It is likely that you have ever heard of the risk in the insurance contract, or even that you have contracted a policy and do not know what this concept means. Risk is another basic concept of insurance contracts and is defined as the possibility of an uncertain and fortuitous event occurring, producing harmful consequences for the insured.
The objective of the insurance contract is to prevent the occurrence of that event. Thus, in the event that this occurs, the insurance company is responsible for the harmful consequences by paying the compensation that had been agreed upon when contracting the policy.
From this definitionand the following risk characteristics emerge:
- Uncertainty. It is unknown if or when it will occur.
- Possibility. It must be possible for the risk to occur, otherwise we would be taking out insurance for something that is impossible to happen. The insurance contract that insures a risk impossible to occur is null.
- Concretion. The risk must be defined in the policy, valued and quantified economically.
- Lawfulness. The insurance contract that insures an illicit risk would be null.
- Fortuitous. There can be no intentionality of the insured in the event of the risk, this must occur involuntarily.