Protect Your Vehicle and Yourself With Auto Insurance

Auto insurance is a type of general insurance under which you will be protected against any unforeseen situations. This insurance protects you from any kind of financial distress if in the case of an accident or theft or loss of a vehicle or in any of the described events in the policy. You simply got to meet an auto insurance provider to avail this facility. Once you meet the service provider they will explain you various types of auto insurances available with them and the premium you have to pay, the term of the insurance, benefits, and riders if any.

Knowing all these details is enough to go for auto insurance; however, it is always advisable to read the policy documents properly before signing the documents. It provides property, liability, and medical coverage. Property coverage provides protection against theft while liability coverage protects against any legal responsibilities which are to be performed by you. On the other hand, it also provides medical coverage in case of any injuries and sometimes lost wages and funeral expenses.

In any of the above-stated conditions, both your family and you will suffer huge losses if you do not opt for auto insurance. Opting an auto insurance is compulsory if you are buying certain kinds of vehicles, under which your initial premium will be added to your vehicle’s cost and subsequent premiums can be paid either online or offline. Generally, any auto insurance will stay active only for six months or a year; your insurance provider will intimate you before the expiry of a particular policy.

You can renew the policy if you want to continue with the same one or else you can go to a different service provider. There is an option of modifying a particular policy as per your requirement. You can add few more benefits to the existing policy for a minimum additional premium. These additional benefits are termed as riders which are intended to protect you from any additional distresses.

The insurance is applicable to any kind of vehicles like car, two-wheeler or commercial vehicles. The premium amount varies depending upon various factors like insured declared value, type of vehicle, the age of the vehicle, fuel type, the age of the insured, etc. Opting for auto insurance not only cushions you against financial distresses but also supports your family in case of any misfortune. The small penny you pay today will protect you and your loved ones from the large loss that could potentially weaken you physically and psychologically.



Boat Insurance 101

Here are a few basics of what this broad subject has to offer up to any individual who wants to know more about it.

Indemnity comprises age is the same from band to band, right? While that may be stanch for many kinds of  insurance , it is not necessarily stanch for boat and ship  insurance . For appeal, automobile or home adults  insurance  comprises age is much linked — sometimes like — from band to band. On the other hand, nautical instructors providing boat and ship  insurance  proffer a thick array of comprise age right to that band’s smooth of expertise, underwriting hunger, and category of consumer they want to charm.

This term will crack to harbor ray the plain comprise ages that are existing under boat and ship  insurance  policies, and the stuff that should be thanked before chocking a document*. We will also purpose out the causes that the nautical underwriter contemplates when determining the pace to blame a consumer. We desire that this will help in making a more learned trustily when purchasing  insurance  for your boat. Only you can choose on the right combination of comprise age and outlay that outfits your wishes. **

Jump with the Basics**

What we have explored up to now is the most important information you need to know. Now, let’s dig a little deeper.

Let’s birth by describing the two plain splits of a usual boat or ship  insurance  document: objective spoil and liability. The objective spoil split comprises accidental pasting or spoil to the boat and its machinery. This not only comprises the hull and the engine(s), but also the sails and other utensils on enter that are mandatory to peace the boat.

The liability split, sometimes referred to as Protection & guarantee, and comprises your official obligations to third parties. This official liability can rise from forcibly injury or pasting of life, or spoil to somebody makeover’s home, as findings of the cadetship or business of your boat. Liability comprise age also helps pay for your official excuse if you are sued for a liability that may be roofed under your boat  insurance  document.

Corporal spoils what beatings are enclosed?

Corporal spoil comprise age ordinarily pays for darns to your boat that are crucial as a findings of spoil reasoned by a thick array of perils. The best policies present “all imperil” comprise age, which means that if the reason of pasting is not specifically debarred, it is roofed. classic reasons of pasting that are roofed contain: harden-linked perils such as curve, hail, hail, lightning and wave action; fire; pasting or spoil reasoned by theft or vandalism; and collisions with harbor, inundated or hanging stuff or other boats. It is shrewd to choice a document that continues to comprise your boat while it is stored on land, or while you elation your boat over land by promo.

The boat adult has the responsibility to keep their boat, and so customary apparel and tear is regularly debarred under a boat or ship document. The number and category of objective spoil exclusions disagree from band to band, so take the time to evaluate to dodge surprises later.

Beating Settlement – settled worth vs. Actual money worth

When comparing objective spoil comprise age, the most significant difference that can be found among boat or ship  insurance  policies is whether the comprise age is based winning “settled rate” or “actual notes rate” (ACV) pasting settlement. Settled rate policies customarily pay the absolute exposed on the document if the boat is thanked to be an absolute pasting. Under such a document, spoil finding sing from a part pasting is ordinarily rewarded for on a replacement expense (new for old) heart, minus your deductible; that is, objective depreciation will not be caused into determining the rate of the missing or spoiled stuff. However, some stuff that are specialty to superior absolutes of customary apparel and tear, such as picture, sails, promos and some machinery, may be specialty to tolerations for depreciation in the aftermath of a roofed pasting.

An actual notes rate document presents minus comprise age than a settled rate document, but ordinarily at a worse expense. An ACV document presents comprise age up to the topical bazaar rate of the vessel in the aftermath of a absolute pasting, winning into account depreciation and the train of the boat at the time of the pasting. Payments made for part postings are typically cheap based winning objective depreciation of the missing or spoiled stuff, and the document deductible is also useful.

While a settled rate document typically expenses the boat adult more, and presents broader comprise age, an actual notes rate document may outfit the wishes of an adult looking for an economical alternative. Your  insurance  professional can explore these options with you.

Delicate goods and Towing & Assistance

Two additional comprise ages regularly found in boat and ship  insurance  policies are: delicate goods comprise age, and Towing & Assistance comprise age. delicate goods comprise age contains such stuff as clothing, delicate things, and harbors and fishing utensils belonging to you or your family while those stuff are being rich/enrich and while enter your boat. Like to objective spoil comprise age, there are exclusions that disagree from band to band, so it pays to evaluate.

Towing & Assistance comprise age reimburses you for the expenses that you incur when you poverty tragedy assistance for your boat, and you and your boat are not in burning jeopardy. Some examples of tragedy army that you may poverty which may be roofed contain: towing to a place where darns can be made; reliquary of fuel, oil or parts; or tragedy sweat while underway. Test before hand to establish whether a deductible applies to this comprise age.

Liability Other Imharborant Coverage’s

The liability split of a comprehensive boat  insurance  document present many comprise ages that are imharborant to boat adults. Coverage for the deduction or disposal of the wreck of your boat is imharborant to have, especially if the wreck is deemed to be a hazard to navigation. Craft adults may also be responsible for any containment and shipshape-up expenses finding sing from oil pollution or contamination reasoned by their vessel. It’s imharborant that your boat or ship  insurance  document comprises your liability for those shipshape-up expenses, which could add up to a thinkable absolute. If you ever propose to scrounge somebody makeover’s boat, approve that your liability comprise age widens to the other boat. This is called “non-owned” boat liability comprise age. Lastly, boat adults who employ rewarded crew members should guarantee that their document comprises their liability to the crew under the Jones Act and broad nautical Law.

A good document will also present a separate comprise age for your liability under the central Longcoastmen’s and believe recruits’ Compensation Act. This will comprise your legal liability to interim coast-based recruits, such as a mechanic or dock worker, if they become injured enter your boat.

Most boat and ship policies reject comprise age while your boat is chartered to somebody moreover, or worn to hold passengers for a fee. Under the right circumstances, a good nautical  insurance  band may widen your comprise age to contain those situations. So ask first to guarantee that you will be well sheltered.

Checkup Payment Coverage

You should verify that your document has an adequate control of comprise age for checkup Payments. checkup Payment comprise age will pay for first aid dealing, ambulance, hospice and other expenses that findings from somebody being injured on your boat, even if you are not officially responsible. It is imharborant to learn whether the comprise age also applies while somebody is entering or parting boat, and while being towed behind your boat, such as while water skiing. Test to make trusty that injuries to you and your family are also contained in this comprise age. Given equate absolutes of  insurance , comprise age on a “per someone” heart may be preferable to comprise age on a “per accident” heart.

Uninterested crafter Coverage

While boat liability  insurance  is not mandatory, there are many panamas working lacking liability comprise age. Uninterested crafter comprise age is planned to compensate you for injuries to someone’s enter your boat that are reasoned by an operative of another boat who has no liability  insurance . If you are officially free to recompress spoils from the other uninterested panama, or if you or your guests on your boat are the victims of a hit-and-run panama who cannot be identified, this comprise age can help luxury the pecuniary waves of those injuries.

Factors moving the rate of indemnity

The underwriter must think many causes when determining the pace (or premium) to blame for a boat document. The most ordinary determinants are: rate, span, and age of boat; category of boat (i.e. intensity, sail); category of engines; mooring locality; proposed section of navigation; before boating experience and allege narration of the adult; and deductible absolute. Sometimes the underwriter will also think the automobile forceful evidence of the adult(s), and whether they have full any sound boating courses.

There are numerous behaviors that you can moderate the expense of your boat  insurance . The most ordinary way is to choice the main deductible absolute that you are comfortable with. In broad, objective spoil deductibles birth at around 1% of the entrusted rate of the boat, and can be incrluxuryd to sometimes as greatly as 5%. Each superior deductible absolute moderates your  insurance  premium. Think about how greatly you could affordably pay out of take if a pasting occurred.

Many ship policies contain a lay up phase which is a time that the ship is customarily laid up and out of commission, such as during the iciness months in adult climates. The underwriter will customarily tolerate a ignore for each month that the ship is decommissioned. You can typically moderate your premium by appealing the fastest viable lay up phase that would be reasonable for your part of the country.

Think about where you will actually be working your boat. If you consistently pilot close to your home harbor, you should appeal whether a more controlled navigational section on your document can bank you money. In other language, you may not poverty comprise age for the intact east coast of the U.S. when you only peace your boat in Maine.

The train of your boat was also mentioned as a rating cause. If you own an adult boat that is around 26 feet or bigger, the underwriter may appeal a topical nautical scrutiny of your boat before quoting or insuring it. The better the train, the bigger the likelihood of its being permitted for  insurance  and you’re getting a competitive citation. Something that you can do to renovate and darn perilous procedures previous to the boat being inspected may perfect the findings of the nautical scrutiny and permit a better impression with the underwriter.

Finally, installing certain soundly strategy on your boat can sometimes moderate the premium that you will pay. Some nautical instructors will give credits for such soundly stuff as: a mindless fire extinguishing procedure in the engine compartment, a fume or steam detector in the bilge, or certain opposing-theft siren or tracking strategy.

Take Out maritime indemnity Experts

Now that we’ve harbored some of the key rudiments of boat and ship  insurance  policies, we desire that you are in a better rank to ask the right questions when export nautical  insurance . It is also shrewd to work with a band that thoroughly understands boat and ship  insurance . This is imharborant not just at the time that you harness for  insurance , but also in the unfortunate aftermath that you have a allege. At INAMAR Recreational maritime indemnity, we have that expertise to help you at every footstep along the way.

If you have found our database of information on this subject useful, read some of our other topics as well.



Home Sweet Home – Insurance Issues for Home-Based Businesses

Oh, the joy of running your business out of your home! As a sole practitioner consultant, I enjoy the benefits of working from home. No rent, no office politics, no standing in line for the bathroom. I also love my five-second commute, with no traffic to avoid except my dogs.

If yours is one of the many home-based businesses that seem to be growing in number with advancing technology,  insurance  may not always be at the forefront of your mind. You’re not required to get building  insurance , and you might not use your auto in business beyond driving to appointments. The reality, however, is that you have exposures that often aren’t considered and definitely aren’t adequately protected in your homeowners  insurance .

I would like to raise your awareness in three areas of concern for every home-based business:

1. Liability

Are you a consultant or other professional who doles out advice or publishes information? You may need professional liability  insurance . If you can be sued for the information you provide or the things you say and write, don’t be caught without this coverage. I recommend no less than a $1,000,000 limit. Many companies specialize in this type of  insurance , so contact a broker or check on the Internet. I warn you, it doesn’t come cheap; however, neither does a lawsuit!

Do clients or vendors come into your home office? Your personal liability coverage is not set up to protect you for business-related activities. Depending on your business, a businessowners policy (BOP) can often properly protect your liability at a small cost.

Let’s talk about your auto. Even if you’re only driving to meet a client off your premises, your business is exposed while you are behind the wheel. How? If you cause an accident while “on the job,” and you’re incorporated, your business will be brought into a lawsuit. If your business is incorporated, make sure you include Non-Owned & Hired Auto Liability on the General Liability portion of your BOP.

Please note – If you’re not eligible for a BOP because of the type of business you operate from home, you can still get a General Liability policy.

2. Property

Every home-based business is going to have some business property. Whether you have products in your garage or furniture in your office, you need to insure business property outside of your homeowners  insurance , which limits the value of business assets. You can adequately insure your computer, furniture, inventory, and artwork through the BOP mentioned earlier.

3. Life and Disability

Hopefully, your overhead is low and your income is up. Protect your ability to maintain that income with disability  insurance  and protect your family against the loss of your income with life  insurance . Talk to your accountant about making these policies business expenses by paying for them through your business.

Believe it or not, you are more likely to become disabled than to die by the time you hit 65 years of age. Depending on the nature of your career, you could lose your ability to bring in income AND become a source of additional expenses. Most disability carriers require you to have two years in business before they will offer this policy, but that shouldn’t stop you from looking into it when you can.

Here’s your homework: Take the time now, after reading this article, to assess your  insurance  situation. Just because you work from home doesn’t mean you aren’t in danger of losing everything. So just like any business would, consider what could be catastrophic to your business and then take steps to transfer the risk to an  insurance  company. Use higher deductibles where possible to keep costs down.

If you need additional help understanding and addressing your specific needs, feel free to contact an  insurance  consultant like me. As a consultant, I don’t sell  insurance . I help businesses find the right  insurance  at the right cost and show them how to position themselves to be most attractive to  insurance  companies.



Health and Dental Insurance Quotes – Applying Online

Since 2001, large health and dental  insurance  companies such as BlueCross and GE Financial have offered health  insurance  online. As a result, individuals and small business owners have more options when purchasing  insurance . Consumers can access quotes for premiums and coverage plans to find the most affordable package for their needs.

Determine Your Needs

Health and dental  insurance  is not just about finding the lowest premiums. You also need to factor in the costs of co-pays, deductibles, and maximum benefits. Determine how often you see a doctor and how much you can afford to pay in medical expenses. Too little coverage can set you back financially if you have an unexpected hospital bill, so make sure you have enough coverage to protect yourself.

You should also be aware that pre-existing conditions are not typically covered for the first 12 months of the health or dental  insurance  policy. This is common whether you receive coverage from an employer or purchase it yourself.

Start Getting Quotes

Online health and dental companies are dominated by traditional  insurance  companies, not shady entities. These traditional  insurance  companies use the internet to allow you to research their financial records, terms and conditions, and customer service practices. The internet has also increased competition between providers, resulting in more affordable options for individuals and small business owners.

Comparing Quotes

When you request a quote online for health or dental  insurance , the company will give you a “base” rate quote, what an average consumer will pay in your area with average health conditions. The more information you provide, the more realistic the quote will be. “Base” quotes allow you to quickly compare plans and prices, without having to submit answers to a tedious amount of questions.

The Official Quote

To get an official quote, you will need to fill out an application with an  insurance  company. Typically an  insurance  company will require access to your health records, submitting to a medical exam, and providing answers to a detailed questionnaire. The  insurance  company uses the information to determine your risk to give you an official quote.

Once you have an official  insurance  quote, the paperwork is practically finished so you can quickly have health and dental  insurance . The entire process can take up about four weeks.

To view our list of recommended companies online that provide health

 insurance  and can help you compare quotes, visit this page: Recommended  Insurance  Companies Online [http://www.ezerk.com/articulos.php?category=53].



Home Owners Insurance and Trees – You Love Them Your Insurance Company Hates Them

Coverage for damage caused by trees and for the trees themselves is one of many confusing areas of a Homeowners  insurance  policy.

Your neighbors’ tree falls and damages your garage, shed and fence.

Will  insurance  pay for the damage?

Whose  insurance  should pay?

What will they pay for?

A tree falls in your yard.

Will your  insurance  policy pay for it to be removed?

Will it pay for a new tree?

A tree limb breaks from wind or a lightning storm and is dangling over your house.

Will your  insurance  policy pay for it to be removed?

What if it’s hanging over a neighbor’s house?

A tree falls on your car.

What policy will cover the damage to my car?

Is there coverage for the tree removal?

First, the basics; it does not matter whose tree it was. If there is damage to your property (from anyone’s tree) your  insurance  policy is the one to respond. If there is damage from your tree to a neighbor’s property, their  insurance  policy is involved. If there is damage to both properties (from anyone’s tree) both policies will be involved and each will deal with its own property only.

The only time a Homeowners  insurance  policy should be involved with damage to someone else’s property is if there is liability involved. That is if the tree was rotten or leaning and should have been removed or trimmed prior to the damage occurring. Even then the damaged properties  insurance  policy will generally pay for their customer’s damage and then try to recover their money from the tree owners’  insurance  company.

Second, the important consideration for coverage is; what is physically damaged. If a tree, or portion of a tree, falls and does not damage any real property there is no coverage. Real property is any building, structure or contents item it does not include land, landscaping or plants of any kind. A fence, shed, patio, driveway, swing set or bicycle would count as real property.

If a tree falls into your yard and does not cause any damage to the home or any other real property then there is no coverage to remove the tree or for any cleanup. Sorry!

If there is damage to anything such as a fence then the policy should cover repairs or replacement of the damaged item(s) and also limited coverage for removal of the tree. To make this even more confusing; the tree removal coverage is divided in 2 phases.

Phase 1: Getting the tree removed off of the real property is covered with no sub-limit. That is if a tree is on a storage shed then the first stage of tree removal is to remove it off the shed so repairs can be made. The only limit for this part of the removal is the coverage limit on this section of your policy; in this case the Other Structures coverage.

If the repairs to the shed and the tree removal combined are greater than the coverage available then there is an additional coverage available for debris removal. This is 5% in most cases, so if you have $10,000 coverage on Other Structures you can have up to $10,500 for the repairs and tree removal cost.

Phase 2: The second stage of tree removal is removing the tree debris off the premises. This portion is limited to $500 or $1,000, this limit can vary by  insurance  company, policy type and state involved.

Third, the tree itself is covered in certain limited circumstances and for a limited amount only. The tree is not covered for wind or hail damage but is covered for damage from fire, lightning, explosion, vandalism and vehicle damage (as long as it was not a vehicle driven by members of your family). The limit is typically $500 per tree but can be more on some policies and in some states.

Fourth, If a damaged tree is leaning toward your home or dangling precipitously over your home what is covered? Assuming that portion of the tree has not damaged real property then there is NO coverage. Even if another tree or portion of the same tree has caused damage.

It is your responsibility to protect your property. The  insurance  policy only covers damage, NOT potential damage. The same is true if one of your trees is dangling over someone else’s property, no coverage for potential damage.

If you ignore the situation and the tree later falls and causes damage to the neighbor’s home their  insurance  will cover their damage. They will then want to recover their money from your  insurance  company, or you. This is called subrogation.

If the later damage occurs to your home your  insurance  company could try to deny coverage because you did not protect the property.

The Homeowners  insurance  policy covers sudden and accidental damage it is not a maintenance policy.

Finally, damage to any automobile will only be covered on the auto policy (then only if you have Comprehensive coverage). The tree removal will not be covered by your Homeowners policy unless other real property was damaged.

See our websites mentioned below for more information. You can send direct questions or read what other homeowners have asked.



Fire Insurance Under Indian Insurance Law

A contract of Insurance comes into being when a person seeking insurance protection enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire and or lightening, explosion, etc. This is primarily a contract and hence as is governed by the general law of contract. However, it has certain special features as insurance transactions, such as utmost faith, insurable interest, indemnity, subrogation and contribution, etc. these principles are common in all insurance contracts and are governed by special principles of law.

FIRE INSURANCE:

According to S. 2(6A), “fire insurance business” means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence, customarily included among the risks insured against in fire insurance business.

According to Halsbury, it is a contract of insurance by which the insurer agrees for consideration to indemnify the assured up to a certain extent and subject to certain terms and conditions against loss or damage by fire, which may happen to the property of the assured during a specific period.

Thus, fire insurance is a contract whereby the person, seeking insurance protection, enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire or lightning, explosion etc. This policy is designed to insure one’s property and other items from loss occurring due to complete or partial damage by fire.

In its strict sense, a fire insurance contract is one:

1. Whose principle object is insurance against loss or damage occasioned by fire.

2. The extent of insurer’s liability being limited by the sum assured and not necessarily by the extent of loss or damage sustained by the insured: and

3. The insurer having no interest in the safety or destruction of the insured property apart from the liability undertaken under the contract.

LAW GOVERNING FIRE INSURANCE

There is no statutory enactment governing fire insurance, as in the case of marine insurance which is regulated by the Indian Marine Insurance Act, 1963. the Indian Insurance Act, 1938 mainly dealt with regulation of insurance business as such and not with any general or special principles of the law relating fire of other insurance contracts. So also the General Insurance Business (Nationalization) Act, 1872. in the absence of any legislative enactment on the subject , the courts in India have in dealing with the topic of fire insurance have relied so far on judicial decisions of Courts and opinions of English Jurists.

In determining the value of property damaged or destroyed by fire for the purpose of indemnity under a policy of fire insurance, it was the value of the property to the insured, which was to be measured. Prima facie that value was measured by reference of the market value of the property before and after the loss. However such method of assessment was not applicable in cases where the market value did not represent the real value of the property to the insured, as where the property was used by the insured as a home or, for carrying business. In such cases, the measure of indemnity was the cost of reinstatement. In the case of Lucas v. New Zealand Insurance Co. Ltd.[1] where the insured property was purchased and held as an income-producing investment, and therefore the court held that the proper measure of indemnity for damage to the property by fire was the cost of reinstatement.

INSURABLE INTEREST

A person who is so interested in a property as to have benefit from its existence and prejudice by its destruction is said to have insurable interest in that property. Such a person can insure the property against fire.

The interest in the property must exist both at the inception as well as at the time of loss. If it does not exist at the commencement of the contract it cannot be the subject-matter of the insurance and if it does not exist at the time of the loss, he suffers no loss and needs no indemnity. Thus, where he sells the insured property and it is damaged by fire thereafter, he suffers no loss.

RISKS COVERED UNDER FIRE INSURANCE POLICY

The date of conclusion of a contract of insurance is issuance of the policy is different from the acceptance or assumption of risk. Section 64-VB only lays down broadly that the insurer cannot assume risk prior to the date of receipt of premium. Rule 58 of the Insurance Rules, 1939 speaks about advance payment of premiums in view of sub section (!) of Section 64 VB which enables the insurer to assume the risk from the date onwards. If the proposer did not desire a particular date, it was possible for the proposer to negotiate with insurer about that term. Precisely, therefore the Apex Court has said that final acceptance is that of the assured or the insurer depends simply on the way in which negotiations for insurance have progressed. Though the following are risks which seem to have covered Fire Insurance Policy but are not totally covered under the Policy. Some of contentious areas are as follows:

FIRE: Destruction or damage to the property insured by its own fermentation, natural heating or spontaneous combustion or its undergoing any heating or drying process cannot be treated as damage due to fire. For e.g., paints or chemicals in a factory undergoing heat treatment and consequently damaged by fire is not covered. Further, burning of property insured by order of any Public Authority is excluded from the scope of cover.

LIGHTNING : Lightning may result in fire damage or other types of damage, such as a roof broken by a falling chimney struck by lightning or cracks in a building due to a lightning strike. Both fire and other types of damages caused by lightning are covered by the policy.

AIRCRAFT DAMAGE: The loss or damage to property (by fire or otherwise) directly caused by aircraft and other aerial devices and/ or articles dropped there from is covered. However, destruction or damage resulting from pressure waves caused by aircraft traveling at supersonic speed is excluded from the scope of the policy.

RIOTS, STRIKES, MALICIOUS AND TERRORISM DAMAGES: The act of any person taking part along with others in any disturbance of public peace (other than war, invasion, mutiny, civil commotion etc.) is construed to be a riot, strike or a terrorist activity. Unlawful action would not be covered under the policy.

STORM, CYCLONE, TYPHOON, TEMPEST, HURRICANE, TORNADO, FLOOD and INUNDATION: Storm, Cyclone, Typhoon, Tempest, Tornado and Hurricane are all various types of violent natural disturbances that are accompanied by thunder or strong winds or heavy rainfall. Flood or Inundation occurs when the water rises to an abnormal level. Flood or inundation should not only be understood in the common sense of the terms, i.e., flood in river or lakes, but also accumulation of water due to choked drains would be deemed to be flood.

IMPACT DAMAGE: Impact by any Rail/ Road vehicle or animal by direct contact with the insured property is covered. However, such vehicles or animals should not belong to or owned by the insured or any occupier of the premises or their employees while acting in the course of their employment.

SUBSIDENCE AND LANDSLIDE INCULUDING ROCKSIDE: Destruction or damage caused by Subsidence of part of the site on which the property stands or Landslide/ Rockslide is covered. While Subsidence means sinking of land or building to a lower level, Landslide means sliding down of land usually on a hill.

However, normal cracking, settlement or bedding down of new structures; settlement or movement of made up ground; coastal or river erosion; defective design or workmanship or use of defective materials; and demolition, construction, structural alterations or repair of any property or ground-works or excavations, are not covered.

BURSTING AND/OR OVERFLOWING OF WATER TANKS, APPARATUS AND PIPES: Loss or damage to property by water or otherwise on account of bursting or accidental overflowing of water tanks, apparatus and pipes is covered.

MISSILE TESTING OPERATIONS: Destruction or damage, due to impact or otherwise from trajectory/ projectiles in connection with missile testing operations by the Insured or anyone else, is covered.

LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATIONS: Damage, caused by water accidentally discharged or leaked out from automatic sprinkler installations in the insured’s premises, is covered. However, such destruction or damage caused by repairs or alterations to the buildings or premises; repairs removal or extension of the sprinkler installation; and defects in construction known to the insured, are not covered.

BUSH FIRE: This covers damage caused by burning, whether accidental or otherwise, of bush and jungles and the clearing of lands by fire, but excludes destruction or damage, caused by Forest Fire.

RISKS NOT COVERED BY FIRE INSURANCE POLICY

Claims not maintainable/ covered under this policy are as follows:

o Theft during or after the occurrence of any insured risks

o War or nuclear perils

o Electrical breakdowns

o Ordered burning by a public authority

o Subterranean fire

o Loss or damage to bullion, precious stones, curios (value more than Rs.10000), plans, drawings, money, securities, cheque books, computer records except if they are categorically included.

o Loss or damage to property moved to a different location (except machinery and equipment for cleaning, repairs or renovation for more than 60 days).

CHARACTERICTICS OF FIRE INSURANCE CONTRACT

A fire insurance contract has the following characteristics namely:

(a) Fire insurance is a personal contract

A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see that the insured does not suffer loss by reason of his interest in the insured property. Hence, if his connection with the insured property ceases by being transferred to another person, the contract of insurance also comes to an end. It is not so connected with the subject matter of the insurance as to pass automatically to the new owner to whom the subject is transferred. The contract of fire insurance is thus a mere a personal contract between the insured and the insurer for the payment of money. It can be validly assigned to another only with the consent of the insurer.

(b) It is entire and indivisible contract.

Where the insurance is of a binding and its contents of stock and machinery, the contract is expressly agreed to be divisible. Thus , where the insured is guilty of breach of duty towards the insurer in respect of one subject matters covered by the policy , the insurer can avoid the contract as a whole and not only in respect of that particular subject mater , unless the right is restricted by the terms of the policy.

(c) Cause of fire is immaterial

In insuring against fire, the insured wishes to protect him from any loss or detriment which he may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus , whether it was because the fire was lighted improperly or was lighted properly but negligently attended to thereafter or whether the fire was caused on account of the negligence of the insured or his servants or strangers is immaterial and the insurer is liable to indemnify the insured. In the absence of fraud, the proximate cause of the loss only is to be looked to.

The cause of the fire however becomes material to be investigated

(1). Where the fire is occasioned not by the negligence of, but by the willful

(2) Where the fire is due is to cause falling with the exception in the contract.

LIMITATION OF TIME

Indemnity insurance was an agreement by the insurer to confer on the insured a contractual right, which prima facie, came into existence immediately when the loss was suffered by the happening of an event insured against, to be put by the insurer into the same position in which the accused would have had the event not occurred but in no better position. There was a primary liability, i.e. to indemnify, and a secondary liability i.e. to put the insured in his pre-loss position, either by paying him a specifying amount or it might be in some other manner. But the fact that the insurer had an option as to the way in which he would put the insured into pre-loss position did not mean that he was not liable to indemnify him in one way or another, immediately the loss occurred. The primary liability arises on the happening of the event insured against. So, the time ran from the date of the loss and not from the date on which the policy was avoided and any suit filed after that time limit would be barred by limitation.[2]

WHO MAY INSURE AGAINST FIRE?

Only those who have insurable interest in a property can take fire insurance thereon. The following are among the class of persons who have been held to possess insurable interest in, property and can insure such property:

1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It is not necessary that they should possession also. Thus a lesser and a lessee can both insure it jointly or severely.

2. The vender and purchaser have both rights to insure. The vendor’s interest continues until the conveyance is completed and even thereafter, if he has an unpaid vendor’s lien over it.

3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can insure, per Lord Esher M.R.”The mortgagee does not claim his interest through the mortgagor , but by virtue of the mortgage which has given him an interest distinct from that of the mortgagor”[3]

4. Trustees are legal owners and beneficiaries the beneficial owners of trust property and each can insure it.

5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the property entrusted to them and so can insure it.

PERSON NOT ENTITLED TO INSURE

One who has no insurable interest in a property cannot insure it. For example:

1. An unsecured creditor cannot insure his debtor’s property, because his right is only against the debtor personally. He can, however, insure the debtor’s life.

2. A shareholder in a company cannot insure the property of the company as he has no insurable interest in any asset of the company even if he is the sole shareholder. As was the case of Macaura v. Northen Assurance Co.[4] Macaura. Because neither as a simple creditor nor as a shareholder had he any insurable interest in it.

CONCEPT OF UTMOST FAITH

As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is also under a positive duty to make a full disclosure of all material facts and not to make any misrepresentations or misdescreptions thereof during the negotiations for obtaining the policy. This duty of utmost good faith applies equally to the insurer and the insured. There must be complete good faith on the part of the assured. This duty to observe utmost good faith is ensured b requiring the proposer to declare that the statements in the proposal form are true, that they shall be the basis of the contract and that any incorrect or false statement therein shall avoid the policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and accept the risk or decline it.

The questions in the proposal form for a fire policy are so framed as to get all information which is material to the insurer to know in order to assess the risk and fix the premium, that is, all material facts. Thus the proposer is required too give information relating to:

o The proposer’s name and address and occupation

o The description of the subject matter to be insured sufficient for the purpose of identifying it including,

o A description of the locality where it is situated

o How the property is being used, whether for any manufacturing purpose or hazardous trade.etc

o Whether it has already been insured

o And also ant personal insurance history including the claims if any made buy the proposer, etc.

Apart from questions in the proposal form, the proposer should disclose whether questioned or not-

1. Any information which would indicate the risk of fire to be above normal;

2. Any fact which would indicate that the insurer’s liability may be more than normal can be expected such as existence of valuable manuscripts or documents, etc, and

3. Any information bearing upon the more; hazard involved.

The proposer is not obliged to disclose-

1. Information which the insurer may be presumed to know in the ordinary course of his business as an insurer;

2. Facts which tend to show that the risk is lesser than otherwise;

3. Facts as to which information is waived by the insurer; and

4. Facts which need not disclosed in view of a policy condition.

Thus, assured is under a solemn obligation to make full disclosure of material facts which may be relevant for the insurer to take into account while deciding whether the proposal should be accepted or not. While making a disclosure of the relevant facts, the

DOCTRINE OF PROXIMATE CAUSE

Where more perils than one act simultaneously or successively, it will be difficult to assess the relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases, the doctrine of proximate cause helps to determine the actual cause of the loss.

Proximate cause was defined in Pawsey v. Scottish Union and National Ins. Co.,[5]as “the active, effective cause that sets in motion a train of events which brings about a result without the intervention of any force started and working actively from a new and independent source.” It is dominant and effective cause even though it is not the nearest in time. It is therefore necessary when a loss occurs to investigate and ascertain what is the proximate cause of the loss in order to determine whether the insurer is liable for the loss.

PROXIMATE CAUSE OF DAMAGE

A fire policy covers risks where damage is caused by way of fire. The fire may be caused by lightening, by explosion or implosion. It may be result of riot, strike or on account of any, malicious act. However these factors must ultimately lead to a fire and the fire must be the proximate cause of damage. Therefore, a loss caused by theft of property by militants would not be covered by the fire policy. The view that the loss was covered under the malicious act clause and therefore .the insurer was liable to meet the claim is untenable, because unless and until fire is the proximate cause f damage, no claim under a fire policy would be maintainable.[6]

PROCEDURE FOR TAKING A FIRE INSURANCE POLICY

The steps involved for taking a fire insurance policy are mentioned below:

1. Selection of the Insurance Company:

There are many companies that offer fire insurance against unforeseen events. The individual or the company must take care in the selection of an insurance company. The judgment should rest on factors like goodwill, and long term standing in the market. The insurance companies can either be approached directly or through agents, some of them who are appointed by the company itself.

2. Submission of the Proposal Form:

The individual or the business owner must submit a completed prescribed proposal form with the necessary details to the insurance company for proper consideration and subsequent approval. The information in the Proposal Form should be given in good faith and must be accompanied by documents that verify the actual worth of the property or goods that are to be insured. Most of the companies have their own personalized Proposal Forms wherein the exact information has to be provided.

3. Survey of the Property/ Consideration:

Once the duly filled Proposal Form is submitted to the insurance company, it makes an “on the spot” survey of the property or the goods that are the subject matter of the insurance. This is usually done by the investigators, or the surveyors, who are appointed by the company and they need to report back to them after a thorough research and survey. This is imperative to assess the risk involved and calculate the rate of premium.

4. Acceptance of the Proposal:

Once the detailed and comprehensive report is submitted to the insurance company by the surveyors and related officers, the former makes a thorough perusal of the Proposal Form and the report. If the company is satisfied that their is no lacuna or foul play or fraud involved, it formally “accepts” the Proposal Form and directs the insured to pay the first premium to the company. It is to be noted that the insurance policy commences after the payment and the acceptance of the premium by the insured and the company, respectively. The Insurance Company issues a Cover Note after the acceptance of the first premium.

PROCEDURE ON RECEIPT OF NOTICE OF LOSS

On receipt of the notice of loss, the insurer requires the insured to furnish details pertaining to the loss in a claim from relating to the following information-

1. Circumstances and cause of the fire;

2. Occupancy and situation of the premises in which the fire occurred;

3. Insured’s interest in the insured property; that is capacity in which the insured claims and whether any others are interested in the property;

4. Other insurances on the property;

5. Value of each item of the property at the time of loss together with proofs thereof , and value of the salvage ,if any; and

6. Amount claimed

Furnishing such information relating to the claim is also a condition precedent to the liability of the insurer. The above information will enable the insurer to verify whether-

(1) The policy is in force;

(2) The peril causing the loss is an insured peril;

(3) The property damaged or lost is the insured property.

Rules for calculation of value of property

The value of the insured property is-

1) Its value at the time of loss, and

2) At the place of loss, and

3) Its real or intrinsic value without any regard for its sentimental vale. Loss of prospective profit or other consequential loss is not to be taken into account.

FILING OF CLAIMS

How a claim arises?

After a contract of fire insurance has come into existence, a claim may arise by the operation of one or more insured perils on an unsecured property. There may in addition one or more uninsured perils also operating simultaneously or in succession of the property. In order that the claim should be valid the following conditions must be fulfilled:

1. The occurrence should take place due to the operation of an insured peril or where both insured and other perils operated , the dominant or efficient cause of the loss must have been an insured peril;

2. The operation of the peril must not come within the scope of the policy exceptions;

3. The event must have caused loss or damage of the insured property;

4. The occurrence must be during the currency of the policy;

5. The insured must have fulfilled all the policy conditions and should also comply with requirements to be fulfilled after the claim had arisen.

MATERIAL FACTS IN FIRE INSURANCE: PREVIOUS CONVICTION OF THE ACCUSED

The criminal record of an assured could affect the moral hazard, which insurers had to assess, and the non-disclosure of a serious criminal offence like robbery by the plaintiff would a material non-disclosure.

INSURED’S DUTY ON OUTBREAK OF FIRE, IMPLIED DUTY

On the outbreak of a fire the insured is under an implied duty to observe good faith towards the insurers and the in pursuance of it the insured must do his best to avert or minimize the loss. For this purpose he must (1) take all reasonable measures to put out the fire or prevent its spread, and (2) assist the fire brigade and others in their attempts to do so at any rate not come in their way.

With this object the insured property may be removed to a place of safety. Any loss or damage the insured property may sustain in the course of attempts to combat the fire or during its removal to a place of safety etc., will be deemed to be loss proximately caused by the fire.

If the insured fails in his duty willfully and thereby increases the burden of the insurer, the insured will be deprived of his right to revive any indemnity under the policy.[7]

INSURER’S RIGHTS ON THE OUTBREAK OF FIRE

(A) Implied Rights

Corresponding to the insured’s duties the insurers have rights by the law, in view of the liability they have undertaken to indemnify the insured. Thus the insurers have a right to-

o Take reasonable measures to extinguish the fire and to minimize the loss to property, and

o For that purpose, to enter upon and take possession of the property.

The insurers will be liable to make good all the damage the property may sustain during the steps taken to put out the fire and as long as it in their possession, because all that is considered the natural and direct consequence of the fire; it has therefore been held in the case of Ahmedbhoy Habibhoy v. Bombay Fire Marine Ins. Co [8] that the extent of the damage flowing from the insured peril must be assessed when the insurer gives back and not as at the time when the peril ceased.

(B) Loss caused by steps taken to avert the risk

Damage sustained due to action taken to avoid an insured risk was not a consequence of that risk and was not recoverable unless the insured risk had begun to operate. In the case of Liverpool and London and Globe Insurance Co. Ltd v. Canadian General Electric Co. Ltd., [9] the Canadian Supreme Court held that “the loss was caused by the fire fighters’ mistaken belief that their action was necessary to avert an explosion , and the loss was not recoverable under the insurance policy, which covered only damage caused by fire explosion., and the loss was not recoverable under the insurance policy, which covered only damage caused by fire or explosion.”

(C) Express rights

Condition 5- in order to protect their rights well insurers have prescribed for better rights expressly in this condition according to which on the happening of any destruction or damage the insurer and every person authorized by the insurer may enter, take or keep possession of the building or premises where the damage has happened or require it to be delivered to them and deal with it for all reasonable purposes like examining, arranging, removing or sell or dispose off the same for the account of whom it may concern.

When and how a claim is made?

In the event of a fire loss covered under the fire insurance policy, the Insured shall immediately give notice thereof to the insurance company. Within 15 days of the occurrence of such loss, the Insured should submit a claim in writing, giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.

The Insured should procure and produce, at his own expense, any document like plans, account books, investigation reports etc. on demand by the insurance company.

HOW INSURANCE MAY CEASE?

Insurance under a fire policy may cease in any of the following circumstances, namely:

(1) Insurer avoiding the policy by reason of the insured making misrepresentation, misdescription or non-disclosure of any material particular;

(2) If there is a fall or displacement of any insured building range or structure or part thereof , then on the expiry of seven days wherefrom, except where the fall or displacement was due to the action of any insured peril; notwithstanding this, the insurance may be revived on revised terms if express notice is given to the company as soon as the occurrence takes place;

(3) The insurance may be terminated at any tie at the request of the insured and at the option of the company on 15 days notice to the insured

CONCLUSION

Tangible property is exposed to numerous risks like fire, floods, explosions, earthquake, riot and war, etc. and insurance protection can be had against most of these risks severally or in combination. The form in which the cover is expressed is numerous and varied. Fire insurance in its strict sense is concerned with giving protection against fire and fire only. So while granting a fire insurance policy all the requisites need be fulfilled. The insured are under a moral and legal obligation to be at utmost good faith and should be telling true facts and not just fake grounds only with the greed to recover money. Further all insurance policies help in the development of a Developing nation. Hence insurance companies have a burden to help the insured when the insured are in trouble.

REFERENCE:

1. (1983) VR 698 (Supreme Court of Vienna)

2. Callaghan v. Dominion Insurance Co. Ltd. (1997) 2 Lloyd’s Rep. 541 (QBD)

3. Small v. U.K Marine Insurance Association (1897) 2 QB 311

4. (1925) AC 619

5. (1907) Case.

6. National Insurance Company v. Ashok Kumar Barariio

7. Devlin v. Queen Insurance Co, (1882) 46 UCR 611.

8. (1912) 40 IA 10 PC

9. (1981) 123 DLR (3d) 513 (Supreme Court of Canada)

Books Referred:

1. The Economics of Fire Protection by Ganapathy Ramachandran

2. Modern Insurance Law, by John Birds

3. The Handbook of Insurance Regulatory and Development Authority Act and Regulations with Allied Laws ,by Nagar



Auto Insurance FAQ

In some cases, you will call insurance company when your car breaks down in the middle of the road for towing assistance. When the vehicle arrives at the repair shop, insurance policy covers the damage and provides rental car until your car is ready to go again. There are two main purposes of purchasing auto insurance: to comply with the law and protect yourself from the inevitable. In a modern world where thousands of people are on the road every hour and cars are all over the place, involvement in an accident is one of the inevitable occurrences. It does not happen often, but accident does happen.

Do I need to buy auto insurance?

Nearly all states require drivers or anyone who owns and drives a car to purchase auto insurance. An insurance policy is proof of financial responsibility for using the car and driving it on the public road. Even when you do not want to purchase insurance, you need to provide valid proof of financial responsibility in forms of assets to pay claims in case you are at fault in an accident. Liability insurance is a must in every state.

How much do I have to spend for auto insurance?

Every state has a set of rules regarding auto insurance including the minimum amount you need to pay. In most states, liability policy is obligatory. Those policies cover the amount you have to pay if someone else suffers from injury and property damage following an accident in which you are at fault. They do not cover your medical payment and damages to your property. You have the option to prolong the coverage to give financial protection to yourself through various policies such as Collision, Personal Injury Protection, Comprehensive, and Rental Reimbursement.

How does insurance company determine my premium?

There are many factors to consider, but in most cases the insurer looks into the following:

· Driving record

· Types of car

· Crime rate in your neighborhood

· Distance you cover with your car on day to day basis

· Age

· Profession

· Types of coverage you buy

It is not exceptional for a company to consider your current credit rating too. There is a correlation between credit score and the probability of missing premium payment. Most companies offer discounts to reduce the premium, but eligibility requirement varies. One of the most current discounts is for policy bundling, for example, you purchase insurance for your cars and home from the same company.

What if my friend drives my car?

There is no clear line whether or not your auto policy applies if someone else drives your car. The decision regarding this issue depends on the insurer, and the rules vary among companies. Some types of coverage such as Collision and Comprehensive follow the car, meaning the policies apply regardless of who is driving. Other types of coverage follow the person, for example, liability and medical payment. If your friend does not have the necessary policy, you cannot file claims for your friend’s injury.

Why do teen drivers pay more for auto insurance than adults?

Teen drivers pay more expensive for auto insurance because insurance company think they lack experience and tend to commit violations including speeding and other infractions. Parents must educate their teen children about the cost of insurance concerning consumption of alcohol and drugs. Driving under the influence (DUI) of alcohol or drugs is a major violation that affects insurance premium. The insurance company determines the rate or premium by measuring probability and therefore risky behaviors including underage drug use and consumption of alcohol increases insurance rate.

What do I do after a DUI?

Record of a DUI may force insurance company to cancel the policy. After cancellation due to a DUI, auto insurance is hard to come by, but it is available in non-standard market or insurance for high-risk drivers. The premium is more expensive from such market, but necessary to comply with the law.

Does anyone know the way to reduce the premium for teens?

Other factors that affect teen driver’s auto insurance are:

· Grades: good academic performance allows for “good grade” discounts. Some companies offer a discount of up to 25% off premium for students with average B score or higher.

· Car models: high-performance cars are risky. They reach high speed in no time, and that increases the risk of accidents. A more conventional model can help reduce the premium as well.

An insurance agent is a helpful source of information. This is the person to consult about cost, possible violation, eligibility for discounts, and coverage options.



Insurance Land Surveyor

Land is considered as one of the priceless possessions that you can have in this earth. Ever since, land has this concept of being sacred and beyond the control of those who do not own it. While land before were free for use of the inhabitants, the population has tremendously increased such that most the lands now for public disposal are either occupied or titled. People who possess ownership over a parcel of land either by occupation or by clean title would like to protect the same from any person who would attempt to dispossess them of the property. Those were the times when the land insurance was not yet contemplated. Those were also the days when the insurance land surveyor was not yet born.

Often times, land claims and disputes arise and some of these have been at the price of one’s life. This is how people are willing to risk their life for a piece of land. Traditionally, local folks have their council of elders and their local laws to settle whatever land claims and disputes are through physical strength. Nowadays, there is not much need for that since there is an insurance land surveyor around who can help you determine the exact measurements of your land including the boundaries through state-of-the-art technology.

A land surveyor is somebody who is involved with land by measuring the field, reading old cadastral records and making data analysis. He will set the property’s boundaries. Construction layouts that need precise measurements of the land, its elevation, and volume will need the work of a good land surveyor. Land surveyors are out in the field most of the day along with construction crew and other equipments. Land surveyors get insurance land surveyor for their jobs.

Surveyors opt to have insurance because they are personally held liable incase they make errors in their jobs. If they declared boundaries on the particular piece of land, but they unknowingly expanded the boundary, they are liable for the aggrieved party. These aggrieved parties have a right to sue the surveyor because their property rights have been violated. Surveyors will come face to face with a very costly lawsuit. Insurance companies offer insurance land surveyor that kind of insurance. While they offer land survey firms business insurance. This usually includes professional liability for errors, worker’s compensation and commercial auto.

For surveyors working under firms, check your company policy. Did they insure their employees? Just because the company got an insurance that includes professional liability for errors, don’t be so sure that you are off the hook. There might be lapses and the company can actually change the insurance policy because the rate fluctuated to a higher one or forget to pay it. While the company has a new insurance land surveyor policy, the land surveyor still remains with the possibility of lawsuits.



Does Your Baby Really Need Life Insurance?

Among the many things people have to consider when deciding on life  insurance  coverage is one very common aspect: whether or not to get coverage for newborn children. The argument can be tempting if you look at some of the advertising which surrounds it. What parent wouldn’t want to start helping their child financially right from the start, and with extremely affordable rates to boot?

The other benefits of obtaining a policy for an infant include being able to guarantee that your child will be able to be insured in the future, regardless of the type of illness which may befall them. As well, if your child turns out not having to need the coverage, they have access to the policy’s money if a whole life policy was chosen.

But although this kind of life  insurance  coverage looks like a good financial move, some experts warn that this kind of policy is not a good idea, ever. So which way should you go when trying to decide on coverage for your family’s new addition?

 Insurance  Coverage vs. Investing

Experts warn that many infant life  insurance  benefits are overstated, and say that parents are better off taking the money and investing it elsewhere. Before making the decision to do this, however, some clarification should be provided where the benefits of a whole life policy versus the financial returns on an investment like an IRA are concerned.

The focus of a whole life  insurance  policy is to steadily build cash over time. But experts say that the return on many other investments will be far higher than anything that the parents of a child with life  insurance  will realize. They also suggest not taking out whole life  insurance  on a child, but much cheaper term life, and then investing the difference they would have paid into other vehicles.

However, the risks of individual investing cannot be ignored. It takes time to formulate a financial investment plan, not to mention the paperwork required to initiate it. Add to this the stress of inexperience, and the world of stocks, mutual funds and bonds can quickly become overwhelming. This could necessitate the hiring of a financial expert to help sift through industry jargon to find the best investment opportunities offering the highest rate of return.

It’s All About Perspective

Experts also say that it’s the way in which infant life  insurance  policies are marketed that’s leading to many misconceptions surrounding this option. Most commonly, this type of policy is marketed as a way for parents to save money for their children. But those in the industry say that infant policies should be sold as an  insurance  product instead.

Parental Under-insurance Is a Real Problem

There are many parents out there who put so much energy into deciding about life  insurance  coverage for their newborn children that they neglect to consider their own coverage. And this is a big mistake, according to many in the  insurance  industry.

They say that having indemnity coverage at all stages of life is important, but is especially important when a child has been born. This is because should something happen to one parent during this period of significant transition, the other parent will be better able to weather the storm as they will have more financial stability than a parent who is underinsured.

Another alternative to newborn  insurance  benefits could be a qualified tuition plan, which provides money for a child’s future education in the event that something happens to the income of the parents via death or accident.



Never Compare Insurance Based On Price Alone

Insurance comparison websites simplify the insurance buying process and most people now buy insurance through these sites. Once you know the class of cover you need, you type a few details into any of these sites and instantly gain access to multiple insurance companies with the cheapest quote displayed in a few seconds.

While the process of buying insurance especially car and home insurance appear simplified, same cannot be said of the products.

The insured enters into a contract every time he/she buys an insurance policy and like any contract needs to be examined carefully to ascertain its suitability for the buyer.

The frequency of advertisement in both the print and electronic media by the owners of these sites drowns out complaints and muttering of people who may have had a claim declined because they based their insurance purchase decision on price (premium) alone.

As a way of illustrating how the use of price alone to select an appropriate insurance policy could be problematic, let us look at how the price of a burger is determined.

£0.99 could fetch you a burger at a McDonald’s restaurant but that same store will also have a burger made with a bun of similar size for £5.99. The difference in the price of the two burgers being the topping.

While the cheaper burger may only contain beef, the more expensive offering will probably have a better quality beef, possibly bacon plus lettuce, onion, Mayonnaise, mushroom and pickles.

The £0.99 burger (let’s call this the bare-bones burger) may appeal to some but may not necessarily be what others want.

The £5.99 burger (ROBUST burger) though more expensive, may just be what the other person needs to satisfy his appetite and is willing to pay the extra to meet his needs provided he is aware of the extras which add up to make this other burger expensive.

Bare-bones vs Comprehensive policies

Much like the example above, insurance policies can also be said to either bare-bones or ROBUST/comprehensive. However, it is not always easy for every insurance buyer to tell the difference between the bare-bones policy and the comprehensive, especially when presented in abridged versions with the cheapest ranked topmost.

Risks covered as standard by insurance company ‘A’ could be sold as an add-on by company ‘B’.

The premium quoted by ‘A’ may thus appear higher than that of ‘B’ because the standard policy ‘B’ is offering is a bare-bones cover. If you then opt for this policy because of the cheaper price without realizing that some of the risks you need are not included, this could lead to a dispute when a loss/claim is reported.

Possible Conflict of Interest

Some of the comparison websites are either wholly or partly owned by Insurance companies and thus a conflict of interest may arise. Results of premiums quoted could thus be skewed in favour of the parent or partner companies.

Operators of these sites may also be swayed by the offer high commission rates resulting in the sites promoting particular brands.

Some Insurers are not Included

As at a time of writing, some of the largest insurance companies in Britain notably Aviva and Direct Line are not listed on comparison websites so it is possible that improved terms could be obtained from companies not listed.

Finally, it is worthy of note that these comparison sites only serve as a go-between, linking the prospective buyer to the insurance companies. They only present premiums generated using algorithms furnished by insurers and afterward direct a buyer to the website of the insurer with the chosen quote. In the event that a dispute arises, traceable to a misunderstanding at the point of quotation, these firms are unlikely to assume responsibility.