CAREER IN CAPITAL MARKET

Liberalized Indian economy has opened up the capital markets for domestic as well as foreign investors. Due to the heavy flow of capital into the capital markets and its steady growth there are many employment opportunities in this sector. Besides this coming of private players and many financial institutions into the capital markets has further widen the scope of employment here. Capital markets comprise of stock exchanges and mutual funds. As this is one of the fastest growing area in Indian economy here we can see more job opportunities. Mutual Fund industry is playing an active role in the capital market today and is one of the fastest growing industries.

Courses Detail
Job in capital markets is best suited to people from commerce and economics background. However anyone from any stream of study can enter into this field. The minimum qualification is a NSE's Certification in Financial Markets (NCFM). National Stock Exchange (NSE) has a facility for testing and certification by launching NSE's Certification in Financial Markets (NCFM). NCFM is an online testing system, a revolutionary concept in administration of examinations and the only one of its kind today in the country. It has been specified by SEBI that all brokers/dealers in the stock market have to mandatorily obtain the NCFM certification. SEBI has made mandatory for any entity / person engaged in marketing and selling of mutual fund products to pass AMFI certification test (Advisors Module) and obtain registration number from AMFI. This certification remains valid for 5 years from the date of the test.

Career Prospects
Graduates having the AMFI certification can work as Business Development Managers / Relationship Managers / Advisors for the marketing and distribution of the mutual fund schemes. Relationship Managers / Advisors assist investors in their financial planning by recommending them ideal investment portfolio and build a customer relation. Likewise graduates having NCFM certification can work as an assistant to stock broker or become an independent stock broker. Graduates also can choose to be agent/advisor/distributors and sell various schemes launched by mutual funds. Besides highly qualified professionals from Commerce, Economics, Finance, Mathematics and Management background are required as Fund Manager or Portfolio Manager who decides about the investment of the fund's underlying securities (money received from investors for investment), realizing capital gains or losses, and collects the dividend or interest income. There are also wide job opportunities in capital markets for Chartered Accountants, MBA Finance, Financial Analysts, Economics Masters, and Statistics Masters. Besides people with deeper knowledge in the working of capital markets can choose consultancy as a good option.

Remuneration
Capital market is a lucrative field for youngsters because it is highly remunerative. The income of share market brokers and mutual funds agents depends upon the number and type of scheme they sold to costumers. But it can be expected that they can easily earn Rs 1 lac to Rs 1.5 lac per annum with little effort. The remuneration of highly qualified professionals is even more depending upon the nature of the company they work with. Expected salary of CAs, MBAs, and CFAs can be within Rs 3 lacs to Rs 6 lacs. The private finance planner/advisors are earning good returns out of their consultancy service in capital markets.

CAREER IN INSURANCE

In the liberalization era the Indian insurance industry has witnessed exceptional growth with participation of both public and private sectors players. There are many public and private players both in the field of life and non-life insurance business. The major government companies are Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and Postal Life Insurance. Private players like Om Kotak Mahindra, Birla Sun-Life, Tata AIF Life, Reliance, HDFC Standard Life-Insurance Co., Max New York Life, Royal Sundaram, Cholamandalam, IFFCO Tokyo and Tata AIG are also there. This sector not only provides a protective shield to the lives and assets of the nation but also generate thousands of jobs and career opportunities.

Course Details
To pursue a career in the insurance industry, one has to pass the entrance examination conducted by the Actuarial Society of India, Mumbai. Students who have passed 10 + 2 or equivalent exam are eligible. License is needed to work in this field which can be achieved through a training programme. Insurance Institute of India conducts Licentiate, Associateship and Fellowship plus other training programmes for insurance services.

Career Prospects
Post-graduates in any discipline can be recruited as Asst. Administrative Officers through the recruitment exam conducted by the insurance companies. Graduates can apply for Development Officer in insurance companies whose main task is to market and procure business. Besides this people who are certified by Actuarial Society of India can be an insurance agent. They are the people who advice the individuals and enterprises about insurance protection to their health, life and properties and sell the policies to provide protection against financial loss. Depending on their educational qualification and strengths, the agents have a good chance of becoming an employee of the company. Insurance agencies also employ independent professionals like mechanical engineers and doctors as insurance surveyor to access the actual loss and avoid the false claim made by insured. The post of Assistants, Typists, Machine Operators, Stenographer, Telephone Operators, Clerks etc. are open to graduates and school-leavers and the age limit is between 18 to 25 years.

Institutes Offering
Actuarial Society of India, Mumbai; Amity School of Insurance and Actuarial Science, Noida; Birla Institute of Management & Technology, New Delhi; College Of Insurance, Mumbai; Institute of Insurance & Risk Management, Hyderabad; International Institute for Insurance and Finance, Hyderabad; International School of Actuarial Sciences (ISAS), Hyderabad; National Insurance Academy, Pune; The ICFAI School of Finance and Management, Hyderabad etc

Remuneration
The pay scale in the government sector is as per government rules depending on each position. In the private sector, the salary scales are more lucrative. They take in management graduates to work mainly in the areas of marketing and sales with an initial salary ranging from Rs 15,000 to Rs 25,000 per month. Commissions are the most common form of compensation for insurance agents and the amount depends on the type and amount of insurance sold. Earnings of surveyors depend upon nature of work and assignments.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY- IRDA

Insurance Regulatory and Development Authority - Irda

IRDA was set up by the parliament in 1999. The section 4 of IRDA Act' 1999,

Insurance Regulatory and Development Authority specify the composition of Authority


The Authority is a ten-member team consisting of

a. Chairman; b. five whole-time members; c. four part-time members,

All these positions are appointed by the Government of India

IRDA - Duties,Powers and Functions

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

Head Office
Insurance Regulatory and Development Authority
3rd Floor, Parisrama Bhavan,
Basheer Bagh
HYDERABAD 500 004
Andhra Pradesh (INDIA )
Ph: (040) 23381100
Email:irda@irda.gov.in


Delhi Office
Insurance Regulatory and Development Authority
Delhi Office - Gate No. 3
Jeevan Tara Building, First Floor
Sansad Marg,
New Delhi-110001
Ph: (011) - 2374 7648


Chairman:

Mr.J.Hari Narayan
040-23241273
040-66820957
Fax : 040-66823334
chairman@irda.gov.in

INSURANCE COMPANIES IN INDIA

Insurance Companies in India :

Life Insurance Companies

Aviva Life Insurance

Bajaj Allianz Life Insurance

Birla Sun-Life Insurance

HDFC Standard Life Insurance

ING Vysya Life Insurance

Life Insurance Corporation

Max New York Life Insurance

MetLife Insurance

Om Kotak Mahindra Life Insurance

Reliance Life Insurance

Sahara India Life Insurance

SBI Life Insurance

TATA AIG Life Insurance

How companies Make Money

Private Insurance Companies

New Insurance Products

General Insurance Companies

Agriculture Insurance

Amsure Insurance

ANZ Insurance

Bajaj Allianz General Insurance

Cholamandalam General Insurance

Employee State Insurance

Export Credit Guarantee Corporation

ICICI Lombard General Insurance

IFFCO-Tokio General Insurance

National Insurance

Oriental Insurance

Peerless Smart Financial

Royal Sundaram Alliance

TATA AIG General Insurance

INSURANCE INDUSTRY

Insurance IndustryIt is due to globalization, deregulation and also terrorist attacks; that the insurance industry is undergoing a massive change and the metamorphosis has been noteworthy in the last few decades.

Clearing basics:
Before we begin the analysis of Indian insurance industry, let us clear some basics on insurance.

In the words of a layman, insurance means managing risk. For instance, in life insurance segment, the insurance company tries to manage mortality (death) rates among the wide array of clients.
The insurance company works in a manner by collecting premiums from policy holders, investing the money (usually in low risk investments), and then reimbursing this same money once the person passes away or the policy matures. The greater the probability for a person to have a shorter life span than the average mark, the higher premium that person has to pay. The case is the same for all other types of insurance, including automobile, health and property.
Ownership of insurance companies is of two types:
Shareholder ownership
Policyholder ownership
Types of Insurance

Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.
Health Insurance - Insurance against expenses incurred through illness of the insured.
Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.
Challenges facing Insurance Industry


Threat of New Entrants: The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants.
Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off.
Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums.
Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services – be it auto, home, commercial, health or life insurance.
How to choose an insurance company?

There are many factors to probe into when an investor chose an insurance company.

The consumers as well as the investors should only focus on the insurer's financial strength and capability to meet ongoing responsibilities to its policyholders.
The fundamentals of the insurance company should be strong and should not indicate a poor investment opportunity as this might also deter growth.

Life Insurance in India :

India Life Insurance industry came into being with the establishment of Life Insurance Corporation (LIC)in India in 1956. Till the time Insurance Regulatory and Development Authority(IRDA) Act was implemented in the year 1999, private companies were controlled by the LIC of India. Since 1999 onwards the market was opened for operations of private companies also in the insurance sector.

Growth Of Indian Life Insurance Sector

The life insurance sector of India has added up to 4.1% of the GDP in 2009, a considerable growth was recorded since the time the sector was opened for the private companies. The contribution in FDI by the life insurance segment was recorded at US $ 1.3 billion, even though the government is likely to increase the FDI cap limit from 26% to 49%, a bill of which is pending at the Rajya Sabha.

The year 2009-10 also saw private sector insurance company, Aviva Life Insurance establishing nine unit-linked plans, in line with the recent IRDA guidelines featuring enhanced and higher internal rate of return (IRRs).

As per the data provided by the IRDA, the businesses of the life insurance companies had a growth of 22% at US$ 12 billion in April-November 2009-10, in comparison to the US$ 9.8 billion during the same period last year. Such a huge sale of single premium policies led the industry to record a raise of 53.25% in November 2009 alone.

With the registration of IndiaFirst Life Insurance Company Limited, a joint stake life insurance company encouraged by Bank of Baroda and Andhra Bank of India and Legal & General Middle East Limited, UK, the total number of of life insurers registration with the Insurance Regulatory Development Authority (IRDA) has increased to 23.

According to industry body, Life Insurance Council, The life insurance industry had earlier been anticipated to grow by 15% in the year 2009 - 10 and surpass the US$ 54.1 billion mark in total premium income by March-end. This growth in premium income includes new business as well as renewals, driven by increasing awareness on the value of getting insured.

The US$ 41-billion Indian insurance industry made a grand return with better performances in the April-November 2009 period. Life insurance in India recorded the first year premium (inclusive of Single Premium) segment accounting to US$ 24 billion.

FDI Policy in Indian Life Insurance Industry

The FDI limit in the insurance sector has been capped at 26% for the foreign marketeers but the government is thinking to increase it to 49% and a bill of this offer is pending at the Rajya Sabha. The LIC is still the major company in the life insurance sector but with such an emergence of the private companies, providing a range of moneymaking policies and investment chances for people from all walks of life the situation is fast changing. The Unit Linked Investment Plans (ULIP) offering life cover as well as scope for savings and investment deserves extra acknowledgement in this issue. Furthermore, with minimum lock-in period of three years such plans are subjected to avoid miss usage of important tax benefits

POLICY CHANGE IN THE INDIAN INSURANCE MARKET

The Indian insurance market in spite of having a history covering almost two centuries took a turn after the establishment of the Life insurance corporation in India in 1956. From being an open competitive market to being nationalized and then back to a liberalized market again, the insurance sector has witnessed all aspects of contest.
The Indian insurance market conventionally focused around life insurance until recently, a various range of other insurance policies covering sectors like medical, automobile, health and other classes falling under general insurance came up, generally provided by the private companies. The life insurance of India added 4.1% to the GDP of the economy in 2009, an immense growth since 1999, when the gates were opened for the private company in the market.

Policy Change in the Indian Insurance market

The Insurance Regulatory Development Act, 1999 (IRDA Act) allowed the entry of private companies in the insurance sector, which was so far the sole prerogative of the public sector insurance companies. The act was passed to protect the concerns of holders of insurance policy and also to govern and check the growth of the insurance sector. This new act allowed the private insurance companies to function in India under the following circumstances :

The company should be established and registered under the 1956 company Act
The company should only the serve the purpose of life or general insurance or reinsurance business
The minimum paid up equity capital for serving the purpose of reinsurance business has been decreed at Rs 200 crores
The minimum paid up equity capital for serving the purpose of reinsurance business has been decreed at Rs 100 crores
The average holdings of equity shares by a foreign company or its subsidiaries or nominees should not go above 26% paid up equity capital of the Indian Insurance company.
Investment policy in the Indian insurance market

A policy known by the name of 'Health plus Life Combi Product', offering life cover along with health insurance has been granted permission by the IRDA act and insurance companies are allowed to provide it now.
The FDI limit in the insurance sector has been capped at 26% for the foreign marketeers but the government is thinking to increase it to 49% and a bill of this offer is pending at the Rajya Sabha
A low cost pension scheme is supposed to be formed by the Pension Fund Regulatory and Developmental Authority (PFRDA) on 1st April, 2010 to provide social security to the the poorer class.
The compulsory ceding by every General Insurance Corporation (GIC), would go on to stay at 10% under current regulations as specified by IRDA.
Future of Indian Insurance Market

As per the report of 'Booming Insurance Market in India' (2008-2011), concentration of insurance markets in many developed countries of the world has made the Indian insurance market more magnetic in terms of international insurance players. Furthermore, the report says

Home insurance sector is likely to achieve a 100% growth since home insurance are made compulsory for housing loan approvals by the financial institutions.
In the coming three years Health insurance sector is all set to become the second largest business after motor insurance.
During the period of 2008-09 to 2010-11 the non life insurance premium is likely to have a growth of 25%.
Insurance Companies in India

Registration has been granted to 12 private life insurance companies and 9 general insurance companies so far by the IRDA. Considering the existing public sector companies in the Indian insurance market there are 13 companies functioning in both life and general insurance business respectively.

Some of the major insurance companies in public sector are

Life Insurance Corporation (LIC) of India
National Insurance Company Limited
Oriental Insurance Limited
Some of the major insurance companies in Private sector are

Tata AIG Life
HDFC Standard
Bajaj Allianz
ICICI Prudential
SBI Life

CAR INSURANCE COMPANIES

CAR INSURANCE COMPANIES
New India Assurance Company Limited
Location Address Contact numbers
Mumbai The New India Assurance Co. Ltd
87, M.G. Road, Fort,
Mumbai - 400 001
Delhi Delhi Regional Office-I
Jeeven Bharti Bldg,
124, Connaught Circus,
New Delhi - 110 001
Bangalore 2-B, Unity Bldgs Annexe
P. Kalinga Rao Road
Bangalore - 560 027
Hyderabad 5th floor, G- Block Surya Towers,
S. P. Road,
Opp. Gymkhana Ground,
Secunderabad-500 003 040-27841871,
040-27811044
Chennai Spencer Towers,
3rd floor, 770 A,
Anna Salai,
Chennai-600 002 Phone (Off): 044-23456701
Direct: 044-23456711
Mobile: 9445011700
Chandigarh Chandigarh Reg. Office
SCO-36 - 37, Sector 17-A,
Chandigarh - 160 017 Phone: 0172-2703155/2702806
FAX - 2715509/2703603


Oriental Insurance Company Limited

Location Address Contact numbers
Delhi Oriental House,
A-25/27, Asaf Ali Road,
New Delhi - 110002 (011)43659595, 23279221
Mumbai 2nd Floor, Oriental House,
J Tata Road, Churchgate,
Mumbai,
Maharastra (022)22820494
Chennai P.B.NO.1877, U.I.L Building,
III & IV Floor,
8, Eesplanade, Chennai 600108 (044) 23458211
Kolkata 4, Lyons Range
Kolkata 700001 (033) 22307995
Noida C-30, Sector 2,
Noida 201301 (0120) 2526047
Chandigarh SCO. No. 109-111,
Surendra Building,
Sector - 17D,
Chandigarh 160017 (0172) 2704257
Gurgaon 288/7, Munjal Toner,
Old Railway Road,
Gurgaon (0124) 2325170
Hyderabad 6-3-871, Snehalata Complex,
Greenlands Road,
Hyderabad (040) 23400698


HSBC India

Location Address Contact numbers
Delhi 12, Basant Lok,
Vasant Vihar,
New Delhi,
Delhi 110057 (011) 23738989
Mumbai Kamla Bhavan,
Near Old Bahar Cinema,
Andheri (East), Mumbai,
Maharashtra 400069 (022) 22734343
Kolkata 33a, Middleton Row,
J L Nehru Road, Kolkata,
West Bengal 700071 (033) 22281356
Chennai Gandhi Nagar 1st Main Road,
Adyar, Chennai,
Tamil Nadu
Gurgaon
Sector 45,
Gurgaon,
Haryana
Hyderabad Shop No. 1-10-72, 10, GVVR Plaza,
Begumpet Main Road,
Begumpet,
Hyderabad,
Andhra Pradesh 500016 (040) 27764751


Bajaj Allianz

Location Address Contact numbers
Delhi B-37/38-1st Floor,
Connaught Place,
Delhi 110001
(011) 41515807
Mumbai Near W E Highway, Business Point,
Chakala, Andheri East,
Mumbai,
Maharastra 400093 (022) 66919542
Chennai Cathedral Garden Rd,
Thyagaraya Nagar,
Chennai, Tamil Nadu 600006 (044) 2827 0100
Kolkata 57, Horizon Building
2th Floor, Chowringhee Road,
Kolkata, West Bengal 700071 (033) 25942590
Chandigarh S C O 215-217, 4th Floor,
Sector 34-A, Sector 34-A,
Chandigarh - 160034 (0172) 5085275
Gurgaon Shop No-5, Sohna Road,
Tikri Opposite Adrash Vidhalya School,
Sohna Road, Gurgaon,
Haryana 122001 (0124) 4064501
Hyderabad Plot No. 104, Near Huda Mythrivanam,
Ameerpet, Hyderabad,
Andhra Pradesh 500038 (040) 64500001


United India Insurance Co

Location Address Contact number
Delhi 501, Kailash Building,
Connaught Place, New Delhi,
Delhi 110001 (011) 23331476
Mumbai 42-Shriphal, Vaibhav Society,
Daulat Nagar Road No 1,
Mumbai, Maharashtra 400066 09820590265
Chennai No 36, Kamarajapuram,
Velachery, Near Lake G M Pens,
100 Feet Bypass Road, Chennai,
Tamil nadu 600042 (044) 22446433
Kolkata Barrackpore, West Bengal (033) 25922405
Chandigarh Sco 49 & 50,
Bank Square, Sector 17B,
Chandigarh, 160017
(0172) 2722095
Hyderabad Gun Foundry, Basheer Bagh,
Hyderabad,
Andhra Pradesh (040) 23231675
Bangalore 25, 25/1, Vinod Complex,
Jayachamaraja Road, Bengaluru,
Karnataka 560002 (080) 22234604


The New India Assurance Co

Location Address Contact numbers
Delhi Jeevan Bharti, Connaught Circus,
New Delhi,
Delhi 110001 (011) 23718124
Mumbai Tardeo D. O. 111300,
Commerce Centre,
1st Floor, Tardeo,
Mumbai - 400034 (022) 23513550
Chennai 375., Saidapet,
Chennai,
Tamil Nadu 600015 (044) 23456775
Kolkata 23, Dharmatala,
Ganesh Church Avenue,
Kolkata, West bengal 700013 (033) 2211 8365
Chandigarh Sco 58, Sector 26-C,
Chandigarh, 160019
(0172) 2720119
Hyderabad R T C Xroads,
Hyderabad,
Andhra Pradesh 500020
(040) 27615392
Bangalore #14, 2nd Floor,
Jayachamaraja Road,
Bangalore City H.O. ,
Bengaluru, Karnataka 560002 (080) 22224162


ICICI Lombard

Location Address Contact numbers
Delhi Icici Tower Nbcc Place,
Pragati Vihar,
Bhisham Pitamah Marg,
New Delhi, Delhi 110003 (011) 66310600
Mumbai 2 Floor, Zenith House,
Keshav Rao Khadye Marg,
Tulsiwadi, Bombay,
Maharashtra 400034 (022) 24906999
Chennai No. 140, Nungambakkam High Road,
Nungambakkam, Chennai,
Tamil Nadu 600034 09842299418
Kolkata 3rd Floor, Block No-B,
46 D, Chowringhee Road,
Kolkata, West bengal 700071 (033) 22882285
Chandigarh Scf-11, Sector 27-C,
Chandigarh - 160027
(0172) 2650893
Hyderabad 4th Floor, Osman Plaza,
R.No. 1, Banjara Hills,
Opposite HSBC Bank,
Panjagutta, Hyderabad,
Andhra Pradesh 500034 (040) 66112719
Bangalore 2nd Main, 3rd Crss,
Dinnur Main Road,
R T Nagar, Bangalore,
Karnataka 560032 09980940508

Car Driving Tips

vehicle Maintenance is the most important ingredient for a happy journey and a long life of your vehicle. A well maintained car would never desert you when you need it the most. more..
Fasten your seat belts: Buckling up your safety belt may be the single most important step you can take to reduce your health risks. Make sure that everyone in your vehicle is strapped in, and that small children are secured in safety seats before you set off. It can save your life, and it's the law!

Don't Mix Drinking and Driving: Alcohol is the major cause of fatal accidents caused by human error. Drunk driving results in hundreds of thousands of injuries including lifetime disability from brain damage, paralysis, blindness, or amputated or deformed limbs.

Hot Cars: On a warm day, the temperature inside a car can shoot up in minutes - even if the windows are partially open.. Even if it is not so hot outside, the danger of overheating exists - especially if you have a dark-colored car. Don't leave pets or children unattended.

Keep Your Eyes On The Road: Avoid taking your eyes off the road by eliminating any possible distractions ahead of time. Before setting out on a drive, be sure that important items are within easy reach, i.e. directions and maps, sunglasses, etc. Reduce to a minimum possibly dangerous diversion of your attention from the tasks of safe driving such as changing tapes or compact discs and always pull over to a safe place to use your cellular telephone.

Be Alert To Signs Of Fatigue: If you start to feel tired when driving pull over in a safe area and let someone else drive. If you are alone, pull into a safe location such as a well-lit rest stop and take a short nap or get out of the car and walk around for a few minutes. Stop as often as necessary. When traveling on long trips, eat light. Large, heavy meals can make you drowsy.

Maintain a Steady Speed: Go with the flow. Keep up with traffic if conditions permit. A wide disparity in speeds is dangerous.

Be Safe: Avoid cars that drive in formation on the highway so you're not involved in someone else's accident.

Keep track of traffic : Look far down the road and keep your eyes moving to spot any problems before you reach them. Check your mirrors frequently.

Do not hog the right lane : That is a passing lane, not a "fast" lane. Keep right except when passing. Don't try to block speeders.

Use the signal lights: -Signal lane changes as well as turns.

Wait to turn right : When you're stopped in traffic, waiting to turn right, keep the wheels aimed straight ahead until the way is clear. If you wait with the wheels cut to the right, someone could hit you from behind and push you into incoming traffic.

Brake at the right time : Slow down to a safe speed before you enter a turn. Hard braking in mid-corner can upset the car's balance.

Protect your night vision : Don't stare at approaching headlights. If you're being blinded, focus on the right shoulder of the road.

CAR INSURANCE

Car InsuranceIn the past few decades, Indian Automobile industry has witnessed the launch of various cars by domestic as well as international manufacturers. The expansion in automobile sector has indirectly led to the growth in Car insurance segment of auto insurance industry. As per Indian law insuring your car is compulsory. There are number of auto insurance companies in India which offer various car insurance plans. Many insurance firms even have tie-ups with car producers to make their coverage simple and trouble-free.


Features of Car Insurance in India


The insurance seeker can go for a personal accident cover for himself as well as for the other unspecified commuters in the insured car. It could either be a family member, friend, etc.
You can insure electrical and non-electrical items discretely under the cover
A concession in premium is allowed if the indemnified person is an associate of a certified Automobile Association.
It remains applicable for 1 year and one must restore it to avoid the policy from getting annulled.
The insurance premium is allocated by the company considering the total cost of vehicle, seating capacity and energy supplied by the vehicle engine.
Concession in the premium amount is offered under the all-inclusive insurance plan of 20%, 35%, 50%, 65%, for the 1st, 2nd, 3rd and 4th year respectively and even after that.
Concession value depends upon the insurance assertions put forward in that definite fiscal year.

Inclusions under Car Insurance in India

The car insurance schemes insures against any loss and harm caused to the insured car and its accessories due to:


Natural mishaps such as lightning, rockslide, fire, outpouring, hailstorm, avalanche, tremor, detonation, etc.
Other mishaps such as robbery, uprising, strike, malevolent activities, accident caused by external factors, rebellious activities, damage caused in delivery by rail, lift, airways or road.
Accidents caused while driving
To safeguard the policyholder against any legal responsibility emerging due to fortuitous damages, car insurance offers third party legal responsibility in case of permanent injury, death or damage caused to the vehicle. Exclusions under Car Insurance in India Car insurance assertions are not entitled to be made under the following conditions:


Depreciation of the vehicle
Aging of the vehicle
Any significant loss in terms of electrical collapse
Depreciation of consumable items
Car being utilized against the general terms and conditions
Damage caused while driving in the absence of certified license
Damage caused while driving reportedly after the consumption of drugs and alcohol
Damage caused due to conflict, revolt or nuclear attack
List of Insurance companies offering Car Insurance in India
Below is the list of some of the insurance firms that offer car insurance in India under their auto insurance segment.

New India Assurance Company Limited, under its Motor Policy
Oriental Insurance Company Limited
HSBC India, under its AutoSecure
Bajaj Allianz, under its Bajaj Allianz's Motor Policy
United India Insurance Co., under its Motor Package and Liability only Policies
The New India Assurance Co., under its Motor Coverage
ICICI Lombard, under its Motor Plans

HOUSEHOLD INSURANCE

Household Insurance is the kind of insurance that covers the contents of a house and the building or both. It is a nice way to protect one's house against any unwanted and unexpected events of loss and damage due to natural calamities, fire, theft etc. Household insurance can be of different types and are described differently based on the house/building location and the insurance company.

Types of Household Insurance

There can be two types of household insurance in general:

Household Contents Insurance

Household Building Insurance

Household Contents Insurance

Household contents insurance covers removable contents like jewelry, furniture, accessories, cloths, electrical appliances etc. This type of insurance is suitable for those who are living in a rented house. The losses and damages covered include flood, fire, storm, lighting, explosion, falling tree, theft, riot, or any other damages caused by earthquake, animals and vehicles.

There can be cheaper insurance with lower premiums and lesser coverage. However, one cannot predict risks and damages due to natural calamities. So, it is not advisable to save some money by going for insurance with lesser coverage. It is always better to go for insurance with wide coverage.

Household Building Insurance

This type of household insurance covers immovable items like fixtures, furnishings and fittings of the building. The insurance covers all the rooms of the building including kitchens and baths, garages, walls, windows, roofs etc. This type of insurance is suitable for those who live in their own house.

Household building insurance covers against fire, earthquake, explosion, lightning, falling tree, aircraft, theft and animal accident etc. Damaged caused owing to negligence is not covered under this insurance.

Who Should Go For Household Insurance Policy?

Household insurance policy is necessary for everyone – those who live in their own house as well as those who live in the rented house. As we cannot predict the future and as household insurance covers household contents and building against any future damages, it is necessary for all to go for household insurance.

However, one can choose the quantity of the coverage. An all-inclusive coverage covers all the 10 sections of home insurance policy. One can also opt for a separate cover, where s/he can choose the items that s/he wishes to include under the insurance's coverage.

The Coverage

The coverage of household insurance under different sections includes:


Fire and associated threat
Burglary and theft
Personal accident
Baggage
Transportation of household goods
Audio and audio-visual appliances
Breakdown of domestic appliances
Purchase protection?
Following are NOT covered under household insurance:


Damage due to war, revolution, rebellion, invasion, hostilities etc.
Damage due to destruction by government or other lawfully constituted authority order.
Depreciation and damage due to wear and tear.
Damage due to pollution.
Insurance Companies Offering Household Insurance

Following are the insurance companies that offer household insurance policy:
New India Assurance
United India Insurance
Oriental Insurance
National Insurance
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Questions to Ask Insurance

TERM INSURANCE

Term Insurance, also known as Term Life Insurance is one sort of life insurance that offers coverage for a certain period of time at a fixed rate of payments. Coverage at the previous rate is no longer valid once the "term" expires. In such cases, client needs to forgo coverage. Else s/he may also obtain further coverage, but that would come with different payments/conditions. In case of death of the insured during the "term", death benefit will be given to the beneficiary. Term insurance is considered as the protection against risk to life.


Term insurance is one of the cheapest ways to procure a substantial death benefit. Comparing to permanent life insurance policies, term insurance costs much less and has no cash value as well. Moreover, unlike permanent life insurance, term insurance guarantees a fixed premium for lifetime.

Usage of Term Insurance

Term insurance is purely a death benefit policy. The main goal of term insurance is to give coverage of financial responsibilities like mortgages, consumer debt, education for dependents, dependent care etc. Term insurance is preferred over permanent life insurance as it is less expensive. People also go for term insurance until they have enough funds for permanent life insurance.

Who Should Go for Term Insurance?

Term insurance is suitable for the young people with dependents. As the premiums of term insurance are low, it helps individuals to invest in high-growth instruments like Equity-linked Saving Schemes etc. It also offers tax breaks.

On one hand, term insurance is suitable for single income where individual needs to support his/her previous and next generation. On the other hand, term insurance is also suitable for double income families where the family needs to meet regular expenses as well as the investment goals.

Types of Term Insurance

There can be different types of term insurance. Following are two of the most common types of term insurance:


Annual Renewable Term: It is a simple form of term insurance. Here insurance is made for the period of one year. Benefit is valid for that one year only. There is another version of Annual Renewable Term where insurance has one year of coverage, however policy is guaranteed to be continued for a specified period of years (usually ranges from 10 to 30 years).


Level Term Life Insurance: This type of term insurance is more common than the previous one. Here premium is assured for a specified period of years, most common of which are 10, 15, 20, and 30 years.


Various Term Insurance Policies

There are a number of term insurance policies available in the market. Following given are some of those:


Tata AIG Life – Raksha
Bajaj Allianz Life – New Risk Care
HDFC Standard Life – Term Assurance Plan
LIC – Anmol Jeevan (Plan – 164)
MetLife – Suraksha Plus
Max New York Life – Level Term Policy
Birla Sun Life – High Networth Plan
Aviva Life Insurance – Life Shield Plus
ING Vysya Life – Term Life
ICICI Prudential Life Insurance – ICICI Pure Protect
Reliance Life – Term Plan
Birla Sun Life – Term Plan
Bharti AXA Life – SecureConfident
AEGON Religare Life – Level Term Plan
LIC – Amulya Jeevan (Plan – 190)
Kotak Life – Term Plan / Preferred Term Plan
Aviva Life – Life Shield
SBI Life – Shield
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QUESTIONS TO ASK IN INSURANCE COMPANIES

Any human being would obviously want to be sure about his hard earned money as in he would want to know all the nitty grities of the policy and the company. He would obviously want to have the best bargain and want to hand his cash into save hands therefore only after some research would someone go for a specific company and policy that yield the best returns.
FAQs on Life Insurance :
How do I take a loan against my policy?

A policy holder can take a loan on the cash value of his policy depending on the policy that he owns. While still maintaining the insurance coverage the insured can have access to his cash value for loan. As soon as the loan is taken by a policy holder his death benefit and interest owed to him gets reduced by the amount of loan taken. There are also loan interest rates which vary from company to company. The policy holder can call up the company service center and request for the loan but in most cases a written document signed by the policy holder requesting for the payment of loan is demanded by the company.

How do I report a death?

Upon the unfortunate death of an insured a Service Centre general officer or Sales officer should immediately be contacted and given certain details like the insured's name, date of death and the cause of death along with that details like name, address and telephone number of person needed to be contacted who in most cases would be the beneficiary. A claimant's statement along with other additional information on how to file a death claim is sent to the concerned person.

What is Check-O-Matic?

This is the method of directly deducting the policy premium from the policy holder's bank account on a monthly basis; note this is only applicable in case of monthly premium paying policies. This method is time saving and can be done by filling up a Check-O-Matic (C-O-M) Request Form with the necessary information required and should be submitted to the Service Centre.

How does whole life insurance differ from term life insurance?

Whole Life Insurance provides coverage to the insured for his entire life as long as premiums are paid and the policy is not surrendered and Term life insurance refers to the provision of coverage only for a fixed period stated in the policy.

FAQs on Health Insurance

Is a medical checkup necessary before buying a policy?

A medical check up is essential for buying a new health insurance policy for people above the age of 40 - 45 depending on the conditions laid down by the company. However medical check ups and not required if you are renewing an existing policy.

Does health insurance cover diagnostic charges like X- ray, MRI or ultrasound?

Health insurance generally covers all diagnosed tests like MRI, CT scan, X-ray and any other blood tests as long as the patient undergoes these tests in the hospital where he has to spend atleast one night.

What do you mean by Cashless Hospitalization?

Under cashless hospitalization one does not require to settle the hospital bills at the time of discharge. Your insurance company would take care of the settlement but for this prior approval is required from the Third Party Administrator before hospitalizing the patient. In the event of an emergency hospitalization approval can be got post hospitalization.

FAQs on Car Insurance

What payment options are available for my car insurance policy?

It depends on the company in general it is usually paid by credit card, debit card, cash cheque or in the form of installments and absolutely no extra costs.

What are the exclusions under car insurance policy?

The car insurance policy does not include depreciation, wear and tear, deliberate accidental loss, intoxicated driving, consequential loss and mechanical breakdown.

What are the different types of car insurance policies?

There are basically two types of car insurance policies car Policy A, also known as Third party insurance and car Policy B, commonly known as Comprehensive insurance policy.

INSURANCE AND PRINCIPLES OF INSURANCE

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, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Principles of insurance

The six principles of insurance are:

#Indemnity – Insurance is a contract of indemnity where the insurance company #indemnifies the insured against certain risks for a consideration known as premium.
#Insurable interest – means the loss of which will directly affect the insured.
#Utmost good faith – means that the insured and the insurance company will not #willfully hide anything from each other.
#Mitigation – means the insured will not behave irresponsibly and will take due care #so that the risk of loss or the loss is minimized.
#Subrogation – means the insurance company acquires legal rights to act on behalf of #the insured i.e. the insurance company steps into the shoes of the insured.
#Causa Proxima or Proximate Cause – means the proximate cause of loss to ascertain #whether the loss is covered under the policy.
#Financial market participants
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Commercially insurable risks typically share seven common characteristics.

Large number of homogeneous exposure units. The majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004. Having a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which states that as the number of exposure units increases, the actual results are increasingly likely to become close to predicted proportions. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance.
Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market

DEFINITIONS OF INSURENCE

* promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments.
* policy: written contract or certificate of insurance; "you should have read the small print on your policy"
* indemnity: protection against future loss
* Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss.
* A means of indemnity against a future occurrence of an uncertain event; The business of providing insurance; Metaphoric: Any attempt to anticipate an unfavorable event; Blackjack: A bet made after the deal, which pays off if the dealer has blackjack; An insurance policy
* insured - a person whose interests are protected by an insurance policy; a person who contracts for an insurance policy that indemnifies him against loss of property or life or health etc.
* insured - covered by insurance; "an insured risk"; "all members of the film cast and crew are insured"
* insured - A person covered by an insurance policy; Covered by an insurance policy
* A legal agreement with an insurance company that provides for reimbursement in the case of damage or theft to collateral. Wachovia Dealer Services requires you to maintain insurance on the vehicle you purchase
* An agreement by which one party (the insurer) assumes the risk of the payment of health care treatment faced by another party in return for a premium payment.
* This price includes the cost of the goods as well as shipping and insurance to the requested port. For example, CIF Los Angeles is the price for the cost of the goods, shipping and insurance until the goods reach the designated port in Los Angeles

Your Life is precious and we make efforts to reduce risks in the best manner we can. History of Insurance shows that it was introduced to reduce the risk of traders and merchants. But slowly the civilians started using the format to insure their personal lives.

An important part of a sound financial plan, Life insurance(LIC OF INDIA) ensures financial protection and enables maintenance of the same lifestyle even after the unfortunate demise of a loved one. The beneficiaries can utilize the money to replace the income one would have earned or help pay off debts or other expenses. Apart from these, there are other risks that need to be managed in professional and private life.

Related phrases: Mortgage insurance, certificate of insurance,title insurance, hazard insurance, liability insurance,flood insurance,private mortgage insurance,self insurance,co insurance,insurance and freight

8 STEPS TO CLAIM INSURANCE

More than 220 million motor vehicles clog America's roads today, making it likely that someday you will have an accident and file an auto insurance claim.

The good news is that in most auto accident claims, personal injury isn't the problem.

"Sixty-three cents of every claim dollar goes to [pay for] physical damage on your car," says John Eager, senior director of claims services for the National Association of Independent Insurers, based in Des Plaines, Ill.

Although a personal injury claim may require a different level of proof and persistence than a vehicle damage claim and insurance regulations vary from state to state, the basic steps to take information needed to file a claim are fairly similar.

For the most part, the claims process for vehicle damage is simple: You make a claim, the adjuster comes out to estimate the cost to repair the damage, the insurance company sends you a check for that amount and you use it to pay for the repairs.

Every insurance claim requires some kind of proof of damage or injury before a carrier will pay. On auto claims, Eager says, there are five elements of proof that will come into play: what you tell the insurance companies, what the other party tells them, a police report, witnesses and physical damage at the scene.

Step 1 (at the accident scene): Call 911 if someone has a life-threatening injury. If there's no emergency, don't tie up 911, but get any needed medical attention and call the police directly. Remember, you need that police report.

Step 2: Exchange license plate numbers, contact information and auto insurance information with the other parties involved. Most states require drivers to have an insurance identification card in the vehicle and it will provide most of the pertinent information, Eager says. Fill in any gaps, though. Make sure to get phone numbers.

Step 3: Look for witnesses who will be willing to tell what they saw and get their contact information as well. If you are unable to gather information at the scene, the police report can be a back-up source of information on the other parties involved and witnesses.

"There are a lot of jurisdictions where the police officers may try to avoid taking an accident report, assuming that the damage is under $500," a typical insurance deductible, warns retired insurance adjuster J.D. Howard, who co-founded the Insurance Consumer Advocate Network, based in Branson West, Mo. "Insist on a report. If [officers] won't file a traffic accident report, insist on an incident report. You want an independent, disinterested record of what happened. You'd be amazed at how often the other driver's story will change."

If the accident happens in a parking lot, an officer may plead no jurisdiction. Insist on an incident report, Howard says. Failing that, in a mall or other facility that has a security force, you may ask security to file a report. In a lot without any security, you may want to ask a shop owner.

"You want to get something in writing," Howard says, because "insurance companies are obliged to believe the story given to them by their own policyholder" unless there's proof to the contrary.

Finding of fault is very important. Besides the rental car and diminished value issues, the negligent party's carrier might owe you for any time off work, Howard says. In addition, your company cannot raise your rates if you are not at fault.

Also, the majority of states have adopted "comparative negligence," Eager says. This is a concept based on the idea that no one party is necessarily completely at fault, but that fault is just a matter of degree. Your settlement can be reduced based on the degree of fault.

Step 4: Contact your insurance company as soon as possible. With a cell phone, you may call your company right from the scene. Many have 24-hour claim-filing service by phone. Your insurance ID card should provide the number. Whoever takes your claim will walk you through the process.

Although the other party may be at fault, both Eager and Howard agree that generally you should file the claim with your own insurance carrier. Each carrier is obliged to protect the interests of its own insured, making your claim a secondary concern for the other party's carrier. Chances are you'll get the service you need more readily from your own carrier.

"You have rights with your own carrier that you don't have with the other party's insurance," Howard says. This includes the right to a process for resolving disputes over what expenses should be covered by the insurance.

With no-fault insurance, you have no choice initially but to file with your own carrier. No-fault insurance has thresholds below which your own carrier pays all expenses, except the deductible. Above those thresholds, you may seek restitution from the other party. These thresholds vary by state.

Assuming the other party is at fault and you do not have collision coverage on your vehicle, you will have no choice but to file a claim against the other party's carrier. On the other hand, if the other party does not have insurance, you will have to negotiate with the other party directly or go to court.

Step 5 (if the other party is at fault): You should advise the other party's insurance company that you're pursuing a claim through your carrier and will seek reimbursement for costs your carrier will not pay, including your collision insurance deductible, time off work, auto rental differential and the amount of your diminished resale value, Howard says.

If you have the patience to take an unconventional route that will be challenged by your carrier, Howard believes that if the other party is at fault, you should file claims with both carriers.

"You cannot collect twice for the same thing," he says. However under "multiple source recovery," he adds, "you can collect from two sources and put the checks in a kitty and decide how much was paid for what."

This means meticulously itemizing every expense involved, and which carrier's check paid for which expense. At the end of the process, you would submit the itemized list to your carrier and, if there's anything left in the kitty, you would write a check for the overage to your own carrier.

Step 6 (this may happen earlier or later in the process, depending on the other insurance carrier): You'll get a phone call from the other company asking for your version of events that led to the accident. You need to prepare for this, Eager says.

"Especially with an injury claim, you'd want to check with your insurance carrier to see what statements you need to make to the other insurance carrier."

It's a good idea to write down exactly what you will tell the other carrier beforehand so that in the worst-case scenario -- a lawsuit -- your statement will remain consistent. Don't trust your memory. The other carrier will be taping your statement and will have your exact words at their disposal.

Step 7: The adjuster comes out to take a look at the damage to your vehicle and comes up with an estimate of what it will take to restore it (or replace it, if it's totaled). Then, the insurance company will cut a check in the amount of the repair, minus any collision deductible amount.

If an insurance company has a direct repair program, the adjuster might not even have to come out, Eager says. Under such a program, your insurance carrier will refer you to a shop with which they have an agreement. So, depending on the insurance company, the damage claim estimate may be done by the shop itself, the shop won't have to wait to start repairs and the check can be transmitted right to the shop, Eager says. The shop may also make arrangements for a rental vehicle if you need one.

If the adjuster says the car is totaled (in other words, beyond repair), the adjuster will estimate your compensation on the actual cash value (or depreciated value) of the vehicle before the accident, essentially enabling you to buy a similar used car. However, if you've bought coverage for replacement cost value, the estimate will cover the cost of buying a similar new vehicle.

Step 8 (When disputes arise): If you think your carrier's damage settlement offer is too low, you may ask your carrier for a form of arbitration to resolve the dispute. This process may take two to six weeks, but generally speaking, you will not have to wait for payment. In most cases, the insurance company will pay you the amount it offered immediately, and you'll get the rest when and if the dispute is resolved in your favor.

On the other hand, if you disagree with an offer from the other party's carrier, you may or may not be offered such dispute resolution. If not and the amount in dispute is significant, it may be worthwhile to take legal action.

What is an Insurance Claim?

An insurance claim is the actual application for benefits provided by an insurance company. Policy holders must first file an insurance claim before any money can be disbursed to the hospital or repair shop or other contracted service. The insurance company may or may not approve the claim, based on their own assessment of the circumstances.

Individuals who take out home, life, health, or automobile insurance policies must maintain regular payments called premiums to the insurers. Most of the time these premiums are used to settle another person's insurance claim or to build up the available assets of the insurance company. But occasionally an accident will happen which causes real financial damage, such as a automobile wreck or a tornado or a work-related accident. At this point the injured policy holder has the right to file an insurance claim in order to receive money from the insurance company.

In general, the insurance claim is filed with a local representative of the insurance company. This agent becomes responsible for investigating the specific details of the insurance claim and negotiating the payment from the main insurers. Many times a recognized authority (doctor, repair shop, building contractor) can file the necessary insurance claim forms directly with the insurance company. However, sometimes the policy holder may not want to file an actual insurance claim if the damage is minor or another party has agreed to pay out-of-pocket for their mistake.

After an insurance claim is filed, the insurance company may send out an investigator called an adjustor or appraiser. The insurance adjustor's job is to objectively evaluate the insurance claim and determine if the repair estimates are reasonable. This is to prevent possible fraud by contractors who may inflate their bills for additional compensation. Insurance companies tend to accept the adjustor or appraiser's evaluation as the final word on the insurance claim.

Some insurance claims may not be recognized by the insurance company for any number of reasons. If a claimant's premiums have not been paid in full, the policy itself may not be active. Another insurance company may have already agreed to pay for the damages listed in the claim. This happens quite often in automobile accidents where one party is held responsible. Another reason an insurance claim may be rejected is a failure to fall under covered conditions. Most insurance policies spell out specific areas which qualify for benefits. If the accident or damage claim was caused by carelessness or an unavoidable "Act of God", the insurance company has the right to withhold payments.

What Is Insurance?

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, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.