Skip to main content

The Definition


PERIL
Peril is the thing that causes loss. So peril is the cause of a loss. For example, if your book is stolen, then we say that the peril or cause of the loss of the book is theft. The peril here is the theft. If a severe draught brings about agricultural failure, then we can say that the peril or cause of scarcity of food is the draught. The peril here is the draught. If your house is destroyed by fire, then we say that the cause of the loss of the house is fire. If you car is destroyed in an accident, then we say that the cause of the loss of the car is accident.



HAZARD
Hazard is the condition that created or increases the chance of loss arising from a given peril. For example, storing petroleum in the kitchen is a hazard, which increases the chance of loss from the peril of premature death.

Comments

Popular posts from this blog

10 Common Car Insurance Terminologies You Must Know About

  Due to a lack of information on particular words specified in the car insurance policy document, most car owners buy a car insurance policy based on its coverage and premium but do not grasp its terms and conditions. As a result, using the policy becomes more difficult. As a result, before acquiring a vehicle insurance plan, it is advisable to familiarise yourself with the most prevalent car insurance dictionary words. To help you make an informed decision, let's look at some of the most common phrases related to vehicle insurance. Terms Commonly Used Among the often used terms are: ·          Covers with Add-ons Additional insurance coverage, known as add-ons or riders, can be purchased in addition to a Comprehensive Plan. These plans are not available as a standalone cover or in combination with a Third-Party Plan. Coverage or service-related add-on covers are also possible. A Zero Depreciation Add-on, for example, is more of a coverage-enhancing add-on, whereas a Roads

Business Insurance Basics

Business Insurance Basics Most businesses need to purchase at least the following four types of insurance:  1. Property Insurance Property insurance compensates a business if the property used in the business is lost or damaged as the result of various types of common perils, such as fire or theft. Property insurance covers not just a building or structure but also the contents, including office furnishings, inventory, raw materials, machinery, computers and other items vital to a business’s operations. Depending on the type of policy, property insurance may include coverage for equipment breakdown, removal of debris after a fire or other destructive event, some types of water damage and other losses.  Business Interruption Insurance  Also known as business income insurance, business interruption insurance is a type of property insurance. A business whose property has sustained a direct physical loss such as fire damage or a damaged roof due to a tree falling on it in a windstorm and h

Foreign Bank or Indian Banks? Which offers more interst on NRE Fixed deposts?

Recently one of my readers asked me that he wants to invest some money on NRE fixed deposits but confused on whether to go for foreign banks like Citibank, DBS, Standard Chartered, Deutsche Bank or Indian banks like ICICI, Kotak, HDFC, SBI, Axis Bank or Union Bank? I asked him, whether he has any existing NRE saving account , he says he doesn't have any existing NRE saving account? Then I ask him what is more important for you? the interest rate or convenience? and his answer was the interest rate. Read more »