India Insured

Life Insurance Vs. Other Savings Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.   At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.   Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.   Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since p...

Insurance : How much at what age At every stage of life, there is an element of risk for the individual. For instance, if you are married and have children, an untimely death or accident is going to cause serious financial loss to your family. Adequate insurance cover is, therefore, advocated by all financial planners to make sure that your family does not go through any financial hardships. However, while it is important that you have enough insurance, too much of it is also bad. This is because insurance, as a product, does not give you great returns. So, you need to have a proper mix of insurance and investment to meet all your financial goals. Let us look at different life stages and what are the elements that you need cover for: From birth till end of education There is actually no need to have any life cover as the individual's ability to earn any income is nil. In case of an untimely death, the parents are more bereaved because of the loss of a child, and less on...

INSURANCE INSIGHT: Motor Insurance De-Tariffing- The next big thing to impact the general insurance industry Motor insurance has been de-tariffed from January 2007 onwards. This will significantly impact the way motor insurance is sold and its premium rates. In the tariffed scenario, the rating factors taken into consideration are: • Geographic zone – Where the vehicle is mostly plying and is registered. India is divided into two zones viz. A and B. In a de-tariffed scenario, this would change considerably as some more vital parameters would be brought into consideration while arriving at the premium. The challenges in a de-tariff market would be to meet the expectation of the various stakeholders like policyholder, insurer and the auto manufacturer. Customers expect that premiums be low, that they get the best quality of repair and value added services and other benefits. The auto manufacturers expect low overall vehicle cost to the customer, longer vehicle retention and dealer...