Vehicle Insurance by skysevenmr

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									1. Introduction

   Insurance, in law and economics, is a form of risk management primarily
used to hedge against the risk of a contingent loss. Insurance is defined as the
equitable transfer of the risk of a loss, from one entity to another, in exchange
for a premium. Insurer, in economics, is the company that sells the insurance.
Insurance rate is a factor used to determine the amount, called the premium, to
be charged for a certain amount of insurance coverage. Risk management, the
practice of appraising and controlling risk, has evolved as a discrete field of
study and practice.


Definition

 The term ‗insurance‘ has been defined by different experts. They can be
classified into following 3 categories for the convenience of study:

   1. General or Social Definitions
   2. Functional/Economical/Business Definitions
   3. Contractual/Legal Definitions
1. General or Social Definitions:

       The general definitions are given by social scientists and they
   consider insurance as a device to protect against risks, or a provision
   against inevitable contingencies or a cooperative device of spreading
   risks.

       According to John Magee, ―Insurance is a plan by which large
   number of people associate themselves and transfer to the shoulders of
   all, risks that attach to individuals.‖

       According to Boon and Kurtz, ―Insurance is a substitution for a
   small known loss (the insurance premium) for a large unknown loss
   which may or may not occur.‖


2. Functional/Economical/Business Definitions:

       These definitions are based on economic or business oriented since
   it is a device providing financial compensation against risk or
   misfortune.

       According to Federation of Insurance Institutes, Mumbai,
   ―Insurance is a method in which large number of people exposed to
   similar risks make contribution to a common fund out of which, the
   losses suffered by the unfortunate few, due to accidental events, are
   made good.‖

       According to Roseblantt, Bennington and others, ―Insurance is a
   system of protection against financial loss in which risk is shifted to a
   professional risk bearer; an insurance company in exchange for a certain
   sum of money (the insurance premium), the insurer agrees to pay the
   insured if losses occur.‖


3. Contractual/Legal Definitions

       These definitions consider insurance as a contract to indemnity the
   losses on happening of certain contingency in future.

       In the words of Justice Tindall, ―Insurance is a contract in which a
   sum of money is paid to the assured as a consideration of insurer‘s
   incurring the risk of paying a large sum upon a given contingency.‖

       According to E. W. Patterson, ―Insurance is a contract by which one
   party, for compensation called the premium, assumes particularly risks
   of the other party and promises to pay him or his nominee a certain or
   ascertainable sum of money on            a specified    contingency.‖
History of Insurance

   In some sense we can say that insurance appears simultaneously with
the appearance of human society. We know of two types of economies in
human societies: money economies (with markets, money, financial
instruments and so on) and non-money or natural economies (without
money, markets, financial instruments and so on). The second type is a
more ancient form than the first. In such an economy and community,
we can see insurance in the form of people helping each other. For
example, if a house burns down, the members of the community help
build a new one. This type of insurance has survived to the present day
in some countries where modern money economy with its financial
instruments is not widespread (for example former Soviet Union).

   Turning to insurance in the modern sense (i.e., insurance in a modern
money economy), early methods of transferring or distributing risk were
practiced by Chinese and Babylonian traders as long ago as the 3rd and
2nd millennia BC, respectively. Chinese merchants traveling treacherous
river rapids would redistribute their wares across many vessels to limit
the loss due to any single vessel's capsizing. The Babylonians developed
a system which was recorded in the famous Code of Hammurabi, c. 1750
BC, and practiced by early Mediterranean sailing merchants. If a
merchant received a loan to fund his shipment, he would pay the lender
an additional sum in exchange for the lender's guarantee to cancel the
loan should the shipment be stolen.
      Achaemenian monarchs were the first to insure their people and
made it official by registering the insuring process in governmental
notary offices. The insurance tradition was performed each year in
Norouz (beginning of the Iranian New Year); the heads of different
ethnic groups as well as others willing to take part, presented gifts to the
monarch.

   A thousand years later, the inhabitants of Rhodes invented the
concept of the 'general average'. Merchants whose goods were being
shipped together would pay a proportionally divided premium which
would be used to reimburse any merchant whose goods were jettisoned
during storm or sink age.

   The Greeks and Romans introduced the origins of health and life
insurance c. 600 AD when they organized guilds called "benevolent
societies" which cared for the families and paid funeral expenses of
members upon death. Guilds in the middle Ages served a similar
purpose. The Talmud deals with several aspects of insuring goods.
Before insurance was established in the late 17th century, "friendly
societies" existed in England, in which people donated amounts of
money to a general sum that could be used for emergencies.

   Separate insurance contracts (i.e., insurance policies not bundled with
loans or other kinds of contracts) were invented in Genoa in the 14th
century, as were insurance pools backed by pledges of landed estates.
These new insurance contracts allowed insurance to be separated from
investment, a separation of roles that first proved useful in marine
insurance. Insurance became far more sophisticated in post-Renaissance
Europe, and specialized varieties developed.
   Toward the end of the seventeenth century, London's growing
importance as a centre for trade increased demand for marine insurance.
In the late 1680s, Mr. Edward Lloyd opened a coffee house that became
a popular haunt of ship owners, merchants, and ships‘ captains, and
thereby a reliable source of the latest shipping news. It became the
meeting place for parties wishing to insure cargoes and ships, and those
willing to underwrite such ventures. Today, Lloyd's of London remains
the leading market (note that it is not an insurance company) for marine
and other specialist types of insurance, but it works rather differently
than the more familiar kinds of insurance.

   Insurance as we know it today can be traced to the Great Fire of
London, which in 1666 devoured 13,200 houses. In the aftermath of this
disaster, Nicholas Barbon opened an office to insure buildings. In 1680,
he established England's first fire insurance company, "The Fire Office,"
to insure brick and frame homes.

   The first insurance company in the United States underwrote fire
insurance and was formed in Charles Town (modern-day Charleston),
South Carolina, in 1732.

   Benjamin Franklin helped to popularize and make standard the
practice of insurance, particularly against fire in the form of perpetual
insurance. In 1752, he founded the Philadelphia Contribution ship for the
Insurance of Houses from Loss by Fire. Franklin's company was the first
to make contributions toward fire prevention. Not only did his company
warn against certain fire hazards, it refused to insure certain buildings
where the risk of fire was too great, such as all wooden houses.
           In the United States, regulation of the insurance industry is highly
        Balkanized, with primary responsibility assumed by individual state
        insurance departments. Whereas insurance markets have become
        centralized nationally and internationally, state insurance commissioners
        operate individually, though at times in concert through a national
        insurance commissioners' organization. In recent years, some have called
        for a dual state and federal regulatory system for insurance similar to that
        which oversees state banks and national banks.


Principles of Insurance

   1. Utmost Good Faith
   2. Insurable Interest
   3. Principle of Indemnity
   4. Principle of Contribution
   5. Principle of Subrogation
   6. Principle of Mitigation Loss
   7. Principle of ―Cause Proxima‖


The following Principles of Insurance are explained in detail below:


   1.   Utmost Good Faith:

 One of the basic and primary principles of insurance is Utmost Good Faith. It
states that insurance contract must be made in absolute good faith on the part of
both the parties. The insured must give to the insurer complete, true and correct
information about the subject matter of the insurance. Material fact should not
be hidden on any ground. This principle is applicable to all types of insurance
contracts. Insurance is for protection and not for profit and hence, correct
information must be given to the insurance company.


   2.   Insurable Interest:

         This principle suggests that the insured must have insurable interest in
        the object of insurance. In other words, the insured must suffer some
        kind of financial loss by damage to the subject matter of insurance.
        Ownership is the most important test of Insurable Interest. Every
        individual had insurable interest in his own life. An insurance contract
        without insurable interest is void. Insurable Interest is not a sentimental
        concept but a pecuniary interest. Insurance contract without Insurable
        Interest is nothing but a wagering contract. Some of the examples of
        Insurable Interest are: A trader has Insurable Interest in his business and
        a creditor has Insurable Interest in his debtor. Similarly, an exporter has
        Insurable Interest in the goods, which he is exporting. In addition, the
        owner of a shop or a building has Insurable Interest in his shop or
        building.


   3.   Principle of Indemnity:

         This is one important principle of insurance. This principle suggests
        that insurance contract is a contract for affording protection and not for
        profit making. The purpose of insurance is to secure compensation in
        case of loss or damage. Indemnity means security against loss. The
        compensation will be paid in proportion to the loss actually occurred.
        The amount of compensation in the insurance contract is limited to the
        amount assured or the actual loss whichever is less. The compensation
        will not be more or less than the actual loss. Compensation will not be
     paid if the specified loss does not occur during a particular period due to
     a particular reason. Thus, insurance is simply for giving protection and
     certainly not for profit- making.


4.   Principle of Contribution:

      There is no restriction as to the number of times the property can be
     insured. But on the occurrence of loss only the amount of actual loss can
     be realized from one insurer or all the insurers together. This principle is
     however, not applicable to Life Insurance contract.


5.   Principle of Subrogation:

      This principle is an extension and a corollary of the principle of
     Indemnity. It is applicable to all the contracts of Indemnity. It states that
     once the insurance company pays the full compensation, it acquires all
     the rights and remedies, which the assured would have enjoyed
     regarding the said loss. When the compensation is paid for the total loss,
     all the rights of the insured in respect of the subject matter of insurance
     are transferred to the insurer. The assured will not be able to keep the
     damaged property because in that case he will realise more than the
     actual loss suffered. This principle prevents the insured from making
     profit out of loss. When the partial compensation is paid, the insurance
     company cannot exercise such rights. The principle is applicable to fire,
     marine and all other accident policies. In such policies the insured has to
     give a letter of subrogation to the insurance company. The insurance
     company protects its interest with the help of such letter of subrogation.
6.   Principle of Mitigation Loss:

      According to this principle every insured should take all the necessary
     steps to minimize the loss. E.g. If a trader takes out a marine policy for
     the goods being shipped from Goa to Mumbai and if the storm takes
     place due to which there might be risk of ship sinking. According to this
     principle, the ship can be saved by throwing away some of the goods in
     order to reduce the weight of the ship.


7.   Principle of “Cause Proxima”:

      The efficient or the effective cause that causes loss is ―Proximate
     Cause‖. It is the real and actual cause of loss. If the cause of loss is
     insured, the insurer will pay. In ―Life Insurance‖ the doctrine of ―Cause
     Proxima‖ is not applied because the insurer is bound to pay the amount
     of insurance whatever may be the reason of death. It may be natural or
     unnatural. Hence, this principle is not much practical importance with
     Life                                                           Insurance.
2.         TYPES                   OF              INSURANCE



 Life insurance

        Life insurance or life assurance is a contract between the policy
     owner and the insurer, where the insurer agrees to pay a sum of money
     upon the occurrence of the insured individual's or individuals' death. In
     return, the policy owner (or policy payer) agrees to pay a stipulated
     amount called a premium at regular intervals or in lump sums (so-called
     "paid up" insurance). There may be designs in some countries where:
     (Assets, Bills, and death expenses plus catering for after funeral
     expenses should be included in Policy Premium. Anyone whose assets
     equal more than the value of their primary residence should not be
     compensated beyond that value in case they cannot sell their house. In
     the case of those who‘s lost their spouse should be compensated also for
     one full year the wages of their spouse which would or should be
     included to avoid lawsuits

        As with most insurance policies, life insurance is a contract between
     the insurer and the policy owner (policyholder) whereby a benefit is paid
     to the designated Beneficiary (or Beneficiaries) if an insured event
     occurs which is covered by the policy. To be a life policy the insured
     event must be based upon life (or lives) of the people named in the
     policy.
    Insured events that may be covered include:

                 death
                 accidental death
                 sickness




General insurance

  Definition

       The General Insurance Business (Nationalization) Act, 1972 defines
    General Insurance Business as fire, marine and miscellaneous insurance
    business, whether carried on single or in combination with one or more
    of them, but does not include capital redemption business and annuity
    contain business.

       General insurance or non-life insurance policies, including
    automobile and homeowners policies, provide payments depending on
    the loss from a particular financial event. General insurance typically
    comprises any insurance that is not determined to be life insurance. It is
    called property and casualty insurance in the U.S.
    There are three major types of general insurance. They are:

                    1. Fire Insurance
                    2. Marine insurance
                    3. Miscellaneous insurance




3. Types of General Insurance
 The scope of General Insurance includes as follows:




    Fire insurance

       Fire insurance is the oldest form of insurance. In the early
    development of industrial society, fire was the main source of energy.
    The industrial or commercial activities were not possible without fire.
    However, there was a need to insure the risk of uncontrolled or uncertain
    fire. Fire insurance is designed to provide for financial loss to the
    property due to fire and few other related hazards. Fire insurance is
    governed by a tariff under the Tariff Advisory Committee (TAC). The
    property that can be covered under fire insurance includes Building,
    Machinery, Equipments, Accessories, Goods, Raw Materials, Furnitures,
    Residential                         Houses,                         etc.
The standard fire policy covers the following hazards.

      a. Fire i.e. burning of any property.
      b. Explosion/implosion.
      c. Aircraft damage caused by pressure waves.
      d. Lightning.
      e. Riot, strike, malicious and terrorism damage.
      f. Storm, cyclone, tornado, floods, etc.
      g. Missile testing operations.




   Marine insurance

      Insurance was introduced to the world by marine insurance. The
   object of marine insurance is to make good losses exposed to the
   seafarers due to sea conditions, war, pirates, weather, etc. the legal
   framework of marine insurance is provided by Marine Insurance Act,
   1963.

      Marine insurance has two important and broad components. The first
   one is cargo insurance and the second one is hull insurance. Cargo
   insurance provides cover for losses or damages that could occur to goods
   in transit on sea, rail, road or air. This insurance is purchased by the
   owners of cargo/ships.
      Hull insurance covers the insurance of the carrier of the goods. This
   type of insurance is purchased by the owners of the transportation
   vehicle. In case of Import-Export trade, the responsibility for purchase of
   insurance lies with the seller if the price quoted is Cost, Insurance, and
   Freight (CIF).

      The important risks covered by the Institute cargo clauses are as
   follows:

      a. Fire.
      b. Vessel or craft being stranded grounded sunk or capsized.
      c. Overturning or derailment of land conveyance.
      d. Collision or contract of vessel, craft, or conveyance with any
         external object other than water.




The following extraneous risks are also covered:

      a. Theft, pilferage or non-delivery.
      b. Fresh or rain water damage.
      c. Breakage.
      d. Leakage.
      e. Country damage.
  Miscellaneous                                                 insurance


Miscellaneous                                                   insurance


  Farm insurance

       Farmers are the food providers of the nation. They see to it that we
    have enough food to serve on our everyday plates. This is a result of a
    long and tiring struggle against the scorching heat of the sun and other
    unfavorable weather conditions. On the other hand, it is very saddening
    to know that at times, few farmers expect to suffer major misfortunes.
    This is the reason why more and more farmers are into farm insurance
    right now. Farm insurance can assist them to select from different
    coverage‘s, limits and deductibles and thereby customize the policy to fit
    their needs and budget, including homestead, farm motor, farm
    machinery, farm liability, livestock, fencing and hay, farm loss of
    income and business interruption, personal accident and much more.

       Some of the perils that threaten the farm operation, which are being
    covered by most farm insurance companies are the following: fire and
    lightning, explosion, wind and hail, vandalism, theft, aircraft and vehicle
    damage, smoke damage and collision. The dwelling is also covered for
    glass breakage, damage caused by falling objects, collapse of building
    parts, accidental electrical injuries, heating frozen plumbing and air
conditioning. Other supplemental coverage‘s are the following: fire
department charges, fire extinguisher refills, credit cards, collapse on
farm personal property and refrigerated products. Protection from farm
liability and chemical spillage is also being offered. Farm liability
coverage provides personal and medical payments as a result of injuries
and damages for which the owner is legally viable. Chemical spillage
coverage provides insurance for damages caused by accidental or sudden
spillage of agricultural chemical products in the course of farming
operation.

   One of the farm insurance companies that offer exceptional coverage
for farm owners is the Farm Family Group. The Farm Family groups of
insurance companies consist of the following: the Farm Family Life
Insurance Company, the Farm Family Casualty Insurance Company, and
the United Farm Family Insurance Company, each of which serves the
needs of policyholders in over 12 Northeastern states. The Farm Family
Group is headquartered in Glenmont, New York, which has been
providing insurance protection for families and businesses in rural and
suburban areas since the mid-1950s.

   Another one is the National Farmers Union Property and Casualty
Company Farmers Union Insurance Company, which has been serving
the nation for more than 62 years. Farmers Union Insurance, on the other
hand, is under QBE The Americas, a segment of the QBE Insurance
Group Limited. The A.M. Best Company (a leading analyst of insurance
companies) awarded the QBE Insurance Group an outstanding "A"
(Excellent) rating. Both National Farmers Union Property and Casualty
  Company and United Security Insurance Company are rated "A-"
  (Excellent) respectively.

     It is a good thing to know that these farm insurance companies have
  web sites that potential clients can check for more information. This will
  also help clients differentiate the services that were being offered by
  these insurance companies. It is also best to build strong relationships
  with your insurance agents to ensure that you are getting your money‘s
  worth. To make sure that you are in good hands, select a farm insurance
  company with an excellent background and exceptional credibility.


Business Insurance

     Business insurance gives the insured business or organization the
  chance to be covered from any business risks that may come.

     Business insurance serves to protect a business establishment from
  many business risks that many come up. It is usually the small
  businesses that may need a small business insurance coverage for a
  fledging company. This is because it s still a growing company that may
  encounter several obstacles or problems along it progress. Insurance for
  small business establishments can help eliminate the worry that an owner
  may have in investing in something new. Small business liability
  insurance covers health insurance and other concerns regarding their
  responsibility to their clients and their performance.

     Business insurance is a great insurance business opportunity for
  insurance agents because they usually get higher commissions for
  multiple insurance policies. They can also give their prospective clients
quotes for many different kinds of business insurance combinations that
could benefit the business. Any business insurance group may offer
discounts when clients avail of several insurance policies or packages for
their organizations or stores.

   Business liability insurance covers a lot of aspects in the business
industry. There are several insurance coverage ranges that include
professionals to bodily injury to business income coverage. You may
have the insurance agent you are dealing with give you a business
insurance quote depending on your need and preference. These business
insurance quotes give prospective clients of the insurance company a
glimpse of what they can offer the client and what they assure they can
deliver if the time comes. There are several types of business insurance
and some of these may suit you or your business needs and
requirements.

   Other use for insurance business focus is errors and omissions
liability coverage. This helps the professionals like architects, doctors,
accountants, lawyers, bankers, architects etc deal with expensive
litigation and legal services which may be the result of their negligence
or poor performance during a project or a job. This kind of insurance
also protects and covers any independent contractors or employees who
may make mistakes or be neglectful regarding their duties and jobs in the
company.

   Insurance for business establishments are quite useful to have since
they have packages that cover theft and losses of data in the business
involved. They may also have some insurance concerning business car
insurance where the transportation of the business or establishments is
  concerned. Business insurance has a very wide coverage and they can
  adjust their quotes to suit your needs and preferences. Business and
  insurance make great team because businesses need to have a fall back
  plan incase their initial business scheme does not work.

     Insurance for business helps stabilize a business if it hits a snag.
  Business insurance in all kinds of businesses is handy to have and may
  not cost as much as you anticipate. You could also search for several
  topics regarding business insurance online to help you understand the
  terms and coverage included better. This will help to make you get better
  deals and make better decisions regarding getting insurance for your
  business. Researching business insurance will also give you an idea of
  what may be covered in the policies and what you might want to add.




Student Insurance

     Student Insurance is designed to the particular needs of students
  specially university or college students to protect them and their
  important belongings.

     A lot of students are not really aware that there is a kind of insurance
  available for them. Health insurance is already a need for students
  especially who are studying medicine. But surprisingly still a lot of
  students depend on the schools health care clinic. You have to admit that
  these kinds of clinic don‘t really provide the health coverage you need
  when you are inside the campus. That is why; a lot of students still don‘t
  know what a Student Insurance is.
   There are different kinds of student health insurance, and one of the
most common is Domestic Student Health Insurance plan. In this kind of
insurance, it will cover products and services not covered by the heath
service fee. Most of the time different services are rendered when the
student already register for the incoming semester.

   If the student has medical health insurance, the costs given are the
following:

   o   Medical care received outside of the school like hospitalization,
       etc.
   o   Services which are not covered by the student‘s tuition fee like
       eye and ear care, immunization, medication, etc.
   o   Medical services for spouses, family partner and dependents.

   You need to be informed that without having health care insurance,
you will shoulder all the fees for these services. Most of the time, getting
a student health insurance is not that easy because the expenses and other
cost are really high. That is why a lot of students can‘t afford to have this
kind of insurance. Through Domestic Student Health Insurance,
everything would be possible because it was designed and developed to
meet the needs of the students especially when it comes to the budget.
The following are some of the examples of Domestic Student Health
Insurance:

   o   With this kind of plan, age is not a factor in determining the
       eligibility of the student. For most health plans, age restriction is
       one of the factors that will limit the coverage of the dependent.
       But with this kind of medical health insurance, it will cover you
       up provided that you are still a student.
   o   With this kind of plan, travel health assistance is covered when
       live far from your house and school campus.
   o   It will also provide direction in drug coverage.
   o   The periods of coverage are dependable with academic semesters.

   You should always remember that the eligibility of the student is at
all times subject to verification with the following considerations:

   o   A student who will enroll in different classes or just within the
       semester.
   o   Students who meet different qualifications and who is a green
       card holder too.
   o   A student who has this kind of insurance will received a permitted
       medical leave of absence.
   o   Age won‘t be a problem since it is not a factor in determining the
       eligibility of students.

   Health care insurance is really important. You don‘t have to entrust
yourself with medical clinic of different schools since they can‘t really
provide everything that a student need. In order to be perfectly safe even
when you are away from home, this kind of very basic plan is perfect
you.
Dental Insurance

      Dental insurance is simply an agreement between the dental
   insurance company and you that will allocate you to get pleasure from
   discounts on dental expenses.

      Maybe you will think that dental insurance and dental plan are just
   one and the same, but you are wrong. There are big differences between
   the two. First let me tell you what a dental plan is. A dental plan is
   simply the agreement between you and the company that will provide
   the plan for you. Just like dental insurance, it is a plan that will also give
   you discounts on all your dental costs. They will also let you choose the
   doctor that you like from the lists and the process of the approval is so
   easy. One good thing about dental plans is, if you want to decrease your
   dental costs without filling out so many documents, then this one is the
   right for you.

      Are you still a bit confused about the difference between the two?
   There are more ways wherein a dental plan is dissimilar from dental
   insurance.

      o   With dental insurance, you need to accomplish tons of application
          forms, and not only that, because you still need to convince them
          that you are free from any dental problems in the present that can
          affect your dental care in the future. Which is exactly opposite if
          you will apply for a dental plan. Worry free when it comes to
          documents because the process is very simple.
   o   With dental insurance, they may still require you to undergo
       dental examination in order to qualify and you still have to wait
       for a long period of time. While in dental plan, you just have to
       apply and pay a certain amount of money for your membership
       and that‘s it. Once they accept your application, you may already
       enjoy getting discounts on your dental care expenses.
   o   With dental insurance, most of the time procedures that will make
       your teeth look good is not covered like, teeth whitening, braces
       and many more. On the other hand, with some dental plans, you
       may be eligible for treatments of pre-existing situation. Both
       dental insurance and dental plans cover cleaning of teeth, root
       canals and other dental care.

   In getting your claims, there is also a big difference, with dental
insurance; first, you have to fill out a form that will be given to the
doctor or to the dental insurance company for approval which means that
you will wait in order to find out if your money will be reimbursed for
the dental expenses. Sometimes dental insurance companies will only
give you back a small percentage of the money you incurred for your
dental care. While with a dental plan, you will just simply show your
membership card and policy number to your dentist and your dentist will
be the one who will do all the paperwork for you and you will be able to
get the discount immediately. In that way, you just have to pay your
lowered dental expenses straight to your dentist.
Pet Insurance

      Do know the A-B-C of being a pet owner? Owning a pet is not just
   about taking care of them and treating them as members of the family,
   security is also important for these pets.

      Pets bring joy and happiness to any home and play a very important
   role in man‘s life. Like the popular saying goes, pets (dogs) are a man‘s
   best friend. Not only that they are great companions, but also, most
   households consider their pet as a part of their family. Pets are curious
   about their environment and love to explore everything around them,
   especially during their first few years of existence. Pets often use their
   mouth if they find something amusing that they tend to swallow things
   like small objects. Like any other family member, pets are susceptible to
   injuries, diseases or accident, which may sometimes lead to malfunction
   of other body parts, or worst, death. Now can you imagine being faced
   with the cost to undergo such unfortunate situation? This is where Pet
   Insurance comes in.

      Since you can't predict when injuries, accidents or illnesses will
   happen, pets insurance will provide you the best defense against sudden
   veterinary costs, while providing the best possible protection for your
   pet. With the advanced technology in medical techniques and drugs for
   pets, veterinary medicine now uses human medical procedures, making
   it very expensive for the pet guardian to pay for veterinary bills. The
   good thing about having pet insurance is that this will cover all the
veterinary expenses if one's pet is ill or got into an accident. Some
guidelines even pay out if the pet dies, is missing or stolen.

   There are a lot of pet insurance companies in the US and UK, each
offering a wide variety of insurance plans and claiming to be the best pet
insurance around. In the US, we have VPI Pet Insurance, Pet Care
Insurance, and Pets Best Insurance. In the UK, we have Direct Line Pet
Insurance, Pet Care Insurance and Tesco Pet Insurance. Some pet
insurance companies do not limit themselves in covering health and
veterinary pet insurance alone, but also, some cover boarding costs,
funds to help retrieve a lost pet, and third party liability insurance. This
means that if a pet caused a vehicular accident, the insurance will pay
and rectify the damage as mandated by law under the 1971 Animals Act.

   Some pet guardians who are on a tight budget also want to buy pet
insurance, however some just cannot afford it. This is the reason why
there are a lot of cheap pet insurance around that offers a good plan at a
lower rate. However, here are some of the things to consider in choosing
the best pet insurance. First is the policy cover. Look for plans that cover
accidents, illnesses, and optional routine care coverage‘s like vaccination
and other tests. Second is the deductible. Choosing a higher deductible
will lower your monthly plan but you will pay more if your pet will
require medical treatment. Choosing a lower deductible will do
otherwise. Third is veterinary assistance. Some pet insurance companies
will require you to select a doctor that you do not even know from a list.
It would still be best if you will deal with a licensed veterinarian. And
lastly, choose a company that is licensed by your state or is
    recommended by your veterinarian. By doing so, you‘ll get the best
    experience ever as far as pet insurance is concerned.




Vehicle insurance

       A motor vehicle is defined as, ―mechanically propelled vehicle
    adopted for use upon roads where the power of propulsion is transmitted
    thereto from an external or internal source and includes a chassis to
    which a body has not been attached and a trailer but not a vehicle which
    is running on fixed rails.‖

       The Motor Vehicle Act of 1939 introduced compulsory general
    insurance to protect those who may get injured in an accident. However,
    the insurance of damage to the vehicle is not compulsory.




 4. Vehicle insurance
       A motor vehicle is defined as, ―mechanically propelled vehicle
    adopted for use upon roads where the power of propulsion is transmitted
    thereto from an external or internal source and includes a chassis to
    which a body has not been attached and a trailer but not a vehicle which
    is running on fixed rails.‖

       The Motor Vehicle Act of 1939 introduced compulsory general
    insurance to protect those who may get injured in an accident. However,
the insurance of damage to the vehicle is not compulsory. The Tariff‘s
Advisory Committee regulates vehicle insurance in India. Vehicle
insurance is one of the largest non-life insurance business in the world.
All motor vehicles are to be registered with the Road Transport
Authorities. They are also insured for third party liability. The Motor
Vehicle act was modified in 1988. Vehicles require compulsory
insurance because any vehicle can be parked or drived in public places.
Vehicle insurance (also known as auto insurance, car insurance, or motor
insurance) is insurance purchased for cars, trucks, and other vehicles. Its
primary use is to provide protection against losses incurred as a result of
traffic accidents and against liability that could be incurred in an
accident.

   The liability that requires to be covered under this Act includes the
following:

   a. Any liability arising in respect of death or bodily injury to any
      person including the owner of the vehicle or his authorised person
      in the carriage.
   b. Any liability incurred in respect of damage to any person or
      property of a third party.
   c. Any liability incurred in respect of death or bodily injury of any
      passenger of a public service vehicle.
   d. Liability arising under Workmen‘s Compensation Act, in respect
      of injury or death of a paid driver of the vehicle, conductor or
      workers carried in goods vehicle.
   e. Liability for bodily injury or death of passengers who are carried
      for hire by a reason of a contract of employment.
   f. The policy should carry no fault liability limited to a sum of Rs.
        50000 in case of death, Rs. 25000 in case of permanent disability
        and Rs. 6000 in case of damage to the property. No fault liability
        is based on the premise that the injured party does not have to
        prove any fault in order to claim this amount under the policy.




   Motor vehicles are classified into three categories for the purpose of
insurance they are:




   Passengers and other miscellaneous items include Auto Rickshaws,
Taxis, Buses, Ambulances and Mobile Utilities.

   There are two of policies of motor insurance available for all types of
vehicles in India:


   1.   Third Party Liability Policy

   This policy covers the liability as defined in the motor Vehicle Act.
Under this policy the insurer indemnifies the insured against all sums
which the insured may become legally liable to any person, including
occupants of the insured motor vehicle. The liability of the insured for
damages to property of third party is limited to Rs. 6000 and the liability
for the death of, or bodily injury to third party is unlimited. The legal
costs incurred by such third parties are reimbursed in addition to the
above liability. The legal expenses incurred by the insured can also be
reimbursed with the written consent of the insurer.


   2.   Comprehensive Policy

 This policy covers the range of risks as defined in the tariff. The risks
covered under this policy includes loss due to fire, explosion, burglary,
theft, earthquake, flood, cyclone, terrorist activities, riots, strikes inland,
waterways, lift and air. However, the losses due to mechanical
breakdown, failures, breakages, depreciation, overloading are not
covered under the comprehensive policy.

   If the motor vehicle is disable, the insurer also bears a reasonable cost
to tow the vehicle to a place of repairs. This cost is covered up to Rs. 300
in case of motor cycle and Rs. 2500 for other vehicles. The repairs can
be carried out without authorization of the insurer to the extent of Rs.
150 for motor cycles and Rs. 500 for other vehicles. In case of
commercial vehicles the insured has to bear a sum of Rs. 1500 in respect
of each accident compulsorily. It is called compulsory excess.

   In case of motor insurance, the insurer is not liable in respect of the
following losses:

   a. Any accident when the vehicle is driven by the driver without a
        valid license.
   b. Any accident when the vehicle is used not in accordance with the
        limitations to use clause.
   c. Any contractual liability.
   d. Loss due to war and nuclear risk.
   e. Any accident occurred outside the boundaries of India.




   The following conditions are specific to Motor Insurance in India:

   a. The insured is required to safeguard the vehicle from loss or
       damage and maintain it in efficient condition. In case of an
       accident, the insured is required to take precaution to prevent
       further damage.
   b. The insurer has the option to repair or replace the vehicle or any
       of the parts or pay for the damages. The insurer‘s liability cannot
       exceed the insured‘s estimated value of the vehicle as specified in
       the policy.




Claims procedure

   The insured is under an obligation to follow all the procedures of
giving notice to the insurer relating to (i) the place of accident, (ii) time
of accident, (iii) cause of accident and (iv) particulars of the insurance
coverage. All the precautions to be taken to mitigate the losses should be
taken by the insured and the insurer has to follow the procedure that
follows like (i) appointment of surveyors provided the claim is more
than Rs. 20000 and (ii) assessment of loss by primary enquiry and (iii)
analysis of cause of damage and 9iv0 verification of the facts with those
attributed by the policy documents. And if the insurer satisfied with the
claim made by the beneficiary or the insured or the third party, it can
make a decision and communicate its acceptance or rejection of the
  claim. If it rejects it should mention the reasons for rejection. The
  insured after receiving the communication of acceptance or the rejection,
  if not satisfied can file a petition with the claims Tribunal.




Settlement of claims under motor vehicle insurance

     The ever increasing numbers of claims are related to the number of
  accidents caused, which has the ultimate relation to the increasing
  number of vehicles used. The presence of the vehicle has become
  symbol of status. But the same vehicle is cause of concern when the
  owner suffers damages either due to use of vehicle directly or due to
  payment of damages to the third party for the loss suffered by the third
  party due to the operation of the vehicle directly by the owner or the
  driver of the vehicle. The motor vehicle insurance forms major part of
  the insurance business and also claims under this class and more. The
  payment and settlement of claims under motor vehicle insurance are
  directly related to the following concept. The settlement of claims and
  the quantum of the compensation payable are dependant on these factors.

              Type of the policy
              Payment of premium
              Nature of the claim
              Warranties and conditions
              Driving license
              Permits
              Negligence
              Type of the vehicle
                 Type of the passengers
                 Ownership of the vehicle.




Type of the Policy

         The motor vehicle insurance includes the insurance policy as per
  the procedure laid down in the Insurance Act 1938 and also includes the
  certificate of insurance issued under Section 145(b) of the Motor Vehicle
  Act and a cover note, which is issued as a temporary and time gap
  arrangement and is operative till the original policy is issued. The other
  important element is that the policy should be valid at the time of
  accident.

     o    The policy should be issued by an authorized insurer. An
          authorized insurer is one defined by Insurance act, 1938.
     o    The policy should be issued in favor of person by whom it is
          affected.
     o    It should include a Certificate of Insurance as defined by the Act.
     o    It should be in the prescribed Form of format.
     o    It should contain the prescribed information and conditions of the
          subject matter of insurance, the risks covered under the policy,
          and the description of the vehicle.
     o    It may contain further information as agreed upon by the parties.
     o    It should state whether the insurance is limited to third party
          insurance or the comprehensive insurance covering the vehicle
          and third party damages.
Premium

         Any insurance policy cannot be affected until the premium is
   paid. The cover note and the policy are not effective until the premium is
   paid. The question whether the premium has been paid has to be
   established by the claimant.

   Warranties

         Motor Vehicle policy has some warranties the non-compliance of
   which by the insured would exempt the insurers from their liability. An
   important warranty relates to the age and the condition of the vehicle. It
   is important for the insurer to find out whether the car is more liable to
   accidents and breakages than any other vehicle. A false statement in this
   respect would make the contract void even though it was made by
   inadvertence. As in the case of marine insurance there is an implied
   warranty that the vessel is seaworthy, whereas there is no such warranty
   in case of motor insurance policy. The insurers can, however, limit their
   liability by an express warranty in the policy to any accident that the
   vehicle is not roadworthy and was unsafe foe driving.


   Driving License

         A driving license is essential requirement to obtain a motor car
   insurance policy. Holding a driving license and or being a qualified and
   competent driver is one thing and being employed as a driver is another
   thing. A person who does not have a valid driving license is not eligible
   to claim indemnity from the insurer. The burden of proof falls on the
   insurer to prove that the driver did not possess a valid driving license. In
   case the driver of the vehicle dies in an accident and the insurance
   company is not able to prove that he did not possess a license, the
   liability of the insurer remains. Even if the driver is holding a learners
   license the insurance company can be held liable to pay compensation.
   The conjoint reading of Section 94 and 125 of the Act, tells that a person
   who drives any motor vehicle or allows a person to drive motor vehicle
   in public is under the duty to find out that whether the vehicle is insured
   or not. It is found that the vehicle is not insured then it falls on the
   person to get the vehicle insured.

      The insurance company is not liable to pay or the liability of the
   insurance company stands cancelled if –

      o   The vehicle is driven by a person who is not duly licensed.
      o   When no driving license has been produced by the claimant either
          at the time of filing of the written statement or at the time of
          recording evidence or even at the later stage.
      o   If the vehicle was driven by somebody else, other than the license
          driver.

Some of the principles relating to driving license are-

      o   A forged driving license if validly renewed will not make it a
          valid driving license.
     o   If the insured bonafidely believes in forged driving license
         employing the holder of a fake driving license renewed by a
         competent authority, would not amount to violation of the terms
         of contract of the insurance policy nor be the conditions of
         indemnity be violated. Under this situation, merely employing a
         driver with the forged driving license would not amount to breach
         of the terms and conditions of policy.
     o   In the absence of knowledge or intention to violate the terms of
         the policy or the provisions of the Act by the insured, the liability
         of the insurance company remains.
     o   The insurer is liable both statutorily and contractually to
         reimburse the third party for the tortuous acts of the insured and
         his employees.
     o   The insurance company cannot refuse the liability to indemnify
         the insured or the claimants for an act of fraud of the third party;
         whilst it has he right to recover any loss suffered by it from the
         person who is guilty of the act or who committed the fraud, as
         permissible under the law of tort or any other statute.




Permit

         A permit is an approval/permission granted by the government
  authorities for a particular purpose. A permit for a vehicle means that it
  is permitted to ply on such routes and with such load and subject to such
  other conditions as specified in the permit. Permit is granted for vehicles
  used for commercial purposes. The permit is for specified period of time
  and is renewable. It is for the statutory authority to take into
   consideration all the relevant factors while considering the applications
   for grant of licenses. The Regional Transport Authority (RTA) is the
   authority for granting permits and it is up to the RTA to see whether
   there is any genuine requirement to grant permit. A permit is non
   transferable as per section 59(1)(a) of the Act, except with the
   permission of the transport authority. The types of permits can be-

1. Contract carriage permit
2. Stage carriage permit
3. Temporary permits




         A contract carriage permit is one which is engaged in carrying
   person(s) from one point to another but cannot take other persons en
   route, whereas in a stage carriage permit the driver can board the other
   person‘s enroute. Temporary permits are also granted on special
   occasions when there is too much load. These occasions could be
   festivals, seasonal, during summer vacations, etc.


   Negligence

         Negligence can be defined as an omission to do something which
   is reasonable man guided by those considerations which regulate the
   human affairs, would do, or to do something which a reasonable and
   prudent person not do. Negligence can be said to be the breach of duty
   resulting in damages to the person or property. Negligence can be termed
   as statutory or actionable if it is subject to law or if it arises from the
   circumstances of a particular case. The types of Negligence are:
o   Contributory negligence
o   Composite negligence
o   Statutory negligence




    Contributory negligence is defined as the negligence on the part of
    the person also who suffered from damages. Composite
    negligence arises when the negligent acts or omission of two or
    more persons causes damages to the third person. In contributory
    negligence, the Court has the power to apportion the amount of
    loss between the parties. But in case of composite negligence the
    third person does not contribute to damages and as such he is
    entitled to sue any of the persons for damages caused to him. In
    case of statutory negligence, neither the defense of composite
    negligence nor the cover of contributory negligence is available to
    the wrong doer.

       Determination of as to who is a negligent person is important
    to prove negligence. Simply pleading negligence on the counter
    party‘s part without proving the negligence and the person
    negligent does not amount to anything. Negligence can be
    attributed to number of factors.

       There can be no negligence by the act of a child who is of
    tender age. The owner of a motor vehicle does not become liable
    for his owning a motor vehicle. The Supreme Court in one case
    pointed out that the owners liability arises by his failure to
    discharge the duty which is cast on him by law. The Supreme
          Court further pointed out that the owner is liable only for
          negligence and proof of vicarious liability for the acts of servants.
          The Supreme Court concluded that the proof of negligence is
          necessary to hold the owner or the insurance company for the
          payment of compensation in case of motor vehicle accident
          claim.




Claims under motor vehicle insurance

         The motor insurance is a combination of property and personal
  insurance. It insures the damages to motor vehicle, its accessories,
  liability for damage to the property, liability for death and disablement
  (whether temporary or permanent) and the risk of injuries or death of any
  third party (who may not be a party to the contract). Thus broadly the
  motor vehicle insurance covers the following three aspects:

     o    Comprehensive insurance

          -Property accident aspect

          -Personal accident aspect

     o    Compulsory insurance

          -Third-party liability


Comprehensive insurance

Property accident
          If a motor vehicle is insured, the insured will be indemnified for
   any kind of loss or damage caused to it by accident. The contract being
   one of indemnity, the insured is entitled to indemnity only and that too in
   the manner as specified by the policy. He can get medical expenses also
   but subject to a limit. If the insured car suffers damage the insurer is
   entitled at his option to replace or repair the car or any part of the insured
   car or may pay the amount of loss or damage not exceeding the amount
   insured or the value at the time of loss whichever is less. It may so
   happen in the case of imported vehicle that there is considerable effort
   involved in getting parts of the vehicle replaced wherein the insurer may
   chose to pay the amount instead of getting replaced. The terms of the
   policy will provide the nature and extent of indemnity.

Personal accident

      Besides insuring the personal safety the extension clause indemnifies
   the insured for the injury caused to him whilst he is driving motor car not
   belonging to him or hired by him and any person driving the insured car
   by the general knowledge and permission of the assured. Further paying
   extra premium, coverage can be had for risks covering-

      o   Wife of the assured
      o   Child of the assured
      o   Other relatives as specified
      o   Earthquakes
      o   Floods and
      o   Various other risks can be covered depending upon the extent of
          premium that is needed and paid for such coverage.
      The benefit is extended in two ways- it extends to the insured not
   only when he is driving the car, but also when he is driving a private
   motor car (but not a motor cycle), not belonging to him and not hired by
   him. Such a benefit is available only till he is the owner of the insured
   car. The policy also extends to any driver who is driving the vehicle by
   the order or permission of the insured.

      Some of the usual condition which the assured must take care of, to
   make the insurer liable is as follows-

      o   The insured will maintain the vehicle in good state of repair.
      o   He takes all reasonable steps and precautions to avoid the accident
          and select competent and good drivers.
      o   That he takes all the reasonable steps to safeguard the vehicle
          from loss or damage.




      Where the insured fails to take the reasonable care of the care, which
   he can do without any expert knowledge and efforts, and meets with an
   eventuality    the    insurer     is      absolved   of    his    liability.



Third party or Compulsory Insurance

Insurable Interest

      A motor policy may extend the right and indemnity to any person
   who is driving the vehicle of insured with his knowledge and consent. It
   may be noticed that such person is not a party to the contract and cannot
enforce the policy for his benefit. Such a clause confers no right on such
person- unless there is an intention on the part of the assured to create
such a trust.

   The nature of the third party insurance derives its effect from the fact
that in the law of torts when the driver drives a vehicle and causes
injuries to the third party, the driver whose negligence caused such
injuries is liable to the third party.

   Third party insurance is compulsory in case of motor vehicles. The
contract in this policy is a contract of indemnity, like in case of other
insurance contracts. The objective of this type of policy is to protect the
insured against the liability to third parties arising out of an accident
caused by the use of motor vehicle on a public road and hence it is made
compulsory. The persons required to insure are-

   o   One who uses a motor vehicle except a passenger, i.e., the driver
       of the vehicle, and
   o   One who causes or allows any other person to use a motor
       vehicle. He may be the permanent owner of the vehicle, one who
       is in possession of a vehicle under a contract of loan or hiring, or
       even an owner in due course.
Hit and Run Motor Accidents

       Hit and Run motor accidents create a liability on the insurer. Section
  161-163 of the Motor Vehicles Act, 1988 deal with the hit and run cases.
  These cases arise when the motor car hits a third party and goes away
  and with all the efforts of the injured vehicles that hit him is not
  traceable. The liability in such case falls on all the insurers who have to
  contribute to a fund which is maintained by the District Collector. The
  claimant has to file an application with the District Collector for grant of
  compensation. Thus, the liability in such cases on the insurers is an
  indirect one. The Central Government is authorised to make a scheme by
  notifying in the official gazette that the liability arising out of the hit and
  run motor accidents will be looked upon by the General Insurance
  Corporation. The insurer is liable to pay the third party a fixed sum of
  rupees twenty five thousand in case of death and rupees twelve thousand
  in             case              of             grievous               injury.




       Coverage under auto policy

What is covered by a basic auto policy?

       Your auto policy may include six coverages. Each coverage is priced
  separately.
   1. Bodily Injury Liability


   This coverage applies to injuries that you, the designated driver or
policyholder, cause to someone else. You and family members listed on
the policy are also covered when driving someone else‘s car with their
permission.

   It‘s very important to have enough liability insurance, because if you
are involved in a serious accident, you may be sued for a large sum of
money. Definitely consider buying more than the state-required
minimum to protect assets such as your home and savings.

   2. Medical Payments or Personal Injury Protection (PIP)


   This coverage pays for the treatment of injuries to the driver and
passengers of the policyholder's car. At its broadest, PIP can cover
medical payments, lost wages and the cost of replacing services
normally performed by someone injured in an auto accident. It may also
cover funeral costs.

   3. Property Damage Liability


   This coverage pays for damage you (or someone driving the car with
your permission) may cause to someone else's property. Usually, this
means damage to someone else‘s car, but it also includes damage to
lamp posts, telephone poles, fences, buildings or other structures your
car hit.

   4. Collision
   This coverage pays for damage to your car resulting from a collision
with another car, object or as a result of flipping over. It also covers
damage caused by potholes. Collision coverage is generally sold with a
deductible of $250 to $1,000—the higher your deductible, the lower
your premium. Even if you are at fault for the accident, your collision
coverage will reimburse you for the costs of repairing your car, minus
the deductible. If you're not at fault, your insurance company may try to
recover the amount they paid you from the other driver‘s insurance
company. If they are successful, you'll also be reimbursed for the
deductible.

   5. Comprehensive


   This coverage reimburses you for loss due to theft or damage caused
by something other than a collision with another car or object, such as
fire, falling objects, missiles, explosion, earthquake, windstorm, hail,
flood, vandalism, riot, or contact with animals such as birds or deer.

   Comprehensive insurance is usually sold with a $100 to $300
deductible, though you may want to opt for a higher deductible as a way
of lowering your premium.

   Comprehensive insurance will also reimburse you if your windshield
is cracked or shattered. Some companies offer glass coverage with or
without a deductible.

   States do not require that you purchase collision or comprehensive
coverage, but if you have a car loan, your lender may insist you carry it
until your loan is paid off.
      6. Uninsured and Underinsured Motorist Coverage


      This coverage will reimburse you, a member of your family, or a
   designated driver if one of you is hit by an uninsured or hit-and-run
   driver.

      Underinsured motorist coverage comes into play when an at-fault
   driver has insufficient insurance to pay for your total loss. This coverage
   will      also   protect   you   if      you   are   hit   as   a   pedestrian.



Coverage levels

Vehicle insurance can cover some or all of the following items:

      o      The insured party
      o      The insured vehicle
      o      Third parties

      Different policies specify the circumstances under which each item is
   covered. For example, a vehicle can be insured against theft, fire
   damage,            or         accident         damage           independently.



   Basis of premium charges
   Depending on the jurisdiction, the insurance premium can be either
mandated by the government or determined by the insurance company in
accordance to a framework of regulations set by the government. Often,
the insurer will have more freedom to set the price on physical damage
coverage‘s than on mandatory liability coverage‘s.

   When the premium is not mandated by the government, it is usually
derived from the calculations of an actuary based on statistical data. The
premium can vary depending on many factors that are believed to have
an impact on the expected cost of future claims. Those factors can
include the car characteristics, the coverage selected (deductible, limit,
covered perils), the profile of the driver (age, gender, driving history)
and the usage of the car (commute to work or not, predicted annual
distance                                                         driven).
5. CASE STUDY

 1. Auto Insurance in the United States

 Coverage Available

      The consumer may be protected with different coverage types
   depending on what coverage the insured purchases. Every state requires
   that motorists carry minimum levels of auto insurance coverage in order
   to ensure that its drivers can cover the cost of damages to people or
   property in the event of an automobile accident.

      In the United States, liability insurance covers claims against the
   policy holder and generally, any other operator of the insured vehicles
   provided, do not live at the same address as the policy holder, and are
   not specifically excluded on the policy. In the case of those living at the
   same address, they must specifically be covered on the policy. Thus it is
   necessary for example, when a family member comes of driving age they
   must be added on to the policy. Liability insurance sometimes does not
   protect the policy holder if they operate any vehicles other than their
   own. When you drive a vehicle owned by another party, you are covered
   under that party‘s policy. Non-owners policies may be offered that
   would cover an insured on any vehicle they drive. This coverage is
   available only to those who do not own their own vehicle and is
  sometimes required by the government for drivers who have previously
  been found at fault in an accident.

     Generally, liability coverage extends when you rent a car.
  Comprehensive policies ("full coverage") usually also apply to the rental
  vehicle, although this should be verified beforehand. Full coverage
  premiums are based on, among other factors, the value of the insured‘s
  vehicle. This coverage, however, cannot apply to rental cars because the
  insurance company does not want to assume responsibility for a claim
  greater than the value of the insured‘s vehicle, assuming that a rental car
  may be worth more than the insured‘s vehicle. Most rental car
  companies offer insurance to cover damage to the rental vehicle. These
  policies may be unnecessary for many customers as credit card
  companies, such as Visa and MasterCard, now provide supplemental
  collision damage coverage to rental cars if the transaction is processed
  using one of their cards. These benefits are restrictive in terms of the
  types of vehicles covered.


Liability

     Liability coverage provides a fixed dollar amount of coverage for
  damages that an insured driver becomes legally liable to pay due to an
  accident or other negligence. For example, if an insured driver drives
  into a telephone pole and damages the pole, liability coverage pays for
  the damage to the pole. In this example, the drivers insured may also
  become liable for other expenses related to damaging the telephone pole,
  such as loss of service claims (by the telephone company).
     Liability coverage is available either as a combined single limit
  policy,       or       as        a       split      limit       policy:




     1. Combined Single Limit


     A combined single limit combines property damage liability coverage
  and bodily injury coverage under one single combined limit. For
  example, an insured driver with a combine single liability limit strikes
  another vehicle and injures the driver and the passenger. Payments for
  the damages to the other driver's car, as well as payments for injury
  claims for the driver and passenger, would be paid out under this same
  coverage.

     2. Split Limits


     A split limit liability coverage policy splits the coverages into
  property damage coverage and bodily injury coverage. In the example
  given above, payments for the other driver's vehicle would be paid out
  under property damage coverage, and payments for the injuries would be
  paid out under bodily injury coverage.

     Bodily injury liability coverage is also usually split as well into a
  maximum payment per person and a maximum payment per accident.


Collision

     Collision coverage provides coverage for an insured's vehicle that is
  involved in an accident, subject to a deductible. This coverage is
   designed to provide payments to repair the damaged vehicle, or payment
   of the cash value of the vehicle if it is not repairable. Collision coverage
   is optional. Collision Damage Waiver (CDW) is the term used by rental
   car companies for collision coverage.


 Comprehensive

      Comprehensive (a.k.a. - Other Than Collision) coverage provides
   coverage, subject to a deductible, for an insured's vehicle that is
   damaged by incidents that are not considered Collisions. For example,
   fire, theft (or attempted theft), vandalism, weather, or impacts with
   animals are just some types of Comprehensive losses.


Uninsured/Underinsured Coverage

      Underinsured coverage, also known as UM/UIM, provides coverage
   if another at-fault party either does not have insurance, or does not have
   enough insurance. In effect, your insurance company acts as at fault
   party's insurance company.

      In the United States, the definition of an uninsured/underinsured
   motorist, and corresponding coverages, are set by state laws.


 Loss of Use

      Loss of Use coverage, also known as rental coverage, provides
   reimbursement for rental expenses associated with having an insured
   vehicle repaired due to a covered loss.


 Loan/Lease Payoff
   Loan/Lease Payoff coverage, also known as GAP coverage or GAP
insurance, was established in the early 1980's to provide protection to
consumers based upon buying and market trends.

   Due to the sharp decline in value immediately following purchase,
there is generally a period in which the amount owed on the car loan
exceeds the value of the vehicle, which is called "upside-down" or
negative equity. Thus, if the vehicle is damaged beyond economical
repair at this point, the owner will still owe potentially thousands of
dollars on the loan. The escalating price of cars, longer-term auto loans,
and the increasing popularity of leasing gave birth to GAP protection.
GAP waivers provide protection for consumers when a "gap" exists
between the actual value of their vehicle and the amount of money owed
to the bank or leasing company. In many instances, this insurance will
also pay the deductible on the primary insurance policy. These policies
are often offered at the auto dealership as a comparatively low cost add
on that can be put into the car loan which provides coverage for the
duration of the loan.

   Consumers should be aware that a few states, including New York,
require lenders of leased cars to include GAP insurance within the cost
of the lease itself. This means that the monthly price quoted by the dealer
must include GAP insurance, whether it is delineated or not.
Nevertheless, unscrupulous dealers sometimes prey on unsuspecting
individuals by offering them GAP insurance at an additional price, on
top of the monthly payment, without mentioning the State's
requirements.
     In addition, some vendors and insurance companies offer what is
  called "Total Loss Coverage." This is similar to ordinary GAP insurance
  but differs in that instead of paying off the negative equity on a vehicle
  that is a total loss, the policy provides a certain amount, usually up to
  $5000, toward the purchase or lease of a new vehicle. Thus, to some
  extent the distinction makes no difference, i.e., in either case the owner
  receives a certain sum of money. However, in choosing which type of
  policy to purchase, the owner should consider whether, in case of a total
  loss, it is more advantageous for him or her to have the policy pay off the
  negative equity or provide a down payment on a new vehicle.

     For example, assuming a total loss of a vehicle valued at $15,000, but
  on which the owner owes $20,000, is the "gap" of $5000. If the owner
  has traditional GAP coverage, the "gap" will be wiped out and he or she
  may purchase or lease another vehicle or choose not to. If the owner has
  "Total Loss Coverage," he or she will have to personally cover the "gap"
  of $5000, and then receive $5000 toward the purchase or lease of a new
  vehicle, thereby either reducing monthly payments, in the case of
  financing or leasing, or the total purchase price in the case of outright
  purchasing. So the decision, on which type of policy to purchase will, in
  most instances, be informed by whether the owner can pay off the
  negative equity in case of a total loss and/or whether he or she will
  definitively purchase a replacement vehicle.


Car Towing Insurance

     Car towing coverage is also known as Roadside Assistance coverage.
  Traditionally, automobile insurance companies have agreed to only pay
  for the cost of a tow that is related to an accident that is covered under
    the automobile policy of insurance. This had left a gap in coverage for
    tows that are related to mechanical breakdowns, flat tires and gas
    outages. To fill that void, insurance companies started to offer the Car
    Towing coverage, which pays for non-accident related tows



2. Auto Insurance in India




  Car Insurance - Introduction

       ICICI Lombard brings to you a comprehensive Package Policy for
    your four-wheelers, which covers Loss or damage to the vehicle insured,
    Personal Accident and Third Party Liability.


  Policy Details

       1.   Policy coverage
       2.   Key benefits
       3.   Need for policy
       4.   Sum insured
       5.   Claim process
       6.   Why buy online
Policy Coverage

      Our Motor insurance Policy is governed by the Indian Motor Tariff.
   It covers you for:

      Loss or damage to your vehicle: The policy covers you against any
   loss or damage caused to the vehicle due to the following natural and
   man made calamities.

      Natural Calamities – Fire, explosion, self-ignition or lightning,
   earthquake, flood, typhoon, hurricane, storm, tempest, inundation,
   cyclone, hailstorm, frost, landslide, rockslide.

      Man made Calamities – Burglary, theft, riot, strike, malicious act,
   accident by external means, terrorist activity, any damage in transit by
   road, rail, inland waterway, lift, elevator or air.

      Personal accident cover: The motor insurance provides compulsory
   personal accident cover of Rs. 2 lakhs for individual owner driver of the
   vehicle insured while traveling in, mounting or dismounting from the
   car. You can also opt for a personal accident cover for passengers.

      Third party legal liability: This protects you against legal liability
   arising due to accidental damages

                Any permanent injury/ death of a person
                  Any damage caused to the property.




Key Benefits

   You can avail of our cashless claim facility at our Cashless Garage
    Network all across India.
   You can claim towing charges up to Rs 1,500 in the event accidental
    damage or loss to your vehicle as specified under the policy
   Avail of the following bonuses and discounts –

               1. No Claim Bonus: If you do not make a claim during the
                   policy period, a No Claim Bonus (NCB) is offered on
                   renewals. This discount can go as high as 50%. (NCB will
                   only be allowed provided the policy is renewed within 90
                   days of the expiry date of the previous policy.)

               2. Transfer your NCB: You can transfer full benefits of No
                   Claim Bonus when you shift your motor insurance policy
                   from another company to ICICI Lombard.

       The discount rate remains the same; provided you show evidence that
    you are entitled to No Claim Bonus from your previous motor insurance
    company.

       Evidence can be in form of:

                  Renewal notice or
   Letter confirming the NCB entitlement from the previous
    insurer or
   NCB declaration

3. Voluntary Excess discount: A further discount on the
    premium is available if you opt for a Voluntary Excess in
    addition to the Compulsory Excess. (Compulsory Excess is
    the amount of loss which the insured has to bear in each
    and every claim.)

4. Additional discounts: If you are a member of a recognized
    Automobile Association in India you can avail a discount
    of 5% on the OD Premium subject to a maximum of Rs.
    200.
5. Discount for Anti-theft Devices: In case you have
    installed ARAI approved anti theft device in your vehicle,
    you get a discount of 2.5 % on the OD Premium to a
    maximum of Rs. 500.
6. Cover yourself and your family: You can also opt for
    personal accident cover of up to Rs. 2 Lakhs for other
    unnamed passengers in your car. For e.g. your family,
    relatives, friends etc.
7. Customize your insurance with additional covers:
    Electrical and/ or non-electrical items fitted to the vehicle
    can be insured separately. For example: fog lights, music
    system, seat covers. In case of vehicles fitted with bi-fuel
    system such as Petrol/ Diesel and CNG/ LPG, permitted by
    the concerned RTO, the CNG/LPG kit fitted to the vehicle
                  is to be insured separately at an additional premium of 4%
                  on the value of such kit. You need to specifically declare
                  this in the proposal form.




Need for Policy

    The number of road accidents in India is estimated to be three times vis-
     a-vis developed countries. The number of accidents for 1000 vehicles in
     India is as high as 35 while the figure ranges from 4 to 10 in developed
     countries
    Comprehensive Car Insurance serves as an add-on to the mandatory
     third-party cover and protects the car owner from financial losses,
     caused by damage or theft of the vehicle


Sum Insured

        The vehicles are insured at a fixed value called the Insured‘s
     Declared Value (IDV). IDV is calculated on the basis of the
     manufacturer‘s listed selling price of the vehicle (plus the listed price of
     any accessories) after deducting the depreciation for every year as per
     the schedule provided by the Indian Motor Tariff.

        If the price of any electrical and / or electronic item installed in the
     vehicle is not included in the manufacturer‘s listed selling price, then the
   actual value (after depreciation) of this item can be added to the sum
   insured over and above the IDV.




Claim Process

      Know all about making a claim

 Motor Claim Procedure

      In case of motor insurance claim, you can avail cashless facility for
   the repair of your car in any of our All India Cashless Garage List.
   However, if the car is serviced in a garage outside the purview of our
   network, then you can claim reimbursement for the same.

      In Case of an Accident

      o   Note the number of the other vehicle involved in the accident, if
          any.
      o   Jot down the names and contact details of witnesses, if any.
      o   Contact our 24X7 insurance helpline number 1800 209 8888. Get
          your claim number / reference number. Call centre representative
          will provide you the details of documents required for claim
          processing and also details of our preferred garage, where cashless
          repair facility can be availed.
      o   File an FIR at the nearest police station in case of property
          damage, bodily injury, theft and major damages.
After Registering the Claim

      o   Our customer service manager will contact you within 24 hours of
          registering the claim.
      o   Submit the copy of documents to the dealer / CSM and get
          verified with the originals.
      o   Our CSM will get the estimate for the repairs of your vehicle and
          give spot approval after assessment.
      o   After completion of repair at our preferred garage we will make
          payment of our share of the loss directly to the garage.
      o   The insured to pay the excess mentioned in the policy and
          depreciation, salvage etc informed by the CSM.

Documents Required

For Accident Claims

      o   Claim form duly signed *
      o   RC copy of the vehicle
      o   Driving license copy**
      o   Policy copy (First two pages)
      o   FIR on a case-to-case basis
      o   Original estimate
      o   Original repair invoice, payment receipt (for cashless garage, only
          repair invoice)




For Theft Claims

      o   Claim form duly signed*
      o   RC copy of the vehicle with all original keys
      o   Driving license copy
      o   Original policy copy
      o   Original FIR copy
      o   RTO transfer papers duly signed along with Form 28, 29, 30 and
          Form 35 (if hypothecated)
      o   Final report – A no trace report from the police saying that the
          vehicle cannot be located.




For Third Party Claims

      o   Claim form duly signed*
      o   Police FIR copy
      o   Driving license copy
      o   Policy copy
      o   RC copy of the vehicle




* Stamp required in case of company registered vehicle

** Original documents

All India Cashless Garage List

Locate Garage near you
         Search from our network of over 2500 cashless garages, to locate one
   near your city. Just choose your state, city, the vehicle manufacturer and
   click on submit and find the contact details of the garage nearby.

 Claim                                                                   Form




Why buy online

    Why buy online at www.icicilombard.com? We give you a few of
   many reasons why -

         o   No Paperwork required to buy your policy online
         o   Instant Policy Issuance - Digitally signed policy is available 24X7
             online, you can take prints instantly. The hard copy of the policy
             is couriered to you within seven days.
         o   Multiple Payment options - Credit Card, Debit Card, Net Banking
             or Cash Card
         o   0% EMI option - You can pay online through ICICI Bank or
             Citibank Credit Card at 0% EMI (interest-free EMI).
                   Note: EMI option subject to minimum annual premium of
                    Rs. 1500.
         o   Highest Levels of Security-
                           TRUSTe Privacy Seal Program
                           VeriSign Certification

								
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