Mataracy
VIP Contributor
Even when an Insured is willing to insure and the insurer is willing to provide cover, there are certain factors that will preclude( prevent) the two parties from entering into a contract of insurance. These factors are otherwise referred to as limitations to insurance and they are discussed hereunder:
1: PECUNUARY VALUE : The loss or damage suffered by an insured and covered by insurers must be capable of being expressed in monetary term.
2. LEGALITY: Any loss or damage suffered must be legally acceptable. A man who suffered a loss through his own deliberate or fraudulent act cannot claim for his fraudulent act. Also a professional cannot insure against the consequences of his being disqualified from practicing his profession.
3: LACK OF KNOWLEDGE: Any risk for which outcome cannot be predicted cannot be insured e.g. loss of profit through market fluctuations in prices, alteration in cost of production etc. cannot be predicted accurately.
4. INHERENT VICE : It is not possible to insure property against loss or damage resulting from its own nature or inherent vice.
5. PUBLIC POLICY: A policy of insurance on a risk must not be against public policy. E.g . Insurance cover on the risk attached to prostitution is illegal because prostitution is against public policy.etc
1: PECUNUARY VALUE : The loss or damage suffered by an insured and covered by insurers must be capable of being expressed in monetary term.
2. LEGALITY: Any loss or damage suffered must be legally acceptable. A man who suffered a loss through his own deliberate or fraudulent act cannot claim for his fraudulent act. Also a professional cannot insure against the consequences of his being disqualified from practicing his profession.
3: LACK OF KNOWLEDGE: Any risk for which outcome cannot be predicted cannot be insured e.g. loss of profit through market fluctuations in prices, alteration in cost of production etc. cannot be predicted accurately.
4. INHERENT VICE : It is not possible to insure property against loss or damage resulting from its own nature or inherent vice.
5. PUBLIC POLICY: A policy of insurance on a risk must not be against public policy. E.g . Insurance cover on the risk attached to prostitution is illegal because prostitution is against public policy.etc