Pop Quiz - Nature of Risk

Risk is the uncertainty about a result.

• True

• False

Plane crashes is in the level of low frequency and high severity risk.

• True

• False

Hazards are normally classified into two categories; physical and moral hazards.

• True

• False

Gambling is one of the elements that do not conform to Islamic law known as al- Gharar.

• True

• False

In general takaful, participants pay their contribution into the takaful store as a Tabarru’. This will wipe out the components of al Maisir and gambling.

• True

• False

1. Below are the insurance elements that do not conform to Islamic law except…

• A. Al Gharar

  
  

• B. Riba

  
  

• C. Al Maisir

  
  

• D. Al Ta’awun

  
  

“It relates to the physical or tangible aspect of risks, which are likely to influence the occurrence and / or severity of a loss.” This statement refers to

• Physical Hazard

  
  

• Moral Hazard

  
  

• Morale Hazard

  
  

• Mental Hazard

  
  

‘Explosion’ can be best referred to…

• Hazard

  
  

• Loss

  
  

• Peril

  
  

• Risk

  
  

Most of the ___________risks are uninsurable since they are undertaken willingly in the hope of profit or gain.

• Pure

  
  

• Fundamental

  
  

• Particular

  
  

• Speculative

  
  

“The outcomes cannot be measured in monetary terms.”

This statement is referring to…

• Pure Risk

  
  

• Non-Financial Value Risk

  
  

• Particular Risk

  
  

• Speculative Risk