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Top 10 insurance terminologies you should know

Top 10 insurance terminologies you should know

Gone are the days when you would have to visit an insurance company or an agent’s office to buy a policy. Purchasing an insurance policy has become extremely easy today thanks to the internet.

You can complete all the formalities online and purchase the policy at the click of a button. While the process has become easier and quicker, the complete understanding of the important terms of insurance still remains unfulfilled.

Most of us who buy insurance policies, be it life insurance, car insurance, travel insurance, or health insurance policy, don’t completely understand everything mentioned in the documents.

One of the reasons for this is our inability to understand the terms in the policy document. Although these terms might seem complex, they are simple. Let us look at the top 10 insurance terminologies you should know.

1. Policyholder

The policyholder is the individual under whose name the policy is purchased. The policyholder can also be an organization in case of group life insurance policies. However, in certain cases, the policyholder might not be the one insured in the policy. The insured is the individual who is protected under the plan.

For example, a husband decides to buy an insurance policy for his wife. In this case, the husband is the policyholder, while his wife is the insured individual.

2. Nominee

A nominee is an individual who is included in the policy by the policyholder. The nominee is the person who gets to avail of the benefits of the policy in case of the policyholder’s demise.

3. Beneficiary

In life insurance, the beneficiary is the person who receives the compensation or other benefits upon the death of the policyholder or on the maturity of the policy. The name of the beneficiary is inculcated in the policy by the policyholder.

4. Assignment

An assignment is a process where an insurance policy is transferred from the initial policyholder to a different individual. This is typically done if the original policyholder has offered the insurance policy as collateral for their loan. If the original policyholder expires, the new holder of the policy will be paid the benefits after the assignment.

For example, X has taken a personal loan of Rs.5 lakh against his policy and has made his bank the assignee. In the event of X’s demise during the policy term, the bank would be paid the amount first after the assignment is completed. If any balance amount remains after the loan is cleared, it is paid to the nominee.

5. Claim

A claim can be defined as a formal request from the policyholder to the insurer. This request is made for the insurer to compensate for the losses that have incurred to the policyholder and that are to be covered under the policy.

6. Coverage

Every insurance policy provides coverage to the policyholder or the assured against some risk. This coverage or protection could range from life cover to certain ailments, accidents, etc. The coverage varies from policy to policy and is applicable for the tenure of the insurance contract.

7. Exclusions

There could be certain cases or parts of losses for which no protection is offered. These situations are termed exclusions. The policyholder is informed regarding such exclusions before the contract is finalized. For example, one common exclusion in life insurance policies is suicide. If the assured commits suicide, no or limited benefits are paid.

8. Premium

A certain amount of money is paid by the insured against the protection offered by the insurance company. This money is called the premium. The premium amount depends on various factors like the coverage, age of the policyholder, the sum insured, etc.

9. Maturity and death benefit

The maturity benefit is the amount paid to the assured after the completion of the entire policy term. Selective insurance companies and insurance plans offer a maturity benefit. A death benefit is an amount paid to the beneficiary if the policyholder expires during the policy term.

10. Rider

You can choose to increase the protection of your basic plan by using add-ons. These add-ons provided by the insurer are called a rider.

Today an insurance policy is not a luxury, but a necessity. We may be casual about not knowing these terms, but at the time of making a claim or understanding the policy, problems can arise. Being aware of these terms can help us make informed decisions and buy insurance according to our needs.

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Top 5 Insurance Companies in India

Top 5 Insurance Companies in India

Life is quite uncertain and unpredictable, we never know what the next moment has in store for us. Though we cannot see or control the future, we can for sure prepare for it. Insurance can be your rescue aid during mishaps. In return for a few payments, they can be your and your beloved’s financial security umbrella.

The most important thing when it comes to buying insurance is choosing the right company. Here’s a list of the top 5 insurance companies in India to help you select the best one for yourself:

1. TATA AIA

The most renowned and trusted insurance company in India is TATA AIA. TATA Sons and AIA group run the venture jointly with a 74% and 26% stake respectively. The company has high global recognition and has been awarded as the “General Insurer Claims Team of the Year” by Claims Awards Asia 2013. It serves both individuals and corporates

The company is striving to offer high-end insurance solutions and capitalize on the increasing opportunities present in the market. Offering a claim settlement ratio of 99.06%, there is no better insurance partner than TATA AIG.

2. Bajaj Allianz

Starting its operations in the year 2001, Bajaj Allianz is one of the most successful insurance companies in India. It is a joint venture between the world’s leading insurance company Allianz SE and Bajaj Finserv.

The company has been receiving the ICRA’s iAAA rating for 10 consecutive years. This proves the excellence offered by Bajaj. It provides hassle-free claim settlement processes with an impressive claim settlement ratio of 91.67% for general insurances and 95.01% for life insurances.

3. Aditya Birla 

a) Aditya Birla Sun Life Insurance Company

A joint undertaking between the two extremely successful multinational enterprises, Aditya Birla Group and Sun Life Financial, this company started its operations in January 2001. It is one of the most trustworthy and premium life insurance companies operating in India. Its products cover almost all walks of a customer’s life including health, wealth, retirement and pension, children’s future plans, and a lot more. With an extremely vast network of branches and agents, the company has managed to excel in its field. It offers a claim settlement ratio of 97.15%.

b) Aditya Birla Insurance Brokers Limited

A subsidiary of the leading Insurance brokers, Aditya Birla Capital, the company was initiated to simplify the general insurance services to people. With a product range covering individuals, families and business organizations, ABIBL provides the right and the most affordable protection to its customers. They have policies to cover all stages of life. It is the largest general insurance company in the private sector which operates in more than 35 countries across the world. Offering a claim settlement ratio of 96%, the company gives every reason for one to trust them.

4. Bharti AXA

It is one of the largest private insurance companies in India. It is a joint venture between Bharti enterprises and the French MNC, AXA group. The majority of shares of 51% are held by the Bharati group.

The only objective of the company is to fulfill the financial requirements of an individual in times of need, in the best possible manner. It accomplishes that by offering a wide range of insurance products. It offers plans covering protection, savings, investments, health, assets, and family.

The company has operations in more than 200 cities in India. It is the first company to receive dual recognition, ISO 9001:2008 and ISO 27001:2005 within one year of its operation. It offers an excellent claim settlement ratio of 94.7% making it a reliable insurance partner.

5. Life Insurance Corporation of India (LIC)

LIC offers a multitude of life insurance products. Fulfilling its objective to offer satisfaction and convenience to its customers, LIC is recognized in every nook and corner of the nation.

With offices and intermediaries across the length and breadth of the country, LIC is a dominant player in the insurance industry with a huge customer base. It offers excellent digital customer assistance and services ensuring easy processing, hassle-free settlements, and quick grievance management to its clients.

It has been recognized and awarded for its quality and standards. LIC is consistently being chosen as India’s most trusted brand in the BFSI category for providing end-to-end services pan India. It has won the ‘Best Life Insurance Company of the Year’ and ‘Most Preferred Life Insurance Company of the Year’ awards for offering an excellent claim settlement ratio, standing by its commitments to offer nothing but the best.

Choose your insurance partner wisely, as you’re trusting them for safeguarding your and your family’s future.

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Things You Must Know about an e-Insurance Account

Things You Must Know about an e-Insurance Account

Ever wished to have an account that could manage all the important documents of the insurance policies you and your family members hold?. Well, consider your wish granted as an e-insurance account does exactly that for you!

An Electronic Insurance Account or eIA is a repository that helps to manage your or your family member’s insurance policies by storing them in one place. Available in electronic mode, the insurance policies can be easily maintained and one can get access to them anywhere and at any time.

Features:

  1. You can only hold one single e-insurance account under your name.
  2. Each account is allotted a custom account number that can be used for future activities.
  3. All electronic insurance policies even of several insurers can be maintained under the account.

Procedure:

You can open an e-insurance account via an insurance company that has a tie-up with repositories or any of the four IRDA approved insurance repositories. They are:

  • NSDL Database Management Limited
  • Central Insurance Repository Limited
  • Karvy Insurance Repository Limited
  • CAMS Repository Services Limited
  • SCHIL Projects Limited

Here are a few steps to open an account

Step 1: Select your preferred Insurance Repository and then download the opening form.

Step 2: Provide the necessary details mentioned in the form and attach self-attested KYC documents.

Step 3: Submit the attested documents along with the form to the insurance repository.

Documents required to open an eIA account

  • Passport Size Photo
  • A Cancelled Cheque
  • KYC documents (Any One):
    Address Proof: Ration Card, Aadhar Card, etc
    Identity Proof: Voter ID, PAN card, Aadhar Card
    Date of Birth Document: Domicile Certificate, Passport, PAN card, etc

Benefits:

The e-insurance Account offers multiple benefits, a few of them are as follows:

1. Provides safety

The policies under the account are available in an electronic format. This grants you the leverage to be free of all the worries of losing an original document, theft, damage to the papers and more.

2. Effortless premium payment

Once your account is open and active, you can easily pay the insurance premium amount online. The payment can be easily done via the account rather than waiting in long queues for hours to pay the premium in cheque or cash.

3. Easy monitoring

A yearly statement of the account along with the details of the various policies held by you is shared by the insurance repository. The account also enables you to receive notifications for the renewal of policy and reminders for premium deadlines too. This makes monitoring an easy task for the insured individual.

4. No resubmission of KYC details

Once the KYC documents are submitted and the account is active, you aren’t required to submit the documents again for every insurance policy bought in the future. All you need is to mention the insurance policy account details and the policy will be issued.

5. Easy conversion of old policies

You can easily convert an old policy into an e-policy and add it into the account seamlessly. You can also open an account if you haven’t purchased any insurance policy.

Now that you’re aware of an e-insurance account, it’s now time for you to reap its benefits. Open an account today to avail yourself of convenience for the future.

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What are Perils in Insurance? (And Its Types)

Perils in Insurance and Its Types

Perils in insurance are defined as any event, situation, or incident due to which damage has been done to the insured property or asset. 

It is very important for insurance owners to understand what are the perils that have been covered under their policy. This is to get a clear idea about when to reach your insurance company to get the compensation.

Let’s know about perils in detail.

Perils Covered under insurance policies

No insurance policy provides coverage for all types of losses. Perils covered differ from policy to policy and insurer to insurer. There are two types of coverages that are provided under insurance policies namely, Named perils and Open perils or All risk.

Named Perils

Named Perils policies provide broad and basic coverages. The events or perils that are to be covered under such policies are specifically mentioned in the insurance contract.
Here is a list of the perils that are usually covered under such policies:

  1. Lightning or fire
  2. Hail or windstorm
  3. Explosion
  4. Aircraft crashes
  5. Civil commotions or riots
  6. Vandalism
  7. Smoke
  8. Volcanic Eruptions
  9. Thefts
  10. Damage due to heavyweight of ice, snow, or sleet
  11. Damages caused due to any falling object
  12. Steam or accidental water overflow
  13. Freezing
  14. Accidental and Sudden damage caused due to electrical current that is artificially generated.
  15. Accidental and sudden cracking, tearing apart, burning, or bulging of any household systems.
  16. Damages caused by vehicles

These are the losses that are covered under named perils insurance policies. Except for these, it does not provide protection against any other risks which might also lead to problems for the insured.

Opened Perils or All risk

Under an open perils policy, all losses are covered except for those listed as exclusions in the insurance contract. It is just the opposite of how named perils policy works. In an open perils policy, more losses are covered as compared to the named perils policy. In a few policies, you can also opt for additional protection against any excluded peril by paying an extra fee.

Exclusions under these policies may vary from state to state, policy to policy, and insurer to insurer. Therefore, it is very necessary to have knowledge about the perils that are excluded from your open perils policy.

Here are a few common exclusions under such policies:

  • Land movements like earthquakes, landslides, etc.
  • Water and flood damage like sewer loggings etc. (Storm surges are covered only under flood insurance)
  • Failure in power supply
  • Damages caused due to the owner’s negligence or irresponsible behavior.
  • Wars
  • Possible nuclear hazards
  • Losses made on purpose
  • Damages caused due to frozen pipes in properties that are vacant.
  • Excessive pressure caused due to water or ice
  • Normal wear and tear
  • Thefts during construction
  • Mischiefs and Vandalism in a vacant property
  • Mechanical faults or breakdown of home appliances
  • Damages caused due to corrosion, dust, smog, or rot
  • Industrial or agricultural smoke
  • Animals of the owner and other insects or birds

Often perils and hazards are the two words that are used interchangeably, but in the insurance industry, perils in insurance and hazards are considered to be two completely different things. Perils are the events that are the cause of the damage whereas hazards are the factors that lead to perils.

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What is No Claim Bonus (NCB) on Car Insurance?

No Claim Bonus on Car Insurance

Car Insurance is taken in order to seek protection for a car from instances that cannot be avoided. It acts as a personal arsenal that provides assistance in case of accidental losses, theft, and any other liabilities. In addition to this, there are other interesting features that make a car insurance policy more effective. One of them is the No Claim Bonus on Car Insurance.

What is a No Claim Bonus on Car Insurance?

No Claim Bonus (NCB) refers to a discount that is offered by the insurer to the insured. The concession is offered when the insured doesn’t make any claim on the Own Insurance Policy premium during its entire tenure. The discount can be applied during the renewal of the policy in the subsequent year.

Benefits of No Claim Bonus

There are multiple benefits that NCB offers to car owners under a car insurance policy. Let’s have a look.

1. Low premium payment

With NCB a policyholder can receive a minimum discount of 20% and a maximum of 50% discount on the car insurance premium. For every claim-free year, the policyholder gets to avail of the NCB discount. This particular discount can help to lower the Own Damage premium amount that the policyholder is supposed to pay at the time of the insurance renewal.

2. A Benefit for the policyholder

One of the biggest advantages offered by NCB is that it’s granted to the car owner and not the car. This allows the policyholder the freedom to either sell the insured car or purchase a new one without the worry of losing the NCB. It stays with the policyholder as long as the individual renews the car policy.

3. Easily transferable

In a situation when the policyholder decides to change his/her car, an NCB can be conveniently transferred to the other car. Furthermore, the policy can also be transferred from one insurance company to the other in a case where the car owner decides to purchase insurance from any other company.

Transfer of NCB to a new car insurance

The transfer is an easy process however it may vary depending on whether the car owner purchases the new car insurance online, offline or via an agent. The process is as follows:

Online: The car owner is required to update the new insurance company about the NCB, the previous insurance company details, and the old policy number.

Offline/Agent: The following steps are required to be followed:

  • Contact the previous insurer.
  • Put in a request to transfer the NCB and submit all the necessary documents.
  • An NCB Certificate will be issued by the insurance company.
  • Submit the certificate to the new insurance company.
  • The new insurer will then transfer the NCB.

Point to Note: NCB can only be availed via an Own damage cover and not through car insurance that involves only third-party cover. It’s also not applicable to any other add-on except NCB Protector.

Now that you’re aware of the No Claim Bonus on Car Insurance, it’s time for you to spread the word and explain its benefits.

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Nature of Insurance

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Nature of Insurance

Different kinds of insurances serve different purposes and provide coverage for multiple mishappenings. Although the benefits offered by all insurance policies differ, every insurance contract, be it for any insurance policy, shares the same nature. In this article, we’ll throw light upon the nature of insurance.

What is the nature of insurance?

Insurance is a contract between two parties whereby one party, the insurer, promises to cover the loss incurred by the other party, the insured. Based on the definition and the purpose it serves, the nature that insurance possesses is as follows:

1.) Sharing of risks

Insurance is a device that is used to divide the losses that might occur to an insured individual or his family amongst the masses. Insurance companies collect a huge amount as a premium from all the policyholders. These funds are utilized to cover up the losses that an insured might suffer during the tenure of his policy. In this way, the loss is distributed amongst a huge population, reducing the burden on the loss bearer.

2.) Co-operative device

The cooperation of a large number of people who in effect agree to share the losses is one of the prominent factors that contributes towards the nature of insurance. The insurer might not be able to pay for the losses that may arise due to a particular risk from his own capital. This is where Insurance comes to aid as it allows all the insured people to share and contribute towards the loss of an individual by paying the premium. The paid premium compensates for the financial losses incurred by the individual.

3.) Payment at the occurrence of the event

The insured is paid only at the occurrence of a certain contingency. Otherwise, no payment is made to the insured. In the case of general insurance plans, if the event does not occur in the mentioned period of time, the policy goes void. Moreover, in the case of life insurance plans also, the beneficiary is only paid at the death of the policyholder i.e., at the occurrence of the event.

4.) Insurance is not gambling

Insurance is a method devised to promote the people to undertake risk by providing financial support to them. It serves as a long-term financial resource relieving the risk-taker from worrying about the financial loss he/she might have to suffer. It is not a tool to increase the financial standing of the insured. Rather, it is a tool to help the insured attain back his/her financial position in case of an unforeseen event.

5.) Insurance is not charity

Charity is a fund given without any consideration. Insurance comes with a premium. It is not a charity but a backup plan to offer financial security to the policyholder. A premium has to be paid by the policyholder according to the risk that has been covered under the insurance plan.

Insurance gives the insurance holder peace of mind and relieves him of the financial stress that might be caused due to unexpected circumstances. This allows the insured individual to devote himself completely towards accomplishing his/her goals. Hence, insurance today is not just a facility but more of a necessity.

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Life Insurance vs Health Insurance

Life Insurance vs Health Insurance

If you are someone who likes to secure their future, you must have stumbled upon these two terms- life insurance and health insurance. These insurance policies work as a blessing in case of unexpected emergencies. It is usually recommended to purchase both these policies for a strong financial portfolio. Although, these two things might sound similar but are very different from each other. Before diving deeper into studying life insurance vs health insurance, let’s take a brief look at what these two policies are.

What is life insurance?

Life insurance is a long-term policy that ensures the safety of your family. In case of the sudden death of the policyholder, his family is provided financial security. The death benefits under this policy offer a lump sum amount to the family. This amount is decided at the time of purchasing the policy. Life insurance offers a wide variety of benefits. Let’s take a look at them.

Benefits of a life insurance policy

1. Financial security to the family

In a life insurance policy, the money provided to the family after the death of the insured eases the financial pressure on them. This money can be used for daily expenditure or a bigger expense like children’s education or marriage. It can also be used to clear off any debt. This much-needed financial help supports the family to get back on their feet.

2. Retirement planning

Life insurance plans also have a provision of providing pension coverage. The premium for the plans which include this pension coverage work on periodic annuity payments. This comes in handy for senior citizens and provides them with much-needed financial help after retirement.

3. Maturity benefits

Life insurance also provides a bonus amount under maturity which is received upon completion of the policy term. You have an option to invest the money from the maturity benefits into various streams like shares, equity, etc. This way you get returns along with life protection all in a single policy.

4. Encourages savings

The premium for life insurance policies has to be paid regularly without any default. This makes you save some amount of your income towards paying these premiums. Whether you do it voluntarily or by compulsion, this inculcates a habit of saving money. This habit of saving money and investing in insurance helps you financially in the long term.

5. Tax benefits

If you buy a life insurance policy you are eligible to avail of some tax exemptions. These exemptions are applicable if the premium amount paid for the policy exceeds Rs 1.5 lakhs. So, investing in a life insurance policy gives you a double benefit of life cover and tax savings.

What is health insurance?

Health insurance is a short-term plan that provides health coverage for any sudden illnesses. This protects the insured from various expenses that might arise due to the illness and its associated treatments. Health insurance offers a plethora of benefits. Let’s have a look at them.

Benefits of health insurance

1. Useful in medical emergencies

Due to our sedentary lifestyle, we are prone to various diseases. The diseases arising from a bad lifestyle like type 2 diabetes, heart conditions, etc. lead to huge hospital bills and mental stress. When you don’t have enough money for these expenses you tend to opt for substandard healthcare services. Health insurance gives you a sense of financial security and doesn’t let you compromise on the quality of health care.

2. Inflation and health care

Inflation in layman terms means an increase in the prices of services and commodities. Like all other industries, the medical industry is also gets affected by inflation. This leads to an increase in costs of hospital bills, medical tests, medicines, surgeries, etc. Investing in health insurance protects your savings from these expenses.

3. Wider coverage

When you think of health insurance, you might think it only covers hospitalization charges. But it covers much more than that. Health insurance has additional coverage for ambulance charges, maternity benefits, surgeries, special treatments, doctors’ fees, etc.

Life insurance vs health insurance

Now that we have understood what these policies are, let’s take a look at the differences between the two policies.

Basis

Life insurance

Health insurance

Coverage offered

Life insurance offers comprehensive coverage which covers a variety of expenses. The coverage is offered throughout the life span of the insured.  

Health insurance only provides medical emergency cover in case of a sudden illness. This cover includes expenses for medicines, hospital charges surgeries, etc.

Premium amount

Life insurance premiums are flexible and depend on the type of policy you choose.

Health insurance premiums are evaluated by the insurers considering various factors, thus they’re comparatively high.

Policy tenure

These policies have fixed tenure and the policy is terminated upon the completion of the tenure.

Health insurance policies do not have fixed tenures. The policy can be renewed annually by the insured to enjoy the benefits.

Financial assistance offered

Life insurance offers financial protection mainly to your family in case of your demise.

Health insurance offers financial assistance to you in a health-related emergency.

Benefits

Life insurance policies offer a death benefit where the family members receive money if the insured dies. The policy also offers a maturity benefit after the completion of the policy term.

Health insurance offers a maternity benefit for expecting mothers which takes care of all the expenses at the time of childbirth.

Refund upon term completion

Life insurance offers a full refund of the amount invested if you outlive the policy term.

Health insurance does not offer any refund at the end of the policy term.

So which insurance policy should you opt for?

The benefits provided by both these policies are immense. With so many lives and health insurance policies available, it might be difficult to choose one of them. If it is feasible financially, you can opt for both policies. But if you had to choose one, choose wisely by analyzing the stage of life you are at. Choose the policy which will be beneficial to you right now and you can purchase the other one later. Make sure to compare different plans for both insurances before investing in one.

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Insurance vs Assurance- A Detailed Comparison

Insurance vs Assurance- A Detailed Comparison

In the financial market, insurance and assurance are two very widely used terms. The two terms, although have different meanings, are used by people interchangeably. This is because both of them are related to protecting the financial interests of individuals, families, and corporations. It is important for one to know about the difference between insurance and assurance in order to make the right decisions while making financial plans and purchases.

Before we discuss ‘insurance vs assurance’ it is important to know the exact meaning of both the terms individually.

Insurance

Insurance is a contract or agreement wherein the insurance company indemnifies to compensate for the insured’s losses. In case of any mishaps, man-made or natural calamities, or any other uncertain event, the insurance company provides coverage for the losses. This compensation is given in return for a premium paid by the policyholder.

Assurance

It is an agreement in which the insurance company assures to provide compensation or remuneration for an event that is certain to happen, for instance, death. Assurance policies promise to provide persistent coverage till the death of the policyholder.

Insurance Vs Assurance

Let’s understand the difference between the two on various parameters.

Basis

Insurance

Assurance

Meaning

It provides compensation for temporary losses.

It provides compensation for losses that are irreversible and irreplaceable

Objective

To help the policyholder regain financial stability and overcome the unforeseeable losses.

Provide compensation to the beneficiary for his loss.

Guiding principle

The principle of indemnity forms the basis of insurance.

The Principle of certainty forms the basis of assurance.

Types

All general insurance plans, such as fire insurance, marine insurance, health insurance, etc are an agreement of ‘Insurance’.

Life insurance plans, such as annuity plans, whole life insurance, endowment plans, etc (except term life insurance) are a type of ‘Assurance’.

Payment of the claim

The claim is paid only on the happening of the event. If the event does not take place before the maturity of the policy, the policy becomes void.

The sum insured is paid to the policyholder on the occurrence of the event or on the maturity of the policy.

Duration of the contract

Insurance plans are generally short-term plans that can be renewed after their tenure expires.

Assurance plans are long-term contracts, covering the entire lifespan of the policyholder.

Coverage

Coverage is offered against events that may or may not occur in the future like, fire, etc.

Coverage is provided against events that are definite to occur like death.

Payment of premium

In an insurance contract, the premium is paid periodically to get protection against the insured risk.

In a contract of assurance, the premium is paid periodically to avail the benefits after the happening of the event.

Insurance and assurance, both of these elements are extremely and equally important to have a financially sound life.
Although they go hand-in-hand, there is a difference between the services or coverages offered by both. Both of these contracts are offered by the insurance companies, you must rightly choose the one that matches your needs.

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Insurance for Professional Indemnity

Insurance for Professional Indemnity

As a business professional, you strive to provide your clients with the best services. But if any kind of errors, omissions, or professional neglect occurs from your end, then you are liable for the losses incurred by the clients. This might result in the client filing a case against you. Whether you are an architect, engineer, doctor, lawyer, chartered accountant, etc. you need to protect your business against such legal claims. This is where professional indemnity insurance helps you.

Insurance for Professional Indemnity saves you and your business from the financial claims made by your dissatisfied customers regarding faulty products, bad service, etc. It also offers valuable assistance and helps to save money as all legal charges are taken care of by the insurance company.

Key benefits of professional indemnity insurance

  • This insurance policy can be specially designed for the requirements of different professionals and professional services.
  • Provides exhaustive coverage against different risks for several businesses.
  • Covers all the legal expenses and costs incurred with the prior consent of the insured.

Factors affecting the cost of professional indemnity insurance

Depending on the type of sector or industry the business belongs to, the cost of the indemnity cover is decided. Some of the factors that are kept in view are listed below:

  • The risk factor involved in the business
  • Location of the business
  • How old is the business
  • Yearly turnover
  • Number of employees in the company
  • Number of clients of the company
  • Credit score
  • Previous history of claims

What does this policy cover?

Professional indemnity insurance protects you and your business against claims of error, omission, or negligence in a professional service where a client has incurred losses. Loss can be monetary or in the form of death or bodily injury to a person in the case of a medical professional. This type of policy covers all claims related to the incidents which occur within the policy period. An owner is responsible for not only his negligence but also for his employees. Such incidences may or may not occur under the direct supervision of the owner. Hence the policy has a provision to insure the professional and his associates or employees too.

What does the policy not cover?

  • Criminal activity, violation of law, or fraud by the company or the owner are not covered.
  • Damage caused under Influence of intoxicants or narcotics.
  • Weight reduction treatments like liposuction, mesotherapy, etc.
  • Cosmetic surgeries like botox surgeries, hair transplants, facelifts, etc.
  • Treatments of HIV and AIDS.
  • The policy does not cover non-compliance with statutory provisions.
  • Businesses involving radioactive materials.
  • Damage caused by wars.
  • Trademark infringement, design patents, copyright issues.

Insurance for professional indemnity helps you pay the clients and protect your professional image. The policy also protects you from the hefty legal fees in a long-drawn-out legal battle. It also provides you with a second opportunity to correct your mistake and make improvements while continuing your business in the market. It is thus wise to get professional indemnity insurance today to protect your business and its image from the trouble that accidental damage to your client might cause.

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Insurance

Understanding Insurance for Gold

Understanding Insurance for Gold

Gold is one of the most valuable pieces of jewelry you can own. Whether it may be a necklace or a wedding ring, these coveted ornaments have a high sentimental value. But gold is more than just jewelry, it is a great investment. Along with real estate and stocks, gold is one of the most popular choices of investment for many people. Also, gold ornaments have a high resale value and can be used to procure money in emergency situations.

Given its monetary worth, this jewelry should be protected from any unwanted risks. gold insurance is always a good idea to protect your jewelry from theft, loss, or damage.

Let’s dive a little deeper and know more about the Insurance for Gold!

Inclusions under Gold Insurance

The gold insurance offers protection to your jewelry in the following scenarios:

1. Fire

A fire at your house or any other place of storage is one of the main causes of damages to jewelry. But there is a provision in the insurance to protect your jewelry from this damage.

2. Burglary & Theft

The insurance covers your jewelry from theft or burglary and protects you from emotional and financial stress.

3. Natural calamities

The insurance protects your jewelry from any damage caused by natural calamities like earthquakes, floods, storms, hurricanes, etc.

4. Location

You can opt to store your jewelry at home, in shops, in lockers, or in exhibitions. If any kind of damage mentioned above occurs at the place of storage, it gets covered under the insurance.

Exclusions under Gold Insurance

Here are some exclusions under which the jewelry is not covered.

1. Wear and tear

Damage caused to the jewelry by normal wear and tear or during cleaning, servicing, and repairing is not covered under the insurance.

2. Negligence

Sometimes the jewelry is damaged due to reckless handling by the owner. In such cases, no financial compensation is provided.

3. Replacement

If you wish to replace the old insured jewelry with a new one, then the insurance policy does not get transferred to the new item. Only those items that were listed at the time of taking the insurance are covered.

4. Non-disclosure

You are bound to provide accurate information about the jewelry while purchasing the insurance policy. If you fail to provide correct information about your jewelry and any kind of damage that happens to it, it will not be covered by the insurance.

5. Confiscation

If you choose to take a loan for the purchase of jewelry, you are required to pay regular EMI’s. If you default the EMI payment and the jewelry gets confiscated, the insurance company is not bound to pay for your loss.

If you are someone who prefers investing in gold, it is necessary for you to add a layer of protection around your investment. Gold along with being a safe investment also helps you to get emergency money, which makes Insurance for Gold all the more necessary. Always make sure to compare various insurance covers and their benefits before buying one.

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