Question
Differentiate between insurable risks and non-insurable risks.

Answer

Differences between insurable risks and non-insurable risks is summarised below:
S. No.
Basis
Insurable risks
Non-insurable risks
1.
Meaning
Those risks which can be covered up by some type of insurance policy are called insurable risk.
Those risks which cannot be covered up by some type of insurance policy are called non-insurable risk.
2.
Business Risks
Business risks are not insurable risks.
Business risks are non insurable risks.
3.
Example
Risk of damage due to fire, accident, theft, etc.
Risk of damage due to change in technology or change in government policy, etc.

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