Saturday, July 31, 2010

Bike Insurance basic point

Every teenager or youth generation has passion to ride bike.Bike is not comfortable as like car but the passion and style is always place its importance above the car and also the bike is less costly than car.
Bike or motorcycle insurance dependent on some factor:

Age Group : Insurance company charge lowest insurance premium from older and charge high rate of premium from lower age group ,but if you are new rider your charge might be higher.

Geographical Location : City and traffic jam area has higher risk of accident therefore the insurance premium charge is higher here on the other hand the suburban area or low trafiic jam area has low insurance premium charge there.

Bike Technology : Highly improved and technical efficient bike are less chance of accident therefore Insurance premium is low for these bike user.

Previous record of the Bike user : Previous driving record also impact on the current charge of the insurance rate if you first time buy a bike than the previous car driving record measure.

Home Address : If your house located in high crime jone where most of time bike stolen than generally the insurance premium is high there.

Your profession : Your profession is also matter on the insurance premium suppose you have a building contractor or real state agent than the chance of your bike damage is high when you parked at under construction site .

When you go for bike insurance than remember one thing that the insurance company paid the market value of the damage bike so if you take high insurance to get high cover than you may be in loss.

Thursday, July 22, 2010

Life insurance minimize risk of sudden death

Death of the sole earner is arising the financial risk for the family member. Suppose the Mr. .x has four members in his family, and Mr. X’s spouse and two children are totally depending on him. Mr. X monthly income is $10000 in a month but due to sudden death of the Mr. arise financial problem in front of the family member to survive, Insurance is help in this situation.

Life Insurance Company indemnifies a large sum amount to the family member which help to the family for the children education also help to survive.

Life insurance not only paid on death of the policy holder but also when the policy holder reaches a estimated age.

Insurance is the risk which insurer bear and indemnify to the policy holder or the beneficiary in case of death of the policy holder or the when the policy holder age reached as mention in the deed of the insurance.

Life insurance is not come under the category as like other insurance .As in the other insurance the insurance company paid to the policy holder actual loss arises by any loss but in life insurance there is no question arise for the actual or partial loss.

Life insurance is also contract of good faith that means the policy holder need to disclose all the heath related issue to the insurer or need to submit the medical certificate before the insurance company before apply for the life insurance.

Life insurance policy becomes void if the policy holder committed suicide, or the nominee kill the policy holder to get the policy amount.

In life insurance the policyholder is not actually the sole gainer of the risk arises ,only the family member get the advantage of the insurance policy.

Friday, July 16, 2010

Basic Step for Auto Insurance

Auto Insurance is insurance for car, two-wheeler and three wheeler the main segment is car insurance. Auto insurance is also work as a hedge tool to protect your first investment in the automobile or car .Suppose anyone buy his or her first car and it mate with accident in first ride than the owner loss all his\her investment in a day. Auto insurance is helps to hedge the auto investment by indemnify the loss arises by the accident.
Auto insurance is also indemnifying the accidental coverage to the insurer which also gives some extra advantage to the insurer.
The main coverage area under the auto insurance comes as:
1. Coverage for the loss of vehicle: Insurance Company indemnifies value of the vehicle which insured.
2. Accidental coverage to the Insurer: Auto insurance company paid accidental claim to the insurer, claim amount depend on the basis of terms and condition.
3. Coverage the loss arises to the third party: Insurance Company paid the loss to the third party arises by the accident.
Insurance company can’t fulfill the coverage on certain Scenario:
1. Violation of rules and regulation: If the car driven by the minor age and they don’t have valid license.
2. Violation of traffic rules and regulation: If the insurer drive car after taking alcohol.
3. Not disclosed all the material fact of the insured property: Suppose the insurer use the stolen car in that condition also the insurance company not indemnify the loss arises by the accident.
4. If the insurer intentionally met with accident: If the insurer intentionally met with the accident, or damage his car than the insurance company not indemnify the loss arises to the insurer.

Saturday, July 10, 2010

Home Loan charges reduce by the PSU Bank

Home Loan is available with low interest rate from Public sector bank with high number of EMI incomparability to private banks.
Public back are supported by the central bank of the country therefore they are able to go into the market with low interest rate with generally more number of EMI than private banks. We are not go with its long term affect on the Economy of the country because definitely these will create some pressure on the economy and arise the fiscal deficit.
The home loan taker is the prime advantage gainer of the plan, and the govt. Employee is the main target for this loan.
Private bank are also follow these strategy in long-term to protect their existing market.
Personal home is the dream of every individual, and the bank provides the chance to materialize the dream.
To buy a home huge amount required and for an employee or middle class people ,it can’t be possible to arrange such a large some money on the primary stage of their career but the house or the property value will increases and at the middle age or at the last part of their service period if they invest their large some of total life reserve for home than its create the financial crises for the future .
Therefore home loan gives one option to pay the loan amount from the monthly salary and it’s only the 40% of the total income and only in 20 years the employee are able to pay the total amount to the bank.
When you go for the human loan than you need to check all the rules and terms of the bank before apply for the loan.

Friday, July 2, 2010

Insurance is Hedge tool to uncertain risk

Insurance is agreement between the insurance company and the insurance holder, to protect the insurance holder from uncertain risk.
Insurance is also a hedge tool to protect the interest of the people. Insurance company charges premium on the holder on monthly or yearly basis. Now a day’s all movable and immovable goods comes in the criteria of insurance. One more thing need to consider that Insurance Company compensates only the loss portion, or the percentage insured.

Some basic steps:

1] Low Premium rate: Insurance premium vary with different insurance provider, so it’s better to check the market and go for the lowest premium rate available in the market.

2] Good liquidation position: Insurance is the hedge tool to protect from uncertain financial risk, so it’s good to go with that company which has financially strong in the market; means go with the company which has good liquidity position.

3] Disclose all the material facts of the insured item : Insurance company always mention in there rules and condition documents that in some circumstances they not pay the loss to the insurance taker, so always disclose all the material facts to the insurance company to become on the safe side.

4] complain to the regulatory board in case of fraud: If the insurance company not pays the damage or delay the payment than make the complain for this to the regulatory board of that country.

5] Insurance coverage: Insurance company paid only the risk which is insured, so its make sure before take any policy that how much risk is bearable.

6]There is interest on the insured property : Insurance holder need to prove that he has the interest on the insured property and any damage of the property affect the insurance holder financially.