Which hazard is defined as an increased risk due to an indifferent attitude?

• A. Physical
• B. Moral
• C. Economic
• D. Morale

Answer: (D)

Morale hazard means an increased risk that comes from an indifferent or careless attitude because protection is in place. When someone knows they have insurance, they may become less careful or more likely to use services they wouldn’t otherwise, which raises the chance that a loss occurs or that costs rise. This is different from a physical hazard, which is a real condition that physically makes harm more likely (like slippery stairs); or a moral hazard, which involves dishonesty or fraud to gain benefits from coverage; and from economic hazards, which are financial factors affecting losses. An example in health care would be using more medical services or delaying preventive care because costs are covered. So the scenario described by an indifferent attitude fits morale hazard.