GuideUpdated Nov 2026 · 1 min read
Under-Insurance
Under-insurance arises when the sum insured is below value, so average may reduce a claim.
Under-insurance arises when the sum insured is below value, so average may reduce a claim.
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Formula
- check_circleClaim = Loss x Sum insured / Value at risk.
FAQs
What is the effect?expand_more
The insured bears a share of the loss.
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