The objective of these Rules are to resolve all complaints relating to settlement of claim on the part of insurance companies in cost effective, efficient and impartial manner.

An estimate of loss frequency based on observing what has happened in the past and assuming the same will happen in the future. Insurers prefer to have objective probability estimates rather than subjective ones.

Chance of loss measured by an objective probability, rather than by judgment.
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The relative variation of actual from probable loss.