The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of losses, if the importers in the other country default in payments or in collecting the goods. They will also suffer heavily due to sudden changes in currency exchange rates, economic policies or political disturbances in the other country. These are dynamic risks and are insured.
Doctors and other professionals run the risk of being charged with negligence and subsequent liability for damages. The amounts in question can be fairly large, beyond the capacity of individuals to bear. These are insured. Thus, insurance is extended to intangibles. In some countries, the voice of a singer or the legs of a dancer may be insured. These are assets which produce the income and provide living to the owners. The object insured is intangible, but it is linked to a financial loss, and therefore becomes insurable. Indian non-life insurers are perhaps, considering the feasibility to insure such risks.
Insurance Of Intangibles
The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of losses, if the importers in the other country default in payments or in collecting the goods. They will also suffer heavily due to sudden changes in currency exchange rates, economic policies or political disturbances in the other country. These are dynamic risks and are insured.
Doctors and other professionals run the risk of being charged with negligence and subsequent liability for damages. The amounts in question can be fairly large, beyond the capacity of individuals to bear. These are insured. Thus, insurance is extended to intangibles. In some countries, the voice of a singer or the legs of a dancer may be insured. These are assets which produce the income and provide living to the owners. The object insured is intangible, but it is linked to a financial loss, and therefore becomes insurable. Indian non-life insurers are perhaps, considering the feasibility to insure such risks.