Insurance and Risk Assessment

General insurance also encourages the formation of a good compensation system. Compensation system (which is pay damages to the affected brands through carelessness of other parties) is difficult to operate effectively without the liability insurance market is healthy. Without the presence of liability insurance, the court may impose penalty payments for property damage pencedera.This allows each person or organization involved in activities that are dangerous to operate in a minimum level of assets (judgment proof) to avoid paying damages to third parties.As a result, the parties can not obtain compensation dicederari (and therefore had to snitch on a system that applies), while the amount paid will depend on the ability pencedera, not on the magnitude of losses suffered by other parties. Further, players an incentive to reduce the risk largely disappeared. Conversely, the efficient treatment of liability insurance not only provides resources to compensate the injured party and the incentive to maintain, teatpi also lower costs than schemes based on third-party payment systems and regulations.