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:
Purpose and Function of Insurance
How to Plan to Participate an Insurance Program