A Brief Description Of Maui Island And Why You Need A Travel Agency Assistance

Would you like to travel to Maui? This is the second largest of the eight islands found in the Hawaii State. It possesses three big cities, including Lahaina, Kahului and Wailuku. The region lures many visitors because of its physical landmarks such as the highest volcanic mountain called Haleakala. Even the West Maui Mountains form very beautiful scenery. The western part of the island including Kaanapali, Lahaina and Kapalua has the most luxurious and elegant resorts.

This is a beautiful island and if you want to plan a getaway you cannot be wrong if you choose it. Although you can reach the region quickly by plane, cruising in a ship is more enjoyable. Besides, finding cheap Maui cruises is not a major problem. Since this landmass is a popular destination for tourists, you can expect to compete for cheaper cruise rates with very many people from your region.

How can you manage to overcome this competition for discounted cruise rates? If at all possible, you should look for a reliable travel agency that either has business branches in Hawaii or is based in this state. This is specifically true if you will be a first time visitor who plans to have a stress free trip to the island. A travel agent is therefore very useful when people are planning Maui vacations.

In the following few paragraphs you will find out more about the importance of using a travel agent and related information.

Reasons why you should use a Maui travel Agency

1. It provides guidance and direction through out the trip and is able to help people save money.

2. A travel operator boosts safety of new travelers throughout a whole week’s trip or even a longer one.

3. It keeps travelers from getting into trouble with the authorities in the Island

4. It recommends the best accommodation facilities as well as proper means of transportation in this wonderful island.

How you can locate a Maui Travel Agency

It is extremely easy to locate a good tour company if you know how to use the internet wisely. Look for Maui travel agents’ reviews, analyze them carefully and choose a few good companies. Go to the related forums and blogs and read prior visitors’ comments and articles. In short, you need to take your time to research carefully before making a decision about whom to hire among many tour operators that serve Maui. The best thing to do is to look for an agent that can give you a single package for the entire journey. The package should include the hotel accommodation, foods and drinks, transportation and other leisurely costs.

What your Maui tour guide should tell you in advance

An imperative detail that you want your guide to tell you about in advance is the requirements for entry in Maui, Hawaii. If you come from outside the U.S, you need to know about the passport, visas and other mandatory entry information before the travel day comes. Moreover, the agent should mention something about the climate, especially if you would be traveling with your family.

You want to avoid traveling with kids when hurricanes are common or when the weather is too wet. This is particularly important if you plan to participate in outdoor activities such as water sports and walking to the tourist landmarks. The guide should make you understand the available routes and the things you can see while cruising in a ship.

If you want cheaper rates, the planner of Maui vacations should be able to provide you an inexpensive bill without compromising the quality of your visit. You can also ask the travel guide about trip insurance, car rental services, traffic around the region and many other important issues.

Posted in general | Tagged , , | Comments Off on A Brief Description Of Maui Island And Why You Need A Travel Agency Assistance

How to Do a Sales Pitch in Commercial Real Estate

In commercial real estate, you will undertake a variety of presentations, in a variety of circumstances. Most of them are business-like in nature, focusing on the needs of the tenant, the property buyer, or the property seller.

Get to the core issues

Each of these groups has unique property requirements and points of focus. It is their needs which must be identified and clearly addressed in the sales pitch or presentation. Many successful commercial real estate agents will have a preliminary meeting with the client or customer so that they can identify key issues and concerns. This allows the commercial agent to return to the client or customer in a few days with a well structured proposal that addresses the needs of the customer or client.

It’s all about THEM, not YOU!

When you design an investment or commercial property proposal for presentation, the document should be 90% regards the property and the client. Frequently you see this rule disregarded or broken with the proposal document being largely regards the agency and the personnel.

Rarely is the property transaction a simple matter of the property rental, the property price, or the physical elements of the property. In most situations, it is the combination of these things which must satisfy a fundamental equation of need that the customer or client has. In getting them to this fundamental need, you will identify an element of pain that the customer or client is experiencing. This is what you focus on.

They are Experienced

It is interesting to note that many clients and customers in commercial real estate are reasonably comfortable in circumstances of business negotiation. This means they may not tell you the total big picture or all the elements of a transaction until they are ready. Conversation and connection in the presentation process should be biased towards the client or customer using well selected questions which allow the agent to interpret the body language coming from the client’s response.

When you believe you have identified the element of clients pain related to the property transaction, you start to magnify the problem in terms of today’s market, then offering stable and logical solutions that your real estate agency business can provide to the client or customer. Invariably, the commercial real estate transaction in today’s market centres on financial matters such as:

  • High vacancy factors
  • Other property choices and chances are available
  • Underperforming leases
  • Unstable cash flow
  • Unstable tenancy mix
  • Tenanted conflict
  • Escalating building operating costs
  • A shift in demographics which exposes the property to a unstable future
  • Mortgage payment pressures
  • Age of the asset
  • Needs for refurbishment or extension
  • Competition properties attracting tenants away from the subject property

This type of information and interpretation requires your intimate knowledge of the local region. This is by both property type and by location. This is the higher value that you bring to the customer or client. Being able to distinctly define local market awareness is a major advantage in any commercial real estate presentation or sales pitch. You must be seen as the best knowledgeable solution to the problem.

From Experience

After many years working exclusively in the commercial real estate industry, I found that my unique skill was in market knowledge and the display of that in any formal presentation to the client. Being able to talk about market trends and financial performance in a solid and sound way will help the client understand that they need your services. Coupling that with your extensive and relevant database of enquiry clearly shows the client that they need you.

A fantastic commercial real estate presentation is a function and balance of lots of things. Things like:

  1. A well established pre-planning process is a strategic advantage for every commercial real estate presentation. Strategy is everything in commercial real estate. Every property presentation requires planning.
  2. Making sure you are asking the right questions of the client or prospect. Plan your questions relative to the subject property so that you help the client think about opportunity and changes that are possible.
  3. Using your market knowledge and giving good answers. Have a variety of market facts and trends available to call on. Feed them into your presentation; facts are always useful. They can also be used as a channel to direct the discussion when the client is forcing you to justify your approach or your experience. Confidence and control must be the basic rule of your property presentation. When the client takes control of the presentation you have lost.
  4. Using your experience in the marketplace so that you are telling relevant stories of success in similar properties. Stories of other properties will always interest of the client.
  5. Making sure your personal presentation is optimised for the connection in the presentation. It can be that you are using a combination of the proposal document, the marketing document, and computer slide presentation, samples of your database, photographs of the subject property projected on to slides, and photographs of comparable properties projected on to slides.
  6. Choosing the placement of people at the table or strategically positioning them in the room is always important. Much has been written about where you should sit relative to the client. The basic rule is adjacent to the client rather than across an area of barrier such as a table. Being within arm’s reach allows you to pass documentation to the client at the appropriate time. Documentation should not be provided to the client until you are ready for them to review it; otherwise it is a distraction of their attention.
  7. Make sure that your proposal is simple and yet well directed with a clearly defined outcomes of sale or lease. Many proposal documents in commercial real estate are much too wordy so the main messages are lost and not clearly defined. The best proposals are less wordy and more illustrative. The best balance of a commercial real estate proposal is a mixture of 25% words, 25% pictures, 25% graphs, and 25% white space. This becomes a document which is clearly read and understood.
  8. Combine good illustrations and photographs of the subject property into the proposal or presentation so that any lengthy descriptions or paragraphs are broken up. This will keep interest of the client in your documentation.
  9. Make sure that your marketing package is value for money, and yet reaching the target market that the property serves or needs to attract. All too often, we see examples of generic marketing by the commercial real estate agent to the broader and less specific marketplace. Showing the client that you clearly know and will attract best the target market will always help your conversion to a potential listing. Be very specific about the target market and how you will reach it.
  10. Ensure that your commission costs are fair and reasonable for the location. In most circumstances, discounting your commission should not be an option as it will make you poor and remove or detract from your enthusiasm for the sale or lease. ‘Cheap’ means ‘cheap and without focus’ and the client needs to know this. The property deserves better. You are not cheap because you are the best and you do a great job. A fair commission is always paid for a positive property outcome.
  11. Always provide testimonials that are relevant to the property transaction. When you combine relevant history and details of happy customers into your presentation you will make the client feel more comfortable.
  12. Always display clear and sound market knowledge that impresses the client relative to their property. This will include extensive awareness of comparable properties that compete with the subject property. You should be able to talk solidly about property prices, comparable rents, rental growth, returns on investment, changes to the future demographics of the area, and properties in the immediate precinct of relevance. In many cases, it pays to walk around the local area just prior to any property presentation so that you bring immediate and clear pictures of the precinct to the discussion. Many times this has been of significant advantage in my presentation processes. Talking about neighbouring properties localises the client and their thought processes.
  13. Come up with a variety of ways to serve the client. Innovation and relevance will always impress. In today’s market, this is relatively easy considering the marketing opportunities and tools provided by the internet & technology. Be proactive in your property promotion processes so that the listing for sale or lease stands uniquely different in its marketing campaign from the others in the area. This does not have to be expensive to the client or to your office, given that the internet and electronic technology is historically cost effective. In today’s market, the traditional methods of publicising the property in the property pages of the local paper, is becoming much less important in the marketing campaign. Most commercial property buyers and tenants research the market from the Internet first and foremost.
  14. Almost every property agency will say that they have excellent communication and connection skills to support the property promotion process. From experience, this is largely incorrect and typically the average commercial salesperson or leasing person will exercise ordinary communication channels with the client. Put yourself in the shoes of the client. They expect and deserve frequent updates on the promotion of the property even when nothing is happening or when the adverts are producing little response. When a property campaign is not producing the results, it is important that you act or adjust with alternative recommendations and strategic changes to the promotional campaign for the client to consider. Rarely would you get to the property campaign correct in the first week. It is in this time that you must consider fine tuning the promotion process so that the target market is being reached in a timely and effective way. This means that every property enquiry generated from your promotions must be tabulated so that you understand what channels of marketing work most effectively with the property in question.
  15. When addressing the client or the client group in a formal property presentation, the answers and information you give must be delivered well and provide relevant solid property knowledge, in a practiced and professional delivery. Any sales or presentation tools relative to the property must be relevant and you should know how to use them with exceptional skill. Fumbling and faking information is not tolerated by the client.

So there you have it. These are some of the key skills to use in a commercial real estate presentation. Whilst many real estate agents think that they are the best alternative in the market to promote sell and rent commercial property, the reality is they do not get the message across when it matters most in front of the client.

To be the best commercial real estate agent in your area, you must show that you are just so, and you do this in the first 10 minutes of the time that your presentation takes. The client will have formed an opinion by then.

Be prepared to walk away from any demands for discounting that the client or customer demands. In this market they need a great commercial real estate agent providing a great job; discounting is not an option. Show pride in your services and walk away when the client demands discount in marketing or lower commissions.

Posted in general | Tagged , , | Comments Off on How to Do a Sales Pitch in Commercial Real Estate

The Pros And Cons Of Funeral Insurance

Funeral insurance, also known as burial insurance is a type of insurance created to pay for the costs of memorial and internment services. Nowadays, many people especially those who are not getting any younger are getting funeral insurance to deal with the costs of burial and funeral services when they die.

Most of these people do not want to leave any type of burden, especially financial burden, to their loved ones. Some of the costs covered by insurance policies are cremation, burial, plots, music, flowers, taxes and even medical costs. Before purchasing funeral insurance, an interested person must consider things such as the location of the cemetery, arrangement and expenses of the funeral, cost of cremating and buying caskets or urns.

Aside from these considerations, he must also determine the advantages and disadvantages of this kind of insurance:

Cash to Shoulder the Funeral Arrangements. The insurance company will give the grieving loved ones lump sum cash that they can use for funeral arrangements. The amount of cash usually depends on the type of funeral insurance policy that the dead relative has purchased.

A Car to Make Funeral Arrangements. While the family members are on the verge of arranging matters of his funeral, the insurance company will provide a car to make sure that they still feel comfortable while dealing with his death and getting ready for his interment at the same time.

Bonus Monthly Payout. The family members who the insured person has left will be receiving monthly bonus cash from the insurance company. This amount of money is expected to help pay out for bills covering food and utility.

Chosen Funeral and Burial. A good thing about having a contract with an insurance company is that when he dies, he will have the memorial and interment services according to his will. He will have a funeral and burial that he thinks he describes.

Get A Tombstone. With the services that the company covers, the family members can choose a tombstone that will serve as its memory.

The disadvantages of purchasing funeral insurance are:

Insurance Policy May not Pay in Full. There are some companies offering funeral insurance that have waiting periods. These periods can reduce the benefits of the insured person. There can also be times when there can be no benefits at all. Some insurance policies can decrease in value as time passes by.

Insurance Policy May not be an investment. A person who chooses to have funeral insurance will have no control on how his money will be endowed. Another thing is that some companies offer very little interest rate. And lastly, some insurance policies are overpriced. This means that some of these policies cost more than the cost of funeral coverage. A person planning to get one must remember that by purchasing one means he is paying more premiumss than collecting insurance claims.

With the advantages and disadvantages of funeral insurance, a person can see that it will be highly recommended to apply for a funeral insurance policy that will fit his needs and requirements.

Posted in general | Tagged , , | Comments Off on The Pros And Cons Of Funeral Insurance

Characteristics of Universal Life Insurance

As we mentioned in the previous article, universal life (UL) was introduced in 1981-82, in response to a historically high interest environment and a consumer awareness of the value of self-directed investments because traditional insurance could not compete with short-term interest rates.

Here are some characteristics as follow

1. Account Value

The account value of a universal life plan is the sum of the gross values of all the investment accounts within the policy, including income, after deductions for the current month expenses.

2. Cash Surrender Value

The cash surrender value of a universal life plan is the current account value, less outstanding loans and surrender charges. Surrender charges are usually based upon a multiple of the minimum required premium for the policy back-end charges are larger than front-end charges.

3. Premiums & Contributions

Premiums are those amounts needed to pay the cost of insurance charges and other expenses for the policy. Deposits are those excess amounts that are of a pure investment nature.

4. Death Benefit Options

The amount of death benefit payable under a universal life policy is based upon 1 of 4 different options

a)Level death benefit: Level coverage throughout the lifetime of the policy.

b) Level death benefit plus cumulative gross premiums: Death benefit increases by the amount of each gross deposit to the policy.

c) Level death benefit, indexed: The amount of death benefit increases, yearly, by a predetermined percentage.

d) Level death benefit plus account value: The total amount of death benefit is always equal to the initial face amount, plus the gross account value. This is the most popular chose by 90% of universal life insurance policies’ owners because

the gross account value is tax free.

5. Premium Flexibility

The premium deposits, plus accrued investment income, must be sufficient to pay for all expenses and deductions, so as to keep the policy in force, tax exempt life insurance contract, flexible premium.

Universal life is not for every consumer

It’s flexibility tends to be reflected in much higher administration costs than are found in traditional whole life plans and the variable nature of the plan may make it unsuitable for those clients wanting guarantees

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Posted in general | Tagged , , | Comments Off on Characteristics of Universal Life Insurance

Life Insurance – Should You Buy A Rider Or Complete Policy For A Spouse, Child Or Dependent?

There are many arguments as to who really needs a complete life insurance package and who needs some form of coverage in the form of rider. Does you really really need a rider if you already have a life insurance policy? Does you child or dependent really need one too?

To answer this question correctly we must understand the basic needs life insurance coverage meets …

A life insurance policy is basically meant for breadwinners or persons who demise will cause hardship for their survivors. Although there are other reasons why people buy life policies this is the main reason.

Some insurers have certain riders to cater for spouses and dependents. Such riders add term life coverage for such a spouse or dependent. It certainly makes more sense to buy a dedicated term life insurance for such a person if you think it's necessary. You'll almost always get a far lower rate per $ 1,000 coverage for the person in question if you get another complete term life insurance policy.

For the dependent, you really do not need any form of life insurance for a child unless you want to start a foundation in their memory or make a donation to their favorite charity if they pass on. If you're thinking in such lines then you'll serve that cause better by getting another life insurance policy for such a child or dependent instead of a rider.

We can make an exception for rare cases (like child actors) where the family fortunes will be dramatically altered if such a child passes on. Life insurance is a real necessity then. Like I explained when I talked about the main reason for a life insurance policy, such a child shares considering to the family's finances. Therefore the loss of that child will result in the loss of such financial contribution with the attendant consequences.

If you've decided to buy a life insurance for yourself, spouse or dependent, you'll get far better rates if you get and compare many quotes from many different insurers. This is due to the difference in rates from insurers for a particular policy could range from a few hundreds to a couple of thousand dollars.

If you already have a policy, you can also reduce your current rates by getting and comparing life insurance quotes from insurers you did not get quotes from before you bought your present policy.

Posted in general | Tagged , , | Comments Off on Life Insurance – Should You Buy A Rider Or Complete Policy For A Spouse, Child Or Dependent?

How to Inventory and Assign Value to Estate Personal Property

There is an old saying that goes: What is the best way to eat an elephant? One bite at a time!

Personal property is the elephant of an estate. It is the responsibility that can take up most of your time, and it provides the estate with the least amount of money for the effort involved. But, dealing with the personal property cannot be avoided. The property must be inventoried, valued, distributed, or sold. Let us start our analysis by looking at what property we have (inventory); then we will determine what it is worth (valuation). In a future post, we will determine what to do with it (distribution/sale).

When you go to the courthouse, the clerk will provide you with the form you will need to fill out for the inventory. The form will ask you to provide general categories and a value for each category you have listed. For example, you would list: furniture, $1500; office equipment, $300, etc.. You will not have to list the items separately, such as sofa, $100; chair, $5; typewriter, $25. I suggest that you do keep a list of the individual items, though. Although you will not have to go into a lot of detail for the court, you will likely want a more detailed inventory for yourself. You will want this for two reasons: to track the sale of estate property, and to protect yourself against claims of heirs and/or creditors.

You do not have to get real fancy with with the inventory; pencil and paper will do. If you are so inclined, there are home inventory record books available at office supply stores, or you can purchase software online. There are also companies that specialize in taking home inventories.

You will need a helper. One person sorts and counts while the other writes. Start inside the house, and work your way from the top of the house to the bottom. Go room to room with a consistent pattern so that you do not miss anything: always clockwise or counter-clockwise around the room. Write down what is on the walls as well, not just what is on the floor. For small goods, write down identifiable groups of items such as 200 hardcover books, 100 paperback books, 42 nick-knacks, etc.. On your list, put a star next to any item that you think may be valuable. If the nick-knacks are porcelain and the books are first editions, they are valuable items. When you are finished, follow the same procedure for the outbuildings: the garage, shed, workshop, or whatever. If there is a rented self-storage unit, vacation home, recreational vehicle or boat, they will need to be inventoried as well.

When you file the inventory at the courthouse, you will need to state a value for the personal property. For run-of-the-mill household items, a good resource for determining the value is the software program It’s Deductible that comes bundled with the income tax program Turbo Tax. It’s Deductible can also be purchased separately. The software lists the thrift shop value for most household items, and it is easy to use.

For the items that you have identified as being valuable, It’s Deductible will not work. There are several ways to determine the value of single items or collections. A good place to start is eBay ( http://www.ebay.com ). To use eBay to help set your values, you will need to be a registered user. Registering for eBay is free; just follow the instructions when you get to the website. Once registered, type in the item you are researching, and eBay will search for the item. When the search results come up, scroll down and look on the left side of the page to where it says Search Options, click on completed listings, then scroll down further and click on Show Items. The search results displayed will be for completed auctions, not for auctions in progress. The prices listed in green are items that actually sold; the prices in red are for items that did not sell. If you find your item listed, and the price is green, you have a good value. Compare the details of the item you found on eBay with the details of the item you have. Use the closest match as your value.

If you are unable to find your item listed on eBay, it is time to go to the library or bookstore. There you will find an assortment of price guides for every sort of antique or collectible. You will also find blue books for automobiles and equipment.

If you have lots of items and no time to research, then it is time to call in an expert. In your local phone book you will find jewelers, antique dealers, auctioneers, appraisers, and other professionals who will tell you what the property is worth. What they will offer you is an opinion of value, not an appraisal. An appraisal is based on actual sales data, not an opinion. I will cover appraisals below; for now, just be aware that there is a difference. For probate valuation purposes, the value placed must be the fair market value at the time of the decedents death. This is the value you should ask your expert to provide.

In my home state of Virginia, individual items or collections that are valued over $500 must have an appraisal. Personal property appraisers are not licensed like real estate appraisers, but the content of their reports is regulated. For a personal property appraisal to be valid and accepted for tax purposes, it must be performed by a qualified expert and follow the federal guidelines of the Uniform Standards of Professional Appraisal Practice. Most real estate appraisers do not appraise personal property. You can find a personal property appraiser online by checking the websites of the Certified Appraisers Guild of America, the National Association of Auctioneers, or the American Society of Appraisers.

Estate Executors will find that the inventory and valuation of estate personal property is their most time-consuming task, but there are resources available to help.

Posted in general | Tagged , , | Comments Off on How to Inventory and Assign Value to Estate Personal Property

The Nuts and Bolts of Auto Law in Pennsylvania

AUTO ACCIDENT BASICS – WHO PAYS WHAT IN PENNSYLVANIA?

Navigating the insurance world after an auto accident can be very confusing. There are many questions revolving around who pays for injuries, medical bills and property damage. Understanding the nuts and bolts of auto accident law, ahead of time, can save considered time and effort.

BODILY INJURY LIABILITY

A. How Much?

Under Pennsylvania law, Pennsylvania car owners must carry at least $ 15,000 of bodily injury liability coverage to pay for personal injuries to another driver, in the event of an accident. Drivers can elect higher amounts.

B. Who Pays?

Bodily injury coverage is based on fault and is available to the other driver in an auto accident. For example, Driver A causes an accident with Driver B, causing serious personal injuries to Driver B. Driver A's auto policy includes the state minimum- $ 15,000 of bodily injury liability coverage. Driver B can make a claim under Driver A's auto policy, for personal injuries, up to the $ 15,000 limit. However, Driver B may be limited in what he can recover, depending on whether he selected Full Tort or Limited Tort in his own auto policy.

C. How it Works?

In some instances, an injured driver can make a claim for bodily injury liability coverage against the other driver's insurance company without having to file a lawsuit. However, if that insurance company fails to offer fair and reasonable compensation, the injured driver may have to file a lawsuit against the other driver.

PROPERTY DAMAGE

A. How Much?

Under Pennsylvania law, Pennsylvania car owners must carry at least $ 5,000 of property damage coverage to pay for property damage to another driver, in the event of an accident. Drivers can elect higher amounts.

B. Who Pays?

This type of coverage is frequently misunderstood. It is not available to an insured driver, under its own policy. Rather, it is available to the other driver in an accident, and is based upon fault. In our example, Driver A causes an accident with Driver B. Driver B's car is totaled. Driver A has $ 10,000 of property damage coverage. Driver B can make a claim under Driver A's auto policy for the fair market value of the total car, up to $ 10,000. In this same example, let's assume Driver A's auto was damaged. Driver A can not make a property damage claim under his own policy. Again, property damage coverage is only available to the other driver and is based on fault.

C. Collision and Comprehensive Coverage

Collision and comprehensive coverage are optional and cover different types of auto damage. Collision covers any damage caused by an auto accident less a deductible. Comprehensive coverage covers any non-accident damage, such as fire, theft, etc., less a deductible. A driver who has purchased these types of coverage can make a claim under their own auto policy. Using the same example, Driver A-who caused the accident, can make a claim for repair to his auto, if and only if he has collision coverage. If Driver A did not purchase collision coverage, he would be responsible for the repairs.

D. How it Works

If an innocent driver's auto is damaged in an accident caused by another driver, a property damage claim can be made directly to the other driver's auto insurance company. So long as the accident is clearly the other driver's fault, this is usually the easiest way to make a property damage claim. If the innocent driver has collision coverage under his own auto policy, then a property damage claim can be made with his own auto insurance company. However, the deductible would have been subtracted from the total amount recovered. Then, because the accident was the other driver's fault, the innocent driver's own auto insurance company should obtain the deductible from the other driver's auto insurance company. That deductible should eventually make its way back to the innocent driver.

Again, using our example, Driver A is at fault for an accident with Driver B. Driver B has a collision coverage with a standard $ 500 deductible. Driver B has a choice to make a claim with Driver A's insurance company or his own insurance company. If he makes the claim with his own insurance company, he would receive the fair market value of his total auto less the $ 500 deductible. His insurance company would then seek reimbursements from Driver A's auto insurance company for the fair market value and the deductible. At some point, Driver B should receive the $ 500 deductible back from his own insurance company-because the accident was Driver A's fault.

A property damage claim is usually made without having to resort to a lawsuit. Incidentals such as rental car costs and towing / storage, are immediately compensable if the innocent driver has purchased such coverage under his own policy. Otherwise, they will become out of pocket expenses in a consequent personal injury lawsuit against the other driver.

MEDICAL BENEFITS

A. How Much?

Under Pennsylvania law, Pennsylvania car owners must carry at least $ 5,000 of medical coverage to pay for medical bills incurred in an auto accident. Drivers can elect higher amounts up to $ 1,000,000.

B. Who Pays?

Many states including Pennsylvania are "No Fault" -meaning that regardless of which fault the accident was, a driver can make a medical benefits claim under their own auto insurance policy, up to the amount of medical benefit coverage purchased.

Using our example, Driver A causes an accident with Driver B. Both drivers have insurance policies with medical benefits coverage. Let's assume that Driver A has $ 10,000 of medical benefits coverage and Driver B has the state minimum- $ 5,000. If both drivers are injured and require medical treatment, they would both make a claim under their respective policies. In this example, Driver A could make a claim for medical benefits up to $ 10,000 and Driver B could make a claim for medical benefits up to $ 5,000.
Also, the medical benefits coverage amount is per person, per accident. In other words, if a father and his minor son are injured in an accident, and the father has an auto policy with $ 5,000 medical benefits coverage, then both can receive up to $ 5,000 of that coverage. If the father or son gets into a consequent accident, they would again be eligible for $ 5,000 of the same coverage.

C. How it Works

When making a claim for medical benefits, a driver may go to a doctor / provider of their choosing and should provide their auto policy claim number and auto insurance information. Under Pennsylvania law, once a driver provides this information to a medical provider, that medical provider is required to bill the auto insurance and can not bill the driver directly. Once the auto insurance company receives bills from the medical providers, the amounts of the bills will be reduced in accordance with Act 6-an Amendment to Pennsylvania motor vehicle law made in 1990. Act 6 limits the amount that medical providers can recover for accident related Medical bills. At some point, the amount of medical benefits under an auto policy may become exhausted and then the driver would use their own medical / health insurance to cover any remaining bills.

D. Priority of Coverage

When a person is injured in an accident, there can be more than one source of medical benefits. Under Pennsylvania law, there is an order of coverage, known as "priority of coverage". The first level is an auto policy in which the injured person is a "named insured" – that generally means an auto policy purchased by the injured person. The second level is an auto policy in which the injured person is "insured". This generally refers to an auto policy purchased by the injured person's spouse, parent or relative residing in the same household.

The third level applies when the injured person does not own an auto policy and is not covered as an insured under any auto policy. This third level is an auto policy covering the auto that the injured person was riding in when the accident occurred. Finally, the fourth level applies to injured persons who are pedestrians or bicyclists. This fourth level is any auto policy involved in the accident. In some situations, more than one policy may apply-and the first auto insurance policy to get billed will be liable up to the applicable medical benefits amount. That insurance company can then, seek reimbursements from the other insurance company. Also, if a person is injured in an auto accident during their employment, workers' compensation coverage is the primary source of medical benefits coverage.

F. Persons Who Do Not Qualify for Medical Benefits

Under Pennsylvania law, certain classes of drivers do not qualify for medical benefits, even though they have purchased auto policies. They include motorcycle drivers, snowmobile, motorized bike, and four wheeler operators. Also, the owner of a registered auto who fails to purchase auto insurance can not make a claim for medical benefits. For example, a person may own a registered car, but then fails to obtain insurance for it. If that person becomes injured while a passenger in a friend's car, they can not make a claim for medical benefits under the friend's auto policy. These classes of drivers must use their own medical / health insurance to pay for any medical bills incurred as a result of an accident.

For more information visit http://www.thepanjinjurylawyers.com/practice_areas/new-jersey-car-accident-attorney-pennsylvania-truck-wreck-lawyer.cfm

Posted in general | Tagged , , | Comments Off on The Nuts and Bolts of Auto Law in Pennsylvania

Your Homeowners Insurance May Not Cover Woodpecker Damage

Meet Amy, City Girl that became a small town resident upon her marriage to George. The stark difference between living in the very center of urbanized civilization and township dwelling was somewhat of an adjustment for Amy. Sure she loved the sights and sounds of nature exposed: the lake, the trees, grass, flowers and the vibrant color of winged birds. Nonetheless, how she missed the hustle and bustle and – yes – even the noise of what she had always recognized as the center of commercial shopping, auto and bus traffic – honking included – and life as she had been bred to appreciate!

Though noise has always been the core of her existence, the incessant pecking on the side of her roof in small town America where she currently had set up residence did absolutely no good for her nerves. Five o’clock in the morning, you see was far too early for a woman of the world such as she to be rudely awoken from her slumbering state. And the fact that the pecking was coming from a fine feathered ‘friend’ known most commonly as the woodpecker did little to placate her uneasiness.

Then came the crunch that really threw Amy off. It appeared as the bothersome woodpecker had begun to incur damage on her lovely home! But nothing could appease Amy when she discovered that her standard homeowners insurance policy did not even cover the damages and losses she now suffered!

“You see, Ma’am,” explained the nice insurance agent, “insurance companies simply do not cover general home liability that has been wrought through negligence. In fact, they view woodpecker damage as something that could have been avoided through proper home maintenance.”

If only Amy had known! She most certainly would have confronted the little peril with a vengeance. Now it appeared that it was too late and she and her husband would have to bear the losses through out of the pocket expenditures.

They say life is a great teacher. Amy knows better than most.

“Learn from me,” says Amy, former city dweller. “Don’t let pests get the better of you or your home risks will!”

How does one tackle a woodpecker problem? There are a number of hands-on methods:

• Go out and purchase a tool that’s on the market in regard to woodpecker deterrence.

• Surround outside home spots that connect to the roof with wired fencing.

• Attach colorful tape below roof and around the roof’s gutters.

• Seal attic holes and house siding with caulk or other materials.

• Hire a pest eliminating firm to take care of the problem.

• Explore your own creative to tackle the nasty wood-pecking problem.

Ask Amy. She’ll tell you forearmed is indeed forewarned: speak to an independent insurance agent about your homeowners insurance policy to make sure it is tailored to your needs.

Posted in general | Tagged , , | Comments Off on Your Homeowners Insurance May Not Cover Woodpecker Damage

Insurance Law – An Indian Perspective

INTRODUCTION

"Insurance should be bought to protect you against a calamity that would otherwise be financially devastating."

In simple terms, insurance allows someone who suffers a loss or accident to be compensated for the effects of their misfortune. It lets you protect yourself against everyday risks to your health, home and financial situation.

Insurance in India started without any regulation in the Nineteenth Century. It was a typical story of a colonial epoch: few British insurance companies dominating the market serving mostly large urban centers. After the independence, it took a theatrical turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. It was only in 1999 that the private insurance companies had been allowed back into the business of insurance with a maximum of 26% of foreign holding .

"The insurance industry is awful and can be quite intimidating." Insurance is being sold for almost anything and everything you can imagine.

Concepts of insurance have been extended beyond the coverage of tangible asset. Now the risk of losses due to sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered.

But if a person thoughtfully invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss as soon as the amount of damage is ascertained.

The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. The collective experience of the other countries in Asia has already deregulated their markets and has allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon.
The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is primarily of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employer's liability, and insurance of motor vehicles, livestock and crops.

LIFE INSURANCE IN INDIA

"Life insurance is the heartfelt love letter ever written.

It calms down the crying of a hungry baby at night. It relieves the heart of a bereaved widow.

It is the comforting whisper in the dark silent hours of the night. "

Life insurance made its debut in India well over 100 years ago. Its salient features are not as widely understood in our country as they bought to be. There is no statistical definition of life insurance, but it has been defined as a contract of insurance wheree the insured agreements to pay certain sums called premiums, at specified time, and in consideration thereof the insurer agreed to pay certain sums of money on certain condition Sand in specified way upon happening of a particular event contingent upon the duration of human life.

Life insurance is superior to other forms of savings!

"There is no death. Life Insurance exalts life and defeats death.

It is the premium we pay for the freedom of living after death. "

Savings through life insurance guarantee full protection against risk of death of the saver. In life insurance, on death, the full sum secured is payable (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

The essential features of life insurance are a) it is a contract relating to human life, which b) provides for payment of lump-sum amount, and c) the amount is paid after the expiration of certain period or on the death of the secured . The very purpose and object of the assured in taking policies from life insurance companies is to safeguard the interest of his dependents viz., Wife and children as the case may be, in the even of premature death of the secured as a result of the happening In any contingency. A life insurance policy is also generally accepted as security for even a commercial loan.

NON-LIFE INSURANCE

"Every asset has a value and the business of general insurance is related to the protection of economic value of assets."

Non-life insurance means insurance other than life insurance such as fire, marine, accident, medical, motor vehicle and household insurance. Assets would have been created through the efforts of owner, which can be in the form of building, vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency, it is subject to many risks ranging from fire, allied perils to theft and robbery.
Few of the General Insurance policies are:

Property Insurance: The home is most valued possession. The policy is designed to cover the various risks under a single policy. It provides protection for property and interest of the insured and family.

Health Insurance: It provides cover, which takes care of medical expenses following hospitalization from sudden illness or accident.
Personal Accident Insurance: This insurance policy provides compensation for loss of life or injury (partial or permanent) caused by an accident. This includes reimbursements of cost of treatment and the use of hospital facilities for the treatment.

Travel Insurance: The policy covers the insured against various eventualities while traveling abroad. It covers the insured against personal accident, medical expenses and repatriation, loss of checked baggage, passport etc.

Liability Insurance: This policy indemnifies the Directors or Officers or other professionals against loss arising from claims made against them by reason of any wrongful act in their Official capacity.

Motor Insurance: Motor Vehicles Act states that every motor vehicle plying on the road has to be insured, with at least Liability only policy. There are two types of policy one covering the act of liability, while other covers insurers all liability and damage caused to one's vehicles.

JOURNEY FROM AN INFANT TO ADOLESCENCE!

Historical Perspective

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British . Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.

Insurance regulation form began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20's and 30's desecrated insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grows at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provincial societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development.

The (non-life) insurance business continued to prosper with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies – National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

The life insurance industry was nationalized under the Life Insurance Corporation (LIC) Act of India. In some ways, the LIC has become very flourishing. Regardless of being a monopoly, it has some 60-70 million policyholders. Given that the Indian middle-class is around 250-300 million, the LIC has managed to capture some 30 odd percent of it. Around 48% of the customers of the LIC are from rural and semi-urban areas. This probably would not have happened to the charter of the LIC not specifically set out the goal of serving the rural areas. A high saving rate in India is one of the exogenous factors that have helped the LIC to grow rapidly in recent years. Despite the saving rate being high in India (compared with other countries with a similar level of development), Indians display high degree of risk aversion. Thus, nearly half of the investments are in physical assets (like property and gold). Around twenty three percent are in (low yielding but safe) bank deposits. In addition, some 1.3 percent of the GDP are in life insurance related savings vehicles. This figure has doubled between 1985 and 1995.

A World perspective – Life Insurance in India

In many countries, insurance has been a form of savings. In many developed countries, a significant fraction of domestic saving is in the form of donation insurance plans. This is not surprising. The prominence of some developing countries is more surprising. For example, South Africa features at the number two spot. India is nestled between Chile and Italy. This is even more surprising given the levels of economic development in Chile and Italy. Thus, we can conclude that there is an insurance culture in India since a low per capita income. This promises well for future growth. Specifically, when the income level improvements, insurance (especially life) is likely to grow rapidly.

INSURANCE SECTOR REFORM:

Committee Reports: One Known, One Anonymous!

Although Indian markets were privatized and opened up to foreign companies in a number of sectors in 1991, insurance remained out of bounds on both counts. The government wanted to proceed with caution. With pressure from the opposition, the government (at the time, governed by the Congress Party) decided to set up a committee headed by Mr. RN Malhotra (the then Governor of the Reserve Bank of India).

Malhotra Committee

Liberalization of the Indian insurance market was filed in a report released in 1994 by the Malhotra Committee, indicating that the market should be opened to private-sector competition, and eventually, foreign private-sector competition. It also investigated the level of satisfaction of the customers of the LIC. Inquisitively, the level of customer satisfaction appeared to be high.

In 1993, Malhotra Committee – chaired by former Finance Secretary and RBI Governor RN Malhotra – was formed to evaluate the Indian insurance industry and recommend its future course. The Malhotra committee was set up with the aim of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the needs of the economy keeping in mind the structural changes currently occurring and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for Similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:

O Structure

Government bet in the insurance Companies to be bought down to 50%. Government should take over the holdings of GIC and its affiliates so that these affiliates can act as independent corporations. All the insurance companies should be given greater freedom to operate.
Competition

Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.

O Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance – a part of the Finance Ministry- should be made Independent.

O Investments

Compulsory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its affiliates are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time).

O Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new competitors could ruin the public confidence in the industry. Here, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores.

The committee felt the need to provide greater automation to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body – The Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has meticulously stuck to its schedule of framing regulations and registering the private sector insurance companies.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken at the same time to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of enterprises for attending training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.

The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity lid for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001

Mukherjee Committee

Immediately after the publication of the Malhotra Committee Report, a new committee, Mukherjee Committee was set up to make concrete plans for the requirements of the newly formed insurance companies. Recommendations of the Mukherjee Committee were never disclosed to the public. But, from the information that filtered out it became clear that the committee recommended the inclusion of certain ratios in insurance company balance sheets to ensure transparency in accounting. But the Finance Minister owed to it and it was argued by him, probably on the advice of some of the potential competitors, that it could affect the prospects of a developing insurance company.

LAW COMMISSION OF INDIA ON REVISION OF THE INSURANCE ACT 1938 – 190th Law Commission Report

The Law Commission on 16th June 2003 released a Consultation Paper on the Revision of the Insurance Act, 1938. The previous exercise to amend the Insurance Act, 1938 was amended in 1999 at the time of enactment of the Insurance Regulatory Development Authority Act, 1999 IRDA Act).

The Commission undertook the present exercise in the context of the changed policy that has permitted private insurance companies both in the life and non-life sectors. A need has been felt to toughen the regulatory mechanism even while streamlining the existing legislation with a view to removing portions that have become superfluous as a consequence of the recent changes.

Among the major areas of changes, the Consultation paper suggested the following:

A. Merging of the provisions of the IRDA Act with the Insurance Act to avoid multiplicity of legislations;

B. Delegation of redundant and transitory provisions in the Insurance Act, 1938;

C. Amendments reflect the modified policy of permitting private insurance companies and strengthening the regulatory mechanism;

D. Providing for stringent norms regarding maintenance of 'solvency margin' and investments by both public sector and private sector insurance companies;

E. Providing for a full-fledged grievance redressal mechanism that includes:

O The constitution of Grievance Redressal Authorizations (GRAs) comprising one judicial and two technical members to deal with complaints / claims of policyholders against insurers (the GRAs are expected to replace the present system of insurer appointed Ombudsman);

O Appointment of adjudicating officers by the IRDA to determine and levy penalies on defaulting insurers, insurance intermediaries and insurance agents;

O Providing for an appeal against the decisions of the IRDA, GRAs and adjudicating officers to an Insurance Appellate Tribunal (IAT) concluding a judge (sitting or retired) of the Supreme Court / Chief Justice of a High Court as presiding officer and two other members Having sufficient experience in insurance matters;

O Providing for a statutory appeal to the Supreme Court against the decisions of the IAT.

LIFE & NON-LIFE INSURANCE – Development and Growth!

The year 2006 turned out to be a momentous year for the insurance sector as regulator the Insurance Regulatory Development Authority Act, laid the foundation for free pricing general insurance from 2007, while many companies announced plans to attack into the sector.

Both domestic and foreign players robustly pursued their long-pending demand for increasing the FDI limit from 26 per cent to 49 per cent and towards the fag end of the year, the Government sent the Comprehensive Insurance Bill to Group of Ministers for consideration amid strong reservation From Left parties. The Bill is likely to be taken up in the Budget session of Parliament.

The infiltration rates of health and other non-life insurances in India are well below the international level. These facts indicate immunity growth potential of the insurance sector. The hike in FDI limit to 49 per cent was proposed by the Government last year. This has not been operationalized as legislative changes are required for such hike. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have tipped into the Indian market and 21 private companies have been granted licenses.

The involvement of the private insurers in various industry segments has increased on account of both their capturing a part of the business which was earlier underwritten by the public sector insurers and also creating additional business boulevards. To this effect, the public sector insurers have been unable to draw upon their inherent strengths to capture additional premium. Of the growth in premium in 2004-05, 66.27 per cent has been captured by the private insurers despite having 20 per cent market share.

The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2004-05 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); And Rs.56637.16 crore (68.36 per cent), respectively. In the year 2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Although it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.

The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in a favorable growth in total premium both for LIC (18.25 per cent) and to the new insurers (147.65 per cent) in 2004-05. The higher growth for the new insurers is to be viewed in the context of a low base in 2003- 04. However, the new insurers have improved their market share from 4.68 in 2003-04 to 9.33 in 2004-05.

The segment wise break up of fire, marine and miscellaneous segments in case of the public sector insurers was Rs.2411.38 crore, Rs.982.99 crore and Rs.10578.59 crore, ie, a growth of (-) 1.43 per cent, 1.81 per cent And 6.58 per cent. The public sector insurers reported growth in Motor and Health segments (9 and 24 per cent). These segments accounted for 45 and 10 per cent of the business underwritten by the public sector insurers. Fire and "Others" accounted for 17.26 and 11 per cent of the premium underwritten. Aviation, Liability, "Others" and Fire recorded negative growth of 29, 21, 3.58 and 1.43 per cent. In no other country that opened at the same time as India have foreign companies been able to grab a 22 per cent market share in the life segment and about 20 per cent in the general insurance segment. The share of foreign insurers in other competitive Asian markets is not more than 5 to 10 per cent.

The life insurance sector grew new premium at a rate not seen before while the general insurance sector grew at a faster rate. Two new players entered into life insurance – Shriram Life and Bharti Axa Life – taking the total number of life players to 16. There was one new entrant to the non-life sector in the form of a standard health insurance company – Star Health and Allied Insurance, taking the non-life players to 14.

A large number of companies, mostly nationalized banks (about 14) such as Bank of India and Punjab National Bank, have announced plans to enter the insurance sector and some of them have also formed joint ventures.

The proposed change in FDI cap is part of the comprehensive amendments to insurance laws – The Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999. After the proposed amendments in the insurance laws LIC would be able to maintain reserves while insurance companies Would be able to raise resources other than equity.

About 14 banks are in queue to enter insurance sector and the year 2006 saw several joint venture announcements while others scout partners. Bank of India has teamed up with Union Bank and Japanese insurance major Dai-ichi Mutual Life while PNB tied up with Vijaya Bank and Principal for foraying into life insurance. Allaabad Bank, Karnataka Bank, Indian Overseas Bank, Dabur Investment Corporation and Sompo Japan Insurance Inc have tied up for forming a non-life insurance company while Bank of Maharashtra has tied up with Shriram Group and South Africa's Sanlam group for non-life insurance venture .

CONCLUSION

It seems cynical that the LIC and the GIC will wither and die within the next decade or two. The IRDA has taken "at a snail's pace" approach. It has been very cautious in granting licenses. It has set up fairly strict standards for all aspects of the insurance business (with the probable exception of the disclosure requirements). The regulators always walk a fine line. Too many regulations kill the motivation of the newcomers; Too relaxed regulations may admit failure and fraud that led to nationalization in the first place. India is not unique among the developing countries where the insurance business has been opened up to foreign competitors.

The insurance business is at a critical stage in India. Over the next couple of decades we are likely to witness high growth in the insurance sector for two reasons namely; Financial deregulation always speeds up the development of the insurance sector and growth in per capita GDP also helps the insurance business to grow.

Posted in general | Tagged , , | Comments Off on Insurance Law – An Indian Perspective

Rental Property – The Responsibilities of the Renter and the Owner

When you rent someone’s property, it’s good to know how what your responsibilities are in order not to have inconvenient situations. When some people rent someone else’s property they think that they are responsible only for a few little things and the rest of responsibilities should be taken care by a leasing agent. But usually it is vice versa. When someone rents a house or apartment, they are usually obligated to sign a contract where all the responsibilities of leasing agent and renter are fully described. In case if something happens both parties understand what they are responsible for.

Responsibilities Of Renters

Normally, renters bear responsibility for the area that is around their apartment and for the apartment itself. Usually, these are areas inside the apartment as well as their backyard. So this includes common sense responsibilities and rules of maintenance and cleanliness of the area. Such things such as repairing certain parts of the interior or the exterior or painting the walls are the responsibilities of the renter.

But still, this is not it. Renter is responsible for some other things in leasing agent’s house. If something happens with the bathrooms, the renter is also responsible for fixing it if it’s possible. But if such things happen and that renter doesn’t feel comfortable to accomplish this job she might contact the maintenance contractor for proper help.

Renters must know their responsibilities and always show respect to other renters in their area and not cause damage intentionally. Not picking up trash after yourself if you left it somewhere is the same as intentional littering. Renters that don’t follow these rules are fully responsible for their actions and might be forced to pay fines.

Responsibilities Of Leasing Agents

If something happens with that exterior of the building or the equipment is not working properly then it is the responsibility of the leasing agent. Leasing agent is always supposed to take care of his renters and make sure that they are always provided with all the necessary utilities and that everything is working properly in his apartment. For instance, if problems with water occur in the apartment then the leasing agent he supposed to contact maintenance staff.

And also, one more of responsibilities of a leasing agent taking care of public areas. This is usually that surround that area of the apartment, such as grassy parts of the land.

So basically, the leasing agent is always has to take care of his renters and make sure they don’t have any complaints or concerns. If the leasing agent doesn’t pay attention to any complaints that he’s renters might have, this may lead to having problems with clients or with the local housing authority. Again, if the client or the renter is not provided with what he expected and paid for, he will be very disappointed about the maintenance service. In these cases renter might call a maintenance company to resolve the situation and bill the expense to the owner.

So before you rent an apartment to a renter as a leasing agent make sure that both of the above are working fine. A renter faced with this kind of problems, can contact the department of housing and ask them to provide advice what to do in this situation.

In some cases, leasing agents may break their rules of that agreement and disobey points of the contract. The department of housing is usually responsible for enforcement in this kind of situation and if the renters still have complaints, they have the authority to force the owner to provide a remedy.

Posted in general | Tagged , , | Comments Off on Rental Property – The Responsibilities of the Renter and the Owner