also read:

Insurance Principles

Purpose and Function of Insurance

How to Plan to Participate an Insurance Program

Glossary of insurance terms

What is meant by Insurance


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