and Non-Insurable Risks
Generally a person can
insure most things. However
there are some exceptions and exclusions.
For a risk to be insurable the following conditions must be
There must be an
insurable interest in the thing or person being insured.
There must be a large
number of similar risks being insured.
Any losses incurred
must be accidental
The risk must not be too
catastrophic for the insurance company i.e. the possible loss
should not be so great as to ruin the insurance company
It must be possible to
calculate the risk of a loss occurring.
In the absence of any of
these five conditions the risk is uninsurable.