RIZIK KAO ELEMENT OSIGURANjA

Abstract

Risk as a concept is associated with many assumptions depending how it is viewed or analyzed. If it is viewed from the aspect of insurance, risk is one of its basic elements , that is the constituent part of insurance. In insurance risk represents danger or threat to a person or property that are subject of insurance and whose insurance is permitted by legal and ethical rules. Risk directly influences the amount of insurance premium which is, actually, the price of insurance services and an important element of insurance contract. The amount of insurance premium, as the price of insurance, primarily depends on the risk levels, but on other factors as well: the amount that is being insured, the period of insurance, general insurance costs, etc. In the essence, risk and insurance premium are closely connected. Each change in risk levels definitely reflects on the level of insurance premium. If the risk level covered by the insurance is increased or decreased during the insurance period, this will have direct influence on the increase or decrease of insurance premium. In economical and technical terms, risk represents probability that economically hazardous incident will take place. As a legal term, risk represents an important element of insurance contracts that entails numerous obligations of contracting parties – both the insurer and the insured.