Insurance

Failure to reach flood insurance deal is 'playing with people's lives'

Residents of Morpeth, Northumberland, who have experienced flooding in the past, could be among those who will find it hard to get insurance. Photograph: John Giles/PA

The chairman of a national charity that helps householders affected by floods has accused the government of "playing with people's lives" as it looks increasingly likely that thousands of homes will be without affordable insurance from July.
Last week environment Secretary Owen Paterson admitted he was disappointed at failing to secure a new agreement over the insurance of homes and businesses at high risk of flooding. The government has been locked in talks with the insurance industry for months over the future of flood cover as the existing agreement – the Statement of Principles – runs out in June 2013. This agreement between the government and the industry obliges insurers to offer flood insurance as part of standard policies at reasonable rates, providing the government invests in flood defences.
The two sides are trying to thrash out a new arrangement, but talks seem to have stalled. In the latest twist to the tale, Paterson raised hopes last week when he was also reported to have said that the Statement of Principles would "almost certainly" be extended beyond June. However, the Association of British Insurers denies this, even though the Department for Environment, Food and Rural Affairs confirmed to The Observer that "a temporary extension is one of the things that is being looked at".
By contrast, an ABI spokesman said: "No, the statement of principles will not be extended. The only way that would happen is if we do reach an agreement before June and the government needs to continue the current arrangement as part of a transitional period while it puts in place legislation. Otherwise, insurance will revert to a free market."
A free market would essentially mean insurers could charge what they like, and many householders would find themselves in effect unable to obtain home insurance.
Charles Tucker, chairman of the National Flood Forum, said: "Shame on them [the government] if they're playing a game of bluff with insurers to see who blinks first. They are playing with people's lives, the value of their property and – ultimately – their sanity. Thousands of people are desperately worried about the cost of insurance in the future. This will continue until there is an agreement."
Diana Johnson, Labour MP for Hull North, an area hit heavily by floods in 2007, said she had repeatedly tried to gain assurances from the government over what will happen next.
"A lot of people are renewing their cover for a period that extends beyond June and are already finding their premiums have shot up hugely," she said. "By not sorting this out, the government is also putting people in a position where they will not be able to sell their homes because those homes cannot be insured."
Insurers have proposed setting a levy on all policy holders of around £8 to create a £150m-a-year fund to cover those at high risk of flooding – but the government is understood to be reluctant to provide any additional funding that could be required on top of this in the case of extreme flooding.

Vehicle Insurance

Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions

Australia

In New South Wales and the Northern Territory Compulsory Third Party Insurance (commonly known as CTP Insurance) is a mandatory requirement and each individual car must be insured or the vehicle will not be considered legal. Therefore, a motorist cannot drive the vehicle until it is insured. A 'Green Slip,'^[2] another name by which CTP Insurance is commonly known due to the colour of the pages which the form is printed on, must be obtained through one of the five licenced insurers in New South Wales. Suncorp and Allianz both hold two licences to issue CTP Greenslips – Suncorp under the GIO and AAMI licences and Allianz under the Allianz and CIC/Allianz licences. The remaining three licences to issue CTP Greenslips are held by QBE, Zurich and Insurance Australia Limited (NRMA). APIA now also supplies CTP but is only for over 50's who are no longer working full-time.
A similar scheme applies in the Australian Capital Territory. Currently, Insurance Australia Limited (NRMA) is the only CTP Insurer in the ACT.
In Victoria, Third Party Personal insurance from the Transport Accident Commission is similarly included, through a levy, in the vehicle registration fee.
In Queensland, CTP is a mandatory part of registration for a vehicle. There is choice of insurer but price is government controlled in a tight band.
In South Australia, Third Party Personal insurance from the Motor Accident Commission is included in the licence registration fee for people over 17. A similar scheme applies in Western Australia.
These state based third party insurance schemes usually cover only personal injury liability. Comprehensive and Third Party Property insurance is sold separately to cover property damage and cover can be for events such as fire, theft, collision and other property damage.
CTP only covers personal injury liability.
Third Party Property Insurance covers damage to someone else's property or vehicle, but not your own vehicle.
Third Party Property Insurance with Fire and Theft is the same as above, but will cover your vehicle in the event of fire or theft normally up to maximum of $5,000.
Comprehensive Insurance covers damage to someone else's property or vehicle as well as your own.

Content From http://en.wikipedia.org/wiki/Vehicle_insurance

National Insurance (United Kingdom)

National Insurance (NI) in the United Kingdom is a system of contributions paid by workers and employers towards the cost of certain state benefits. It was initially a contributory system of insurance against illness and unemployment, and later also provided retirement pensions and other benefits.^[1] It was first introduced by the National Insurance Act 1911, expanded by the Labour government in 1948 and has been subject to numerous amendments in subsequent years.
The contributions component of the system, "National Insurance Contributions" (NICs), paid by employees and employers on earnings, and by employers on certain benefits-in-kind provided to employees. The self-employed contribute partly by a fixed, weekly or monthly payment, and partly on a percentage of net profits above a certain threshold. Individuals may also make voluntary contributions, in order to fill a gap in their contributions record and thus protect their entitlement to benefits. Contributions are collected by HM Revenue and Customs (HMRC) through the PAYE system, along with Income Tax and repayments of Student Loans.
The benefit component comprises a number of contributory benefits of availability and amount determined by the claimant's contribution record and circumstances. Weekly income benefits and some lump-sum benefits to participants upon death, retirement, unemployment, maternity and disability are provided.'
Content From http://en.wikipedia.org/wiki/National_Insurance_%28United_Kingdom%29

Earning Insurance

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

This Content is Originally From Wikipedia