In general, an unplanned, unexpected, and undesigned (not purposefully caused) event which occurs suddenly and causes (1) injury or loss, (2) a decrease in value of the resources, or (3) an increase in liabilities. As a technical term 'accident' does not have a clearly defined legal meaning. In insurance terminology, an accident is the events which is not deliberately caused, and which is not inevitable. For example, if a driver (who is covered under personal automobile insurance for injury and losses due to negligence) willfully drives the vehicle into a tree, the resulting injury or loss is not insured. Similarly, insurance policies do not compensate for obsolescence or wear and tear because their occurrence is inevitable in normal course of things. See also incident.

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