Tuesday, March 13, 2012

Insurance Renewal, How to Get the Best Deal

Okay so all of your bills are paid and suddenly you open the mailbox to find your insurance renewal notice in there. It may cross your mind to just let it renew itself. However, this should only be a fleeting thought because you could miss out on a great deal if you do not, at the very least, check and find out if there is a better deal out there. So take at least a couple of days to shop around and make sure you are getting the best deal.

Most of them, when you read through a renewal letter it will give you a quote that is pretty much the same as the first quote you got from the insurance company. You might even be offered a bonus for not having any claims over the past year. If you read the fine print you may realise that your company has tried to up the fee to make up for any costs they occurred over the past year.

The first thing to remember is that if you are not going to renew the policy you must call them. Otherwise it will probably renew anyway and then you will be charged regardless of whether you wanted the insurance or not. You need insurance; but, it does not have to be from your original company so make sure you take care of any legal obligations and do not end up in trouble.

There are basically two choices when it comes to finding a better price on insurance. First, you can comparison shop in person or on the phone. Go to all of the insurance companies you are interested in to find out who has the best price. Your other option is to go to one of the many insurance companies who will do online comparison shopping for you. Fill in one of their forms and get the company who can offer you the best price. The second option will probably save you a lot of time; but, it all depends on what works best for you.

When it comes to your insurance renewal notice offer you need to compare each option against every aspect of it. The items covered by each insurance company are not the same across the board so you need to find the one that offers the coverage you need. This means that you may pay a very high price for a very low cost. You could lose protection.

A good thing to do is keep your current insurance company until you have actually completely secured a new policy. If you do not you could end up spending time without any coverage and disaster could strike. Then you would have to pay for everything out of pocket.

The last thing you should remember when it comes to an insurance renewal notice is that times have changed in past year. Do not just copy and paste your old information into the new paperwork. Your situation more than likely will have changed and that means the coverage you need changed too. Keeping your information updated will ensure that you are never without the coverage you need.

Sunday, March 11, 2012

Get The Best Online Insurance

Online insurance is rapidly taking over the world, replacing the old traditional measures which in the past seemed to be the right way for obtaining insurance. Online insurance is growing, as IT is becoming increasingly important and outsourcing is being seen as a sensible option to deal with the challenges of the market in the future. It is simply about what you are willing to pay out of your own pocket as against what you want the insurance company to provide.

Term Life Online insurance

Term life insurance, also referred to as `temporary` lifetime ins, safeguards a person against loss of life and covers a specified time, known as the `term`. Benefits of Term on line life insure. Almost all policies allow you to convert your Term insurance contract to a Permanent one. You have the option to terminate or give up the life coverage online insurance agreement anytime you`d like to, so that you can utilize the cash surrender value on whatever you want (or need) to. To help determine which type of lifetime online insurance is best suited to your needs and circumstances, it may be worthwhile to be familiar with some of the fundamentals of a permanent life insurance agreement:. Get the best rates with a term life insurance quote online.
When you purchase a short-term life insurance plan, you are getting insurance coverage for a definite time period. If in case you expire within the specified time period in your short-term life insurance plan, the insurance company will have to give your beneficiaries the par value of your policy. Moreover, unlike other kinds of lifetime online insurance, short term coverage accrues no cash value.

Auto Online insurance

Auto insurance is something that you must have. Getting a car insurance quote and buying an auto insurance policy is fast, convenient, and affordable. With in moments you can get your insurance quote and view comparison quotes from other auto insurance companies. Whatever the situation, it`s nice to understand some of the basics of insurance coverage online prior to deciding on acquiring a certain plan for your automobile.
Liability coverage generally insures the named insured on the insurance policy, the named insured`s spouse and children, any blood family member of theirs by marriage, and everybody driving the automobile with the insured`s permission.
Crash coverage insures motorists for the damage done to their own automobiles by an accident that they were responsible for.
Collision coverage insures drivers for the damage occurred to their own autos by an accident which they caused.
Drivers willing to disburse a higher premium could get online insure plans that will cover the substitute costs of the auto.
When your automobile is leased, you`ll most likely need to carry gap insurance, which reimburses the difference between what your insurer pays and what you owe your creditor, in case your vehicle is a total wreck.
Online auto insurance is one of the greatest ways to find the auto insurance that you need. This is the ideal way to learn just how much you are going to pay for auto insurance and to determine just which of the auto insurance carriers will offer you specifically the lowest of rates. There are different laws inside every state, so while searching for auto insurance, look for these websites that verify insurance at each country.

Health Online insurance

Health insurance is a type of insurance whereby the insurer (private or government organization) pays the medical costs of the insured i. There are number of insurance companies offering affordable and cheap health insurances. Buying online health insurance is easy and convenient rather than visiting insurance agents or companies personally. By searching different health insurance websites, buyers can learn all about the health insurance; get free online health insurance quotes, compare health plan prices, and benefits side-by-side.

Travel Online insurance

If you are planning your holidays abroad, then it will be good to consider buying holiday insurance. During holidays, there are the possible chances of someone getting injured or ill, stolen baggage, lost baggage or any other issues. In order to learn additional info, it is best to look for the holiday travel insurance rate keyword with a well-liked search engine, for instance Google and also Yahoo. Buying online holiday insurance is much better as it is efficient, convenient and time saving procedure.
Online insurance is rapidly taking over the world, replacing the old traditional measures which in the past seemed to be the right way for obtaining insurance. Online insurance is a competitive market too, so you can be confident you're getting a fair shake. online insurance is simply about what you are willing to pay out of your own pocket as against what you want the insurance company to provide.

Monday, March 5, 2012

Top Term Insurance Plans In India comparision

  • ICICI Prudential’s iProtect Term Insurance

  • Future Generali Smart Life

  • AEGON Religare iTerm Plan

  • Kotak Life Insurance e-Preferred

If you are the only bread winner in the family but don’t have too much to spare for insurance policies, then Term Insurance is the place to start with.

So what is Term Insurance?

It is a life insurance plan which provides a pre-stated benefit upon the policyholder’s demise, provided that the death occurs within a certain specified time period (read, policy term).
However, the policy does not provide any returns beyond the stated benefit, unlike certain insurance policies which allow investors to share in returns from the insurance company’s investment portfolio. Therefore, it is an insurance plan that covers only risk.
Put simply, you don’t get any money back if you are alive when the policy matures. But you get substantial coverage by paying a small sum, as low as Rs 2000 /year.
So even if your income is not much you can still get started on protecting yourself.  One should consider taking term life insurance at an early age, since the earlier one takes it, the lower the premiums. Now that you are familiar with the idea of Term Insurance, we detail a few good plans for you:


  • ICICI Prudential’s iProtect Term Insurance Plan:

icici prudential iprotect term insurance plan

Unlike conventional “level term” plans , this one is a new age product. One can buy it online, as well as deposit premiums using internet banking facility or credit card facility of the insured. The policy holder does not have to physically visit an insurance agent in this case.

Key Characteristics

Death benefit - ICICI Prudential’s iProtect term insurance plan provides you two options within the same plan, based on the insured person’s protection needs.
•   iProtect Option I : Where the Death Benefit paid out to the nominee is equal to the Sum Assured.
•   iProtect Option II : Where an Additional Death Benefit equals the base Sum Assured or Rs. 5,000,000, whichever is lower, and is payable in the event of the policy owner’s death due to accident.
The above benefits are subject to the policyholder having paid all due regular premiums  and the policy being in force.
So what if you want to insure yourself for Rs 25 lakh? Well, under this plan, you will need to pay Rs 2000 only every year for 25 years. The amount payable is once a year and is tax deductible. 

Download a brochure for ICICI Prudential iProtech term insurance plan
Instant life insurance cover – In cases where medical examination is not required, the life insurance cover begins immediately upon receipt of premium. However, the insured person will get risk protection only from the date of issuance of policy if he has to undergo a medical check-up.
Maturity benefit – Since this is a term plan, you are not entitled to any maturity benefit.
Surrender benefit – Again, this being a term plan, does not entail any surrender benefits.
The table below provides the indicative annual online premium (excluding service tax and cesses, as applicable) for various combinations of Age and Sum Assured for a healthy male (non-tobacco user), buying a policy term of 25 years.
Age (years) / Sum Assured  (Rs.) iProtect Option 1 iProtect Option 2
25,00,000 50,00,000 1,00,00,000 25,00,000 50,00,000 1,00,00,000
30 Rs. 3,850 Rs. 5,600 Rs. 9,900 Rs. 4,875 Rs. 8,150 Rs. 12,400
40 Rs. 8,175 Rs. 11,000 Rs. 19,500 Rs. 9,200 Rs. 13,200 Rs. 21,700
50 Rs. 15,900 Rs. 26,150 Rs. 46,600 Rs. 17,025 Rs. 28,300 Rs. 48,800



  • Future Generali Smart Life – Online Term Life Insurance Plan:  

This is a pure term plan that can be purchased online.

future generali term insurance policy
Premium Frequency Minimum Sum Assured Maximum Sum Assured Term Period Tax Benefits
Yearly Rs 10,00,000 Rs 49,99,999 25 years Eligible for tax benefits under sec 80-C of the IT Act

Key Characteristics of Future Generali Smart Life Online Term Insurance Plan
Death Benefit - In case of the demise of the life assured any time during the tenure of an in-force policy, the nominee will receive the Sum Assured and the policy will cease to exist.

Large Sum Assured Rebates - For policyholders buying large Sum Assured levels (in excess of Rs. 225 lakh), a significant discount/rebate is available in the tabular premium as given below.

Future Generali Smart Life Online Term Insurance Plan

Sum Assured (Rs.) Discount (as a percentage of S.A.)
>= 10 lakh ; < 25 lakh Nil
>= 25 lakh ; < 50 lakh 0.02

Maturity benefit – As one would expect from a term insurance plan, the Smart Life policy from Future Generali doesn’t provide any maturity benefit.
Surrender benefit – No surrender benefits as well, since this is a plain, vanilla term insurance policy.
Riders - There are no riders available under the plan


  • AEGON Religare iTerm Plan:

term insurance plans in india aegon religare

The iTerm Plan, available through AEGON Religare’s direct sales channels, is another term plan out there in the market.
Premium Frequency Minimum Sum Assured Maximum Sum Assured Term Period Tax Benefits
Yearly Rs 10,00,000 No limit (Subject to underwriting requirements) 25 years (Also the maximum term in this plan) Eligible for tax benefits under sec 80-C of the IT Act


Key Characteristics of AEGON Religare iTerm Plan

Death Benefit - In case of your unfortunate demise, your nominee will be entitled to the the Sum Assured. Death benefit, if payable during the grace period, will be paid out after the deduction of the outstanding policy premium.

Maturity Benefit – This being a term insurance plan, there is no maturity benefit payable.
Surrender Benefit – Again, this being a term plan, does not offer any surrender benefits.


  • Kotak Life Insurance e-Preferred Term Insurance Plan:

kotak e-preferred term insurance plan in india

Kotak e-Preferred Term is a pure risk cover plan. In case of the death of the policyholder during the policy term, his nominee would receive the Sum Assured as a lump sum.
One can also choose the ‘Step Up Option’ to increase his life cover, as and when certain important events (e.g. marriage, birth of child, etc.) take place in his life, adding to his financial liabilities.
Premium Frequency Minimum Sum Assured Maximum Sum Assured Term Period Tax Benefits
Annual Rs 25,00,000 No limit (Subject to underwriting requirements) 25 years (Also the maximum term in this plan) Eligible for tax benefits under sec 80-C of the IT Act


Key Characteristics (Including Tax Benefits and Long Term Benefits)

Low Cost - The Kotak e-Preferred Term policy offers the benefit of high life cover at very economical prices. For example, a 25-year healthy male (non-tobacco user) looking to insure himself with a Sum Assured of Rs. 50 lakh – alongside a Step Up Option – has to shell out an annual premium of Rs.6,688 only.
If you are a woman or if you do not consume tobacco, you will be eligible for the same amount of Sum Assured at a lower premium.
Step Up Option
The policyholder can increase his Sum Assured without having to undergo any additional medical tests. The hike in Sum Assured is subject to any one or more of the following options he wants to exercise, pertaining to certain events.
Events Maximum Increase in Sum Assured
Marriage 50% of original Sum Assured
Purchase of house in India after commencement of the policy (subject to maximum of loan amount)
Birth or legal adoption of a child 25% of original Sum Assured
On the 1st, 3rd and 5th policy anniversary

One can exercise the Step Up option at one or more of the events listed above, as long as his overall revised Sum Assured doesn’t exceed 3 times the original Sum Assured.
The vendor, not surprisingly, will charge an extra  premium in return for providing this enhanced coverage. This additional fee depends on the policy term opted for by the proposer, and will be levied until the policy owner turns 45 or the policy lapses, whichever is earlier.

Step Up Option Fees
Policy Term Up to 15 years Above 15 years
Fees 3% 5%

Step Down Option
Kotak Life Insurance also offers customers a Step Down option, wherein one can reduce his Sum Assured subject to the minimum amount of life cover available under the policy.
Put simply, the policyholder’s premium will be revised downwards based on his new Sum Assured target, as and when he subscribes  for this option. It won’t come for free, of course – for each ‘Step Down’ request, the company will impose a charge of Rs.500.
Plan Conversion Flexibility
You may switch from the Kotak e-Preferred Term to any non-term insurance plan provided by Kotak Life Insurance, without having to undergo any medical examination. The vendor will charge you premiums applicable under the new plan.
This conversion flexibility is available throughout the policy term,  provided there are at least 5 years before the protection plan lapses.
Tax Benefit
Those owning the Kotak e-Preferred Term plan are entitled to tax benefits under Section 80C and Section 10 (10D) of Income Tax Act, 1961.
Death Benefit
The death benefit payable under this term insurance plan is calculated as Sum Assured minus the balance of the premium (if any) payable in the year of death.
Maturity Benefit None
Surrender Benefit – None
Suicide Exclusion - In case the life insured commits suicide within 12 months of the commencement of the policy or the revival of the plan, the protection cover will cease to exist.

Top 7 Insurance Policies To Avoid!!

Number 7
 Automobile Collision
It covers the cost of repairs to your car if you're responsible for an accident.. But as Carolina's Choice Insurance Agent Max Fain tells us it's not mandated by the state and...
"If you drive an older vehicle that you can replace for not very much money, it might be worthwhile not carrying collision," said Fain.

Number 6
 Extended Warranties
Your chances of needing one are rare, especially if you buy brand named electronics. So it's unlikely to pay off.

Number 5
  Flight Insurance
This covers your family if you die in a place crash.. but if you have life insurance that does the same, plus Fain points out...
"The safest way to travel is in an airplane. They just don't crash very often," said Fain.

Number 4
 Credit Card Insurance
Industry experts say spending money on coverage when you should be saving that to pay off your debt just doesn't add up."

Number 3
 Water Line Coverage
This pays for repairs of the pipe from your house to the street. But if you live in a house built after the 1950's chance are you'll never need it.

Number 2
 Unemployment Insurance
In this economy it sounds attractive, but saving that money in an emergency fund is a better option since you'll also get checks from the government.

Number 1
Accidental Death Insurance
It's open enrollment for many workers right now. But experts suggest you put more into overall life insurance and don't waste your money on overly specific policies.
Fain says when in doubt remember...
"The real specific policies are going to be better for the insurance company than they are for the customer."

21+ Useful Insurance Terms You Should Know

A person or a corporation who contracts for an insurance policy that indemnifies (protects) him against loss or damage to property or, in the case of a liability policy, defend him against a claim from a third party.

 Any person, firm or corporation specifically designated by name as an insured(s) in a policy as distinguished from others who, though unnamed, are protected under some circumstances. For example, a common application of this latter principle is in auto liability policies wherein by a definition of "insured", coverage is extended to other drivers using the car with the permission of the named insured. Other parties can also be afforded protection of an insurance policy by being named an "additional insured" in the policy or endorsement.

An individual or entity that is not automatically included as an insured under the policy of another, but for whom the named insureds policy provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insureds impetus for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party (e.g., employees or members of an insured club) or to comply with a contractual agreement requiring the named insured to do so (e.g., customers or owners of property leased by the named insured).

 The sharing of one insurance policy or risk between two or more insurance companies. This usually entails each insurer paying directly to the insured their respective share of the loss. Co-insurance can also be the arrangement by which the insured, in consideration of a reduced rate, agrees to carry an amount of insurance equal to a percentage of the total value of the property insured. An example is if you have guaranteed to carry insurance up to 80% or 90% of the value of your building and/or contents, whatever the case may be. If you don't, the company pays claims only in proportion to the amount of coverage you do carry.
The following equation is used to determine what amount may be collected for partial loss:
Amount of Insurance Carried x Loss
Amount of Insurance that = Payment
Should be Carried
Example A Mr. Right has an 80% co-insurance clause and the following situation:
$100,000 building value
$ 80,000 insurance carried
$ 10,000 building loss
By applying the equation for determining payment for partial loss, the following amount may be collected:
$80,000 x $10,000 = $10,000
Mr. Right recovers the full amount of his loss because he carried the coverage specified in his co-insurance clause.
Example B Mr. Wrong has an 80% co-insurance clause and the following situation:
$100,000 building value
$ 70,000 insurance carried
$ 10,000 building loss
By applying the equation for determining payment for partial loss, the following amount may be collected:
$70,000 x $10,000 = $8,750
Mr. Wrong's loss of $10,000 is greater than the company's limit of liability under his co-insurance clause. Therefore, Mr. Wrong becomes a self-insurer for the balance of the loss-- $1,250.

The amount of money paid by an insured to an insurer for insurance coverage.

The first dollar amount of a loss for which the insured is responsible before benefits are paid by the insurer; similar to a self-insured retention (SIR). The insurer's liability begins when the deductible is exhausted.

 Acts the same way as a deductible but the insured is responsible for all legal fees incurred in relation to the amount of the SIR.

The maximum monetary amount an insurance company is responsible for to the insured under its policy of insurance.

 Insurance that applies to coverage for an insureds own property or a person. Traditionally it covers damage to insureds property from whatever causes are covered in the policy. It is property insurance coverage. An example of first party insurance is BUILDERS RISK INSURANCE which is insurance against loss to the rigs or vessels in the course of their construction. It only involves the insurance company and the owner of the rig and/or the contractor who has a financial interest in the rig.

Liability insurance covering the negligent acts of the insured against claims from a third party (i.e., not the insured or the insurance company - a third party to the insurance policy). An example of this insurance would be SHIP REPAIRER'S LEGAL LIABILITY (SRLL) - provides protection for contractors repairing or altering a customer's vessel at their shipyard, other locations or at sea; also covers the insured while the customer's property is under the "Care, Custody and Control" of the insured. A Commercial General Liability policy is needed for other coverages, such as slip-and-fall situations.

Any interest in something that is the subject of an insurance policy or any legal relationship to that subject that will trigger a certain event causing monetary loss to the insured. Example of insurable interest - ownership of a piece of property or an interest in that piece of property, e.g., a shipyard constructing a rig or vessel. (See BUILDERS RISK above)

 Insurance coverage that protects an insured against claims made by third parties for damage to their property or person. These losses usually come about as a result of negligence of the insured. In marine construction this policy is referred to an MGL, marine general liability policy. In non marine circumstances the policy is referred to as a CGL, commercial general liability policy. Insurance policies can be divided into two broad categories:
  • First party insurance covers the property of the person who purchases the insurance policy. For example, a home owner's policy promising to pay for fire damage to the home owner's home is a first party policy. Liability insurance, sometimes called third party insurance, covers the policy holder's liability to other people. For example, a homeowners' policy might cover liability if someone trips and falls on the home owner's property. Sometimes one policy, such as in these examples, may have both first and third party coverage.
  • Liability insurance provides two separate benefits. First, the policy will cover the damage incurred by the third party. Sometimes this is called providing "indemnity" for the loss. Second, most liability policies provide a duty to defend. The duty to defend requires the insurance company to pay for lawyers, expert witnesses, and court costs to defend the third party's claim. These costs can sometimes be substantial and should not be ignored when facing a liability claim.

This type of liability insurance provides excess liability protection. Your business needs this coverage for the following three reasons:
  • It provides excess coverage over the "underlying" liability insurance you carry.
  • It provides coverage for all other liability exposures, excepting a few specifically excluded exposures. This subject to a large deductible of about $10,000 to $25,000.
  • It provides automatic replacement coverage for underlying policies that have been reduced or exhausted by loss.

The failure to use reasonable care. The doing of something which a reasonably prudent person would not do, or the failure to do something which a reasonably prudent person would do under like circumstances. Negligence is a 'legal cause' of damage if it directly and in natural and continuous sequence produces or contributes substantially to producing such damage, so it can reasonably be said that if not for the negligence, the loss, injury or damage would not have occurred.

A carelessness and reckless disregard for the safety or lives of others, which is so great it appears to be almost a conscious violation of other people's rights to safety. It is more than simple negligence, but it is just short of being willful misconduct. If gross negligence is found by the trier of fact (judge or jury), it can result in the award of punitive damages on top of general and special damages, in certain jurisdictions.

An intentional action with knowledge of its potential to cause serious injury or with a reckless disregard for the consequences of such act.

Liability which results when a product is negligently manufactured and sent into the stream of commence. A liability that arises from the failure of a manufacturer to properly manufacture, test or warn about a manufactured object.

When the product departs from its intended design, even if all possible care was exercised.

When the foreseeable risks of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design, and failure to use the alternative design renders the product not reasonably safe.

When the foreseeable risks of harm posed by the product could have been reduced or avoided by reasonable instructions or warnings, and their omission renders the product not reasonably safe.

Liability insurance to indemnify professionals, (doctors, lawyers, architects, engineers, etc.,) for loss or expense which the insured professional shall become legally obliged to pay as damages arising out of any professional negligent act, error or omission in rendering or failing to render professional services by the insured. Same as malpractice insurance.
Professional Liability has expanded over the years to include those occupations in which special knowledge, skills and close client relationships are paramount. More and more occupations are considered professional occupations, as the trend in business continues to grow from a manufacturing-based economy to a service-oriented economy. Coupled with the litigious nature of our society, the companies and staff in the service economy are subject to greater exposure to malpractice claims than ever before.

 Same as malpractice or professional liability insurance.

A contractual arrangement whereby one party assumes the liability inherent in the situation, thereby relieving the other party of responsibility. For example, a lease of premises may provide that the lessee must "hold harmless" the lessor for any liability from accidents arising out of the premises.

To restore the victim of a loss, in whole or in part, by payment, repair, or replacement.

Contract clauses that identify who is to be responsible if liabilities arise and often transfer one party's liability for his or her wrongful acts to the other party.

An agreement between a buyer and a seller of goods or services detailing the conditions under which the seller will make repairs or fix problems without cost to the buyer.
Warranties can be either expressed or implied. An EXPRESS WARRANTY is a guarantee made by the seller of the goods which expressly states one of the conditions attached to the sale e.g.,"This item is guaranteed against defects in construction for one year".
An IMPLIED WARRANTY is usual in common law jurisdictions and attached to the sale of goods by operation of law made on behalf of the manufacturer. These warranties are not usually in writing. Common implied warranties are a warranty of fitness for use (implied by law that if a seller knows the particular purpose for which the item is purchased certain guarantees are implied) and a warranty of merchantability (a warranty implied by law that the goods are reasonably fit for the general purpose for which they are sold).

The monetary consequence which results from injury to a thing or a person.

As opposed to direct loss or damage -- is indirect loss or damage resulting from loss or damage caused by a covered peril, such as fire or windstorm. In the case of loss caused where windstorm is a covered peril, if a tree is blown down and cuts electricity used to power a freezer and the food in the freezer spoils, if the insurance policy extends coverage for consequential loss or damage then the food spoilage would be a covered loss. Business Interruption insurance, extends consequential loss or damage coverage for such items as extra expenses, rental value, profits and commissions, etc.

Are a payment agreed to by the parties of a contract to satisfy portions of the agreement which were not performed. In some cases liquidated damages may be the forfeiture of a deposit or a down payment, or liquidated damages may be a percentage of the value of the contract, based on the percentage of work uncompleted. Liquidated damages are often paid in lieu of a lawsuit, although court action may be required in many cases where liquidated damages are sought. Liquidated damages, as opposed to a penalty, are sometimes paid when there is uncertainty as to the actual monetary loss involved. The payment of liquidated damages relieves the party in breech of a contract of the obligation to perform the balance of the contract.

"To stand in the place of" Usually found in property policies (first party) when an insurance company pays a loss to an insured or damaged to the insureds property, the insurer stands in the shoes of the insured and may pursue any third party who might be responsible for the loss. For example, if a defective component is sold to a manufacturer to be used in his product and that product is damaged due to the defective component. The insurance company who pays the loss to the manufacturer of the product may sue the manufacturer of the defective component.
Subrogation has a number of sub-principles namely:
  • The insurer cannot be subrogated to the insureds right of action until it has paid the insured and made good the loss.
  • The insurer can be subrogated only to actions which the insured would have brought himself.
  • The insured must not prejudice the insurer's right of subrogation. Thus, the insured may not compromise or renounce any right of action he has against the third party if by doing so he could diminish the insurer's right of recovery.
  • Subrogation against the insurer. Just as the insured cannot profit from his loss the insurer may not make a profit from the subrogation rights. The insurer is only entitled to recover the exact amount they paid as indemnity, and nothing more. If they recover more, the balance should be given to the insured.
  • Subrogation gives the insurer the right of salvage.

Top Insurance Companies in india

Insurance is a nascent sector in India providing a wide potential for the players worldwide. The premiums of life insurance accounts to about 2.5 % of India’s GDP while the premiums of the general insurance accounts to about 0.65% GDP. In India the Insurance sector went through a number of changes when the Indian Government allowed the private companies to solicit insurance by allowing FDI up to 265%.The Indian Insurance scenario received a boost up as the global insurance companies are craving for a lion’s share. The Insurance Companies like LIC, Bajaj Alliance,ICICI Prudential are booming in this era. The list below will give the names of the best Insurance Companies of India.

Insurance - All The Basics

What is insurance?
Insurance is a means of providing protection against financial loss in a great variety of situations. It is a contract in which one party agrees to pay for another party's financial loss resulting from a specified event.
Insurance works on the principal of sharing losses. If you wish to be insured, against any type of loss, agree to make regular payments, called premiums, to an insurance company. In return, the company gives you a contract, the insurance policy. The company promises to pay a certain sum of money for the type of loss stated in the policy.