Forums » Life Insurance


About Assets

    • 144 posts
    February 27, 2014 8:03 AM IST

    Assets are insured because they are likely to be destroyed or made noon-functional before the

    expected life time through accidental occurences .

     

    Such occurences are called PERILS . 

     

    Fire , floods , lightning , earthquakes etc are perils . Almost all natural calamities are of the

    same sort .

     

    If such Perils can cause damage to the asset , the asset is said to be exposed to that risk .

    Perils are the events . 

     

    Risks are the consequential losses or damages .

     

    The risk to a owner of a building because of the peril of an earthquake may be some few lakhs

    or crores of money also depending on the cost of the building , the contents and the

    devastating extent of the damage caused .

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