Life Insurance Policy In India

Assets are insured, because they are likely to be made nonfunctonal before the expected life time, through accidental occurrences. Such possible occurrences are called perills. fire floods, breakdowns,lightning, earthquakes, etc, are perils,

If such perils can causa damage to the asset, we say that the asset is exposed to thet risk.perils are the events. Risks

Risks are the consequential lossaes or damages, the risk to a owner of a building,because of the peril of an earhquake, may be a lakhs or a few crores of rupees depending on the cost of the building the contents in it and the extent of damage

The risk only means thet theere is a possibility of loss or damage.the damage may or may not happen. the earthuake may occur,

but the building may not have been affected at all. insuraance is done against the possibility that the damage may happen.

there has to be an uncertainty about the risk. the word possibility implies uncertainty. insurance is relevant only if there

are uncertainties. if there is no uncertainty about the occurrence of an event, it cannot bye insured against. in the case of a human being, death is certain, but the time of death is uncertain. the person is insured,because of the uncertainty about the time of his death.. in the case of person who is terminally ill, the time of death is not uncertain, though not

exactly known. it would be soon. he cannot be insured. | Life Insurance Policy In India