Particular risk

- A particular risk has its origin in individual events and its impact is felt locally e.g. theft of property, accident damage to machines or explosion of boiler.

Fundamental risk

- A fundamental risk is one that is impersonal both in origin and consequence.

- the losses that flows from the fundamental risk ar not normally caused by one individual and their impact generally falls on a wide range of people.

- they are termed as fundamental as they arise out of the nature of the society we have e.g. war, inflation, changing custom or from some form of physical occurrence beyond the control of man e.g. typhoons, tidal waves.

- when a risk is looded upon as being of fundamental nature, government may step in with some scheme to provide compensation for victims e.g. unemployment benefits, Kobe earthquake

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