7 Core Feature of Insurance Contract

I’m always happy to pass on great info, and this is great info! I’ve included a few snippets below lifted from the full article.

In day-to-day life the man is confronted with various risks. However great a genius he may be, it is not possible for him to foresee all the calamities that are in store for him and to provide necessaries for them to advance.

Features of Insurance

From the above explanation we can find these following characteristics which are, generally, observed in case of life, marine, fire and general insurances.

1. Sharing of Risk

Insurance is a device to share the financial losses which might befall on an individual or his family on the happening of a specified event.

2. Co-operative Device

The most important feature of every insurance plan is the co-operation of large number of persons who, in effect, agree to share the financial loss arising due to a particular risk which is insured.

3. Value of Risk

The risk is evaluated before insuring to charge the amount of share of an insured, herein called, consideration or premium. There are several methods of evaluation of risks.

Do you need more detail on this subject? Head on over to the full article HERE for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on (07) 3243 0000.

Thanks,

Mark