Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are the benefits of purchasing a liability insurance policy on a losses occurring basis instead of claims made basis?

user-image
Question added by Zivai Maramwidze , Educator , Amahlubi Secondary School
Date Posted: 2015/03/29
Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

  The benefit of the loss occurrence basis policy in the liability insurance is the fact that the traditional loss occurrence policy obliges the insurer to defend and indemnify the insured against any loss which allegedly"occurred" as the result of an act or omission of the insured during the period of the policy.i.e the insurer's obligation continue towards all claims that may be raised by the insured after the expiry of the policy period   , while claims -made insurance policy covers only the claims occurred and notified during the policy period which is usually12 months plus30 days notification period.

 However due to the hardest nature of the loss occurrence policy as will as the risk assumed by the insurer the corresponding premium for such coverage will be to some extent much higher than the claims-made basis cover.

  With my very best wishes to you.

 

Waqayan Al Waqayan
by Waqayan Al Waqayan , Secretary of Sharia Supervisory Board (SSB) , Ahli United Bank (AUB)

because not all losses are claimed, meaning that this purchase will be less price because it is more risk weight considering losses occurring.

n.b. If I understand the question properly!

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.