Understanding Insurance and Risk

The video tutorial introduces the concept of risks, providing examples from daily life such as accidents and injuries. It explains the basics of insurance, including the role of policyholders and the importance of insurance contracts. The tutorial details the process of making claims and the principle of indemnity, which ensures compensation does not exceed the loss. The video concludes with a summary of key insurance concepts and a preview of future topics.

What is the general definition of risk?

• A guaranteed financial loss

• A possibility of danger or harm

• A planned event

• A certain event that will happen

Which of the following is NOT an example of a risk mentioned in the video?

• Road accidents

• Injury while playing

• Falling down stairs

• Winning a lottery

Who can be affected by risks and hazards?

• Only the individual

• Only the family

• Only the property

• Individuals, families, and property

What is the purpose of taking insurance?

• To transfer the financial burden of risks

• To increase wealth

• To avoid all risks

• To guarantee no accidents

What is a policyholder?

• The insurance company

• The person who buys the insurance

• The government

• The person who sells the insurance

What is a premium in the context of insurance?

• A one-time payment

• A monthly or yearly payment for insurance

• A bonus received from the insurance company

• A penalty for not having insurance

What happens when an accident occurs and the policyholder has insurance?

• The policyholder pays for all damages

• The insurance company pays compensation

• The government pays for the damages

• No one pays for the damages

What is the principle of indemnity?

• Paying exactly the amount of the loss incurred

• Paying less than the loss incurred

• Paying more than the loss incurred

• Not paying anything

What must a policyholder do to receive compensation after an accident?

• Ignore the accident

• Make a claim to the insurance company

• Pay the insurance company

• Wait for the insurance company to contact them

What does the insurance company do after a claim is made?

• Ignores the claim

• Pays the exact amount of the loss

• Pays more than the loss

• Pays less than the loss