Insurable and Non-Insurable Risks

When we talk of insurance, we are referring to risks in all forms. Hence, having for an insurance policy is just a way of sharing our risks with other people with similar risks. However, while some risks can be insured (i.e. insurable risks), some cannot be insured according to their nature (i.e. non-insurable risks).


Insurable Risks

Insurable risks are the type of risks in which the insurer makes provision for or insures against because it is possible to collect, calculate and estimate the likely future losses. Insurable risks have previous statistics which are used as a basis for estimating the premium. It holds out the prospect of loss but not gain. The risks can be forecast and measured e.g. motor insurance, marine insurance, life insurance etc.

This type of risk is the one in which the chance of occurrence can be deduced, from the available information on the frequency of similar past occurrence. Examples of what an insurable risk is as explained:

Example1: The probability (or chance) that a certain vehicle will be involved in an accident in year 2011 (out of the total vehicle insured that year 2011) can be determined from the number of vehicles that were involved in accidents in each of some previous years (out of the total vehicle insured those years).

Example2: The probability (or chance) that a man (or woman) of a certain age will die in the ensuring year can be estimated by the fraction of people of that age that died in each of some previous years.

Non-insurable Risks

Non-insurable risks are type of risks which the insurer is not ready to insure against simply because the likely future losses cannot be estimated and calculated. It holds the prospect of gain as well as loss. The risk cannot be forecast and measured.

Example1: The chance that the demand for a commodity will fall next year due to a change in consumers' taste will be difficult to estimate as previous statistics needed for it may not be available.

Example 2: The chance that a present production technique will become obsolete or out-of-date by next year as a result of technological advancement.

Other examples of non-insurable risks are:

1. Acts of God: All risks involving natural disasters referred to as acts of God such as

a. Earthquake

b. War

c. Flood

It should be noted that any building, property or life insured but lost during an occurrence of any act of God (listed above) cannot be compensated by an insurer. Also, this non-insurability is being extended to those in connection with radioactive contamination.

2. Gambling: You cannot insure your chances of losing a gambling game.

3. Loss of profit through competition: You cannot insure your chances of winning or losing in a competition.

4. Launching of new product: A manufacturer launching a new product cannot insure the chances of acceptability of the new product since it has not been market-tested.

5. Loss incurred as a result of bad/inefficient management: The ability to successfully manage an organization depends on many factors and the profit/loss depends on the judicious utilization of these factors, one of which is efficient management capability. The expected loss in an organization as a result of inefficiency cannot be insured.

6. Poor location of a business: A person situating a business in a poor location must know that the probability of its success is slim. Insuring such business is a sure way of duping an insurer.

7. Loss of profit as a result of fall in demand: The demand for any product varies with time and other factors. An insurer will never insure based on expected loss due to decrease in demand.

8. Speculation: This is the engagement in a venture offering the chance of considerable gain but the possibility of loss. A typical example is the action or practice of investing in stocks, property, etc., in the hope of profit from a rise or fall in market value but with the possibility of a loss. This cannot be insured because it is considered as a non-insurable risk.

9. Opening of a new shop/office: The opening of a new shop is considered a non-insurable risk. You don't know what to expect in the operation of the new shop; it is illogical for an insurer to accept in insuring a new shop for you.

10. Change in fashion: Fashion is a trend which cannot be predicted. Any expected change in fashion cannot be insured. A fashion house cannot be insured because the components of the fashion house may become outdated at any point in time.

11. Motoring offenses: You cannot obtain an insurance policy against expected fines for offenses committed while on wheels.

However, it should be noted that there is no clear distinction between insurable and non-insurable risks. Theoretically, an insurance company should be ready to insure anything if a sufficiently high premium would be paid. Nevertheless, the distinction is useful for practical purposes.

Article Source: http://EzineArticles.com/6188560
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How Do I Choose the Right Insurance For Me?

Insurance is no doubt, one of the biggest investments you make. It is important to take an insurance cover because it is the only form of security in our insecure lives. We need to make sure that our health, our lives and our valuables are well-covered against unforeseen risk. Make sure that you choose the right insurance company that takes care of your needs, and do not go by gimmicks that the insurance company may put forth.

Here is how you can zero in for the right insurance deal:


1. Check out insurance quotes online: If you go to an insurance company's website, you are sure to be lured by interesting features, benefits that the company may portray in bold fonts. However, there are certain disclaimers and conditions that may not be highlighted. For instance, some insurance companies may have a surrender value that you can get if you stop the insurance in a stipulated period of time. So, it is better to have an independent approach towards finding the best insurance for you by checking online insurance quotes, through an independent website

2. Find out the premium: Find out how much you need to pay premium for a particular insurance. For instance, term insurance in life insurance policy has the lowest premium while 'whole life insurance' has higher premiums to be paid. So factor in the premium that you have to pay, and the manner in which you have to pay: monthly, quarterly, half yearly or yearly

3. Find out benefits associated with insurance: Find out if the life insurance or health insurance that you take covers aspects like traveling as well. If it does, you do not need to take a separate travel insurance

4. Find out the claims procedure: Find out exactly how the claims process takes place. You may do well speaking to people who have had their claims honored to know if the process of getting the money was simple enough. The insurance company should also have a safe redressal system so that all your grievances can be answered easily. Though national insurance policies give you the assurance that your money is safe, there is a question of redtapism, in certain cases

5. Use online calculators: Make use of online calculators to find out how much you money you stand to receive in case the term period expires. Do not go by the astronomical figures that insurance companies may give. Use the online calculator given on the website to make your own deductions.

6. Do not say yes to the insurance agent quickly: Though this depends on how good you are at understanding nuances of insurance it is always better to do your own independent research before committing to an insurance company. Find out all you need to know about the company, its stint in the insurance field, the financial position of the company and the goodwill it enjoys

7. Free look-out periods: Find out if your insurance company is able to furnish you with a free look out period(usually for a month) so that you are able to gauge how good the insurance is before making a decision.

By Arunraj V.S.
ezinearticles.com

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Steps to Help You Save Money on Your Automobile Insurance

If you are like most Americans, you have a car to drive and you must have automobile insurance in order to do so. Most states require a minimum level of insurance in order to obtain the proper car registration, title, tag or other legal documentation for ownership and operation on public highways. Here are some tips and hints that might save you some green the next time you are shopping for car insurance or your renewal arrives in the mail.


Check Your Credit

Most insurers will check your credit rating when assessing your risk factors for writing and issuing an insurance policy. They assume that your credit score is judgment of your risk as a driver. Make sure you keep your credit rating in good shape.

Increase the Deductible

This is simple math....the more you pay as a deductible, the less the insurer pays in the event of a claim. Having a high deductible will decrease the amount of the premium you pay for your insurance. Another reason for having a high deductible is common sense. You only want to file a claim for a major repair due to a collision or other accident. You do not want to file a claim for a dent, scratch or other minor blemish. This will only cause the insurer to examine your policy and could result in a large increase in your renewal premium or could be cause for them to drop you as an insured.

Shop 'til you Drop

Don't just write a check when the renewal shows up. Make sure you check with several insurance companies to see of you are getting the best rate and service for your dollar. You can do this by phone or via the Internet. There are several insurance "aggregators" that will take your information and request two, three, or quotes from even more insurance 'bidders' for your business.

Add Cars

If you have more than one car in your family, it only makes sense to have them on a single policy. Most insurers offer a 'multi-car' discount for doing so. This also makes sense when there are younger drivers. By having their car in your name and insuring these cars on your own policy, you will save a lot of money over having them having the car in their name and required to get their own separate policy

Seek More Coverage from the Same Insurer

Another way to reduce your automobile insurance is to have your home owners insurance with the same company. Several leading insurance companies award your loyalty by providing a discount for customers that buy multiple policies from the same company.

by Jeff Runyon
Jeff has been writing articles and publishing commentary for several years that cover a number of popular topics of interest from different walks of life.

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How to Create Impressive Brochures for your Insurance Services

Effective branding strengthens the foundation of your business and leaves a permanent mark on your client's brain. You can do this by promoting your services using brochures. Brochures serve as a vehicle of communication between your insurance company and your clients. Therefore, you must create a brochure specifically designed for your ideal client base. Impressing Clients with Insurance Services Brochures.


* Organize marketing information. Effective communication can be achieved if your brochure is focused on one main idea. Having a single message in mind helps you to revolve all the other elements around it, giving your promotional materials a sense of direction and consistency. Readers are most likely to scan the content of your brochures, so do not crowd your prints with too much information. Put emphasis on your key points and use bullets for easy reading.

* Avoid technical jargons. Writing a brochure copy using technical jargons make sense to your company, but not to your clients. You may think that jargon seem impressive, because they make you sound like an expert. Truth is these terms make it difficult for clients to relate to your message. Instead, talk to your readers using their language so you can easily connect with them-choose simple words.

* Be informative, realistic, and enthusiastic. Your brochures serve as sources of valuable information about your insurance services. They should answer your client's question and give them a better understanding of your company. Refrain from making promises you cannot keep, because doing results to losing your client's trust. Give them reasons to continue reading by providing an informative yet entertaining content.

* Come to UPrinting! Make your brochures impressive from the content up to the printed material by seeking the expertise of UPrinting. Our top-of-the-line brochure printing service is guaranteed to provide you with durable and professional-looking brochures at a very reasonable price. Visit our website now to learn more about our excellent printing services.

Leaving a good lasting impression to your clients is possible with brochures designed and printed close to perfection. Take your time and effort when you print brochures to achieve favorable results. It would also be best to print online with UPrinting for a more convenient brochure printing.

by Girlie Nuqui
With a bachelors degree in Communication Arts and a former school writer in College, Girlie Nuqui had totally found her passion as a web content writer in a printing company. And she dreams of only one thing, world peace.

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Insure Your Health Today

Health is wealth; and rightly so; if one is healthy, it is only then that one can experience the true pleasures of life. The fast paced life these days has taken a toll on almost all of us. Heart attacks, high blood pressure, among other diseases have victimized many of us, and the humongous health care expenditure has burnt a hole in our pockets.

Health insurance companies provide an answer to all our insurance needs by providing the most apt health insurance schemes for their clients. These policies provide complete health coverage. Health care online is also made available to make the insurance an easy process, which is accessible to one and all. These online insurance products are extremely easy to buy and use. The whole process is extremely simple and does not involve any medical examinations at all.

The health policy is issued either to an individual, or a family, and the duration of this health coverage is for one year. The family health coverage includes spouse, dependent, children and dependent parents. The health care provides health coverage to individuals from the age of 5 years to the maximum age limit of 50 years. It may be noted that the health coverage of a child dependent would only start 91 days after both the parents are covered under this health policies. The premium for health insurance packages depends upon the age of the Insured person and the sum insured option he or she chooses.

Health care online makes it easy for the prospective buyers to get in touch with the executives, who guide them about the best health policy; suiting their needs and requirements. The health insurance products offered have a number of benefits including in-patient treatment, pre-hospitalization, post-hospitalization, day-care procedures, organ donor, etc. As per this health care , the person insured can claim 100% hospitalization expenses. Insured under this health policy, an individual can also avail medical expenditure for Ayurveda, Unani, Sidha and Homeopathy treatment; up to 10% of the sum insured.

If you are looking for the best health insurance, you can surf the net to find a plethora of options to suit your needs and requirements. What makes these health care policies more attractive are the special discounts that are offered to the clients. Though there are a number of companies, which provide health insurance schemes in the market. You can save time by purchasing health insurance online.

by By Mark Summers | ezinearticles.com

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Auto Insurance Discounts - 3 Places to Find Auto Insurance Discounts

Automobile insurance is expensive, but you can lessen the monthly premium by looking in a few places you may not have thought of. These tips are helpful to anyone interested in saving money on their car insurance, but they are especially useful if you are shopping for a new policy.

The time that you can save the most money on your auto insurance is when you are initially shopping for a policy. You may be able to qualify for some discounts or special programs under your existing policy, but there are many more options when shopping for a new policy. This is the time to compare rates, ask for a lower rate, and generally just to look for the lowest priced car insurance policy you can find.

If you are already insured then you may still find that you qualify for discounts on your car insurance. You may qualify for a discount if you drive less than a certain number of miles per year for instance. Many insurance companies will also offer you a discount if you have an alarm on your car, have automatic restraint systems, or have a GPS enabled anti-theft device installed.

Most insurance companies will also offer you a discount if you are willing to do your business online. In an effort to become more environmentally friendly many car insurance companies will also offer you a discount if you elect to stop receiving paper bills.

There are also discounts available from auto insurance companies for members of certain groups. These groups can include social clubs, professional organizations, or alumni associations. Remember to explore every option when it comes to saving money on your automobile insurance.

As you can see the potential to save money on your auto insurance premiums exists in many places. The only thing standing between you and a few extra dollars is your willingness to inquire about which automobile insurance discounts you qualify for.

by: David Ackland
http://ezinearticles.com/?expert=David_Ackland

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