Insurable Meaning: Definition, Examples, and Translations
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insurable
[ɪnˈʃʊr.ə.bəl ]
Definition
insurance context
Insurable refers to something that can be covered by an insurance policy. This means that the risk associated with the entity or event qualifies under the terms set by an insurance company for protection against specific losses. Commonly, insurable items include properties, life, health, and automobiles. However, not all risks can be insured, as they might be uninsurable for various reasons, including high risk or lack of control. Understanding insurable risks is crucial for both insurers and insured to ensure fair coverage and claims processing.
Synonyms
covered, insurable asset, risk-covered.
Examples of usage
- This property is insurable.
- Her life is insurable under the policy.
- All assets should be insurable to mitigate losses.
- The risk factors make this vehicle insurable.
Translations
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Interesting Facts
Insurance Types
- Property, health, and life are common types of insurable items – each providing unique protections.
- 'Insurable interest' is a legal concept requiring that the insured has a stake in the item or person insured.
- Business interruption insurance covers income loss due to unforeseen events, showing how various aspects are insurable.
Cultural Perspectives
- Different cultures view risk and insurance differently, affecting what is considered insurable.
- In some societies, community sharing replaces traditional insurance, showing variances in insurable practices.
- The concept of insurability reflects societal values around safety, responsibility, and financial planning.
Economic Impact
- Insurance plays a crucial role in economies by promoting stability and enabling financial recovery from disasters.
- The insurable nature of various industries, like health care and transportation, significantly shapes market dynamics.
- The ability to insure affects investments; businesses are more likely to invest in insurable ventures.
Legal Framework
- Laws governing insurable interests protect against fraud, ensuring that people have a legitimate stake in what they insure.
- Contract law is central to insurance, outlining the responsibilities of both the insurer and the insured.
- Disputes over insurable claims often lead to legal precedents that shape the insurance industry.
Origin of 'insurable'
Main points about word origin
- The word 'insurable' comes from the Latin root 'ensurare,' which means to secure or protect.
- It has evolved over centuries to describe items or people that can be covered by financial protection plans.
- The prefix 'in-' suggests the idea of something being secure within a protective boundary.
The term 'insurable' derives from the root word 'insure', which dates back to the early 15th century. Originally, 'insure' meant to secure against loss or damage, likely coming from the Latin word 'securare', meaning 'to make safe'. The suffix '-able' indicates that something can be done or is capable of being done. In the context of insurance, the term has evolved to specify a condition or asset that qualifies for coverage under an insurance policy. The expansion of the insurance industry during the 17th and 18th centuries, especially in maritime and property sectors, popularized the need to categorize what could be insured. As markets and risks have developed over the centuries, so too has the understanding of insurable risks, leading to more nuanced definitions and policies. Today, insurable risks play a foundational role in risk management and financial planning.