KASNEB Notes and Revision kits for CPA, ATD, CS, CCP, DCM, CIFA, CICT, DICT, CPSP-K and APS-K in Kenya
TERMS COMMONLY USED IN INSURANCE
Insurer-this refers to the insurance company e.g. jubilee,A.P.A etc.
Insured-this refers to the individual/institution taking out an insurance policy with a view to being compensated in future if loss is suffered due to the occurrence of the insured risk.
Risk-Thisisthepossibility of occurrence of the event which may cause loss to the insured e.g. fire,theft,bulglary and accident.it should be carefully stated,because compensation will be only for the stated risk.
Insurable risk-this are common risks whose values are easy to determine.They are easily accepted insurers