Saturday, June 23, 2012

Insurance Risks classification, Insurance Risks Types

Here is Insurance segment news on Insurance Risks classification, Insurance Risks Types.

What is the Insurance? First try to find answer to about Insurance need and purpose.

Insurance does not guard the assets but try to reduce the impact of risk on the assets owners. When any loss or damage occurs to insured assets, It only compensate for the damages or losses. But it does not coverage fully.

Generally we will face risk for our assets with fire, lightning, floods, breakdowns etc…these are naturally occurs like natural catastrophes are cause maximum possibilities of damage or loss of insured assets or goods.

The economic or financial consequences are only to be insured. Insurance may not be possible, in case of non economic or financial consequences like parents affection, love, parental care, family attachments, relationships, leadership qualities etc…

There are many kinds of risks classifications are available.

Fundamental Risks: These risks are affecting a large people. Ex: Vehicle accidents

Particular Risks: These risks are affecting individual person.

Dynamic Risks: These risks are affected by perils that are results in national consequence like floods, inflation, political upheavals, government breakdowns etc… These are mostly probable at less.

Static Risks: These risks are in result of perils. Simply natural calamities like fire, lightning, thefts etc… (Generally these risks have no national significance.)

Catastrophic Risks: These risks may lead to the bankruptcy of the assets owners. 

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