Zen Vichaar

  Insurance policies have a number of clauses, exclusions and conditions. Any person before signing an insurance policy must understand the clauses contained in the insurance policy. One such important clause is the subrogation clause in the insurance policy. Subrogation in an insurance policy is the clause that allows the insurance company to take up a legal pursuit against the third party that has caused the damage to the insured party for which the claim has been made . For instance, if you have taken a car insurance and your car gets damaged in an accident, the subrogation clause gives your insurance company the right to pursue legal action for recovering the cost of damages from the third party that has caused the accident. The insurer can take legal action after paying you the cost of the damages and recover the money from the third party. The subrogation clause applies to fire, marine and non-life policies such as motor insurance, health insurance etc.   One important aspec

    Insurance protects from the unforeseen whether it is life or property, the unexpected always needs cover. Insurance policies offer the required financial assistance when one suffers a loss. Fire insurance policy is an     important safeguard against fire and allied perils. Damage to property due to natural disasters is covered under the fire policy. However, it is necessary to know the policy contents, and reading the fine print of the policy is the best method to come to an understanding of the coverage offered. We often see the exclusions under the policy written in fine print and ignore it. Understanding the exclusions under the policy gives us     a wider comprehension of the policy coverage. A quick look into the details of these exclusions will highlight the modus operandi of the cover offered. Policies may be then customized to accommodate the specific requirements of the policyholder. Fire insurance policy does not cover the following risks. Spontaneous combustion T

                                     No fault liability is often heard in insurance policies and as the title suggests, imposes a liability that accrues without one’s fault. No fault liability means liability of a person even without any negligent act on his part and even if he has taken due care and caution. This term is usually found in motor insurance where compensation for an accident is paid on no fault basis. The driver of a vehicle exercises ample caution while driving yet the inevitable happens and a   third party is injured or dies. To safeguard from such unforeseen and unexpected accidents, Motor Vehicles Act 1988 has laid down the compensation to be payable for the victims of the accident. No fault liability, is known as strict liability, compensating victims without having to establish the cause of accident or prove the negligence of the driver of the vehicle.   Section 140(1) of the Motor Vehicles Act 1988 states that: "Where the death or permanent disab

  Public liability insurance policy is an insurance cover, for liabilities that arise in course of business operations. In short it is liability to the public who come to your premises for the purpose of business. Any third party can claim compensation if they are injured or if their property is damaged. The business owner has to incur financial loss and this also hampers the smooth flow of business. Public liability insurance Act policy is for providing immediate compensation to those affected by the accident. This insurance applies to business owners handling /manufacturing     hazardous substances. For example, if a stock of goods falls on a customer visiting a shop and he suffers an injury and if the customer claims for injury/damages the business owner is liable. This can be safely insured under a public liability policy. Similarly, where there is manufacturing /handling of hazardous goods the business owner must compulsorily buy a Public Liability Act policy. This policy i

               Cumulative bonus is a benefit offered under health insurance plans, to the policyholders for maintaining zero claims throughout the policy period. Offer of cumulative bonus is either in the form of an increase in the sum insured or a discount on the policy premium, at the time of renewal of policy. However, there is a cap on the cumulative bonus offered and is mostly restricted to 50% of the sum insured. How does cumulative bonus work?   For example, sum insured under a health insurance policy is Rs 5 lakhs, the cumulative bonus is 10% of the insured sum for each year. First year sum insured is: Rs 5 lakhs Second year sum insured if no claim is made: Rs 5,50,000/- Third year sum insured if no claim is made: Rs 6,00,000/-   One must plan their health insurance program in such a way that the cumulative bonus is retained for major health claims. Also, it is beneficial to handle small claims as the cumulative bonus adds to the sum insured and increases the su

                             To get back business to normal after a loss, needs a lot of finance, right from removing the debris, repair of machines, maintenance of process etc. Fire policies usually cover the losses due to insured perils and policy pays the loss amount. Apart from this, the expenses for cleaning up a damaged premises are high and the debris removal clause in fire policies provides the right cover for such expenses. What is paid under debris removal insurance? Debris removal insurance is an extension under the standard fire policy to cover the costs and expenses of removing debris if an insured property has been destroyed or damaged by an insured peril.  If a fire breaks out in a building complex it leads to damage of the building and the surroundings. Removal of debris is the next step which involves money and labor. Debris removal insurance pays the cost of removing debris that’s been left behind. Policies with a debris removal provision cover only costs a