Which of the following can easily be compensated thro’ insurance?

A. Primary burden of risk

B. Secondary burden of risk

C. Both A & B

D. None of the above

Answer: Option A

Solution(By Examveda Team)

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.