Introduction to Insurance for Immeasurable - myassignmenthelp.com

Question: Write about theIntroduction to Insurance for Uncertain and Immeasurable. Answer: A risk that imitates to the regulatory norms and disclaimers cited under the insurance policy in such a manner that the conditional aspects of insurance are fully satisfied is known as insurable risk (Weimer Vining, 2017). A risk is not said to be insurable in case if it is very large, uncertain, immeasurable, or not definable. Transaction Existence of insurable risk Justification Rusting of an unprotected iron structure Yes It can be estimated by considering standard aspects of that industry Genetic defect affects 9 to 10 new-born males in a family No No, because it is not definable Developing a cancer No No, because it is uncertain Eventual obsolescence of a personal computer Yes It can be measured as insurers provide general protection to assets of the business. Losing money at casino No No, because it is uncertain and it is not definable. The significant benefits that insurance provides to the society are as follows: Repayment of damages or losses Less burden on economy Investment opportunities Fewer concern and panic against future securities Insurance helps in providing security against jeopardy or uncertainty Major benefits of insurance to an individual: It allows the insurer to focus on work without the fear of failure It promote habits of savings on regular basis, subjected to life insurance Insurance policy can also be mortgaged and further finance can be raised anytime (Borch, Sandmo, Aase, 2014). Insurance policy, particularly plans for pension offer income security during retirement The insurer gets benefits from tax from the amount paid on premium Insurance of products might be sometime a compulsory requirement in certain circumstances A physical hazard is a factor in the environment that harms or damages the body without even touching (Blaikie and et al., 2014). Physical hazards are inclusive of but are not restricted to noise, radiation, electricity, heights and pressure amongst many others. At the time of inspection of fast food restaurant following eight examples of physical hazards will be considered to provide viable judgment: Risks of electricity Noise Temperature Dangerous physical tasks Risk on travelling Excavation Work Forklift Safety Risks on operations Overhead electric lines The reciprocal insurance exchange is a form issued by the entities of insurance in which individuals and firms replace insurance agreements (Baker Logue, 2017). Insurance policyholders of this contract extend risks related to these contracts among themselves. Further they are named as subscribers. The term "reciprocal" in this point out a conjoint correspondence or a return as in this associations agrees to share risk mutually amongst its members as they provide consent to pool risk by conceding a reciprocal arrangement of indemnity (Weimer Vining, 2017). Yes, this insurance policy is beneficial for business. Thus, my response is positive as it will provide flexibility to the policyholder by considering their needs and expectations. Further; this exchange will be owned as well as controlled by the member through which desired structuring of policies can be done. In addition to this; commitment regarding reciprocal exchanges will motivate for efficient operation and will keep expenses and fees as minimum as possible. References Weimer, D. L., Vining, A. R. (2017).Policy analysis: Concepts and practice. Taylor Francis. Borch, K. H., Sandmo, A., Aase, K. K. (2014).Economics of insurance(Vol. 29). Elsevier. Blaikie, P., Cannon, T., Davis, I. and Wisner, B., 2014.At risk: natural hazards, people's vulnerability and disasters. Routledge. Baker, T., Logue, K. D. (2017).Insurance law and policy: cases and materials. Wolters Kluwer Law Business.