Forums » Life Insurance

• T Ghosh

  

  • 144 posts
   

  February 28, 2014 7:06 AM IST

   Property Damage Risk:

   

  a)      It includes the risk of economic loss to automobile, home or personal belongings due to

  accident, theft, fire, or natural disaster.

   

  b)      Property insurance provides a benefit if insured items are damaged or lost because of

  various specified perils, such as fire, theft, or accident.

   

   

    Liability Risk:

   

  a)      It includes the risk of economic loss resulting from your being held responsible for

  harming others or their property.

   

  b)      Liability insurance provides a benefit payable on behalf of a covered party who is legally

  responsible for unintentionally harming others or their property.

   

   Personal Risk:

   

  a)      It includes the risk of economic loss associated with death, poor health, and outliving

  one’s saving.

   

  b)      Life and health insurers sell insurance policies to provide financial security from personal

  risk.

   

  c)      To manage a personal risk, insurers use a concept called Risk Pooling.

  d)     With risk pooling, individuals who face the uncertainty of a particular economic loss,

  transfer the risk to an insurance company.