Pricing in General Insurance

22 Pricing in General Insurance

attached to such things as good health that are not nancial in nature or that cannot be

simply bought with money.

However, it should be noted that it is the insured and not the victim that must be reinstated

to her/his initial nancial position: the victim receives from the insured compensation for

a number of heads of damages (see below), and the insurer indemnies the insured for the

compensation that the insured had to pay to the victim, thereby restating the insured to

the nancial position that (s)he had before indemnifying the victim.

Depending on the policy, liability insurance may cover heads of damages such as

• Damage to third-party property

• Cost of care

• Loss of earnings

• Financial loss

• Pain a ...