The master copy role of insurance is to spread the fiscal losses of insured members over the whole of the insuring community live on compensating the unfortunate few from the fund contributed past times all members. It is of import to know that spell insurance exists to struggle or fighting risk, in that place are approximately commercial, legal in addition to moral issues to reckon which may arrive near impossible to insure every risk. To contract insurance, therefore, you lot must ensure that the next essential elements exist:
§ Insurable Interest
§ Financial value (not sentimental Value)
§ Large number of like risks
§ Must know the mathematical value of adventure or loss
§ Loss must non live on catastrophic
§ Loss must live on reasonable expected
§ Loss must live on accidental or Fortuitous inwards nature
§ Loss must live on consistence alongside world policy
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