CAR INSURANCE GUIDE

Another excellent kind of insurance policy available for your car is the one that covers medical injuries that are caused by car accident in which you were not the faulty party. Then, there is even the Personal Injury Protection policy that helps to cover the insured for any injury faced from car accident. Moreover, there are even some insurance policies that have the capacity to cover motorist from the car damages in case of a car accident with the driver without liability Another excellent kind of insurance policy available for your car is the one that covers medical injuries that are caused by car accident in which you were not the faulty party. Then, there is even the Personal Injury Protection policy that helps to cover the insured for any injury faced from car accident. Moreover, there are even some insurance policies that have the capacity to cover motorist from the car damages in case of a car accident with the driver without liability insurance. 


Just like other kinds of insurance plans and schemes are available in the market, same goes with your car. There are indeed various types of insurance plans to choose from, depending largely on your needs and requirements. You can find liability car insurance policy that actually cover for the accidental body injuries and property damage to other parties. These are even some plans that cover just the damages that are caused due to collisions with vehicles. More so, there are some comprehensive policies as well that cover for all the damage and loss faced by the insured vehicle by situations apart from car accidents. These may incorporate loss and damage because of theft, vandalism, hail or fire.


There is yet another kind of car insurance that you can choose to have. This includes covering the car damages that are caused by car accident which is done by the other driver with insufficient liability cover. Even for your rental cars, you can enjoy an insurance plan. Knowing what your needs actually are and becoming aware about the best insurance providers can help you choose the most affordable and useful car insurance to cover your vehicle. 


Also, there are different types of discounts offered when it comes to car insurance. These discounts are readily available for the young married couples, people who have reached the age of 25 years or so, for families having various vehicles, for the non smokers, for drivers having good driving record and for people with good credit history. Such discounts can actually make a great difference in premium which is paid and it is good to note that a large number of vehicle owners get eligible for over one discount on their car insurance plan. 




What is more interesting to note is that as per the type of vehicle insurance you take, your vehicle can be replaced or repaired thereby saving huge amounts. In fact, driving on the roads without a car insurance can even result in suspension of your driving privileges and thus in some cases, you might even get entitled to pay huge fines and go in jail. 


Comparison shopping on the net is very important in order to know the best types of car insurance plans available in the market. With comparison shopping, you can get the insurance that suits not just your needs and specifications, but the set budget as well. Maintaining a car insurance serves to be an excellent way of protection. So wait no more and fulfill your responsibilities to protect yourself, your vehicles and others on the road using quality car insurance. In all, be mindful and you can enjoy safe driving. 
insurance. 


Just like other kinds of insurance plans and schemes are available in the market, same goes with your car. There are indeed various types of insurance plans to choose from, depending largely on your needs and requirements. You can find liability car insurance policy that actually cover for the accidental body injuries and property damage to other parties. These are even some plans that cover just the damages that are caused due to collisions with vehicles. More so, there are some comprehensive policies as well that cover for all the damage and loss faced by the insured vehicle by situations apart from car accidents. These may incorporate loss and damage because of theft, vandalism, hail or fire.


There is yet another kind of car insurance that you can choose to have. This includes covering the car damages that are caused by car accident which is done by the other driver with insufficient liability cover. Even for your rental cars, you can enjoy an insurance plan. Knowing what your needs actually are and becoming aware about the best insurance providers can help you choose the most affordable and useful car insurance to cover your vehicle. 


Also, there are different types of discounts offered when it comes to car insurance. These discounts are readily available for the young married couples, people who have reached the age of 25 years or so, for families having various vehicles, for the non smokers, for drivers having good driving record and for people with good credit history. Such discounts can actually make a great difference in premium which is paid and it is good to note that a large number of vehicle owners get eligible for over one discount on their car insurance plan. 

Fire Insurance guidance

Riot and Strike Damage    

This policy provides coverage against loss or damage caused due to riot & strike or civil commotion or malicious damage due to any persons who are members of an organization whose aim is to over-throw any legal or defacto Government by terrorism or violence. 

 Riot and Strike Damage    

This policy provides coverage against loss or damage caused due to riot & strike or civil commotion or malicious damage due to any persons who are members of an organization whose aim is to over-throw any legal or defacto Government by terrorism or violence. 


Allied Perils    

This is the most important and basic form of insurance and is essential for all types of business concerns. Fire and Allied Perils Insurance provides comprehensive cover in respect of loss of or damage to your property against fire and lightning. To further safeguard the interest of our valued clients the policy can be extended to cover riot and strike damage, malicious damage, atmospheric disturbance, earthquake (fire and shock), explosion, impact damage, aircraft damage etc. 
 Riot and Strike Damage    

This policy provides coverage against loss or damage caused due to riot & strike or civil commotion or malicious damage due to any persons who are members of an organization whose aim is to over-throw any legal or defacto Government by terrorism or violence. 


Allied Perils    

This is the most important and basic form of insurance and is essential for all types of business concerns. Fire and Allied Perils Insurance provides comprehensive cover in respect of loss of or damage to your property against fire and lightning. To further safeguard the interest of our valued clients the policy can be extended to cover riot and strike damage, malicious damage, atmospheric disturbance, earthquake (fire and shock), explosion, impact damage, aircraft damage etc. 


Home Insurance Plan    

To live in one’s own home is cherished by every one of us. In these tough times, it is very hard to retain a house, which is exposed to several risks such as riot and strike damage, malicious damage, atmospheric disturbance, earthquake (fire and shock), explosion, impact damage and aircraft damage. The United Insurance provides a policy to cover the interest of homeowners. The plan provides coverage on building as well as contents against the risks the property may be exposed to. The coverage for buildings includes the risks of fire and all dry/wet perils. Contents (including jewellery and cash) are similarly covered including the risks of burglary and dacoity. 


Besides material damage, UIC’s Home Insurance also provides for loss or rent, legal liability to public and domestic servants. 

 
Hotel Owner All Risk    

As the name of policy signifies, it is specially designed to cater to all the insurance needs of a hotel owner. This policy has been adapted from the wording prevalent in international markets, as such coverage provided by it meets the requirements of management agreements, which owners usually enter with international chains of hotels. This policy is divided into 8 sections covering fire and supplemental Perils Insurance. Business interruption following Fire and Supplemental Perils, Comprehensive Plate Glass Insurance, Boiler and Machinery Breakdown Insurance, Business Interruption following Machinery Breakdown, Comprehensive General Liability, Comprehensive 3D Bond Insurance and Workmen's Compensation Insurance. 


Terrorism Cover    

We live in an altogether different world after September 11, 2001. Post 9/11 scenario resulted in removal of terrorism cover globally, leaving the insured and the insurer at a difficult juncture. We, at The United Insurance Company of Pakistan Ltd. created niche for our valued clients by designing a policy exclusively for the risk of Terrorism. This policy is issued in conjunction with Fire and Allied Perils Policy protecting the interest of insured up to a specified limit. 

Home Insurance Plan    

To live in one’s own home is cherished by every one of us. In these tough times, it is very hard to retain a house, which is exposed to several risks such as riot and strike damage, malicious damage, atmospheric disturbance, earthquake (fire and shock), explosion, impact damage and aircraft damage. The United Insurance provides a policy to cover the interest of homeowners. The plan provides coverage on building as well as contents against the risks the property may be exposed to. The coverage for buildings includes the risks of fire and all dry/wet perils. Contents (including jewellery and cash) are similarly covered including the risks of burglary and dacoity. 


Besides material damage, UIC’s Home Insurance also provides for loss or rent, legal liability to public and domestic servants. 


Hotel Owner All Risk    

As the name of policy signifies, it is specially designed to cater to all the insurance needs of a hotel owner. This policy has been adapted from the wording prevalent in international markets, as such coverage provided by it meets the requirements of management agreements, which owners usually enter with international chains of hotels. This policy is divided into 8 sections covering fire and supplemental Perils Insurance. Business interruption following Fire and Supplemental Perils, Comprehensive Plate Glass Insurance, Boiler and Machinery Breakdown Insurance, Business Interruption following Machinery Breakdown, Comprehensive General Liability, Comprehensive 3D Bond Insurance and Workmen's Compensation Insurance. 


Terrorism Cover    

We live in an altogether different world after September 11, 2001. Post 9/11 scenario resulted in removal of terrorism cover globally, leaving the insured and the insurer at a difficult juncture. We, at The United Insurance Company of Pakistan Ltd. created niche for our valued clients by designing a policy exclusively for the risk of Terrorism. This policy is issued in conjunction with Fire and Allied Perils Policy protecting the interest of insured up to a specified limit. 
Allied Perils    

This is the most important and basic form of insurance and is essential for all types of business concerns. Fire and Allied Perils Insurance provides comprehensive cover in respect of loss of or damage to your property against fire and lightning. To further safeguard the interest of our valued clients the policy can be extended to cover riot and strike damage, malicious damage, atmospheric disturbance, earthquake (fire and shock), explosion, impact damage, aircraft damage etc. 


Home Insurance Plan    

To live in one’s own home is cherished by every one of us. In these tough times, it is very hard to retain a house, which is exposed to several risks such as riot and strike damage, malicious damage, atmospheric disturbance, earthquake (fire and shock), explosion, impact damage and aircraft damage. The United Insurance provides a policy to cover the interest of homeowners. The plan provides coverage on building as well as contents against the risks the property may be exposed to. The coverage for buildings includes the risks of fire and all dry/wet perils. Contents (including jewellery and cash) are similarly covered including the risks of burglary and dacoity. 


Besides material damage, UIC’s Home Insurance also provides for loss or rent, legal liability to public and domestic servants. 


Hotel Owner All Risk    

As the name of policy signifies, it is specially designed to cater to all the insurance needs of a hotel owner. This policy has been adapted from the wording prevalent in international markets, as such coverage provided by it meets the requirements of management agreements, which owners usually enter with international chains of hotels. This policy is divided into 8 sections covering fire and supplemental Perils Insurance. Business interruption following Fire and Supplemental Perils, Comprehensive Plate Glass Insurance, Boiler and Machinery Breakdown Insurance, Business Interruption following Machinery Breakdown, Comprehensive General Liability, Comprehensive 3D Bond Insurance and Workmen's Compensation Insurance. 

Terrorism Cover    

We live in an altogether different world after September 11, 2001. Post 9/11 scenario resulted in removal of terrorism cover globally, leaving the insured and the insurer at a difficult juncture. We, at The United Insurance Company of Pakistan Ltd. created niche for our valued clients by designing a policy exclusively for the risk of Terrorism. This policy is issued in conjunction with Fire and Allied Perils Policy protecting the interest of insured up to a specified limit. 

insurance ordinance 2000 pakistan

The President of Pakistan had promulgated the Insurance Ordinance, 2000 on 19th August 2000 repealing the Insurance Act 1938. The objectives of this ordinance are said to be:
* To regulate the business of the Insurance industry.
* To ensure the protection of the interest of insurance policyholders.
* To promote sound development of the insurance industry.
The new ordinance has divided life insurance business and non life insurance business into following classes:
LIFE INSURANCE BUSINESS:
1. Ordinary Life Business.
2. Capital Redemption Business.
3. Pension Fund Business.
4. Accident and Health Business.
NON-LIFE INSURANCE BUSINESS:
1. Fire and Property Damage Business.
2. Marine, Aviation and Transport Business.
3. Motor Third Party Compulsory Business.
4. Liability Business.
5. Worker’s Compensation Business.
6. Credit and Surety-ship Business.
7. Accident and Health Business.
8. Agriculture Insurance including Corp, Insurance.
9. Miscellaneous Business.
A public company or a body corporate can start insurance business in Pakistan. A certificate of registration as insurer will be obtained within six months for life business and non-life business separately. The registered insurer will meet the requirements of minimum paid up capital, statutory deposits, solvency, requirements, and reinsurance: arrangement appointment of auditors and to comply with Provisions of this Ordinance.
A registered insurer shall have to pay an annual supervision fee to SECP at the rate of Rs. 1 per thousand of gross premium written in Pakistan during the calendar year with a minimum of Rs. 100,000.
For sound and prudent management fit and proper persons with appropriate experience and qualification will be employed to conduct their duties with due diligence and skill. The minimum paid- up-capital required for registered insurer is as under:
LIFE INSURANCE BUSINESS: 150 MILLION RUPEES.
1. 100 Million Rupees will be attained up to 31st December 2002.
2. 150 Million Rupees will be attained up to 31st December 2004.
NON-LIFE INSURANCE BUSINESS:. 80 MILLION RUPEES.
1. 50 Million Rupees will be attained up to 31st December 2002.
2. 80 Million Rupees will be attained up to 31st December 2004.
Every insurer will maintain a minimum deposit equal to 10% of its Paid-Up-Capital with State Bank of Pakistan. The deposit in excess of amount required can be asked for with permission from SECP for refund.
REINSURANCE ARRANGEMENTS
The insurers will maintain assets in excess of liabilities to meet solvency requirement as per this Ordinance. Insurance companies will maintain adequate reinsurance arrangements.
The insurers will submit the quarterly returns on the prescribed form to SECP. The auditors shall be appointed by the commission to audit the accounts of insurer’s. Actuary report for life insurance business shall be necessary. If any return is considered inaccurate or defective the Commission can call for further information, call upon insurer; examine any officer of insurer (or decline to accept the return).
If an insurer is likely to become unable to meet liabilities the commission can investigate the affairs of an insurer. If necessary the services of an auditor or actuary can be hired for investigation by the commission. The Commission has the power to prescribe maximum level of acquisition costs and management expenses.
For corporatization of public sector insurance corporation the National Insurance Corporation, has been converted and registered as National Insurance Company Limited. The Pakistan Insurance Corporation will be converted and registered as Pakistan Reinsurance Company Limited. These Corporations will be converted into public limited companies within a period of one year from the issuance of this Ordinance. These will continue to conduct their present business until the Federal Government ceases to hold a controlling ownership interest in them.
There are provisions for appointment of agents and brokers. The brokers should have obtained license from the commission. The requirements of Paid-Up-Capital, statutory deposit professional indemnity insurance and other matters are to be prescribed by the Government for registration of brokers.
The Commission should license the persons acting as insurance surveyors. A person can apply for a license after fulfilling the following conditions:
* The person is a company with a prescribed minimum share capital.
* The person carries professional indemnity liabilities.
* The person should be a member of the approved professional Association.
* The Person complies with the conditions to be prescribed.
In addition to Authorized the Commission will register surveying Officers according to the prescribed procedure.
Special provisions have been laid down for protection of policyholder’s interest. The Government of Pakistan will appoint the insurance Tribunal and the Insurance Ombudsman. This Ordinance also provides for appointment of administrator and winding-up of an insurer. The penalties for offence against the Ordinance are also prescribed.
This ordinance has almost changed the insurance structure of Pakistan. Wide-ranging powers have been granted to the Federal Government and SECP. This will promote sound development of insurance industry. New types of insurance will be introduced in the country like credit Insurance and Crop Insurance etc. The culture of Insurance Broker will be introduced in the market. The small insurance companies may amalgamate with large companies or those may be converted into broker houses.
The process of implementation of new insurance law is very slow. In fact the new law is the outcome of the findings and recommendations of the National Insurance Reforms Commission which worked in 1988-89 and presented its reports in 1990. Under the Capital Market Development Programme the ADB supported Pakistan and consultants were engaged in 1997. The consultants presented the draft bill of Insurance Act, 1999 in July 1999. At lasts on 19th August 2000 the President of Pakistan Promulgated the Insurance Ordinance, 2000 repealing the Insurance Act, 1938.
Almost all the sections of this ordinance are to be implemented by forming insurance Rules and Regulations. For this purpose the Federal Government and SECP have been given wide-ranging powers. The Federal Government through notification published in the official gazette, can make rules to carry out the purpose of this ordinance. The powers of the Federal Government have been delegated to SECP who can make rules required to be made under the ordinance. The SECP has also been authorized to make Insurance Regulations required for implementation of this Ordinance.
The formation of Insurance Rules and Regulations are necessary to implement the Insurance ordinance 2000 in letter and spirit. The SECP has published in Gazette of Pakistan a Draft Notification in February 2002 with the title of "Draft Insurance Rules, 2002" for information of all persons likely to be affected and notice has been given that these draft Rules shall be taken into consideration after 30 days of its publication in the official Gazette. The SECP will consider any objection or suggestion received from any person in respect of this draft before expiry of the said period.
Draft Insurance Rules although have been prepared and hoped to be finalized and implemented within a period of one month. However still the Insurance Regulations are required to be made.
In the recent past the economic environment for trade and industry was sluggish, unemployment was on rise, inflation and price spiral was soaring, exports were stagnant, imports were rising and number of sick industries was shooting up. In such conditions the stock markets of the country were not attracting investments both foreign and local. So, it was difficult for insurance companies to generate further capital.
On analysis of 39 insurance companies registered at Karachi Stock Exchange, only 9 companies have the capital more than the amount required as per Insurance Ordinance, 2000. There are other 22 companies, which have Paid-up Capital as required for brokers. Ihese companies can easily convert themselves into brokerage houses or they can also make mergers.
However, now the economic environment of the country is changing. The foreign exchange remittances have been increased and the exchange rates have been stabilized. The sick industries are being revived through CIRC (corporate and Industrial Restructuring Corporation). The public and private sectors are expected to be involved in the reconstruction of Afghanistan. The Motorway and other highway projects are being completed. The construction of the third seaport at Gwadar has also been started. Foreign investments are also anticipated.
SUGGESTIONS;
These economic activities will obviously generate business for insurance companies. To meet the future requirements of the country the following suggestions are made:
* The Insurance Ordinance 2000 should be implemented completely. For this purpose the new Insurance Rules and Regulations should be finalized and enforced in the country without further delay.
* New reinsurance companies should be established in the private sector to increase the capacity for retention of more and more business within the country.
* Establishing R&D division under the IAP should carry out the Research and Development work.
* To provide sound and prudent management for insurance companies technically qualified and professional people should be employed. The Insurance Institutes should be reactivated. The Associationship and Fellowship of Chartered Insurance Institute, London and Chartered Property and Causality Underwriters, USA must be recognized as the basic qualification for sound and prudent management of insurance companies.
* As per WTO requirement there should be no restrictions to market access. For this purpose the foreign insurers and reinsurers should be encouraged to come and invest in Pakistan. With broad equity basis our insurance Companies will be fully competent to compete with them.
* The surveyors having technical qualification should only be allowed to join this profession so that quality work could be provided the limit for settlement of claims on self-assess-ment basis should not be more than Rs. 5,000 to Rs. 10,000.
* All the hisurance companies should jointly create awareness among general public about the essential requirement of insurance in the day-to-day life of each individual and business houses.

* As it is very expensive for Pakistani people to get training and higher education from U.K. and U.S.A., our own public and private educational institutions should take initiative to provide higher education in insurance. However much of the burden lies on the shoulders of Pakistan Insurance Institute to start its own recognized professional insurance degree.

insurance company $ 1 billion insurers

Bligh called for insurers to show compassion and flexibility, amid reports some residents faced difficulty with payouts against a damage bill expected to top A$5 billion, with $1 billion of that to be underwritten by insurers.
"It's not in the interests of anyone in our community, including those companies, to stall or delay recovery," said Bligh, whose disaster handling has won wide praise, reviving ruling Labor's flagging hopes of re-election in the state.

Bligh said many Queenslanders had taken out insurance believing they were covered for floods and were now discovering they were not protected.

1 2 Next The flooding, which started before Christmas, continued in other areas of Queensland, with the 6,000 residents of Goondiwindi southwest of Brisbane facing a record flood.

Aerial views of Brisbane showed a sea of brown with rooftops poking out, but the water was receding.

Boats have had to be used in many areas to reach houses, with sofas and fridges floating in filthy water, and residents with no idea when they can return.

"Nobody told me this would become this serious, this terrible," said Su Liu, a Chinese student studying marketing at the University of Queensland.

She had fled her house near the riverside university on Tuesday as water poured into the second floor of her apartment building and was sheltering in an evacuation center.

Business insurance

Generally when you seek to take out Business Insurance you will build a tailor made policy including all of the aspects that are of relevance to your business and the work that you carry out. A case study example is below

Mr smith runs a small joinery business and has his own workshop, he employs 2 other people to assist him. He wants to know about the types of Business Insurance available to suit his business needs so he obtains a quotation where he may be asked:

The category which best describes his business - Construction/Building trade
The exact occupation within this trade - Joiner
Does he have a secondary trade or occupation that he needs cover for - In this case no but if he was also to implement or fit his products in the homes of his customers he would need a different package to include this.
Where exactly the business is located - address can be a factor that effects the premium
What type of business is being run - Mr smith is a Sole Proprietor but he could for example be a partnership or a limited company
What sort of premise does the business work from - As stated Mr smith has a dedicated workshop but he could work from home

Permanent Life Insurance

Permanent life insurance is the umbrella term used for types of life insurance that do no expire. They combine a death benefit with a savings portion and are deemed as profit policies. The savings element builds to provide the policy with a case value against which the policy holder can borrow money or take an income in way of regular withdrawals. A withdrawal will be made to cover a future financial implication such as paying off a loan or paying college fees for a child.

There are two main types of permanent life insurance which are universal life insurance and whole of life insurance. Below we will talk more about both of these.

In order to borrow against the savings element of a permanent life insurance policy, there is usually some sort of waiting period after the purchase of the policy in order for a cash value to accumulate. Furthermore, if the amount of the unpaid interest on the loan plus the outstanding loan balance exceeds the amount of the policy's cash value, the policy and all coverage will automatically terminate.
Permanent life insurance policies enjoy favourable tax treatment. The growth of cash value is generally on a tax-deferred basis, meaning that you pay no taxes on any earnings in the policy so long as the policy remains in force. Provided you follow guidelines to certain premium limits, money can be taken out of the policy without being subject to taxes since policy loans generally are not considered as taxable income. In addition to this any withdrawals up to the amount of premiums paid can be taken without being taxed.
 The policy is taken out with an insurer and premiums paid periodically, most commonly monthly. The premium will cover the cost of the life insurance and the remainder of this is credited to a cash value that the policy accumulates. Each month this cash value is also credited with interest and the policy is debited, also each month, with the cost of the insurance and any other fees that the insurer stipulates, such as admin fees, if there has been no premium payment that month. The insurer will decide how much interest is applicable to be credited to the value but this is usually related to certain financial index rates.
As there is a cash value to this type of life insurance it is possible for there to be features such as a policy loan, or for the policy holder to take periodic withdrawals from the policy.
As far as premiums go they are most commonly paid periodically such as monthly, quarterly or annually which can be fixed or flexible. However it is also possible for there to be a single up-front premium at the start of the policy.
There are risks involved with taking out Universal life insurance because of it being a potentially profitable policy. These need to be studies carefully before you take out his type of life insurance and each insurer will have literature available clearly highlighting the risks.
The obvious benefits of life insurance are to cover financial implications upon the death of somebody who is financially depended upon, more often with life term insurance policies because they have no case value. However there are also living benefits of life insurance and many people use life insurance, and in particular cash value life insurance as a source of benefit to the owner of the policy (as opposed to the death benefit which is provides benefit to the beneficiary as we have mentioned in life term assurance). These benefits include loans, withdrawals, collateral assignments, split dollar agreements, pension funding, and tax planning

Gide of insurance policy what is insurance

The first step to achieving adequate protection is putting yourself in a position where you can make the informed decision yourself with the knowledge that you have gained and then go out and buy your own insurance or visit a professional that can do this for you on your behalf.
Insurance is a necessity that is applicable to each and every one of us in one way or another, however it is vital that we know exactly what it is that we need before we go shopping for it, just like making a meal at home, you have to know the ingredients that you need in order for it to turn out the way that you want it to. It is no different for insurance, you know what you need to be insured against, for instance you have a car and a mortgage, so you need to know which insurance policies are required to cover these. So you know you need insurance and this is a good place to start in your quest to get the right kind.
Whether you are looking for types of insurance such as health insurance, auto insurance or one of a whole range of other contracts available in the market today, we will surely have some information here that you can take away with you which you will find useful in making your decisions.

It really does pay to do some research before going ahead and buying insurance. By going directly to an insurer's website it can be a very confusing experience.
life insurance
When you think 'do I need life insurance?' it is not as simple as going to a broker or insurance company and buying a generic life insurance product. There are a range of life insurance policies available each with their own various benefits. It is important that you know exactly what benefits you are interested in before hand so that when it comes to picking a Life Term Insurance Policy or a Whole of Life policy to name a couple of the options, you are getting the insurance that is best suited to your individual needs.
Fundamentally, many companies will offer the same products across the market there can be many variations and additional features that can be purchased on each insurer's version and it is important to know exactly which contract suits your individual needs before you go shopping for it! This is not to mention niche insurance which may not necessarily be available from the bigger insurers and can be harder for a consumer to find somebody who will cover them, let alone provide any sort of definitive explanation as to whether the policy will suit their needs or not
As previously mentioned we are not trying to sell you insurance nor provide financial advice, just help you with some simplified, jargon free explanations as to how every day insurance contracts work.
Basic Life Assurance

Basic life insurance is a very simple type of insurance policy that will run for a pre-determined period of time and will pay out a pre-determined figure should the life assured/s on the policy die. It is relatively inexpensive and is much needed protection for you and your family. These types of life insurance policies can also be taken out solely as security on a mortgage or debt too. Basic life insurance is most commonly term life insurance and there are various types of life insurance policy under this heading.
For example Mr and Mrs Smith take out a 20 year life assurance policy which will pay out $50,000 on the death of either of the lives assured to the survivor. The policy will have an agreed commencement date of 1 July 2010 and the policy will expire on 31 July 2030. In this scenario the policy is against the life of Mr and Mrs Smith, they are both the policy owners/holders and the lives assured.
A monthly, quarterly or annual premium is paid throughout the term in order to keep the policy in force and valid.
It may be that the policy length or term as it is better known is only available in increments of 5 years with some insurers and the term limit is quite often 30 years.

How long you take the policy out for is completely up to you, for instance a younger couple with a new mortgage and who are yet to have children may take out a longer policy so that the mortgage is covered and should they later decide to have children they are covered for many years of the child's life while they are depended upon.

The amount of cover taken out is also up to you but the insurer can ask for this to be justified. Things needed to be taken into consideration are for example the outstanding value of your mortgage or the living costs of your family.

Variations could be that Mr and Mrs Smith both take out a life assurance policy but the life assured is only Mr Smith, or they take out two with one of them being a life assured on each. These policies will only pay out on the death of the life assured on that policy to the surviving policy holder. Mr Smith could also take a policy out and be the policy holder with Mrs Smith as the life assured and visa versa. The policy holder is always the owner of the policy and the benefactor, the lives assured are simply the people who's live the insurance is taken out against. It can however be possible for the policy to pay out to named beneficiaries, these must be proven to be dependent upon the lives assured.

Benifits of insurance

Most of us think of insurance as a necessary evil at best. We rarely, if ever, see the benefits of purchasing insurance.
We need only to look at some of the basics of how insurance adds to our society to understand its value.
First, insurance reduces the money we all have to pay for uncompensated victims of accidents. Without insurance, many who were injured in an accident would become a drain on state and federal government agencies.
In short, your taxes would increase in order to pay for rehabilitation or care of the sick and injured.
You need an insurance policy to purchase a new car or a home. Without insurance to cover a bank’s financial interest as a lien holder in your loan, how would you convince the bank to lend you money in the first place?

Another benefit to us as individuals is mandatory liability auto insurance. If someone ran into your car and caused you bodily injury, how would you pay for the medical bills without insurance?

Or if someone got injured on your property, how would you pay for the damages?
Again, this saves us all from paying huge tax bills. If insurers didn’t buy these bonds, we would have to settle for poor roads and bridges, or foot the bill ourselves via higher taxes.

Insurance policy

insurance is a policy a large financial institution offers a person,compnay other entity reimbursement financial protection against possible future losses or damages insurance is brought in order to hedge the possible risks of the future witch may not take place this is a mode of financially insuring that if such a incedent happens then the loss does not affect the persent well-being the person or the property insured thus,through insurance,a person buys security and protection
simple example will make the meaning of insurance easy to understand.A bikeris always subjected to the risk of head injury.but it is not certain  that the accident causing him the had injury would definitely occur.still,peopel riding bikes cover their heads with helmetinsurance by protecting him/her from any possible danger. The price paid was the possible inconvenience or act of wearing the helmet; this ie equivalent to the insurance premiums paid.Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means, in return for relatively small, regular payments to the insuring body or insurance company.
LIFE INSURANCE
It insures the life of the person buying the Life Insurance Certificate. Once a Life Insurance is sold by a company then the company remains legally entitled to make payment to the beneficiary after the death of the policy holde.
HELTH INSURANCE
This is also known as mediclaim. Here, the policy holder is entitled to receive the amount spent for his health purposes from the insurance company.
General Insurance
This insurance type involves insuring the risks associated with the general life such as automobiles, business related, natural incidents, commercial and residential properties,etc......
 

Introduction to this blog

 This blog contain data about insurance companies packages and this blog facilitate readers about all relevent topics about Insurance.
If you like to know any question regarding this topic may contact or frequently ask any question.