Question

If a person consumes alcohol regularly and does not disclose the same in proposal form - what is the type of hazard

Answer 1

If a person consumes alcohol - it is considered a physical hazard.

Terms like risks, perils and hazards are used by the insurance industry. Risk refers to the possibility of loss. Peril refers to the cause of the loss. Hazard refers to the condition which increases the possibility of the loss.

A physical hazard is a physical condition which increases the possibility of a loss. For example, smoking is a physical hazard which increases the chances of a house fire and illness.

People who consume alcohol regularly have to disclose it in the proposal form.