The chance of an event multiplied by  the cost of loss from such an event.

Keep practicing — related questions

• Chance of loss is referred to as _________.
• Any event that causes a loss and which may be included or excluded in an insurance policy is known as:
• Risk is the probability of a loss or failure.
• Which of the following is applicable when the loss is the result of two or more causes?
• Occurrence of ___ has to be ___ and not a ____ of the insured person.
• The ratio of losses suffered to the amount of insurance in effect is known as
• On selling 13 toys for Rs. 1560, there is a loss equal to the cost price of 3 toys. The cost price of a toy is
• A man sells his car for Rs. 3 lakh and loses some amount. Had he sold it for Rs. 5.60 lakh, his gain would ...