AN EXAMINATION OF EVOLVING APPROACHES IN THE CONSTRUCTION OF RISKS AND CAUSATION IN INSURANCE LAW.

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INTRODUCTION

One of the first and basic characteristics of insurance is that it is a contingent contract, that is,it depends on the happening of a future event which is outside the control of the parties to the contract. In other words, uncertainty is key in the contract of insurance. Uncertainty of the event occurring relates to risk, as there is a probability that a risk may occur but as to when is uncertain. Hence, it can be said that insurance is a risk pulling and redistribution mechanism and it is

based on or depends on the occurrence of an event which is uncertain.From the above, it is deduced that the matters of risk and causation are central to insurance claim and a clear examination and understanding of the subject matter is required.

RISK

Risk can be described as the exposure of the insured property to the possibility of loss or damage. It is also an uncertain event on condition that if it occurs, has an effect of damage or result to loss on the subject matter of insurance, that is, insured property. The basis of an insurance claim is loss. Loss can be described as the occurrence of the risk that is insured against. It is important in insurance claims that the risk insured against be clearly ascertained. For the description of the risk enables the insurer to know the extent of his liability and also the insured to know the extent of the cover. It is important to note that not all risks are covered, even where the contract of insurance provides for an “all risk” policy. Some factors are considered in determining the risk covered and the following are normally excluded where the risk involved is certain, calculated, predictable, controllable, unlawful and against public policy.

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AN EXAMINATION OF EVOLVING APPROACHES IN THE CONSTRUCTION OF RISKS AND CAUSATION IN INSURANCE LAW.

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