HISTORY OF INSURANCE

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History of insurance

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Insurance In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies:
money economies and
non-money or natural economies.



The second type is a more ancient form than the first. In such an economy and community, insurance in the form of people helping each other insurance. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbour, the other neighbours must help. Otherwise, neighbours will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread countries



Turning to insurance in the modern sense ,early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen.



Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz ; the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices.
The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much.



A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage.



The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which cared for the families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.



Separate insurance contracts.were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.




Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance.



Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes.



The first insurance company in the United States underwrote fire insurance and was formed in Charles Town, South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system for insurance similar to that which oversees state banks and all national banks.

COVER OF INSURANCE

Insurance cover

insurance risk can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as "perils". An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set forth below. For example, auto insurance would typically cover both property risk and liability risk. A homeowner's insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of health insurance for medical expenses of guests who are injured on the owner's property.

TOTAL INSURANCE PATENT

Insurance patent

insurance basic idea of telematic auto insurance is that a driver's behavior is monitored directly while he or she drives and the information is transmitted to the insurance company. The insurance company uses the information to assess the likelihood that a driver will have an accident and adjusts premiums accordingly. A driver who drives great distances at high speeds, for example, might be charged a different rate than a driver who drives short distances at low speeds. The precise effect on charges is not known as it is not clear that a high speed long distance driver incurs greater risk to an insurance pool than the slow around-town driver.
A British auto insurance company, Norwich Union, has obtained a license to both the Progressive patent and Perez patent. They have made investments in infrastructure and developed a commercial offering called "Pay As You Drive" or PAYD.
Recent theoretical economic research on the social welfare effects of Progressive's telematics technology business process patents have questioned whether the business process patents are pareto efficient for society. Preliminary results suggest that they are not, but more work is needed.
Many independent inventors are in favor of patenting new insurance products since it gives them protection from big companies when they bring their new insurance products to market. Independent inventors account for 70 percent of the new U.S. patent applications in this area.
Many insurance executives are opposed to patenting insurance products because it creates a new risk for them. The Hartford insurance company, for example, recently had to pay $80 million to an independent inventor, Bancorp Services, in order to settle a patent infringement and theft of trade secret lawsuit for a type of corporate owned life insurance product invented and patented by Bancorp.
There are currently about 150 new patent applications on insurance inventions filed per year in the United States. The rate at which patents have issued has steadily risen from 15 in 2002 to 44 in 2006.The insurance industry and rent seeking
Certain insurance products and practices have been described as rent seeking by critics. That is, some insurance products or practices are useful primarily because of legal benefits, such as reducing taxes, as opposed to providing protection against risks of adverse events. Under United States tax law, for example, most owners of variable annuities and variable life insurance can invest their premium payments in the stock market and defer or eliminate paying any taxes on their investments until withdrawals are made. Sometimes this tax deferral is the only reason people use these products. Another example is the legal infrastructure which allows life insurance to be held in an irrevocable trust which is used to pay an estate tax while the proceeds themselves are immune from the estate tax.
Criticism of insurance companiesSome people believe that modern insurance companies are money-making businesses which have little interest in insurance. They argue that the purpose of insurance is to spread risk so the reluctance of insurance companies to take on high-risk cases. runs counter to the principle of insurance.

Other criticisms include:Insurance policies contain too many exclusion clauses. For example, some house insurance policies do not cover damage to garden walls. Most insurance companies now use call centres and staff attempt to answer questions by reading from a script. It is difficult to speak to anybody with expert knowledge.

Plan great future for your loved ones with life insurance.
Every human wants a secure future for himself and his entire family, this is possible by having any term life insurance, and according to the needs of the purchaser one can be selected. This kind of policy helps to protect your family by providing them with financial support when the person dies. If a person plans properly before purchasing a policy that is if he gathers all the information about it, then he will be able to benefit lots more than expected. It's always better that not only you but also the whole family has the knowledge about the policy you decided for your loved ones. They also have the right to know whom you have selected as the beneficiary and the intentions why you are purchasing a life insurance policy. In this way everything will be clear and help you to take decisions on any issue.

Term Life Insurance Quotes Term life insurance has allowed millions of Americans to secure the financial future for their dependents at affordable prices. As healthcare costs increase, getting an affordable term life insurance quote is now an absolute necessity. With thousands of products to choose from, it is often a daunting task to research for the one which will give you the best value for your money.
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Commercially insurable risks typically share seven common characteristics.A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004. The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.




Indemnification
The technical definition of "indemnity" means to make whole again. There are two types of insurance contracts; 1) an "indemnity" policy and
2) a "pay on behalf" or "on behalf of" policy.The difference is significant on paper, but rarely material in practice.
An "indemnity" policy will never pay claims until the insured has paid out of pocket to some third party; i.e. a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an "indemnity" policy the homeowner would have to come up with the $10,000 to pay for the visitors fall and then would be "indemnified" by the insurance carrier for the out of pocket costs (the $10,000).
Under the same situation, a "pay on behalf" policy, the insurance carrier would pay the claim and the insured would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language.
An entity seeking to transfer risk the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance 'policy'. Generally, an insurance contract includes, at a minimum, the following elements: the parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage, and exclusions. An insured is thus said to be "indemnified" against the loss events covered in the policy.
When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims—in theory for a relatively few claimants—and for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses, the remaining margin is an insurer's profit.Insurer’s business model

Profit = earned premium + investment income - incurred loss - underwriting expenses.

Insurers make money in two ways:
(1) through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks
(2) by investing the premiums they collect from insureds.

The most difficult aspect of the insurance business is the underwriting of policies. Using a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they will charge to assume them. Data is analyzed to fairly accurately project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used to determine an insurer's overall exposure. Upon termination of a given policy, the amount of premium collected and the investment gains thereon minus the amount paid out in claims is the insurer's underwriting profit on that policy. Of course, from the insurer's perspective, some policies are winners and some are losers.An insurer's underwriting performance is measured in its combined ratio. The loss ratio is added to the expense ratio to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss.Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at hand at any given moment, that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out.In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, as the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycle. Property and casualty insurers currently make the most money from their auto insurance line of business. Generally better statistics are available on auto losses and underwriting on this line of business has benefited greatly from advances in computing. Additionally, property losses in the US, due to natural catastrophes, have exacerbated this trend.

Finally, claims and loss handling is the materialized utility of insurance. In managing the claims-handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. As part of this balancing act, fraudulent insurance practices are a major business risk that must be managed and overcome.History of insurance

INSURANCE LOSS

Definite Loss.
The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all the three elements.

Accidental Loss.
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
Large Loss.
The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance.

Calculable Loss.
There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.

Limited risk of catastrophically large losses.
The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurers appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

NORMAL INSURANCE COMPANY

Insurance companies may be classified into two groups

Life insurance companies, which sell life insurance, annuities and pensions products.

Non-life, General, or Property/Casualty insurance companies, which sell other types of insurance.
General insurance companies can be further divided into these sub categories.Standard Lines Excess Lines

In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between the two types of company is that life, annuity, and pension business is very long-term in nature — coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers a shorter period, such as one year.In the United States, standard line insurance companies are your "main stream" insurers. These are the companies that typically insure your auto, home or business. They use pattern or "cookie-cutter" policies without variation from one person to the next. They usually have lower premiums than excess lines and can sell directly to individuals. They are regulated by state laws that can restrict the amount they can charge for insurance policies.

Excess line insurance companies typically insure risks not covered by the standard lines market. They are broadly referred as being all insurance placed with non-admitted insurers. Non-admitted insurers are not licensed in the states where the risks are located. These companies have more flexibility and can react faster than standard insurance companies because they are not required to file rates and forms as do the "admitted" carriers do. However, they still have substantial regulatory requirements placed upon them. State laws generally require insurance placed with surplus line agents and brokers to not be available through standard licensed insurers.

Insurance companies are generally classified as either mutual or stock companies. This is more of a traditional distinction as true mutual companies are becoming rare. Mutual companies are owned by the policyholders, while stockholders own stock insurance companies. Other possible forms for an insurance company include reciprocals, in which policyholders 'reciprocate' in sharing risks, and Lloyds organizations.

Insurance companies are rated by various agencies such as A. M. Best. The ratings include the company's financial strength, which measures its ability to pay claims. It also rates financial instruments issued by the insurance company, such as bonds, notes, and securitization products.Reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce their risks and protect themselves from very large losses. The reinsurance market is dominated by a few very large companies, with huge reserves. A reinsurer may also be a direct writer of insurance risks as well.

Captive insurance companies may be defined as limited-purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups. This definition can sometimes be extended to include some of the risks of the parent company's customers. In short, it is an in-house self-insurance vehicle. Captives may take the form of a "pure" entity of a "mutual" captive and of an "association" captive.Captives represent commercial, economic and tax advantages to their sponsors because of the reductions in costs they help create and for the ease of insurance risk management and the flexibility for cash flows they generate. Additionally, they may provide coverage of risks which is neither available nor offered in the traditional insurance market at reasonable prices.

The types of risk that a captive can underwrite for their parents include property damage, public and products liability, professional indemnity, employee benefits, employers liability, motor and medical aid expenses. The captive's exposure to such risks may be limited by the use of reinsurance.Captives are becoming an increasingly important component of the risk management and risk financing strategy of their parent. This can be understood against the following background:heavy and increasing premium costs in almost every line of coverage; difficulties in insuring certain types of fortuitous risk; differential coverage standards in various parts of the world; rating structures which reflect market trends rather than individual loss experience; insufficient credit for deductibles and/or loss control efforts.

There are also companies known as 'insurance consultants'. Like a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy amongst many companies. Similar to an insurance consultant, an 'insurance broker' also shops around for the best insurance policy amongst many companies. However, with insurance brokers, the fee is usually paid in the form of commission from the insurer that is selected rather than directly from the client.Neither insurance consultants nor insurance brokers are insurance companies and no risks are transferred to them in insurance transactions. Third party administrators are companies that perform underwriting and sometimes claims handling services for insurance companies. These companies often have special expertise that the insurance companies do not have.

The financial stability and strength of an insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage . A number of independent rating agencies, such as Best's, Fitch, Standard & Poor's, and Moody's Investors Service, provide information and rate the financial viability of insurance companies.

INSURANCE FOR ASIAN AND INDIANS

Life Insurance for Asian-Indians
With its life insurance sales in the United States up over 40% for two consecutive years, New York Life achieved the number one rank in market share for new life premium in 2002, according to the association that compiles market data from among the 77 largest insurers. Many people think that life insurance is only for those with families. While it is true that life insurance can help provide for the needs of dependents when you pass away, it's also important for someone starting out - or for someone who's starting over.There are many different kinds of life insurance for many different kinds of protection needs.Term is the most basic kind of life insurance. It provides affordable protection for a pre-defined period of time, so it is often used to serve temporary protection needs.

Permanent life insurance, on the other hand, is used when protection needs are more long term. There are many kinds of permanent life insurance, each of which has unique features that make it appropriate for certain situations. The two main categories of permanent life insurance are fixed and variable. Fixed life insurance products accumulate cash value at a pre-defined, guaranteed minimum interest rate or guaranteed cash value while variable universal life products are designed to provide an insurance benefit under your policy, but they do not guarantee a minimum rate of return. They will fluctuate up and down depending on performance of the applicable investment divisions.

Survivorship life is a life insurance policy that covers two individuals and provides a life insurance benefit after the death of the last surviving insured. Survivorship policies can be whole life, universal life, or variable universal life.Without proper planning, the IRS could be the single largest beneficiary of your estate.

Do you want to be a millionaire?
You may already be one — or at least you're on your way: building up net worth in your home, retirement accounts and other assets. The real challenge will be hanging onto your wealth. Without planning, a chunk of your money could go to the IRS at your death. While estate taxes may be inevitable, there are ways to conserve — or at least replace — a portion of your estate. One effective tool to help protect your net worth is a survivorship life insurance policy. More on that in a moment.

Will you have an estate tax problem at your death?
Maybe. Our relentlessly booming economy has created unprecedented wealth — and a number of people with sizable estates. In 1975, for example, 350,000 households boasted net worth in excess of $1 million. Today, that once-exclusive Millionaires Club numbers more than 3.5 million. Moreover, if the economy keeps clicking along at its present pace, that figure should hit 5.6 million households by 2005The majority of millionaires aren't limo-riding celebrities. According to Tom Stanley, author of "The Millionaire Next Door," most people worth more than $1 million worked hard all their lives, and steadily saved their money. You could be a millionaire — if not already, certainly during your lifetime. That could well mean estate taxes at your death.
Estate tax basicsUnder today's tax laws, here are several factors you should keep in mind: You can transfer a portion of your estate, tax free, to your heirs at your death. If you die in the year 2000, the exclusion amount is $675,000, with the exclusion gradually increasing to $ 1,000,000 by the year 2006. If your estate exceeds that amount, estate taxes may be due. The bigger your estate, the bigger the estate tax bite. At the top level, estate taxes could run as high as 55%. You can transfer your entire estate to your spouse at your death with no tax liability at that time, if exclusion is not met, and provided your spouse is a U.S. citizen. If you do this, the estate may be subject to estate tax at your spouse's death. Your heirs may get hit with a estate tax bill.

HISTORY OF INSURANCE IN INDIA

History of Insurance in India
Insurance in India has its history dating back till 1818, when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European community. Pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premiums being charged for the latter. It was only in the year 1870, Bombay Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at normal rates.At the dawn of the twentieth century, insurance companies started mushrooming up. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. However, the disparage still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is National Insurance Company Ltd, which was founded in 1906 and is doing business even today. Insurance industry, earlier comprised of only two state insurers. Life Insurers i.e. Life Insurance Corporation of India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC). GIC had four subsidiary companies.With effect from December 2000, these subsidiaries have been de-linked from parent company and made as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.Related insurance Acts
The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts, with the first one being the Insurance Act, 1938.The Insurance Act, 1938The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life Insurance Corporation Act, 1956Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life insurance in India was completely nationalized, through a Government ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enancted in the same year to, inter-alia, form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. There were 245 insurance companies of both Indian and foreign origin in 1956. Nationalization was accomplished by the govt. acquisition of the management of the companies. The Life Insurance Corporation of India was created on 1st September, 1956, as a result and has grown to be the largest insurance company in India as of 2006.General Insurance Business (Nationalisation) Act, 1972The General Insurance Business (Nationalisation) Act, 1972 was enacted to nationalise the 100 odd general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, United India Insurance which were headquartered in each of the four metropolitan cities.insurance Regulatory and Development Authority (IRDA) Act, 1999Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India, then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In recent years many private players entered in the Insurance sector of India. Companies with equal strength competing in the Indian insurance market. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private players in the sector this scenario may change at a rapid pace.

INSURANCE IN INDIA

Insurance in India


Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government

INSURANCE IN INDIA

Insurance in India

Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Insurance Regulatory and Development Authority
The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."ExpectationsThe law of India has following expectations from IRDA1. To protect the interest of and secure fair treatment to policyholders;
2. To bring about speedy and orderly growth of the insurance industry, for the benefit of the common man, and to provide long term funds for accelerating growth of the economy;
3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates;
4. To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard;
5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery;
6. To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players;
7. To take action where such standards are inadequate or ineffectively enforced;
8. To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation.

INDIAN INSURANCE INDUSTRY

INDIAN INSURANCE INDUSTRY

Insurance industry, as on 1.4.2000,
comprised mainly two players: the state insurers:
Life Insurers: Life Insurance Corporation of India (LIC)
General Insurers:General Insurance Corporation of India (GIC)
(with effect from Dec'2000, a National Reinsurer) GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies. The Oriental Insurance Company Limited The New India Assurance Company Limited, National Insurance Company Limited United India

Insurance Company Limited. Yr: 2000-2001 : ( From 2nd April '2000 to 31st December'2001)
Insurance Industry in the year 2000-2001 had 16 new entrants, namely
Life Insurers:S.No. RegistrationNumber Date of Reg. Name of the Company1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Ltd.
11 133 04.09.2007 Future Generali India Life Insurance Company Limited 12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

General Insurers :S.No. Registration Number Date of Registration Name of the Company1 102 23.10.2000 Royal Sundaram Alliance Insurance Company Limited
2 103 23.10.2000 Reliance General Insurance Company Limited.
3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance Company Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance Company Limited
6 115 03.08.2001 ICICI Lombard General Insurance Company Limited.
7 131 03-08-2007 Apollo DKV Insurance Company Limited 8 132 04-09-2007 Future Generali

India Insurance Company Limited 9 134 16-11-2007 Universal Sompo General Insurance Company Ltd.
Yr: 2001-2002 : ( From 1st Jan 2001 to Dec. 2002)
Insurance Industry in this year, so far has 5new entrants; namely
Life Insurers:S.No. RegistrationNumber Date of Reg. Name of the Company1 121 03.01.2002 AMP Sanmar Life Insurance Company Limited.2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.


General Insurers :
S.No. Registration Number Date of Registration Name of the Company1 123 15.07.2002 Cholamandalam General Insurance Company Ltd.
2. 124 27.08.2002 Export Credit Guarantee Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.

Yr: 2003-2004 : ( From 1st Jan 2003 till Date)
Insurance Industry in this year, so far has 1new entrants; namely
Life Insurers:S.No. RegistrationNumber Date of Reg. Name of the Company1 127 06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 :
Insurance Industry in this year, so far has 1new entrants; namely
Life Insurers:S.No. RegistrationNumber Date of Reg. Name of the Company1 128 17.11.2005 Shriram Life Insurance Company Ltd.

INSURANCE BUSINEES

INSURANCE BUSINEES




Insurance business is divided into four classes
1) Life Insurance
2) Fire Insurance
3) Marine Insurance and
4) Miscellaneous Insurance.
Life Insurers transact life insurance business; General Insurers transact the rest.No composites are permitted as per law.
Life Insurance:Popular Products: Endowment Assurance, and Money Back. More than 80% of the life insurance business is from these products.
General Insurance:Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory.Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers.

BEST INDIAN INSURANCE COMPANYS

Insurance companies of India

Indian insurance company
some of the key players in this industry like Bajaj Allianz, ING Vysya, AMP Sanmar Assurance Limited, SBI Life, Tata AIG Life, HDFC Standard, ICICI Prudential Life Insurance, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra Old Mutual, Max New York Life, Met Life, Sahara Life, LIC, Royal Sundaram, Tata-AIG General, Reliance General, IFFCO-Tokio, ICICI-Lombard, HDFC Chubb, New India Assurance Company Limited, National Insurance Company Limited, United India Insurance Company Limited and Oriental Insurance Limited.
Life InsuranceBajaj Allianz insurance ING Vysya insurance AMP Sanmar Assurance Limited insuranceSBI Life insuranceTata AIG Life insuranceHDFC Standard insuranceICICI Prudential Life Insurance insuranceBirla Sunlife insuranceAviva Life Insurance insuranceKotak Mahindra Old Mutual insuranceMax New York Life insuranceMet Life insuranceSahara Life insuranceLIC insuranceGeneral Insurance insuranceRoyal Sundaram insuranceTata-AIG General insuranceReliance General insuranceIFFCO-Tokio insuranceICICI-Lombard insuranceHDFC Chubb insuranceNew India Assurance Company Limited National Insurance Company LimitedUnited India Insurance Company LimitedOriental Insurance Limited

INDIAN INSURANCE COMPANY

Indian insurance company

some of the key players in this industry like Bajaj Allianz, ING Vysya, AMP Sanmar Assurance Limited, SBI Life, Tata AIG Life, HDFC Standard, ICICI Prudential Life Insurance, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra Old Mutual, Max New York Life, Met Life, Sahara Life, LIC, Royal Sundaram, Tata-AIG General, Reliance General, IFFCO-Tokio, ICICI-Lombard, HDFC Chubb, New India Assurance Company Limited, National Insurance Company Limited, United India Insurance Company Limited and Oriental Insurance Limited.

WHAT IS AN INSURANCE POLICY

What is an Insurance policy
In an Insurance Policy, the company is known as the insurer and you will be referred as the insured. Consumer insurances are of two types- General and Life Insurance. In simple terms the insurance policy is a written contract which defines the insurance schedule, the requirements, and eligibility factors as well as the benefits and the guidelines those are applicable to you under the plan or schedule.
Under this contract the insuring company will be compensating you in case of any financial crisis or risks. Now it is more than obvious if you don’t have insurance then it will be only you who will be facing the expenses on your own. The financial risks that are faced by you are analyzed by the insurer and it is the base of the contract. This is verified by making use of the details and the data you have provided for the insurance.
Following are some points that are included in general insurance:
- Life Insurance is a deal under which the insurer have to make a fixed amount to the individual who has applied for the insurance.
- Home contents can also be termed as condition or some event. The insurance policy covers for any natural calamity, fire, accident, or some loss.
- It is very important that the insuring authority is recognized in different countries just in case you travel from one country to another or else you can face difficulties in getting medical aids.
- Under the income protection provides you some amount on a monthly basis in case you are not able to work and for some of the major medical ailment.
- Now the rules have been passed by the state government that limits the rights and liberties of a common man to make a lawsuit against the carelessness and can ask for the compensation for the ailment and suffering.
If you are seeking assistance from a professional broker then make sure that he is licensed and registered with the legal authority. It is done to make sure that:
- If you have doubts and arguments then they can be solved through legal and using proper channels.
- You are confident that the broker if genuine and professional.
- Your premium payments are handled properly and they go through the usual accounting procedures.
- Being a professional they won’t pressurize you to follow or to adopt some specific guidelines. And if you are not interested in some particular policy they it is fine with them, they won’t ask you again.

INSURANCE PROTECT YOUR YIELDS

Insurance - Protect Your Yields-Not By Accident
Insurance for fruit / vegetable crops-an essential infrastructure of investments. Under growing the field of investments under the commercial horticulture / plantation ventures, it is of paramount importance to have a cushion for insurance for successful long term sustainance of this activity. 'The Oriental Insurance Company Limited' a subsidiary of General Insurance Corporation Of India having head quarters at New-Delhi, continuously ponder over this idea. As a dependable insurance company for the past 50 years and as such we have customer oriented insurance covers for the following crops.
1). grape,
2). citrus (orange, lime, sweet lime),
3). chickoo (sapota),
4). pomegranate,
5). apple,
6). banana,
7). strawberry.
However we only hope for a serious and specialized insurance policy for each and every crop and in this direction out R&D cell is currently in the process of collecting required data viz.,
1). life cycle of a particular crop,
2). normal threshold yield,
3). periodical records / recommended horticultural and management practices,
4). schedule of fertigation / pesticide operations,
5). 1 to 3 years data on crop cuttings / fruit or flower or vegetable yield and losses incurred by grower farmer and reasons thereof.
An insurance policy normally designed to cover an insured weather owner or tenant engaged cultivation of one or more crops or the name of an association or an organized or registered body of farms engaged in cultivation of the specified crops where such association or body has been formed and is functioning for the purpose of procurement of inputs, processing, marketing of the produce provided particulars of each member-farmer recorded in a schedule. A standard horticulture / plantation policy undertake to cover to the extent of loss or damage to the insured item occasioned by operation of any one or more of the following perils either in isolation or in concurrence;
1). Fire (including forest fire and bush fire),
2). Lightening,
3). Storm, Hailstorm, Cyclone, Typhoons, Tempest, Hurricane, Tornado whilst in direct and immediate operation over the insured area,
4). Flood and inundation (inspection report is necessary to cover these risks),
5). Riots and strikes.

ALL TYPE OF INSURANCE

Types of insurance
Insurance. We hate it. People have even compared it to the protection racket–you give the company your money and it takes care of you when you need it. Basically, the purpose of all insurance is to protect yourself or your family against the financial impact of a tragedy. Insurance is not to help you budget moderate-sized expenses, but to protect you against the truly catastrophic.
There are two ways to buy insurance.
One way is to go to an agent to whom you explain your situation and trust him/her to suggest the insurance that is right for you.
The other is do it on your own. You research the various types of policies available, decide what you need, and then comparison shop among the various companies. The advantage of going to an agent is that an honest and competent one can review your situation and make suggestions. The advantage of going on your own is that you usually pay less for the same amount of insurance STEPS FOR BUYING INSURANCE Use these three steps when buying insurance: Step One: Do I need this type of insurance at all?
Figure out what the type of insurance you are considering covers and decide whether you need it. Step Two: How much of this type of insurance do I need? Policies vary in how much they cover. Some cover specific dollar amounts. Others cover percent of loss. Some have a deductible. Others exclude certain types of damage. Look at these differences among policies and decide which one is for you. Step Three: Where will I buy it? If you are working on your own, the web has a host of services to help you comparison shop among companies. Type in "insurance" on most search engines and you will come up with a number of sites. If you are working with an agent, you may be working with a captive agent which means (s)he can only sell you policies form one company or an independent agent which represents several. When selecting a company, consider also whether the company is both able and willing to pay on claims should you make one.. AM Best and other companies rate the financial solvency of insurance companies. The web comparison shopping services usually include and explain the ratings. You can also ask the company itself or your agent. Consider also the company's record for trying to refuse to pay claims. Your state insurance commission may have a record of complaints. When buying any insurance, you will most likely save money if you pay annually or semi-annually. Sometimes buying several types of insurance from the same company will save you money. Often taking steps to make claims more unlikely, such as installing deadbolt locks or taking a safe driving course will lower your premiums. When shopping for insurance, also look into group policies offered by alumni associations, professional associations, or religious bodies. Usually you can forget about specialized insurance advertised on television with paid endorsers. They usually cover very little.

HEALTH INSURANCE Don't go without this. Most people have it at work, but if you don't you will really save big by going for a group policy. When comparing policies, consider deductibles and what is or isn't covered. When given a choice, choose one that covers the huge, debilitating conditions over one that is good about routine immunization, but that balks at the larger, more expensive claims. Health insurance comes in three types, though many policies mix and match traits of the three. Fee for service, the most expensive, allows you to go to almost any provider and covers almost anything that is medically necessary. You don't have a primary care physician who has to approve visits to specialists. Preferred provider options (PPO's) allow you to self-refer to any provider in the PPO's list and generally cover a wide variety of services recommenced by those providers. Some PPO's cover other providers, but with a larger co-payment. Health maintenance organizations (HMO's) are the least costly, but the most restrictive. They assign you (or let you select) a primary care physician. That physician acts as a gatekeeper in that (s)he decides what is medically necessary and when you may see a specialist. Often the HMO itself has to permit certain treatment and can rule against your doctor if it thinks the treatment is too costly.

LIFE INSURANCE For most people, the purpose of life insurance should be to replace the financial contribution made by a family member. Life insurance can be pure insurance, which pays only on the death of the insured, or cash value insurance, which also has a savings vehicle. Most people who need life insurance are better off with pure insurance and saving for retirement through other vehicles. Proceeds from life insurance cover three types of expenses: replacement of the policyholder's income or work, estate taxes, and burial costs. When you consider the amount of insurance to buy, consider the following:
1. Most of the life insurance should be on a family member whose salary is important to the family budget.
2. Consider a relatively small life insurance policy on a stay-at-home parent to cover child care and other expenses.
3. Don't buy life insurance on children. Instead, buy life insurance on other family members for the benefit of children.
4. Consider reducing the amount of life insurance you have as you build more financial assets.
5. Pass on credit life insurance and mortgage life insurance if you can. These plans are restrictive and expensive. Buy more general life insurance instead if you feel a need.
6. Pass on life insurance altogether if you are single and don't have anyone depending on you.
At most, get a small policy to spare your family burial expenses. You should buy about 12 times the amount of money you would need annually to replace what the family member is contributing. For example, if you would need $40,000 a year to replace the death of an employed member, you would need a $480,000 (rounded to $500,000) policy.

AUTO INSURANCE In most states you are required to have auto insurance and you don't want to be without it. Basically, you buy auto insurance for two purposes: to insure against liability you have to others and to insure against damage that others do to you or your car. You need to have liability insurance. How much you need depends on how much you have in assets. Whether you need insurance to protect your own car depends on your car and how detesting it would be to replace it. If your car is expensive and if buying another one would wipe you out financially, consider buying comprehensive and collision. If you have an older car and wouldn't get much from the insurance company if it were totaled, don't bother. Instead, put the money you would have paid for comprehensive and collision toward saving for your next car.

HOMEOWNERS' INSURANCE The purpose of homeowners' insurance is to protect you against damage to your home and property from natural disasters. Insurance companies offer different ratings of insurance and assign these ratings with codes starting with the letters "HO". While these ratings are fairly standard, they do vary a little with companies, so check with the company to see what policies cover. When comparing policies, consider differences among deductible, coverage of property other than the house (sheds, garages, etc.), and percent of loss covered. Consider also whether the policy covers resale cost or rebuilding cost. Rebuilding usually provides better coverage, but is more expensive. Basic homeowner's insurance does not cover the contents, though you can often add it for an additional fee or buy it separately. When buying contents insurance, consider whether it covers replacement value or fair market value. Replacement value is a better buy because it pays to buy a new piece of furniture or appliance, not what your old one is worth. Consider also buying liability insurance which covers you if someone sustains an injury or other loss on your property. Renters and condominium owners need only contents and possibly liability insurance. Many companies have policies tailored to these purposes. APPLIANCE PROTECTION Don't buy any extended warranties or protection plans when you buy small or major appliances. These plans are pure profit to the appliance stores. That's why the salespeople, push them so hard, especially if they are on commission. They usually cover only periods when very little is likely to go wrong and have numerous exclusions. Insurance is a complex subject. Do your own research or work with your agent. Hopefully this introduction will help you do that more effectively.
Types of Insurance Insurance can be termed as a form of risk management which is mainly used to protect an individual against the risk of prospective financial loss, if any. Insurance can be used as a tool to shield an individual against potential risks like travel accidents, death, unemployment, theft, property destruction by natural calamities, fire mishaps etc.
Different types of insurance is used to cover different properties and assets such as vehicles, home, health care etc. Basically, an insurance policy can also be known as a protection net which secures you from any financial losses in future. All you have to do is pay the insurance agencies a specified amount every month, known as premium, so that they can take care of you by providing you financial back up in case of a sudden health emergency or a fatal incident.
There are two ways for getting an insurance done.
One way is to visit an agent and consult him for the best option you can avail for your situation. And then, trust him/her for their suggestion on the type of insurance they feel is right for you.
The other way is to research and choose on your own, the type of insurance which will be best suited for your situation. You should research the market as well as the net, to look for the best insurance companies, and further more, the most suitable type of insurance that they offer. Also explore the various types of policies which are available to you in the market, and then compare to decide which one to choose finally.

Health Care Insurance
With such high medical and health care costs these days, it’s hard to even think about visiting a doctor. But what about an unexpected mishap or an unforeseen disability or attack, where the potential medical bills could shoot up to a sky?
Where would you get so much money from?
These are exactly the situations where you feel you had a security, something which could come to your rescue and save you from such financial crisis. While some companies do provide its employees with health insurance, for others, this is a must. Especially for the aging couples, who have a comparatively more chances of needing emergency bill money. The health insurance does it all, so that they do not have to worry for the huge payments at the last minute. A health insurance can cover all from a routine immunization to a major illness.

Life Insurance
Loss of a family member is a catastrophe which glooms a family’s life. But even more tragic is the death of a sole bread earner for the family, who then has to go through the pain of losing their loved one, as well as the financial loss putting their survival in jeopardy.
This financial hardship due to a sudden death of a family member or a disability resulting to a loss of job or inability to work can be avoided to a great extent by taking up a life insurance policy. A Life insurance or disability insurance covers such losses and pays a family, compensation to restore the earnings lost by them due to a sudden death or disability.
The monthly premiums for a life insurance are generally based upon the age, health, and occupation information of the applicant, in addition to the total benefits to be paid to him for his policy.

Home Insurance
Real estate property and hard assets are subject to accidental risks like theft, destruction due to natural disasters or fire accidents etc. with such huge investments gone into buying a real estate property like your home or office, the risk involved is a loss of large amount of money.
Home and property insurance helps you in managing and protecting against these risks. The cost of a real estate property and its insurance is mostly based upon the worth of the already insured hard assets and also the location in which the assets are situated.

Travel Insurance
This is intended to cover any of the financial or any other losses which were incurred by the insured while traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers etc.

Auto Insurance
Any vehicle on road, no matter how safe its driver is, is bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require you to have an auto insurance while on road in your vehicles.
If you have an accidental car crash, a total repair could cost you a fortune. On the other hand, a little scratch on your Land Cruiser might also soar up your bills to a high. Whether or not you need an auto insurance mostly depends on the type of car you own.
If you have an expensive car and a little repair could wipe you out financially, you should very well go in for a buying an all-inclusive and crash insurance which could protect you against any and every harm done to your vehicle.
Public Health InsuranceMedicaid Medicaid is a jointly-funded, Federal-State health insurance program for certain low-income and needy people. It covers approximately 36 million individuals including children, the aged, blind, and/or disabled, and people who are eligible to receive federally assisted income maintenance payments. Within broad national guidelines that the Federal government provides, each of the States establishes its own eligibility standards; determines the type, amount, duration, and scope of services; sets the rate of payment for services; and administers its own program. Thus, the Medicaid program varies considerably from State to State, as well as within each State over time. Medicaid Buy-In Through the landmark legislation, "Ticket to Work and Work Incentives Improvement Act of 1999," individuals with disabilities no longer have to choose between taking a job and having health care. Like the Medicaid program, eligibilty for the Ticket to Work program varies from state to state. SCHIP The U.S. Department of Health and Human Services has launched the Insure Kids Now! campaign to link the nation's 10 million uninsured children to free and low-cost health insurance. Every state has a health insurance program for infants, children and teens whose families do not qualify for Medicaid. Many families simply don't know their children are eligible.
Private Health InsuranceOne type of plan is a standard indemnity policy, which gives people freedom to visit a health care provider of their choice and pay out of pocket for their treatment. The insurance plan reimburses members for some portion of the cost. The other common plan is a managed care plan. Under this plan, medically necessary care is provided in the most cost effective or least expensive way available. Plan members must visit health care providers chosen by the managed care plan. Generally, a co-payment is charged to the patient, but sometimes all care received from providers within the plan is covered. GrievancesAll health insurance companies have internal grievance and complaints procedures. If you have a complaint, follow the company's procedures. All states have a state health insurance commissioner. Contact that office of the state government to see what external grievance and complaint procedures may exist in your state.
Paying for MedicationsPaying for prescription medications can be a challenge for anyone with a chronic condition. This challenge may be faced both by those who have health insurance as well as those who do not. Those with health insurance may have policies that do not include prescription drug coverage, or their drug coverage may have restricted formularies, high deductibles, high copays, or other limitations which increase out-of-pocket expense. For those without insurance, the problem is even worse.
While the long term solution for everyone is to be in a position to access an insurance program through either the private or public sector that provides adequate coverage, those who face the challenge of being able to afford medications are not without recourse. Below are several options that should be explored if you or a member of your family is unable to afford the on-going cost of prescription medication.

Business insurance
can be any kind of insurance that protects businesses against risks. Some principal subtypes of business insurance are (a) the various kinds of professional liability insurance, also called professional indemnity insurance, which are discussed below under that name; and (b) the business owners policy (BOP), which bundles into one policy many of the kinds of coverage that a business owner needs, in a way analogous to how homeowners insurance bundles the coverages that a homeowner needs.

Health insurance and Dental insurance
Almost all developed countries have government-supplied insurance for healthHealth insurance policies will often cover the cost of private medical treatments if the National Health Service in the United Kingdom (NHS) or other publicly-funded health programs do not pay for them. It will often result in quicker health care where better facilities are available. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs. In the U.S., dental insurance is often part of an employer's benefits package, along with health insurance. Most countries rely on public funding to ensure that all citizens have universal access to health care.

Disability insurance
policies provide financial support in the event the policyholder is unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgages and credit cards.
Total permanent disability insurance insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.
Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work. Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expense incurred because of a job-related injury. Casualty insuranceCasualty insurance insures against accidents, not necessarily tied to any specific property.
Crime insurance Is a form of casualty insurance that covers the policyholder against losses arising from the criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising from theft or embezzlement.
Political risk insurance Is a form of casualty insurance that can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss.

Life insurance
Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance.Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed.In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables . Moreover, other income tax saving vehicles may be better alternatives for value accumulation. A combination of low-cost term life insurance and a higher-return tax-efficient retirement account may achieve better investment return.

Property insurance
This tornado damage to an Illinois home would be considered an "Act of God" for insurance purposesProperty insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.

Automobile insurance,
known in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself. Throughout the United States auto insurance policy is required to legally operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no-fault system, which reduces or eliminates the ability to sue for compensation but provides automatic eligibility for benefits. Credit card companies insure against damage on rented cars.

Driving School Insurance
insurance provides cover for any authorized driver whilst under going tuition, cover also unlike other motor policies provides cover for instructor liability where both the pupil and driving instructor are both equally liable in the event of a claim.

Aviation insuranceAviation insurance insures against hull, spares, deductible, hull wear and liability risks. Boiler insurance insures against accidental physical damage to equipment or machineryBuilder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage due to any cause not otherwise expressly excluded. Crop insurance "Farmers use crop insurance to reduce or manage various risks associated with growing crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease, for instance."

Earthquake insuranceEarthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. Most earthquake insurance policies feature a high deductible. Rates depend on location and the probability of an earthquake, as well as the construction of the home. A fidelity bond is a form of casualty insurance that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.
Flood insurance protects against property loss due to flooding. Many insurers in the US do not provide flood insurance in some portions of the country. In response to this, the federal government created the National Flood Insurance Program which serves as the insurer of last resort. Home insurance or homeowners insurance: See "Property insurance". Marine insurance
and marine cargo insurance cover the loss or damage of ships at sea or on inland waterways, and of the cargo that may be on them. When the owner of the cargo and the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss.
Surety bond insurance is a three party insurance guaranteeing the performance of the principal.
Terrorism insurance provides protection against any loss or damage caused by terrorist activities.

Volcano insurance is an insurance that covers volcano damage in Hawaii. Windstorm insurance is an insurance covering the damage that can be caused by hurricanes and tropical cyclones.

Liability insurance
Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include an aspect of liability coverage. For example, a homeowner's insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability insurance that indemnifies against the harm that a crashing car can cause to others' lives, health, or property. The protection offered by a liability insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the policyholder and indemnification with respect to a settlement or court verdict. Liability policies typically cover only the negligence of the insured, and will not apply to results of willful or intentional acts by the insured.

Environmental liability insurance
protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants. Errors and omissions insurance: See "Professional liability insurance" under "Liability insurance".
Professional liability insurance,also called professional indemnity insurance, protects professional practitioners such as architects, lawyers, doctors, and accountants against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called malpractice insurance. Notaries public may take out errors and omissions insurance (E&O). Other potential E&O policyholders include, for example, real estate brokers, home inspectors, appraisers, and website developers.
Directors and officers liability insurance protects an organization from costs associated with litigation resulting from mistakes incurred by directors and officers for which they are liable. In the industry, it is usually called "D&O" for short.
Prize indemnity insurance protects the insured from giving away a large prize at a specific event. Examples would include offering prizes to contestants who can make a half-court shot at a basketball game, or a hole-in-one at a golf tournament.

Credit insurance
Credit insurance repays some or all of a loan back when certain things happen to the borrower such as unemployment, disability, or death. Mortgage insurance is a form of credit insurance, although the name credit insurance more often is used to refer to policies that cover other kinds of debt.

Mortgage insurance insures the lender against default by the borrower.
Collateral protection insurance CPI, insures property held as collateral for loans made by lending institutions.
Defense Base Act Workers' compensation or DBA Insurance insurance provides coverage for civilian workers hired by the government to perform contracts outside the US and Canada. DBA is required for all US citizens, US residents, US Green Card holders, and all employees or subcontractors hired on overseas government contracts. Depending on the country, Foreign Nationals must also be covered under DBA. This coverage typically includes expenses related to medical treatment and loss of wages, as well as disability and death benefits.
Expatriate insurance provides individuals and organizations operating outside of their home country with protection for automobiles, property, health, liability and business pursuits. Financial loss insurance protects individuals and companies against various financial risks. For example, a business might purchase cover to protect it from loss of sales if a fire in a factory prevented it from carrying out its business for a time. Insurance might also cover the failure of a creditor to pay money it owes to the insured. This type of insurance is frequently referred to as "business interruption insurance." Fidelity bonds and surety bonds are included in this category, although these products provide a benefit to a third party in the event the insured party fails to perform its obligations under a contract with the obligee.

Kidnap and ransom insurance Locked funds insurance is a little-known hybrid insurance policy jointly issued by governments and banks. It is used to protect public funds from tamper by unauthorized parties. In special cases, a government may authorize its use in protecting semi-private funds which are liable to tamper. The terms of this type of insurance are usually very strict. Therefore it is used only in extreme cases where maximum security of funds is required. Nuclear incident insurance covers damages resulting from an incident involving radioactive materials and is generally arranged at the national level.
Pet insurance insures pets against accidents and illnesses - some companies cover routine/wellness care and burial, as well. Pollution Insurance. A first-party coverage for contamination of insured property either by external or on-site sources. Coverage for liability to third parties arising from contamination of air, water, or land due to the sudden and accidental release of hazardous materials from the insured site. The policy usually covers the costs of cleanup and may include coverage for releases from underground storage tanks. Intentional acts are specifically excluded. Purchase insurance is aimed at providing protection on the products people purchase. Purchase insurance can cover individual purchase protection, warranties, guarantees, care plans and even mobile phone insurance. Such insurance is normally very limited in the scope of problems that are covered by the policy.
Title insurance provides a guarantee that title to real property is vested in the purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually issued in conjunction with a search of the public records performed at the time of a real estate transaction.
Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, lost of personal belongings, travel delay, personal liabilities, etc. Insurance financing vehicles

Protected Self-Insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of risk within the organization and transfers the catastrophic risk with specific and aggregate limits to an Insurer so the maximum total cost of the program is known. A properly designed and underwritten Protected Self-Insurance Program reduces and stabilizes the cost of insurance and provides valuable risk management information.

Retrospectively Rated Insurance is a method of establishing a premium on large commercial accounts. The final premium is based on the insured's actual loss experience during the policy term, sometimes subject to a minimum and maximum premium, with the final premium determined by a formula. Under this plan, the current year's premium is based partially on the current year's losses, although the premium adjustments may take months or years beyond the current year's expiration date.
A formula for insurance
Formula: retrospective premium = converted loss + basic premium × tax multiplier.
Formal self insurance is the deliberate decision to pay for otherwise insurable losses out of one's own money. This can be done on a formal basis by establishing a separate fund into which funds are deposited on a periodic basis, or by simply forgoing the purchase of available insurance and paying out-of-pocket. Self insurance is usually used to pay for high-frequency, low-severity losses. Such losses, if covered by conventional insurance, mean having to pay a premium that includes loadings for the company's general expenses, cost of putting the policy on the books, acquisition expenses, premium taxes, and contingencies. While this is true for all insurance, for small, frequent losses the transaction costs may exceed the benefit of volatility reduction that insurance otherwise affords. No-fault insurance is a type of insurance policy where insureds are indemnified by their own insurer regardless of fault in the incident.
Reinsurance is a type of insurance purchased by insurance companies or self-insured employers to protect against unexpected losses.
Financial reinsurance is a form of reinsurance that is primary used for capital management rather than to transfer insurance risk.
Stop-loss insurance provides protection against catastrophic or unpredictable losses. It is purchased by organizations who do not want to assume 100% of the liability for losses arising from the plans. Under a stop-loss policy, the insurance company becomes liable for losses that exceed certain limits called deductibles.

Social insurance can be many things to many people in many countries. But a summary of its essence is that it is a collection of insurance coverages, plus retirement savings, that mandates participation by all citizens. By forcing everyone in society to be a policyholder and pay premiums, it ensures that everyone can become a claimant when or if he/she needs to. Along the way this inevitably becomes related to other concepts such as the justice syste and the welfare state. This is a large, complicated topic that engenders tremendous debate, which can be further studied in the following articles .Social welfare provision Social security Social safety net National Insurance Social Security (United States) Social Security debate (United States)

Agri insurience
Cattle InsuranceNeed for insurance:Cattle are delicate animals. They suffer from many diseases, accidents, etc. If the death occurs to animals due to these causes, there is tremendous loss to the owner of the animal or dairyman. But if there is insurance of the animal the owner gets some compensation and his loss is shared by the insurance company.
insurance offerIt is a service offered by a insurance company to protect owners of animals from any natural hazards and provide compensation to the owners of the animal when loss occurs in lieu of small regular payments to the company called premium. Through insurance, big losses befalling on few cattle owners are shared by the insurance company and the owner is protected.
Condition of animal:The animal to be insured should have good health and free from any disease or illness. The veterinary doctor has to examine the animal thoroughly and certify accordingly. This certificate has to be attached to the insurance proposal. Animal should be vaccinated to protect from occurrence of any disease and care should be taken to feed properly with balanced diet to maintain good health. There should be no hunger and food deficiency. Old animals are not insured. Animals which have good health and free from sickness have higher price and hence can be insured at higher value. Consequently, they can earn higher compensation to the owner.
Documents Needed:Following papers are to be submitted with insurance proposal.Insurance proposal containing name of animal owner, his address branding number of animal, identification mark, breed, sex, age, colour, horns, height, etc. Certificate by veterinary doctor in the prescribed form. Receipt of payment made while purchasing the animal. Certified value of animal considering its age, sex, health, etc. at the time of insurance. Photo copy of the animal. This proposal is to be made with the help of veterinary doctor.Insurance amount:Insurance amount depends upon type of animal and breed such as cow, buffalo, local breed, pure breed or crossbred and also on age, sex and health of animal. Pure breeds and crossbreds have higher values than the local breeds. Young or adult animals have higher values than the old ones, healthy animals have higher values than the weak animals. Consequently, animals having higher prices can be insured for larger amounts.Insurance premium:Insurance premiums are charged in two ways:at fixed amount of animals are supplied under Government Schemes. 5% of value of animal under individual scheme. Procedure for compensation:If there is death of insured animal, the insurance company is to be informed immediately. The post mortem report from veterinary doctor should be attached to the report. If the animal is purchased from bank loan, the concerned bank should also be informed accordingly. The ear to which label is tied should be submitted to the insurance company. One photograph of the animal should also be submitted. If the animal has died of accident, the police report need to be attached. The value of the animal at the time of death is considered for making claim.Payment of compensation:If the animal is purchased through bank loan, compensation of dead animal is paid through the bank. In other cases, compensation is paid by cheque to the owner of the animal directly.Compensation not paid for following reasons:-Post mortem report from veterinary doctor not attached. Difference observed in identification marks. Proper veterinary aid not given while the animal was sick. Insurance company not informed immediately after the death of animal. Period of insurance policy is already over before the death of animal. Difficulties in insuring animals:Agents are reluctant to go in villages to contact individual animal owner. Correct and reliable information of animals to be insured not given. There are some social elements interfering in the work of cattle insurance. Insuring only few animals out of total number is not desirable. While making claims of compensation, all needed documents are not supplied by the animal owners and hence disbursement of claims is delayed.

Pet insurance
HistoryThe first pet insurance policy was written in 1890 by Claes Virgin. Virgin was the founder of Länsförsäkrings Alliance, at that time he focused on horses and livestock.In 1947 the first pet insurance policy was sold in Britain. In 1980 the first pet insurance company in the United States was founded by Dr Jack Stephens, DVM. Dr. Stephens' intention was to help put an end to the "economic euthanasia" of pets. In 1982 the heroic dog Lassie was the first dog in the United States to be covered by a pet insurance policy issued by VPI – Veterinary Pet Insurance.
How Policies WorkMany pet owners believe pet insurance works like human health insurance. Actually, pet insurance reimburses the pet owner after the owner submits a claim to the insurance company. The claim is paid according to the terms of the policy purchased by the pet owner.UK Policies usually pay 100% of vets fees. Policies in the USA usually offer to pay 80-90% of the costs minus a deductible depending on the company and the specific policy. The owner will usually pay the amount due to the Vet, and then send in the claim form and receive reimbursement, which some companies and policies limit according to their own schedule of necessary and usual charges. In the event of a very high bill, some veterinarians will allow the owner to put off payment until the insurance claim is processed. Some insurers pay veterinarians directly on behalf of customers. Most U.S. policies require the pet owner to submit a request for fees incurred.Traditionally, most pet insurance plans did not pay for preventative care or elective procedures. Recently however, some companies in the UK and US are offering routine care coverage, or some times called comprehensive coverage.In addition, companies often limit coverage for pre-existing medical conditions, thus giving owners an incentive to insure even very young animals who are not expected to incur high veterinary costs while they are still healthy.Some insurers offer options not directly related to pet health, including covering boarding costs for animals whose owners are hospitalized, or costs associated with retrieving lost animals. Some policies also include travel cancellation coverage if owners must remain with pets who need urgent treatment or are dying.Some UK policies for dogs also include third party liability insurance. Thus, for example, if a dog causes a car accident that damages a vehicle, the insurer will pay to rectify the damage for which the owner is responsible under the Animals Act 1971.

SOME MOST INSURANCE

What is homeowners insurance?
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
What is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance provides property, liability and medical coverage:Property coverage pays for damage to or theft of your car.Liability coverage pays for your legal responsibility to others for bodily injury or property damage.Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.
Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

What is Car Insurance and Why is it Important in the State of Tennessee?
Many people, when asked if they know what insurance is, can rarely answer correctly. We've all heard about it and carry it because often times it is required, but we don't all understand it. As a licensed Property and Casualty Insurance Producer, in the State of Tennessee, I am qualified and feel responsible to help people understand exactly what car insurance is, and why it is important.
Insurance is defined as transferring risk from an individual to a group. A risk is defined as something that may cause a loss of valuable property. Very simple examples of valuable property are but not excluded to: homes, vehicles, recreational vehicles, commercial equipment, and believe it or not, human life. Insurance companies exist to help their policy holders and their families protect their valuable property from unexpected events like car accidents, tornadoes, earthquakes, storms, fires, and even death. This just basically means that a person who pays for insurance is planning a head of time for the unexpected, by protecting their insurable assets. Insurance companies can make all of this possible by collecting money from a group of people and then paying it out to those who need it after a loss.
Insurance is very important because it helps people return to the way their lives were before their catastrophe happened. This is called: Indemnity. It is also very important because it protects the insureds' assets. Insurance companies are held responsible for deciphering what coverages each individual needs according to their own financial positions and insurable interests and/or assets. Obviously, someone with more property needs more insurance

What Is Gap Insurance?
Gap insurance literally covers the gap between what you owe on a car and what it's worth if your car is totaled in a covered loss, such as an accident or theft. The types of losses covered and the extent of coverage vary depending on the company providing the gap insurance, so make sure you clarify what's covered before you make your decision.
Who Needs Gap Insurance?
If you purchased or leased a new vehicle and weren't able to afford a large down payment, you may need gap insurance. Vehicles notoriously depreciate in value — and quickly — and depreciation starts the moment you leave the dealership. If you're not able to pay the difference between what you owe and what your vehicle is worth out of pocket, gap insurance may be worth your while.
One thing to remember if you're leasing a vehicle: Often, leasing companies include gap insurance or loan/lease payoff coverage in their contracts, so make sure you review your contract before you purchase it from your auto insurance company.
When Do You Need Gap Insurance?
Here's an example of when you'd use gap insurance: You swerve to avoid a deer and end up driving into a ditch, where your brand new vehicle rolls over. Though no one's hurt, your car sustains heavy damage — so much so that the cost to repair your vehicle is higher than its actual cash value (ACV). Your insurance company decides to total your car, and after running an N.A.D.A. valuation, they determine the ACV is $25,000.
When shopping for auto insurance, do a little homework first, shop around, and select your insurer carefully. Your insurer should offer both fair prices and excellent service. These tips will help you find the right insurer for you:
Know your state's auto insurance requirements:Most states require you to carry a minimum amount of liability coverage. Many states have "no-fault" auto insurance systems. Coverage for medical costs for you and your passengers is optional in some states. Coverage for damage to your car is optional.
Write up your personal auto insurance profile:List pertinent information concerning what type of vehicle you drive, where you drive, who else drives, what your driving record is, where you live, what optional safety features your car has. This profile will make the next step easier.
Comparison Shop:Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around. Ask your friends, check the Yellow Pages, and call your state insurance department for guidance. Contact insurance agents or companies for general pricing information. Select a few insurers for personalized quotes.Meet with potential insurance agents:Make a few appointments, bring your personal auto insurance profile with you, and ask questions. You want a fair price AND quality service. Ask about available discounts, higher deductibles, service options and claims procedures after accidents. Take notes. Compare Again:Consider cost, coverage offered, and quality of service available. Select your insurer.
Read your policy:Yes, even the fine print! Ask questions. Keep your policy at hand. Call your insurer to keep your policy up-to-date, inform your agent of any changes, and ask periodically about any possible discounts. Review your policy yearly with your insurer.Keep your insurance information with you:Many states require drivers to carry a proof-of-insurance card with them when driving. Ask your insurer for a card, and keep it in your wallet or in your car.