1. Primary burden of risk
  2. Secondary burden of risk
  3. Both A & B
  4. None of the above
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1 Answers

Answer: Option 1

Primary burden of risk can easily be compensated thro’ insurance. The primary burden of risk consists of losses that are actually suffered by households (and business units), as a result of pure risk events. These losses are often direct and measurable and can be easily compensated for by insurance.

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