Auto Insurance

Car Insurance, Motor Insurance and GAP insurance are the synonyms of auto insurance. Auto insurance is the policy purchased by vehicle owners to mitigate the costs related with getting into an auto accident. This insurance covers all the risk of damage or loss to auto or vehicle caused by an accident or theft.
             After the First World War, automobile was in widespread used. By that stage, cars were relatively fast and dangerous. But also it was not compulsory to purchase the auto insurance in any part of the world. This resulted in heavy loss to the people who were victim of accident as they had to bear the costs for damage to their cars and property. Later on, with the Road Traffic Act 1930, a compulsory car insurance scheme was first introduced in the UK whish ensured that all the vehicle owners and drivers had to be insured for liability for injury or death to third parties while their vehicle was being used on the public road. Insurance Business in Nepal started after the establishment of Nepal Insurance and Transport Co. Ltd in 2003 B.S. under the ownership of Nepal Bank Ltd.
                  The primary use of auto insurance is to provide financial protection against physical damage and bodily injury causing from traffic collisions and against the liability that could arise from the specific terms of vehicle insurance vary with legal regulations in each region. In case of auto accident, the insured does not need to compensate the loss from his/her pocket. Instead, they have to pay some regular premium to an auto insurance company and later on if any accident occurs, the company will compensate the loss financially. The people who have purchased the policy of auto insurance have to pay the premium on regular basis. In accordance with a framework or regulations set by the government, such premium amount can be either mandated by the government or determined by the Insurance Company. Generally, premium amount vary depending on several factors that are believed to have an impact on the expected cost of future claim. Those factors include age, gender, years of driving experience, driving history, accident, car characteristics and moving violation history. For example: Teenage drivers who have no driving record are exposed to higher auto insurance premium whereas senior drivers are often eligible for retirement discounts. Likewise married drivers have fewer accident records than that of the drivers who are not married. So, insurance premium is less to the married drivers in comparison to the unmarried drivers. A deductible which is also known as excess payment is a fixed contribution that must be paid each time a car is repaired with the charges billed to an automotive insurance company. When the accident occurred by the fault of other drivers and if the fault is accepted by the third party’s insurer, then the vehicle owner may also reclaim the excess payment from the other person’s insurance company.
                     

Auto Insurance generally covers medical payments; physical damage; fire; theft; car, people and property damage and bodily injury; in some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident; the cost to rent a vehicle if ours is damaged and the cost to tow our vehicle to a repair facility. Different policies specify the circumstances under which each item is covered. For example: A vehicle can be insured against theft or fire damage independently.
                    Compulsory Third Party Personal Injury Insurance, also known as CTP Insurance is used in Australia which is state based scheme and only covers personal injury liability. There is provision of public auto insurance system in several Canadian provinces while in the rest of the country, insurance is provided privately. In India, auto insurance covers for the loss or damage caused to the automobiles or its parts due to natural and manmade calamities. It insures the individual owner of the vehicle while driving and also the passengers and the third party legal liability too. In Germany, it is compulsory to have third party personal insurance before keeping a motor vehicle. Similarly, it is mandatory for all vehicles to do third party vehicle insurance in Hungary and Indonesia. Likewise, Accident Compensation Corporation (ACC) provides nationwide no-fault personal injury insurance within New Zealand. It is mandatory for the drivers in Ireland to have at least third party insurance or to have attempt exemptions-generally by depositing a lump sum of money in the High Court as a guarantee. In Norway, the vehicle will be illegal if the vehicle owner does not provide the minimum of liability insurance for his vehicle of any kind. It is compulsory for all vehicle owners to cover damages to third party using motor-vehicle liability insurance in Romania. South Africa allocates a percentage of money from gasoline into the Road Accident Fund which later goes toward the compensation of the third party. Traffic department seeks for 13 months insurance certificate each time we register or renew vehicle registration when buying car insurance in the United Arab Emirates whereas UK government introduced a law to have at least third party personal injury used vehicle insurance by every person who used a vehicle.
                   To conclude, auto insurance is the insurance purchased for car, bikes and other vehicles which provides financial compensation in case of accidents. The idea of insuring the automobiles and vehicles started to mitigate the loss which is caused after the accident and damage to the property or people that may be the driver himself or the third party on the road.

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educational insurance

Every year the number of dropouts from schools and colleges are in increasing trend. Even when the students are willing to continue their studies, they are forced to drop their further studies. The reason for dropping the studies can be several like death or incapability of the guardians and the financial problem. So, to secure the students from being unable to pursue further studies, the idea of education insurance has emerged.

 The insurance which is made to manage the amount for the education is known as education insurance. Generally, in this insurance, parents of any children should make insurance for fixed period of time for their education. Parents have to keep the child’s name as his representative. While insuring the children with regard to the education, the parent will need to pay some amount regularly to the insurance company which is also known as insurance premium. After the expiry of the contract or any accident to the parent, the children are given the insured amount which can be used for children’s education. This type of insurance is very much useful to secure the life of the children and the amount received after the maturity would be of great help to the children.

          Education insurance has existed since 1930 with the view of securing the life of the children. It benefits both the students and educational institutions since it may cover the money a student owes to an educational institution like school, college, university etc in case the tuition payer can no longer cover these costs. Education insurance can be obtained through educational institutions or directly from the insurance company. It also can be received as the part of a student loan. Such education insurance may cover the cost of the tuition in whole or even partly if a student has to withdraw from his or her studies due to several reasons.

          Education insurance falls under the category of life insurance as it secures the life of the children in terms of getting knowledge in future. This insurance is usually done for the children by their parents as parents take care of their children and are always concerned about the bright future of their children. With the help of the education insurance, the children will never have to sacrifice their further studies. Education insurance also satisfies or lessens the problems of the parents. It is because they have to pay some regular payments which is usually small amount and in return, the insurance company will provide lump sum amount of money after the maturity period or incase if some unfavorable accident happens with the parents. This will help them from seeking other’s help.

          Education insurance is the insurance which protects the student attending educational institutions    such as schools, college or universities from the financial loss. Students have to involuntarily withdraw from his or her studies due to the medical reasons and the death of the student’s legal guardian. So, the insurance company will either refund or cover the costs associated with attending the student’s institutions. Moreover, education insurance may also cover the loan of the student. In India, banks who are stung by bad loans after lending to the education sector are now buying the insurance so that they can cover the default risk. Under this, the bank will be entitled to receive the entire loan amount from the insurer if the borrower dies. This policy is in the favor of the bank. The student that may be of private school or college or university, he or she can find insurance coverage to help them guard against the losses. If the adequate insurance is covered, it will be beneficial to the student and the families.

          The cost of the higher education is increasing. So the need for access to the higher education and the cost will put the financial strain on the parents. So, it is important to purchase the education insurance policy. At the end of the maturity, the fund will be given which can be used to pursue further education and assures the mishap that happens in the future. This will also help the children to pursue his or her goal in life. As we have known that purchasing an education insurance policy is being essential in today’s world, we have to consider various things before we choose a policy. The amount to be set aside for the children’s education, reasonable premium amount, and flexibility in the education policy so that further savings can be increased are to be taken into consideration when we choose a policy.

          There is no meaning of being successful parent until and unless they secure the life of their children. So, education insurance can contribute lot to secure the future of the children at the right age. Such education insurance can also be used as the long term investment plan which will help to secure the children education. The education insurance acts as the saving tool to provide an account of money when the children reach the age for entry into the collage or at the end of maturity. The funds received from the insurance company can be used to pay for the children’s higher education expenses. Under this policy the life of the children is assured. However, the policy owner is the parent or legal guardian. So, the insurance policy in which the parent pays the insurance premium on regular basis to secure the children from getting education policies is education insurance. 

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Property Insurance

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An insurance policy that provides protection to the properties against various kinds of risks, such as fire, theft, smoke, wind, hail, weight of ice and snow, lightning and more is called property insurance. It concerns with the specialized forms of insurance like flood insurance, earthquake insurance, home insurance or boiler insurance. This policy also provides liability coverage in case someone other than owner or renter is injured while on the property, and decides to sue. However, it doesn’t cover the damages caused by water sources such as floods, tsunamis, drain backups, sewer backups, groundwater seepage, standing water, etc.
The concept of property insurance was originated in protecting the maritime enterprises of the Phoenicians, Greeks and Romans from periods earlier than 533 A.D. When merchantmen expanded their operations and exploration for new goods they began to pool their resources to spread the risk of loss of their ships, goods, buildings and property among local bankers, other merchants and affluent families. By the 1600s merchants were insuring buildings against fire and goods against theft. Today every single thing is insured so as to reduce the risks and losses.
Property insurance, today, is a very broad concept. It is a multi-billion dollar annual business covering all the losses and risks that different commercial and personal property bears.  Today, property insurance covers more than just tangible real and personal property, it has come to recover lost income, business interruptions, computers, business papers, and trademark, patent and copyright infringement.
Property can be insured in two ways: open perils and named perils. Open perils provide compensation to the loss and damages of the property caused by any perils except those that are specifically excluded. It is also called as all-risks policy. Such type of policy is suitable if you want to cover a large number of perils or if you don’t have specific dangers in your area of business, but want a good insurance coverage. Named perils are different than that of the open perils. Named perils policy specifically includes the name of the certain perils, damages or hazards that may occur and covers that only. This type of policy can be adopted when you live in the area that is at risks for certain events or natural disasters, like living near the coasts where hurricanes area common, or living in the Midwest that frequently experiences tornadoes.
           

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Property insurance can be commercial property insurance or personal property insurance. Commercial property insurance is used to cover any type of commercial property from such perils as theft, fire, natural disasters, etc. It is carried out by a variety of businesses, including manufacturers, retailers, service-oriented businesses and non-profit organizations. Whereas personal property insurance compensates for the items in home that are not permanently attached to the structure itself. It may include furniture, clothing and various household appliances such as refrigerators, television, washing machines, and clothes drier.
            There are different types of property insurance policies available. Most of the property insurance is categorized according to the needs of the policy holders. For example, a landlord being a house owner may have various property insurance needs. Here the property insurance required is rental property insurance. Rental property insurance covers the damages and losses arising from the negligence on the tenants’ parts. Besides this, there are various other property insurances available for the personal as well as commercial basis. From small businesses to large enterprises there are different kinds of property insurance coverage for each.
            We can get property insurance through a written contract, called a policy. A property insurance policy binds the policy holder legally with an insurance company. The property insurance policy holder has to pay certain amount of money called “premium” and in return of which the company agrees to compensate for the damages and losses caused to the insured property. These damages or losses to be covered by the insurance policy are specifically mentioned in the contract.
            As a homeowner and a business operator, property insurance is something that should not be neglected. Property insurance provides various benefits and securities. Monetary value is one these benefits that property insurance policy can offer. The amount of money you can get from the property insurance company will depend upon how much property insurance you’ve bought at the time of contract-signing. Similarly, property insurance financial protection if a third gets injured or damaged because of any action happened in the property. It’s also required by most mortgage lenders. A major benefit of getting the property insured is that it covers the replacement value. Most people do not care much about the replacement value and they will lose everything in case of disasters like natural calamities. The process of getting things back to the normal becomes very difficult and painful if you have not insured the properties.
            The cost of property insurance depends on the items covered, the amount of coverage, the specific insurance company, the featured of the real estate, the region of the property, the amount of the deductible, and other factors. Most providers offer discounts for enhancements such as security systems and other safety measures. Policy premiums are generally invoiced once a year and due in advance.
            One should be very careful while before insuring their property. At the time of insurance, companies promise an attractive amount of coverage but it can be vastly different when it comes to compensate for the damages. Thus, it is very important to know how claims are handled, especially when it comes to writing you a check. Therefore, it is very important to know about each and every dimensions of the policy before insuring the personal as well as commercial properties.

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Travel Insurance

Accidents are unpredictable and inevitable. So, if you don’t have travel insurance, you will be personally liable for covering all the losses. Travel insurance is the insurance policy that covers medical expenses, financial default of travel suppliers, and other losses incurred while travelling, either within one’s own country, or internationally. It is an insurance policy that covers the costs and reduces the risks associated with unexpected events during domestic or international travel.  Travel insurance usually covers the insured in two main categories i.e. costs associated with medical expenses and trip cancellations. Such insurance policies are mainly provided by online companies selling airplane tickets or travel packages to the customers as an added service. Some travel insurance policies may also cover damage to rented equipment, such as a rental car, or even the cost of paying the ransom in case of kidnapping.

          Insurance has a long history, ever since there were financial institutions and issues of risks and losses, people have taken steps to avoid damages and limit their losses by as much as possible. But travel insurance has come over as a modern concept of insurance policy. It’s been around more than hundreds years that travel insurance industry has come into existence. The idea of travel insurance was commenced first in the United States. On April the first 1864, a man named James Batterson opened the doors of the world’s first travel insurance agency. The name of that business was “The traveler’s Insurance Company. The main task of that company was to ensure travelers against accidents and theft while they were travelling. Since that time the face of the travel insurance industry has changed dramatically and there are all kinds of risks against which you can take out insurance.

          There basically three main types of travelling insurance. They are: medical coverage, trip protection and luggage or car rental protection. Medical coverage basically deals with the medical and dental expenses caused due to injury or illness. You will even be transported to the hospital if you need any serious medical assistance during your travelling.

          Another type of the travel insurance is trip protection. This coverage is classified into three parts. First is cancellation coverage, second delay coverage and finally trip interruption protection. Cancellation coverage reimburses your prepaid expenses if you need to cancel your trip. It also allows cancellation if a family member is sick or dies. Similarly, delay coverage deals with the delays in the transportation. If there is any problem in your hometown airport and there are no flights going out for few days then your prepaid hotel expenses are covered. The last type of coverage is trip interruption protection. If you get sick while away or a family member falls ill or dies, you will want an interruption policy. It covers your trip if it’s cut short due to bad weather, travel company bankruptcy, an airline strike, etc.

          Luggage/car rental protection is another type of travel insurance that covers your rental car in the event of an accident and personal items if they are lost, damaged or stolen. However it may not cover all the loss and damage of some of your personal items in the flight as they can be too expensive to cover.

          There are two major classes of travel insurance. They are: international travel insurance and domestic travel insurance. International travel insurance covers travelling outside your country of residence. This is an essential part of international trips because many healthcares won’t apply in other countries and you either need insurance or be able to pay all the medical bills on your own. Similarly, domestic travel insurance covers travel inside your own country residence. These policies are generally cheaper than international policies. They generally focus on compensating you for purely travel-related problems like cancellations and closures. They are also much less essential and you can consider their worth on a trip-by-trip basis.

          Purchasing travel insurance is not compulsory, it is certainly advisable. It is better to be safe towards something that goes wrong on your holiday and you are faced huge medical bills. There are various policies offered by travel insurance such as single trip travel insurance and annual multi trip travel insurance. Single trip travel insurance compensate only for single trip that means, such travel policy has to be purchased before each trip. Similarly, multi trip travel insurance facilitates you to ensure multiple trips that you plan over a year. The total number of trips that will be covered depends upon the policy terms and condition, but many insurers don’t impose limits on your annual travel.

          Arranging travel insurance is an additional effort required while planning your trip or holiday but it is an important step for a safe travelling. While taking travel insurance you must take various things into considerations. Firstly you must check how many days will the insurance policy cover. Your policy will be invalid even by one day. Next thing that has to be ensured is the destination you are going because some insurers don’t include countries like USA, Canada and Caribbean. So ensure your policy if you are going beyond the coverage area. Likewise it is also very important to check the claim that you will be receiving back in the event that you lost your wallet or had to cancel your trip. Some travel insurers won’t cover you for the items such as mobile phones so you’ll need to insure them in other way through separate mobile phone insurance.

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Life Insurance

LIFE insurance or frequently existence oath is an agreement linking an insured (insurance strategy career) and an insurer or assurer, where the insurer pledge to make a payment of nominated inheritor a quantity of wealth (the “advantage”) in interchange for a installment upon the demise of the insured mankind. Relying on the agreement, other occurrence such as incurable ailment or serious disorder may also provoke payment. The strategy container commonly pays an advance or premium, either on daily basis or as a lump sum. Alternative figure (such as funeral expenses) are also sometimes consider in the advantages.

                   Human being policy is judicial agreement and the rules of the policy explain the demerits of the insured contracts. Precise barring is frequently jot into the documents to restrict the responsibility of the insurer; for instance, are assert describing to suicide, deception, war, riot and civil racket.

                   Life based contracts incline to alight into two groups:

1.    Safeguard policies:  It is sketched to furnish an advantage in the occurrence of actual event, generally a lump sum installment. A unique form of this sketch is term insurance.

2.    Investment strategy: It is a policy which major goal is to ease the headway of wealth0 by daily basis or sole premiums. Ordinary types are whole life, universal life and variable life policy etc.

                     Antiquity of Life insurance was evolved as a gate way of diminishing the insecurity to merchants, as early from China and Babylon. Contemporary life insurance strategies were in practice from the early 18^th century. The first company that offered existence human insurance was “Amicable Society for a perpetual Assurance Office”, based in London. Foremost plan of life insurance was that each subscriber should pay a fixed yearly payment per share on which can enlarge up to three shares with deliberation to lifetime members being twelve to fifty- five. At the completion of the annual year chunk of the “good-natured offering” was cleave among the woman and children of departed members and it was in ratio to the value of shares the, enroll possess.

                   Numerically and statistical instruments were in site for the advancement of modern life allowance.

Parties resided:

                             There is a contrast in between the insured and the strategy enroller, although the holder and the insured are commonly the same person. For eg: if Ram purchases an insurance strategy on his beloved life, he is both the owner and the insured. But if Sita, Ram’s bride purchase a policy on Ram’s life she is only the owner and Ram is the insured. The strategy holder is the sponsor and he will be the guy to pay for the insurance. The insured is contributor in the agreement, but not obligatory a pack to it. Also most organization permits the payer and enroller to be different.

                   The inheritor gets policy earning upon insured person demise. The owner nominate is not a gang to the policy. The holder can adjust the inheritor unless the strategy has an irreversible inheritor stipulation. If a policy has an irreversible benefit any inheritor changes policy commissions or wealth value abstracting would require the contract of the real beneficiary.

Contract terms:

                             Uncommon barring may appeal such as suicide cases, where by the insurance becomes invalid and worthless f the insured member claim suicide during a specified time. Any distortion by the insured on the enquiry may also be announced for dissolution. Only if the insured demise within this period, the insurer has a judicial right to claim on the basis of distortion and appeal message before concluding whether to make payment or refuse the claim.

                   The exact value of the insurance is the beginning value that the strategy will pay at the end/death of the insured when the insurance matures, although the actual demise profit can furnish for enormous or smaller than the par value. The policy matures when the insured leave the world or reaches a specified age.

Permanent Life insurance:

                   Permanent life insurance cannot be outdated for any ground besides deception. If any abandonment is happening to take step, it should be within the time period bounded by the law. A permanent insurance policy collects cash face value up to its date of maturation, diminishing the risk.

                   These types of strategy are costier to older people than of the youth ones. There are three types of permanent life insurance.

1.    Whole life insurance: It facilitates lifetime demise advantages coverage for a degree premium. It assure death benefits, assure cash values, constant foreseeable premiums and temporality and expense levy that do not diminish the policies cash value.

2.    Limited pay: Another basic type of exact insurance is limited pay. Existence insurance, whose advances are paid over a fixed period, either ten or 20 years, after which no surplus premiums are due.

3.    Endowment: They are such strategies whose values are equal to a surplus amount at a given period, called the endowment period, preferably than a demise surplus amount. It demands higher advances than whole life and universal life policies.

                        Other types of life insurance are accidental death, group life insurance where a group of people insure together, usually employees of a company, members of premium fund. Legal life insurance is another case where legal life insurance is designed to cover legal expenses arising from an insurance company’s refusal to pay a claim.

                   Life insurance in a sense secures our future.

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