MAJOR TYPES OF FIRE POLICIES
PERSONAL ACCIDENT INSURANCE
There
are different types of
accident covers, accident including some special
types of covers. It was not
until the middle of the nineteenth century that a beginning
was made for insurance against bodily
injury. The earliest
companies to undertake this type of insurance were especially
concerned with railway
accidents. This limitation did
not last song and within
a few year the accident insurance railway accident insurance companies were offering insurance against only death but also
bodily injury from any accidental cause. The first company to sell
accident insurance to those policies was
the one charted in 1848 by the British
Parliament to sell travel insurance to those who travelled by train. The first accident
insurance company of the US the, Travelers insurance company founded by James C batter son of Hartford in 1864,
Connecticut was issuing policies to US railroad passengers.
Nowadays, many institutional
offer Personal Accident policies
as a measure of sales
promotion . These are limited cover accident policies
issue under a blanket cover by the banks or clubs issuing credit credit
cards to the clients. Depending
upon the class of the card , the value of the cover also differs, In
India, many credit cards offer accident
cover to their cardholders . Of late, many marketing
organizations also offer personal
accident policies with certain conditions
. For example if someone purchase
a scooter tyre, the tyre company that
has a tie-up with a general insurance company may offer a personal accident
policy to the buyer of a particular of brand of tyre. This
apart, some TV
apart . Some TV channels
to popularize the channels
promote clubs named offer after the channel and offer free accident
insurance cover to members. In the
United States of America , some publication
offer such covers to their
subscribers and such policies are
called “News paper Policies” If one has to go by the report the “Dhoti
policies” could well be the Indian counter part of the Newspaper Policies
of the USA . It is reported that MCR textiles a dhoti manufacturing company in Erode, Tamil Nadu, had tied up
with ICICI Lombard for the offer of free
personal accident coverage to all
those who buy a Mundu (dhoti) in the State of Kerala. A Novel
promotional method indeed!.
One’s decision to purchase an
insurance because the cover is given as
a free add on to some other primary purchase
or by availing of a service. As
it is said that are no free launches, one should remember that many such free
offers are not really free: they come with various types
of strings attached. Until the time of the opening up to the insurance
to the private sector. The accident insurance policies in India were issued by the state-owned insurance company,. Viz., New India assurance
Company United India insurance Company , Oriental insurance company and Nation al insurance company. In addition to the pure accident policies offered by the nationalized
general insurance company life insurance
policies issued by LIC some of its
select tables contained the accident
insurance benefits as an add-on
benefit or as an in built one. After the
industry opened up many private sector companies like Bajaj Allianz General insurance Co. IFFCO-Tokio General
insurance company , Tata Aig insurance company
, Royal Sundaram General insurance company,. Cholomandalam MS general
insurance company and ICICI Lombard
offer such covers. The terms of offer
and the benefits may very from company to company and therefore the
information, given in this pages is of general nature and not specific to any company or plan.,
sector in
India. RISK GROUPS CATEGORIZATION: In a contract of life insurance , it is possible to decide
the premium based on the mortality group
to which the proponent or the life to be insured belongs . But in a
contract of personal accident insurance, it is difficult to evaluate
the risk factor for each
proponent and fix the premium. For this
purpose, the proponents are grouped into
a different categories. RISK CATEGORY I: This category covers people who are exposed to very few accident due to the nature of their work. For this category the
probabilities of work-related accidents are almost negligible . The groups
includes mainly white collar
workers, managers , doctor, engineers,
financiers , accountants writers, consultants
et al., RISK CATEGORY II: This
category includes drivers licenced to drive
heavy vehicle employees
in a motor garage, including care mechanics, machine operators
workers engaged in the operation of various machines
as a part of their
occupations professional sports person
and athletes, person carrying
cash to different destinations
from an office or an organizations and
vice versa. In additional to the above the group also includes chauffeurs , builder including
contractors and engineering engaged in supervising construction work and person on a
similar footing a as a supervisors without
engaging in manual labour.
TYPES OF MARINE LOSSES
In view of the various
marine perils discussed above, the ship owner and the cargo owners will have to
incur huge amount of the losses. Those losses can be claimed from the insurer
only when the cause of the loss is an insured peril, If otherwise ,
obviously it does not come within the
scope of the policy and the insurer is not liable to make good the loss. In
theory, it seems to be a simple rule that the insurer is liable for losses
caused by insured perils only, but in practice the determination of the actual cause of the loss poses a huge
problem. The main difficulty arises when this loss is caused by the operation of
several contributory causes or a chain
of causes. In such a situation the
principles of cause proxima is applied
for determining the scope of
insurer’s liability. The losses incurred by the ship owners and the cargo owners are summarized in the following .
(1) TOTAL LOSS; The completed destroying or
ruining of the property insured is called
total loss. In order when the subject
matter insured or the goods are totally
lost or completely destroyed , there is total loss. For example id the risk of collision is inured and the ship is totally destroyed the insured can realize the total loss from
the underwriters. According to Section
68 of the Marine insurance Act 1964,
Subject to the provisions of this Act and to any or and to any express
provisions in the policy , where there
is a total loss of the subject matter insured
(1) If the policy is a valued
policy, the measure of indemnity is the
sum fixed by the policy
(2), If the policy be an un valued policy, the
measures of indemnity is the insurable value of the subject matter insured. The
total loss is subdivided into a two groups viz,. deprived of the
possession of the subject matter, it is
called actual total loss.
(1) The
subject matter is completely destroyed
e. g. a ship has sunk in deep
waters and neither the ship nor the cargo on board can be recovered or the ship caught fire in the which
ship and the cargo were damaged beyond
repair.
(2) The subject matter is so damaged as to cease to be a thing of the kind
insured. Here, the subject matter is not
completely destroyed but damaged to such
an extent as the result of the mishap,.
For example a ship might get ashore and
heavy waves might strike against her and
smash her to pieces or where the crockery
or glass ware is reduced to pieces and
is unfit for use a as such.
(4). The subject
matter is lost. For example, where a ship missing for a very long time
and no news of her is received I, e.
nothing is heard about the ship after she left the shore even after due search
an actual total loss is presumed unless there is some other proof to show
against it. In case of actual total loss the insured is entitled to recover full amount of loss.
But after receiving the compensation ,
the title of goods passes on to the insurer. If arrangements are made to send another ship to save and
bring it back and repair it, the total expense
involved will be greater than the value of the ship so damaged . In this
case, the ship may be abandoned and will be deemed as a constructive total loss. The constructive total loss will be there
EAT RIGHT STAY FIT THIS MONSOON
The monsoon is such a
welcome respite from the scorching summer thanks
to the overcast sky, gently rain and lush greenery all around. Almost
all of us love to savour spicy anc crunchy
food items such as a fritters pakoras
and chaats like Pani puri , sev puri, teamed with cutting chai as the
rain water lashes against the window
pane. However the season also brings
along a host of the diseases such as a dengue, viral fever, conjunctivitis, thphoid, viral fever, pneumonia, gastrontestinal disturbances, diarrhoea, food poisoning cough and cold and jaundice due to bacteria in the environment. The challenge
lies in going about your daily
routine without falling ill. If you suffer
from low immunity you are at a
higher risk of a contracting these
diseases . However the right dietary tips can strengthen your
immunity and help you stay hale and hearty.
STAY WELL-HYDRATED: Due to the humaid climate, you may not feel
too thirsty and consume just one litre of water every day . But you need to be well hydrated as sweat does not
evaporate quickly in monsoon . Consequently, this prevents the body
from releasing heat. So consume a lot of
water as a it helps to flush out toxins
from the body. Ensure that the
water is clean, pure and safe to drink. Avoid aerated drinks: instead
consume warm beverages such as a green
tea with holy basil leaves, ginger pepper and honey as they have anti-bacterial
properties. A bowl of hot vegetables soup is also a good options. The hot
beverages will increases your body temperature
which will in turn give you warmth while the ingredients will boost your
immunity.
SWITCH TO A BALANCE DIET: Consume fruits such as cherries,
bananas, apples, pomegranates, plumps, litchis and pears as they are packed with
anti-oxidants and are rich in
vitamin A, E, C and minerals . Vegetables such as a
cauliflowers , potatoes , cluster beans, lady’s finger, kidney beans, pigeon
pea and sprouted grains get spoilt easily due to the humidity: . So they should be avoided
. Opt for cooked or steamed
veggies. Avoid salads as they
comprise raw vegetables that contain active
bacteria which lead to various infections and affect the body’s immunity. Avoid strong smelling or extra sweet fruits such as a
mangoes and jack fruits that attract flies as their excess intake can cause skin irritation and stomach ache. It is also important to store vegetables that right way during the rains. Do not wash the veggies throughly
before storing as the
moisture will attract pathogenic fungus. These bacteria can spread
to other susceptible food items as well, making them unhygienic . Instead pat dry and store separate food items in different
containers . Buy them in limited
portions and use them as soon as possible.
MAINTAIN YOUR TRESSES/: Dehydration makes your hair brittle and scanty. So hydrate yourself. Zinc and
iron help to keep your tresses healthy
and beautiful . Consume nuts, eggs and
walnuts to maintain hair strength. Walnuts
are rich in biotin and vitamin E, which are excellent antioxidants . Proteins
are important for hair strength too. So add cur to your diet, as it is a
great source of protein. Amla juice
oranges and other citrus foods are rich
in vitamins C. Vitamin C keeps your hair strong
as it helps in productions of
collagen that in amount other things strengthens the hair capillaries (ensuring proper
nutrient supply to our hair). Also,
ensure that you wash your locks
on alternate days and cover them well
during the monsoon. Dried apricots
roasted sunflower seeds and lentils are better foods to
consume during monsoon than other
iron-rich foods which are susceptible to
microbial attack. Do not forgot
to eat yummy corn on cobs as corn is
also rich in iron and zinc. So the
secret to enjoy the rains, without the fear of affecting your health is to go light on eating . Have a
safe and healthy monsoon
DEBT FUND INSTRUMENTS
Interest rates are on their way down., When rates fall
prices, or the value of the debt assets rises. Debt mutual funds (MF) have therefore come to the fore front of retail investors . In debt MF scheme your funds are deployed primarily in fixed income instruments . There is no exposure to the volatile asset like quities. The objective of debt MF
scheme is to generate steady
returns while preserving your
capital thus providing high safety to your principal . Talking of risk of capita l invested
in them. The volatility in its
NAV is less compared to equity funds.
Debt funds also known is as income funds are funds that invest strictly
in debt related securities . The reason
for them being less volatile in returns
is the underlying securities in them.
Most common constituents of debt
MF are bonds debentures fixed deposits state and central government securities
commercial paper, treasury bills, call-money, market and certificate of deposits.
VARIANTS: Floating rate funds: They invest mostly in floating
rate instruments i. E. Is debt securities whose coupon Rate adjust according to change
in benchmark interest rates. The coupon changes
its, price does not Gilt funds. They invest only in debt
instruments issued by the government
namely T-bills and G-secs, .The government guarantee means that the they carry zero default
risk, which explains the
term gilt., The zero possibility of default
means they offers slightly
lower returns than corporate paper, which
bears an element of risk. Gilt
funds can be categories into long
-terms plans and short -term plans.
Between the two, long-term plans, on paper offer greater returns , but at a higher level of risk.
LIQUID FUNDS: While in come funds
and gilt funds are gilt funds are
debt options for the medium to long
terms . Liquid funds cater to the short term i. E an investments horizon
of up to the one year. Liquid funds invest in high safety financial
instruments whose tenure ranges from a day to a year, issued by the
governments (T-bills) banks (certificate paper and debentures.). These are called money market instruments , which is why liquid
funds are also referred to as a money market mutual funds.
Since money market instruments are the
at the short end of the tenure
scale, returns from liquid funds are relatively stable.
HOW THEY EARN: Similar
to the interest that a bank
fixed deposit gives during its tenure debt founds
funds also earn a regular interest from the fixed income securities
that they are invested in. In
additional debt funds buy the debt
instruments at a certain price and then
sell them. The differences between the
cost and sale price accounts for the appreciations or depreciations in the fund’s
value.
HOW NAV MOVES: A debt instruments market price depends on the interest rates of the its
underlying assets and also on any upgrade or downgrade in the credit rating of its holdings. Market prices of debt securities swing the with
movement in interest rates. Let’s assume
your debt fund, owns a security that yields
10 per cent interest . If
interest rates in the economy
fall, new instruments that hit the market would reflect the changed interest rate scenario and offer lower interest rates. This would
result in an increase in your funds, instruments price as the higher yield
would the raise the instruments value. As a result of the increase in the debt instruments value , your
fund’s NAV would also rise.
HOW TO STAY HALE AND HEARTY THIS SUMMER
Summer is
the time to take a cool dip indulge yourself with chilled beverages,
popsicles and ice-creams, and go on a
vacation. But you are also likely so to suffer from common problems such as a heat stroke, sunburn, such
as a heat stroke, sunburn, conjunctivitis
and prickly heat due to the rising mercury. How to battle these issues
is a well-known fact. So we list some other aliments that can plague you this season and tell you how to cope with them. ALLERGIES: What is it: Summer brings with
it allergies caused by pollen, mold, insect bites, poison by ivy weeds,
grass and dust mites etc. Hay fever is a
common summer allergy that occurs
due to certain kinds of pollen from plants and
grass. SYMPTOMS: Runny or blocked nose, sniffling , sneezing,
watery eyes, cough, itchy throat, eyes and nose are the most common
symptoms. HOW TO DEAL WITH IT: While
lozenges nasal sprays , eye drops and steam inhalation provide you relief from cough and cold, painkillers
calamine lotion and topical creams help to ease insect stings. PREVENTIVE MEASURES: Keep allergies at bay by ensuring that your home and office are dust free. Vacuum often, wash bedding and
rugs in hot water and wear a mask when you how your lawn.
VIRAL FEVER:
What is it: High temperature coupled
with humidity leads to viral fever.
SYMPTOMS: High fever , sore throat skin rash, nasal congestion,
headache, nausea and vomiting are the
most obvious symptoms. HOW TO DEAL WITH
IT: Painkillers antipyretics for fever,
nasal decongestants etc help. Intake of plenty of fluids salt water gargling and steam inhalation provide respite . Consume plenty of fruits and vegetable . Avoid
oily food. PREVENTIVE
MEASURES: What is it: During the transition
from winter to summer varicella zoster viruses multiply to spread chickenpox in children
adults pregnant, women and even newborns . It usually lasts from 5-10 days. SYMPTOMS:
Red itchy rash shows up on the
face, chest and back and spreads to the
rest of the body. the rash turns into fluid-filled blisters and eventually into scabs that fall off. Other
symptoms include fever, headache, loss
of appetite and fatigue.
HOW TO DEAL WITH IT: Calamine lotion
and oatmeal baths ease itching. Antiviral medications
may be prescribed in people with weak immune systems.
PREVENTIVE MEASURES: Once your get chickenpox the virus stays in your body and you may contract herpes zoster commonly called shingles. A chickenpox vaccine can prevent it or make it less severe if you do get it. HEPATITIS A
AND E What it is : Hepatitis is
the inflammation of the liver. It’s very easy to get infected with hepatitis A and E viruses during the this time of the year because
these enter the body through contaminated food and water or if you are in close contact with someone who is infected.
SYMPTOMS: If you are suffering from Hepatitis A and E you are likely to
suffer from loss ofappetite, nausea, vomiting fatigue abdominal discomfort , low-grade fever jaundice, clay
-coloured stools and joint pain. HOW
TO DEAL WITH IT: To ease nausea, snack
more. Eat fruits vegetables, non-oily food and foods that are east
to digest. Do not drink alcohol. Your
lives will heal in less than six months.
PREVENTIVE MEASURES:
Hepatitis A can be prevented with
a vaccine. However, there is no vaccine
for hepatitis E Practice
good hygiene. Avoid raw or undercooked meat and fish wash salad
vegetable and fresh fruits before eating
. Drink boiled water. Wash your hands often especially after using the toilet
or changing or before preparing food or eating.
FOOD POISONING: What is it:
Eating food contaminated with
bacteria such as staphylococci, staph
aureus, salmonella, E. coli etc., can cause food poisoning. Avoid
consuming stale food or food that is
left and out of the fridge for long.
SYMPTOMS: Diarrhoea, frequent, loose motions, stomach cramps,
abdominal pain, nausea, vomiting
dehydration and fatigue are the most
common symptoms. HOW TO DEAL WITH IT: Replace lost fluids with water and electrolytes. Keep sipping on oral dehydration solution (ORS) to supplement the loss of
electrolytes. Medications may be prescribed to relieve stomach crams and oral antibiotics to get rid of
the bacterial infection . PREVENTIVE
MEASURES: Practice good personal hygiene , kitchen hygiene and good food handling practice. Avoid eating stale food and
unwashed raw salads, fruits etc., and drink safe water. Wash your hands
frequently with soap and water to
prevent spread of function. SWIMMER’S
EAR : What is it: Taking a dip is one of the best ways to cool off
during summer. But if you don’t take proper care, you end up with an
infection of the outer ear canal. This
is a harmless but painful ailment
medically termed as acute external otitis. SYMPTOMS:
If you have contracted
swimmer’s ear, you are likely to
suffer from discomfort pain in the ear,
itching and discharge from the
ear. HOW TO DEAL WITH: Pain relief
medication and eardrops for infection control can help. PREVENTIVE MEASURES: Wear earplugs when you
go swimming especially in the sea. Wear a
waterproof bathing cap that covers your
ears. Dry your ears throughly after a swim.
IN DEEP WATER Did you know that water can keep you
healthy in this scorching heat ? Read on
to know more: EVERY DROP COUNTS: You really do need to drink least one and a half litres of water each day. If the
weather is hot or you are involved in some physical activity you need even more
water to replenish lost fluids. NEVER WAIT UNTIL YOU ARE THIRSTY: By the time
you thirsty you are already dehydrated
and probably already lost two or more
cups of the your total body water composition.
so hydrate before the body starts asking for it. WAKE UP AND DRINK WATER: Your body loses water while you sleep , so
drink a glass before you go to sleep, and again when you wake up. DRINK AS YOU EXERCISE: When you exercise , carry a bottle of water
and drink water throughout . One needs a to drink water to make up what was lost to perspiration. DRINK WHEN
YOU’RE ILL” Even though you don’t feel like it, you especially need water when you’re not eating because you’re under the
weather . You’ll dehydrate and feel much worse. Common colds
and the flu can also lead to dehydration . Lethargy sets in even with the water
bottle next to you in bed. But drink up to stay healthy.!
SALIENT FEATURES OF A PERSONAL ACCIDENT POLICY
The personal Accident policy is generally
given to any individual who is in the age group
of 5-70 years
without any loading
on premium. In the case of a
policy holder having an insurance cover with a company and if they he or she chooses to renew the policy after attaining the age of 70 , the company
may renew the cover subject to certain
loading on the renewal premium. In case of fresh proposals for personal
accident cover from persons who are aged 70 years or above but below the age of 80 policies could
be issued at the
standard rates subject to a loading of 10 % on te premiums. However some companies offer 10% loading only up to
the age of 75; and thereafter up to the age of 80 a loading of 20 % on premium is offered. As the
contingency covered is an accident and its consequences , no medical examinations is required at the time of fresh cover or
renewal.
A personal accident
insurance policy provides for the payments for the of an agreed amount called Capital sum insured,
provides the accident results in death
or loss of a limb, an eye etc., as envisaged in the contract. While
lodging a claim .It is not necessary
to establish the fault of someone
that someone is legally liable.
What is required to be established is that:
(1) An accident has occurred
leading to the disability:
(2)
The insured has suffered
injuries as envisaged in the
policy. (3) The accident is not a result of the insured taking part in any of the activities excluded under the
contract. The claim contract under the
policies will be settled under any one of the six contingencies mentioned under the head Contingencies
Covered by a standard personal
accident policy. A personal accident
policy offers rounds the clock cover to the insured during the currency of the policy ,
irrespective of the fact where
he/she stays in which part of the globe
at the time of the accident . However
the claim on policies issued in India
will be settled in the Indian Rupee
Currency (NR) only.
As the Indian insurance
Act does not permit the assignments of these policies an insured may
assign the policies under the Transfer of Properties Act. The contract is terminable by the either by party. If the insurer chooses to cancel the contract, then pro data
premiums becomes refundable . For example , if an insurance companies wants to withdraw long-term PA policies due
to adverse claim experiences
this clause could be invoked. In the
event of the cancellation of the contract by the insured , a short-period refund of
premiums is made subject to no claim under the policy. Travel as a
passenger in a standard licensed
aircraft is automatically covered.
UNLIMITED INSURANCE
nlimited insurance is a general insurance contract where the maximum limit of the units sum assured covering the risk is not specified. For the first time in the history of general insurance in India, the Oriental General insurance Co and the insurance broking firm, jardine insurance, Consultants, designed a policy of unlimited liability for their , client ANZ -Grindlays Custodial Services . Under this plan , ANZ Custodial service . Under this plan, ANZ, Custodies during the currency of the policy could raise claims for any amount which should be limited to Rs. 2.5 crores per claim, that is ANZ in total could raise claims for an infinite amount. One of the conditions was that the ANZ Custodies are to absorb.
The loses for the
first Rs. 2 lakhs for each claim, which
is not covered by the contract. The contract covers the operations of the ANZ Custodial securities
, including the replacement of lost shares. CLAIM SETTLEMENT OPERATIONS:
In a contract of general insurance , there are three types of claims.
The Standard claims are those that are
typical and fit into the terms and
conditions of the contract, and the
insurers face no hassles in
settling such claims. The Non-standard claims are those that need a closer examination as the insured is believed
to have contravened certain
claims terms of the contractors or the warranty. The insurer subject to certain
conditions and political framed
by the company , may settle such claims. The
third party is the Ex-gratia
Payment made by the insurer as a matter
of gratis though the claims is prima facie not
admissible. As far as general insurance claims are concerned the claimant
has to serve a notice on the insurer intimating the loss and the amount of claim.
This notice
has to be issued at the earliest or
within the time stipulated by the insurance company . It may be mentioned that are the reach of
general insurance is very wide and there are special requirements
for the settlement of claims depending
upon the subject matter of
insurance. Immediately on receipt of the claim
intimation the insurance company
should be clearly intimate the insured
about the procedures to be
followed by the claimant . And wherever
a surveyor’s report is required
to assess the loss, such surveyor’s have
to be appointed with 72 hours from the date of the receipt
of the claim intimation from the
assured. As surveyors are independent
professionals, the insured may
also appoints his or her own surveyor to
surveyors to ensure that the losses are properly assessed without any bias. The surveyors
so appointed Is required to
submit the report assessing the loss the insurance company with a copy to the insured if she/he so
desires within 30 days
of his appointment .
Wherever the surveyor needs more time due to the special nature or complications of the claim,
the surveyor , under intimations to the
insured may seek for an extension of time.
The investigations by the surveyors consider
the following aspects. The examinations of the loss with reference to the terms and conditions of the contract.
By looking into the proximate
cause for the loss-causing event
to examine whether the loss is
covered by an insured peril or an excepted peril. Depending upon the nature of the peril that caused the event , the surveyors is to determine with whom lies the onus of
proof , with the insured . If they the loss is due to any excepted peril, the onus of proof lies
with the insurer. Examinations as
to whether the insured had abided by the terms and conditions of the contract and the compliance of warranties. The loss minimizations measures
initiated by the insured,.
Determinations of the claim amount with reference to the value
of the salvage, applicability of
the conditions of contributions and subrogation , pro data and the text extent of insurable
interest of the claimant on the
property affected.
OTHER TYPES OF INSURANCE FOR VEHICLES
otor cars that are not in used and are laid up in garages can be insured only against fire and theft risks, . The insured will be paid the damage only if the garaged vehicle suffers damages due to fire self-ignition, or lightning and also damages out of the theft, burglary, house breaking, strikes and riots and malicious and terrorism damages. In case of vehicle that are in use, the following restricted covers are available. Fire & theft Risks, Fire only, Theft only, liability only with Fire & Theft, Liability with Fire, Liability with Theft, Cover for Accessories .The non essential parts for running a vehicle but which , at the same time, a re supplied by the manufacturer along with the car at the time of purchase are called the Accessories . On the other hand if the own of an ordinary car choose to fix an air conditioner or a music system, they are not called accessories but are called extra ratings. Fitting, .
Loss or damage to the accessories is covered
only if they are fixed to the vehicle. If certain accessories are detached
from the vehicle the and are
damaged at that time such
liabilities are not covered. If the
owner of a vehicle wants to cover these
extra fittings then these,
items are to be separately
described at the time of the
personal and additional cover
obtained. MOTOR TRADE POLICY:
Dealers in new old card and garage
owners engaged in repairing
and overhauling cars can avail of
cover under this policy. Two types of policy
offer the cover. The motor Trade Road risk policy covers accidental loss or damage to a vehicle white it is on a demonstration in a public place or while in a related to the distance.
The vehicle
that are with the dealers may not
have any certificated of registration and the number of the plates allotted
to such vehicles are called trade certificates . These certificate are meant to be attached to the vehicle on a trial run. Whenever such as a
plate bears the name of the driver, it is called the Driver’s plate. The Motor Trade Internal Risk policy is meant to cover the risks when the vehicle’s is stored or on showroom display in the premises of the dealer. These could be
either separate policies or
declarations policies. PERIOD OF
INSURANCE: As in the case of the a
majority of all other non-life
contractors the motor insurance cover is
also valid for a year from the date and time issue of the cover.
The insurance cover will be cease to have effectiveness it is not
renewed on time. In certain
special cases, under the package
policy a short term cover term
covered could be issued according to the
rates given below. At present .
N
o insurance policy for motor cars
exceeding one year, (considered long term) is issued. The new tariff
regime announced in 2002, had discontinued such long-term policies, which were once
issued in certain cases. The only exceptions
is that for motor cycles and
scooters, policies covering
only the . Act liability exceeding
a year are issued. Such long-term policies once issued
are valid until the time the
regional transport authorities
cancel the registration of the
vehicle . Such policies are useful for aged vehicles as the comprehensive cover price increases with the age
of the vehicle . Besides the insurers
are also not keen on granting
comprehensive cover to old
vehicles . In such as a cases the premium is related to the Cubic Capacity (CC) of the
vehicle and its age.
MAKING YOUR KIDS REALIZE THEIR DREAMS
All that you need to know as to where and how much to invest for your children needs. You do all that it takes to be a good parents. You take your family and kids to dinner, you spend time with family on weekends , you buy gifts for kids and even the latest gadgets to keep them happy. After all, one earns for the family , isn’t ? But then, are you merely looking to make their presents perfect or are you concerned about their future too ? Schooling and then higher studies will play an important role in the way children shape their future life. Time flies and soon kids will be in college and then higher studies, . Are you prepared to meet the cost of education few years down the lane?
EDUCATION COSTS ARE RISING AND RISING
FASTER: The cost of education is rising . Unlike general inflation, which seems to be coming down cost of
educations according to some
estimates it rising at about 10-12 percent an annum. Even by conservative
estimate if education cost
inflation then an engineering course that costs Rs. 6 lakh presently will cost around Rs. 15 lakh after 16 years.
Similarly , MBA course that costs around
Rs. 10 lakh would cost around Rs. 34
lakh after 21 years . . Children’s marriage costing Rs . 15 lakh at today’s cost would make you shell out nearly Rs. 35 lakh
after 15 years. Unless you
prepare to meet the cost of higher education
, making it at the last stage
could be difficult to handle. Also the
kind of the course and educations streams few years, from now could be very
different from that what we have now. The
new ones would in all like hood be more expensive and your children might be hooked on to
them., Prepare now to make them realize
their dreams.
FIND OUT HOW MUCH
YOU NEED: If undecided on the
course and if your kids are still small,
consider 2-3, different courses and estimate their outflow, at today’s cost. Then, inflate it at a conservative inflation
rate of about 6 percent per annum
for number of years after which kids
would need them. The resultant figure is
the future value of the your current
need and this is what you need to
save. Doing this calculations helps
in savings the right amount more
no less. FIND OUT HOW MUCH YOU NEED TO
INVEST MONTHLY; Once you have
arrived at the final cost, and find out how much you need to save every months
towards. It. Assuming a growth rate 12 per
cent, you need to put aside
around 2,600 per months for the
engineering course after 16 years, while
it will be about Rs. 3.1000 per month for MBA after 21 years . See SIP: for
your child future., SEPARATE CUPBOARDS:
Create a separate investing
process for your children needs. If there are more than one kid, earmark
separate funds for each of them. In a way you are creating separate portfolio for each child’s specific
need such as education and marriage . Tracking them because
easier thus helping you reach
your goals more efficiently. CHOOSE THE RIGHT ASSET CLASS: Choice of the right asset class is very important especially when the
goal is a long term. A small difference in return can result in a big difference in the final corpus . 2 percent
difference in returns generated
over 25-years may show a 40
percent difference in maturity amount
(See Route to golden years,
February 2015. Several studies in the a past have shown that
equity has delivered high inflations adjusted
return compared to other assets
over the long term.
WHERE TO INVEST FOR
CHILD NEEDS: When it comes to investing fro child needs, there can
be several different investments avenues. It is important that investments
are spread across and not confined
to a specific asset or product. Other more common and ideal
investment avenues could be through equity oriented mutual funds and insurance plans. Vhil needs are a long terms goal hence making
use of the potential of equities best the Serves the purpose . Be invested
in equity oriented schemes
either from mutual funds or
insurance plans. In Mf’s choose equity
oriented open ended mutual funds schemes. However what is important
this the right choice of mutual fund schemes
and the right kind of insurance plans.
Unless this is in place, the purpose of savings for child needs could derail.
THE MUTUAL FUNDS PORTFOLIO FOR KIDS
NEEDS: Build a separate portfolio for child’s
specific needs and earmark
savings towards it. Choose 3-5 equity
oriented open ended mutual funds
schemes and start SIP in them. Go for
consistently performing funds that the ha ve delivered high returns over different time periods. Within this, 1-2, can be a mid-cap scheme and
others can be large cap schemes. One can
also invest through ELSS funds and keep
rolling over the maturity proceeds . This helps in savings taxes and also keeps
the goals linked to your
investments . Keep reviewing non-less schemes every two years and take necessary action.
STEP BY STEP TO KID’S GOAL THROUGH SIP:
You need to systematically save
towards your goal which is commonly termed as SIP in investment parlance. All MF schemes have SIP facility. Enroll for
them and give the mandate to your banker
for diverting funds from your bank
account to MF scheme each months. SIP is
an efficient way to reach your goals
with minimum fuss and maximum ease of transaction . SIP makes you avoid the
temptation t o time the market and gives
you the confidence that your goals are well on track. Importantly most of the times using the SIP approach makes you
accumulate MF units at lesser cost than making a lump sum
investments especially when horizon
is longer. =======NURTURING AND UPBRINGING KIDS IN THE DIGITAL WORLD========= Beta , come.... Din
MICRO INSURANCE
FACTORS AFFECTING THE INSURABILITY OF A LIFE
FAMILI HISTORY: Takes into account the longevity of the parents and siblings , number of early and very early deaths, survival beyond a stipulated age, nature of hereditary diseases. etc., PERSONAL HISTORY: Takes into account the diseases , accidents and other injuries suffered by the proponent prior to the proposal for insurance , and the time that has lapsed after surgery , if any . Based on these factors, the underwriting may decides to elicit further information through a special questionnaire. PRESENT STATE OF HEALTH: Takes into account the present ailments of the proponent (life proposed) and the influence of the his/her habits on the state of his/her health. NATURE OF OCCUPATION: The nature of his/her occupation and the factors in occupations that contributes to enhancing the risk and the living environment.
PHYSICAL BUILD: Takes into account the proponents height
weight, chest and abdominal measurements including visible physical deformities. Based on this
risk inducing factors, the various
ranges of extra mortality are arrived at the they are grouped into a
different groups ranging from Mortality
Class I and onwards. On determining the total extra mortality for the risk to be covered , if the life falls within any
substandard class, extra premium is levied . The underwriters ignore extra premium up to a certain percentage
depending upon the company practice. In
a few from now mortality classifications may undergo
some changes as the world over, various
criteria are getting revised .
Level of the sugar , cholesterol, systolic and diastolic
pressure indicators , which were consider normal are being re-evaluated.
Besides these factors, the underwriter also takes into a account the type
of cover required by the proponent
the sum assured and the possibility of any moral hazard. In selecting
the risk, the insurance companies, both
in life and non-life business consider
their agents or advisors as Primary
Underwriters. In the context of life insurance
, the agent or the advisor who
secures the business is required to satisfy himself about the insurability of
the proponent based on the verifiable
data about the proponent, like his income standard of living, habits, etc., through
personal enquiries made by him about the
proponent. The agent or the advisor is required
to provide a true and correct evaluations to the best of his knowledge in a report
called the Agent or the Advisor’s Confidential Report, which is a must and has
to invariably accompany the proposal. As
a larger sum assured and related
hazards’s impact the claim
experience in all large sum assured
cases, the insurer may obtain an additional
report called the
Moral Hazards reports by the agent or the advisor or
an officer designated by for the purpose. After examining the personal statement of the proponent the
agent or the advisor’s confidential report and the medical examiner’s reports, the underwriters rates the risk value of the life by assigning credit points
for the favourable factors, and
debit points for adverse factors and
impairments . The mortality ratings are
for quinquennial ages and the ratings
are also given in units of five. In other words, the assumptions is that the
rating for a specified age is taken to be relevant for five consecutive integral ages for which the specified age is
the centre and fro the intermediate
ages, the
ratings may have to
be interpolated . Based on the this
principles , the underwriting evaluates
the proposal from two angles,
viz, from the family and personal history and from the point of view of the
physical build and impairmentsCRITICAL ILLNESS INSURANCE
Parkinson’s disease et al.
Critical illness insurance cover are a marketed as riders to contracts of life insurance or as stand-alone products.
Depending on the context the Critical
insurance covers are considered as a life
insurance products or as health
care plans under General insurance. The
important of critical insurance cover are is aptly brought out by Nick Kirwan the Chairman of the
Critical illness insurance Working Group of the Association of British
insurers (ABI) . According to kirwan
,critical illness insurance helps people protect themselves and their
families from the potentially
devastating financial consequences of
critical illness.
Men above the age of 40 fall critically ill at some time or the other in life between
the ages of 40-65. A critical illness insurance policy is designed to
provide the much needed financial
cushion, at a time when it is needed the
most. This policy offers choices one may not have in other policies .
Healthcare or Medi claim policies do not cover the various indirect costs associated with hospitalization whereas the lump sum amount given to the insured , once the illness is diagnosed goes a long way in relieving financial
pressure and mental stress. The terms
and conditions and the method of
financial assistance may be vary from company to company depending upon the target, marketing group and method
of product differentiation . For example, in critical illness policies with accelerated riders the
basic cover may cease to be
operative once a critical
insurance claim is lodged , and is in policies with stand-alone riders,
the basic insurance cover continues even after lodging the critical insurance claim. Some other plans provide for
the reduction in the payments of premium
by adjustments in basic sum insured .
Typically a critical
illness insurance policy has the following benefits. To get the benefit, the insured
must be diagnosed for any of the
specified or identified diseases. Before signing a contract the proponent
should examine the number of specified diseases covered by the contract.
Generally companies may cover 8-10 diseases, and more diseases may be added on payment of extra premium.
LIC’s Asha Deep II’ that pioneered
critical illness as an additional benefit
initially covered only four
specified diseases viz., malignant
cancer renal failure of both
kidneys. coronary artery diseases
in cases where by pass surgery has been conducted and paralytic
stroke leading to permanent disability all subject to conditions .
considering the cost of treatment , LIC was offers critical illness cover as
a rider benefit to other plans, and
offers this benefits to existing policy
holder under certain plans. Once the diseases
is officially diagnosed and
admitted by the company the insured gets the following benefits according to the terms of the policy. It should be
noted that the benefits be noted the
benefits vary from company to company:
1. The company may pay the agreed
sum insured in one lump sum and down own no further liability. 2. No
benefits will be paid on the maturity of the policy , if the policy holder suffers no identified
critical illness.
Alternatively according to the terms of the
contract the company may pay 50% of the
sum insured (subject to certain ceiling) on diagnosis, and the balance to the family on the death of the insured or
on survival at the end of the term. 4.
Annual payment of an amount equal to 10% of the sum assured , commencing from the policy’s anniversary
falling on or after the date of
affliction until the date of maturity or death, whichever is earlier (e. g. Asha Deep II , an LIC policy). 5.
Waiver of premium as per as the terms and conditions of the policy, 6.
Rider benefits , if any like terms benefits accidental death, disability
etc., General conditions of offer may also vary from company to
company, The age at entry ranges between
the ages of 18 and 65 years, and some companies
may restrict the maximum age of
the entry to less than 65 years. The sum insured ranges from Rs. 5 lakhs to Rs. 25 Lakhs and they are
available for varying terms. In India
apart from the four nationalized
insurance companies . Bajaj
Allianz market na critical illness policy, and ING Vysya has its policy called Conquering Life Critical illness Plan.
Health First Plan of Tata AIG offers critical illness cover as a rider benefit. Apart from these
companies cited as examples many other
private insurance companies also market
such plans. Considering the
difficulties experienced by the insuring public in UK, the Association of British Insurers (ABI)
is contemplating possible
changes to the critical illness
insurance policies that are now marketed in the UK. Following are
the major references:ADVANTAGE OF REINSURANCE
The advantage of reinsurance
can be summarized as follows, : (1)
INCREASES INSURANCE BUSINESS: Reinsurance helps a lot for the development of insurance business. It enables every
insurance to accept insurance business as the total risk will be
distributed among other reinsurer . In
absence of reinsurance , every insurer
will hesitate to accept huge risks and it would
have rather been very difficult
for an insurer, in case he accepted risk exceeding his capacity.
(2) SPREADS THE RISKS: It
continues the basic principle of insurance by spreading the risk over an
even wider field, which reduces
the impact of loss on any one person,. It further helps in stabilizing the incomes of insurance companies and provide facilities to gain
experiences in the incidence of
loss and to find a common basis for rating
the risks. (3) INCREASE
INSURER’S GOODWILL: The financial and risk bearing capacity of the
insurer increases with the help of
reinsurance and with the existing
facilities ,an insurer can accept risk beyond his capacities. This increases
the goodwill of the insurer.
(4) LIMITS THE LIABILITY : It enables the
insurers to undertaken risks and to
spread them. It therefore, helps in
limiting the liability of the insurer to
the maximum amount. (5)
STABLE PREMIUM RATES: Usually the rates of premium are determined on the
basis of information relating to past
loss experience of the risk concerned. the insurer with the help of
reinsurance , can collect larger statistics
regarding past losses and there by
fix premium rates for different
types of risks by mutually
agreeing on the issue. All this helps in bringing about stability in premiums
rates of different types of risk.
(6) PROTECTS THE INSURANCE FUNDS:
It protects the insurance funds of the
original insurer and provides additional security to the insured and insuring community. (7) REDUCES COMPETITION: It reduces inter company business competition
as no one works independently but in cooperative
manner and with helping mind in the area of insurance business. Thus it
helps in curbing competition/ rivalries
in the similar line of insurance business.
A TO Z OF REVERSE
MORTGAGE====== In 2008 the government of India launched a new scheme
which is known as Reverse Mortgage
Scheme 2008, . A glance at this scheme will provide full answer to all the
queries of a tax payer relating to
Reverse Mortgage. However for the benefit of your readers
particularly all those readers
who are senior citizens I am
going to tell them some of the important
aspects connected with reverse Mortgage for maximum used by the senior citizens. 1.
Firstly the most important person is that the benefit or reverse mortgage can be taken advantage of only and only by senior citizen. As the eligibility criteria for
taking advantage of this scheme
is only for male or the female who are individual and who are above the age o
sixty years. 2.. Secondly important
point to be noted is the benefit of reverse mortgage cab be taken only in respect of residential house property
which is located in India. 3. The meanings of reverse mortgage
is that your capital Asset.
I.e against your residential house
property you are able to take a loan
from an approved lending institution.
The persons who have been approved lending institutions . The persons who have
been approved as classified approved
lending institutions for granting the reverse mortgage are only (a)
National Housing Bank (b) A Schedule Bank ( C )
A House Finance Company. 4.
The maximum term for which
reverse mortgage can be granted is twenty years only. The loan approved by the leading institutions
etc., May disburse the loan either under the reverse mortgage Concept
on Periodic payments basis or a lump sum amount may be paid in one or more installments
so that the total payments does
not exceed 50 per cent of the total loan
amount sanctioned. As per the scheme the Reverse Mortgage can be
granted maximum for a period not exceeding
twenty years from the date of
signing the agreement with the bank etc ., Under the Reverse Mortgage if the loan is
taken from the bank etc., There is no income tax liability and moreover the
amount borrowed by way of reverse
Mortgage is not treated as a sale. It s not treated as a Capital Gain and there is no income tax
liability whatsoever of any kind on
taking money order the reverse mortgage concept. Likewise at a later date when the interest has to be
paid up to at that the time also no impact is disallowed nor it is a allowed as the concept of
income-tax is very clear i.e no liability
Of income tax at any point of time. The benefit
or reverse mortgage is mainly for all those persons who have got their
property in their own names but no current income at all and they find that the at this
point of life great difficulty either in
asking for amount on day to day basis
from the relative including the blood relative. Hence this is the best way
without telling anyone you can live on your own money by taking advantage of
the reverse Mortgage Scheme.
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