Car Insurance

WHAT IS THE LOGIC OF INSURANCE?

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected.

IS MOTOR CAR INSURANCE COMPULSORY IN INDIA?

Under the provisions of Motor Vehicles Act all the vehicles which are plying in public places shall have at insurance policy at least to cover third party liability as specified under the Act.

WHAT IS THE DIFFERENCE BETWEEN AGENT & A BROKER?

Agent is the representative of Insurance Company whereas broker is the representative of the consumer or policyholder.

WHAT ARE INSURANCE BROKERAGE HOUSES?

World over insurance brokerage houses are large, sometimes even larger than the insurance companies themselves. They provide reinsurance to insurance companies. In many markets, brokers provide non-life insurance as well as group life and group mortgage insurance. In countries like Japan, the broker is not empowered to conclude contracts, accept representations, and to receive insurance premiums. In such cases minimum capital requirements and solvency margins are not needed. In general an insurance broker would provide the following services:

Pre sales and after sales service to the customers.
Provisions of relevant information to the underwriters to assess the risk and decide the premium.

Design covers that meet the client requirements.
Recommend risk improvement and loss minimization measures
Provide risk management and insurance education Collection of Premiums

WHAT IS REINSURANCE?

The very fundamental principle of spreading of the risk is actually practised by the insurance companies by reinsuring the risks that they have insured.

WHAT IS UNDERWRITING?

Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium