BPSC (Bihar) Exam > BPSC (Bihar) Questions > Non-insurable or uncertainty risk is a)ch...
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Non-insurable or uncertainty risk is
- a)change in fashion
- b)fire
- c)flood
- d)change in the price of that commodity
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Non-insurable or uncertainty risk is a)change in fashion b)fire c...
- Non-insurable risks are those that cannot be measured or predicted with accuracy, making them unsuitable for insurance coverage.
- Changes in fashion are considered non-insurable because they are highly unpredictable and subjective.
- Unlike natural events like floods or fires, fashion trends are driven by consumer preferences, cultural shifts, and innovation, which cannot be quantified or controlled.
- Insurers avoid covering such risks due to their speculative nature and lack of historical data for risk assessment.
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Non-insurable or uncertainty risk is a)change in fashion b)fire c...
Understanding Non-Insurable Risks
Non-insurable risks are those uncertainties that cannot be covered by insurance policies. Among the options provided, the only choice that qualifies as a non-insurable risk is the change in the price of that commodity. Let’s break down the reasons:
1. Nature of Non-Insurable Risks
- Non-insurable risks arise from uncertainties in the market or environment that are unpredictable and cannot be mitigated through insurance.
- These risks usually involve potential changes that are influenced by external factors.
2. Analysis of Each Option
- a) Change in Fashion
- This is a market risk but can be somewhat predictable based on trends and consumer behavior. Businesses can adapt to fashion changes.
- b) Fire
- Fire is a physical risk and is insurable. Property insurance can cover damages caused by fire incidents.
- c) Flood
- Similar to fire, flood risk is often insurable through specific policies like flood insurance, making it a manageable risk.
- d) Change in the Price of that Commodity
- Price fluctuations are influenced by various unpredictable market forces, including supply and demand dynamics. This uncertainty makes it a non-insurable risk.
3. Conclusion
- The key takeaway is that non-insurable risks, like changes in commodity prices, are inherent to market dynamics and cannot be effectively controlled or insured against.
- Understanding these risks is crucial for businesses as they strategize for volatility in the market.
Non-insurable risks are those uncertainties that cannot be covered by insurance policies. Among the options provided, the only choice that qualifies as a non-insurable risk is the change in the price of that commodity. Let’s break down the reasons:
1. Nature of Non-Insurable Risks
- Non-insurable risks arise from uncertainties in the market or environment that are unpredictable and cannot be mitigated through insurance.
- These risks usually involve potential changes that are influenced by external factors.
2. Analysis of Each Option
- a) Change in Fashion
- This is a market risk but can be somewhat predictable based on trends and consumer behavior. Businesses can adapt to fashion changes.
- b) Fire
- Fire is a physical risk and is insurable. Property insurance can cover damages caused by fire incidents.
- c) Flood
- Similar to fire, flood risk is often insurable through specific policies like flood insurance, making it a manageable risk.
- d) Change in the Price of that Commodity
- Price fluctuations are influenced by various unpredictable market forces, including supply and demand dynamics. This uncertainty makes it a non-insurable risk.
3. Conclusion
- The key takeaway is that non-insurable risks, like changes in commodity prices, are inherent to market dynamics and cannot be effectively controlled or insured against.
- Understanding these risks is crucial for businesses as they strategize for volatility in the market.
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Non-insurable or uncertainty risk is a)change in fashion b)fire c)flood d)change in the price of that commodityCorrect answer is option 'C'. Can you explain this answer?
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Non-insurable or uncertainty risk is a)change in fashion b)fire c)flood d)change in the price of that commodityCorrect answer is option 'C'. Can you explain this answer? for BPSC (Bihar) 2024 is part of BPSC (Bihar) preparation. The Question and answers have been prepared according to the BPSC (Bihar) exam syllabus. Information about Non-insurable or uncertainty risk is a)change in fashion b)fire c)flood d)change in the price of that commodityCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for BPSC (Bihar) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Non-insurable or uncertainty risk is a)change in fashion b)fire c)flood d)change in the price of that commodityCorrect answer is option 'C'. Can you explain this answer?.
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