Pros and Cons of critical ilness insurance

Critical illness insurance is a relatively new type of politics that is often misunderstood. Today it will clarify what it is and what it covers.

How does critical illness insurance work?

Critical illness similar to term life insurance, except that the payout if policies are affected by the disease diagnosed, instead of being paid after death. However, some people confuse this kind of insurance disability insurance to replace your income if you are disabled.

illness insurance than term life insurance, will be paid in a lump sum should you be diagnosed with pre-defined by a disease such as cancer. You decide how this amount will be spent – some put further medical treatment (especially if there are some treatments that are not covered by the provincial health), others decide that the time off work to spend with the family, or tour .

Like many insurance products, this type of insurance plan is an extensive insurance quote, application and underwriting process that analyzes the insurance company before you get a policy; and as with all insurance, critical illness policy comes with both advantages and disadvantages.

Let's take a closer look at the pros and cons of this type of insurance.

Arguments for critical illness insurance

There are many positive aspects:

  1. funds to help if needed: receives a lump sum if you are diagnosed critical illness allows you to better treatments and hopefully a fully recovery in some cases. They also spend these funds for other needs or projects (such as travel or taking items off the bucket list).
  2. protection of their business: If you own a business, you may need to work part-time, after being diagnosed with a critical illness (reduced working hours are common, where a wide range of medical treatment is required). This will close the financial gap created by the reduced hours in the company. The funds, you can hire someone to help businesses.
  3. protect each other Unlike disability insurance, critical illness coverage is "stackable". The disability insurance, coverage is limited because it is based on your income and you will not go over this limit, even if more than one disability policy. It can, however, be more policy coverage amount varies in different diseases. For example, if two political benefits $ 250,000 and $ 300,000, you get a $ 550,000 payout when a claim.

disadvantage of critical illness insurance

  1. Dear This type of insurance is not cheap. As an example, the Term 10 insurance policy is $ 500,000 coverage (Term 10 policy which implies that in 10 years) a 35-year-old, pre-conditions and without non-smoking men costs about $ 180 / month (as an example quotations), while a Term 10 life insurance coverage $ 1 million, the same person costs about $ 50th
  2. Definitions matter: If you are diagnosed with an illness such as a heart attack, not aligned with the definition of the illness, the policy, the claim can not be paid.
  3. does not cover the immediate policy is typically a waiting period (eg 90 days), during which does not cover.
  4. payment is not immediate: If you are diagnosed with a critical illness is "survival time" – (eg 30 days). If you die within that period, the claim is not paid.


Critical illness insurance provides solid coverage is unexpectedly diagnosed with a serious illness, but it comes at a cost of coverage. It's a good idea to work with an insurance agent to get a quote and apply critical illness insurance policy. Brokers have access to many insurance companies, and help you navigate through the complicated application process, especially when the medical prerequisites.

Source by Alexey Saltykov

Royal Entrepreneurship – The case of the Royal Bank Zimbabwe Ltd Formation

The deregulation of financial services, in the 1990s led to an explosion in the development of entrepreneurial activity leading banking institutions. This chapter is a case study Royal Bank of Zimbabwe, origin, creation, and explore the challenges that face the founders of the road. The Bank was founded in 2002, but mandatory merged with another financial institution behest of the Reserve Bank of Zimbabwe in January 2005

Business Origins

Any entrepreneurial venture comes from the mind of the entrepreneur. As Stephen Covey's 7 Habits of Highly Successful States, the people, all things are created twice. Royal Bank was created first in the mind Mzwimbi Jeffrey, the founder and thus shaped the experiences and philosophy.

Mzwimbi Jeff grew up in the high density suburb of Highfield, Harare. Upon completion of the Advanced Level he secured a place in the University of Botswana. However, he decided against an academic path at the time because his family faced financial challenges in terms of tuition. It was therefore decided to join the workforce. In 1977, they were offered a job at Barclays Bank as one of the first blacks to penetrate to the industry. At the time, it was the banking sector, which is the preserve of whites, blacks opens. Barclays had a new CEO, John Mudd, who participated in the Africanisation of Barclays Bank in Nigeria. The secondment of Zimbabwe he started the inclusion of blacks in the bank. Mzwimbi first placement was a small farming town of Chegutu in Barclays.

In 1981, a year after independence, Jeff moved Syfrets Merchant Bank. Mzwimbi with Simba Durajadi Jaravaza and Rindt became the first black bankers to break into the commercial banking division. He rose through the ranks until he was transferred to headquarters Zimbank – the main shareholder of Syfrets – where he headed the international division until 1989.

The United Nations co-opted him as a consultant to the Reserve Bank of Burundi and after having satisfied his performance, he called the 1990 winner in this capacity, he advised the launch of the PTA Bank traveler's checks. After consulting project appointed to head the bank to implement the program. He re-emerged and rose to become the Director of Trade Finance with a mandate to advise the bank on how to improve trade between Member States. Member States are considering issues of common currency and a common market in line with the European model. As the IFC and the World Bank unsuccessfully sunk huge amounts of funds into the development of the region, they supported the move to trade finance for development financing. Therefore, PTA Bank, although predominantly a development bank to set up a trade finance department. Craft trade finance strategy at regional level, Mzwimbi and his team visited Panama, where the Central Americans established a commercial financial institution. He studied models and used as a basis for the PTA craft its own strategy.

Mzwimbi returned to Zimbabwe at the conclusion of his contract. He weighed his options. He could come back to the Barclays Bank, but the latest developments presented another option. At the time, Nick Vingirai just returned from a successful launch of a discount house in Ghana. Vingirai, inspired by the Ghanaian experience Intermarket Discount House was established as the first national financial institution. A few years later NMB was established In my William, Francis Zimuto and James Mushore to the ground while one of the main forces behind the bank, Julias Makoni, even outside the country. Makoni had just moved to the IFC for Bankers Trust to facilitate their ownership of financial institutions. Inspired by fellow bankers, a dream took shape Mzwimbi mind. Why should the employee time to become an owner of the bank? After all this time was valuable international experience.

The above evidence shows that the entrepreneurial dream visit come from the success of others as you are. The gained valuable experience Mzwimbi would be critical to entrepreneurial journey. The business idea builds on the experience of the entrepreneur.

First experiments

1990 Mzwimbi approached Jeff Nick Vingirai, who was then president of the newly revived CBZ, the position of CEO. Mzwimbi turned down the offer because he still had some contractual obligations. The post later offered to Gideon Gono, the RBZ governor present.

Around 1994 Julias Makoni (and IFC), who was a close friend of Roger Boka, encouraged by Boka start a commercial bank. Makoni then worked to set up their own NMB. It is possible to start encouraging the ankle, he was trying to test the waters. Then Mzwimbi seen the last of the PTA contract. Boka went over to the recommendation Julias Makoni and asked him to help set up United Merchant Bank (UMB). A careful consideration, the banker Mzwimbi accepted the offer. He argued that it would be an interesting option, however, and did not want to turn down the other way. He worked on the project with the aim of that authorization but quit three months down the line. Some of the methods used, the promoter UMB deemed less ethical banking executive, which does not agree. He left Econet and accepted an offer to help restructure its debt.

Econet While there, he teamed up with former Prime Minister Dr Swithun Mombeshora and others with the intent to establish a commercial bank. The only commercial banks in the country were at this point Standard Chartered, Barclays Bank, Zimbank, Stanbic and CBZ in difficulty. The project is audited by KPMG, and has gained the interest of institutional investors such as Zimné and Mining Industry Pension Fund. However, the Registrar of banks Ministry of Finance, impossible demands. The timing of the application for authorization was unfortunate, because it coincided with the saga of Prime Bank, which some politicians had been involved, which influence peddling accusations. Mombeshora, after unsuccessfully trying to influence the Registrar, asked to slow down the project when he felt that he could be interpreted as putting unnecessary political pressure on it. Mzwimbi claims that the impossible position of Registrar was the reason for backing off of the project.

However, other sources said that when the project was approved that the former minister

demanded that the share will rise to a point where he will be the majority shareholder. He claimed that he claimed this was due to its ability to mobilize the political muscle of the issuance of the permit.

Entrepreneurs do not give up at the first sign of resistance, but looking at barriers to start learning experiences. Entrepreneurs come up with a "do not quit" mind-set. These experiences increase their own -efficacy. Perseverance is critical since failure can occur at any time.

Econet Wireless

The aspiring banker was approached in 1994, a burgeoning telecoms entrepreneur Strive Masiyiwa of Econet Wireless, to advise on financial matters and the restructuring of the company's debt. At the time Mzwimbi thought that he might just be the Econet for four months, and then return to the banking passion. While Econet has become apparent that, if approved, the great disadvantage of the telecommunications company would increase the cost of mobile handsets. This is an opportunity for bankers, he saw that the setting up of a strategic alternative for lease financing districts Econet, which rented equipment to subscribers. The expected four-month authorization Econet pulled in four years, which included a bruising legal fight finally allowed the authorization of the state against it. Mzwimbi commercial banking experience proved useful for his role in the development of Econet. The explosive growth of Econet after the IPO, Mzwimbi helps with the launch of operations in Botswana in 1999, then went to the Moroccan Econet license. At this stage, the dream of owning banks proved stronger than the appeal of telecommunications. The banker has faced some difficult decisions in Econet well financially secure a leadership position, which would expand the network expansion. However, the dream prevailed and left the Econet and headed home from RSA, which was then residing.

Econet day bestowed on him a significant stake in the company, has expanded its world view and taught her crucial lessons entrepreneurial business creation. Despite the continuing severe resistance against the government Masiyiwa Mzwimbi critical lessons taught in pursuing his dream obstacles. There is no doubt that a lot learned from the entrepreneur founder of Econet.

Royal Bank Debut

After returning home in March 2000 Mzwimbi grouped with some friends, and Simba Durajadi Chakanyuka Karas, who has worked for the last attempt to launch a bank. the Credit Institutions Act was updated in 1998, and the new statutory instrument called the bank regulation was not adopted in the light of UMB Bank and Prime mistakes.

They needed to be one of the shareholders, including all of the facilities and equipment prior approval. Earlier, you only need an office and hire a secretary to obtain a banking license. The license will be the basis for approaching potential investors. In other words, it was now necessary that the people there and the setting up of the procurement is a risk of IT infrastructure, labor hire and rental premises without out there that one would obtain the license. Consequently, it was virtually impossible to invite outside investors in the project at this stage.

without external shareholders injecting funds, and minimal capacity for financial partners Mzwimbi accidentally received a significant Econet shares. He used them as collateral to access funds to start Intermarket Discount House finance – acquired equipment, such as ATMs, hired staff and rented premises. Mzwimbi reminds pleaded with the central bank and the Registrar of Banks freaks having to ask permission only when he spent a significant amount of investment – but the Registrar was adamant.

Finally, the Royal Bank's license in March 2002, after the prerequisite checks before the opening of the Central Bank opened its doors to the public four months later.

entrepreneurial challenges

The challenge of funding new companies and previous disappointments not deter Mzwimbi. The risk of its own power, while in other places also help fund a significant risk of institutional equity, have been discussed. This part of other challenges that had to be overcome entrepreneurial banker.

capital structure and regulatory challenges

The new banking regulations placed restrictions on banks' shares as follows:

* Individuals could hold a maximum of 25% of the financial institution's equity
* Non-financial institutions only up to 10%

* Financial institutions, however, could hold up to 100%.

This problem is the Royal Bank sponsors because of the planned Royal Financial Holdings (a non-financial corporations) as the major shareholder of the bank. According to the new regulation, it only lasts a maximum of 10%. The sponsors argue with the Registrar of Banks of these standards in vain. If you need to keep your corporate shares, this meant that the need for at least ten companies belong, who are 10% each. The argument, which is up to 100% was shocking financial institutions, as reported to the trustee the required capitalization of $ 1 million would be allowed to the new law to keep the 100% owner of the bank, of which 100,000 $ .000 capitalization even a non-bank institution which may have had a larger letters, he could not control more than 10%. Mzwimbi team and advised the Registrar of banks to invest in their personal capacities. At this point, the Reserve Bank (RBZ) is simply an advisory basis involved in the registration process is the main contributor to the Registrar of Banks. Although the RBZ agreed Mzwimbi team for the need for the company as a major shareholder due to the long-term existence of a company, as individuals, the Registrar insisted on conditions. Finally, the Royal Bank promoters chose the path of satisficing- and therefore decided to invest as individuals, as a result of the following shareholder structure:

* Jeff Mzwimbi – 25%

* Victor Chandra – 25%

* Simba Durajadi- 20%

* Hard Work Pemhiwa- 20%

* Market Unit Trust International – 2% (the only institutional investor)

* Other individuals – less than 2% each.

The challenge is to get institutional investors was due to the above-mentioned restrictions and the requirement to pump money into the project before it was issued. It discussed TA Holdings, which is ready to take shareholdings in Royal Bank.

So tentatively sponsors already allocated 25% equity Zimné, a subsidiary of TA Holdings. Near the time of registration, the Zimné negotiators have changed. The incoming negotiators changed the terms of investment, as follows:

* wanted to at least 35% of the shares

* The Board and the President of the most important committees – forever.

The promoters of the project were to read this means that usurped and so turned off TA Holdings. However, in retrospect Mzwimbi feel that the decision to release the TA emotional investment and believes that it should have found a way to accommodate and threatened to institutional investors. This would have strengthened the capital base of the Royal Bank.

Credibility Challenges

The main sponsors and top managers of the bank were well known players in the industry. This reduced the trust gap. However, in some corporate customers worried about the bank's shares to be fully in the hands of individuals. They should rather reduce the risk of bank by institutional investors. The new authorization procedure, adversely affecting access to institutional investors. Consequently, the bank prior institutional shareholders holding over the long term. They claim that even the then head of licensing and supervision by RBZ, agreed with the developer concerns that there is a need for institutional investors, but the Registrar of Banks overruled him.

Challenges explosive growth

The long-term plan was the Royal Bank to open ten branch offices within five years. It plans to open three branches in Harare in the first year, followed by branches in Bulawayo, Masvingo, Mutare and Gweru next year. This would be followed by an increase in the number of branches in Harare.

In his analysis, it was believed that there was room for at least four commercial banks in Zimbabwe. The competitor analysis of the industry has indicated that the government was monitoring Zimbank the main competitor, he fought CBZ and Stanbic was not likely to grow rapidly. The major banks, Barclays and Standard Chartered, are likely to reduce their operations. The initiators of the project, the bank has seen extensive international experience nce that when the economy indigenised Africa, these multinational banks dispose of the rural branches. It should therefore position itself to take advantage of this scenario, as it offers itself.

The expected opportunity presented itself earlier than expected. International flight from Standard Chartered Bank CEO Mzwimbi confirmed interest in the stake in the bank disinvestments by making the rumor rounds. Although surprised, multinational bankers agreed to a two-month corporate bank of pre-emptive right of the fifteen branches that are disposed of.

The deal was negotiated lock, stock and barrel basis. If the announcement of the deal was internally where employees resisted and politicized issue. The CEO of Standard Chartered, and then offered to continue periodic basis going through the first seven banks, and the rest later. Since Mzwimbi savvy negotiating skills and determination Standard Chartered to dispose of the branches, the deal has been completed successfully, and a branch of the Royal Bank increased seven stores in the first year of operation. This exceeded the projected growth plan.

By Mzwimbi asks how divine favor, the deal includes property belonging to the bank. Interestingly, the Standard Chartered Bank will no longer lease buildings and so all the small towns they had built their own buildings. They can therefore transfer the business to Royal Bank. The potential deal was a capital built properties because of the $ 400 million purchase price is heavily discounted.

Not long after that Alex Jongwe, the chief executive of Barclays Bank, Royal Bank was close to a deal similar to the acquisition of Standard Chartered rural branches. Barclays offered eight branches, which initially adopted six Royal. Chegutu and chipping were excluded because Royal was present there.

However, after failing to throw the two branches of Barclays, Royal came back and asked "to give them a song." Mzwimbi adopted these two strategic reasons, that the procurement her physical assets (buildings) that he could rent to anyone who has decided to expand into those areas and, secondly, to set up a monopoly in these cities. Over time, the accidental inclusion of real estate in the property business has grown to Royal Bank of prices skyrocketed properties hyperinflation.

one of the main drivers of the economy, agriculture in Zimbabwe. After the failed Land Donor Conference in 1998 and the subsequent land reform program, it is evident that the banks that trade significantly influenced by management.

They sought to leave the small towns because their major customers non-commercial farmers. Strategically acquire these threads when the main source of income would be at risk need to Royal Bank would have to introduce alternative sources of income for the farmers. It is unclear whether this is so in these acquisitions.

The acquisition of Royal branch network increased to 20 and the number of employees to 50. In addition, the growing problems caused by the control system, as well as cultural issues. The highly unionized employees of Standard Chartered antagonistic leadership as the principal Royal culture. This acquisition is a result of the potential cultural challenges. Management checked this with the introduction of Kaplan and Norton Balanced Scorecard system in order to deal with cultural clashes of the three systems.

The challenge is to obtain funding

One of the biggest challenges acquisitions financing structure. During authorizing the Registrar of Banks refused to accept the nearly $ 200 million that was spent on the Royal Bank's capital as supporters. He insisted that this should be recognized as pre-operating expenses, and wanted to see the amount of fresh capital $ 100 million. A change in the rules Mzwimbi challenge for his team. However, the fact that he is a clever deal making strategically devise an arrangement in which the $ 170 million worth of equipment purchased shall be accounted for Royal Financial Holdings and the Royal Bank should be made available for rental basis. It is then sold to the bank, as it has grown. The RBZ was assessed in this decision and has accepted it, and even noted in the inspection report the amount of expenditure prior to the operation of the supporters. The remaining expenditures prior to surgery is not designed nonvoting convertible preferred shares of Royal Bank.

In January 2003, the capitalization of commercial banks increased by $ 500 million and, therefore, it was necessary to control the recapitalization. This coincided with the acquisition of the branch deals. At this stage, the Royal Bank team decided to partially finance the acquisition through conversion of preference shares into ordinary shares, partly by injecting fresh capital to shareholders. Since the bank is now doing well, it bought Royal Financial Holdings in the capital equipment owned, which is already in the lease. This agreement includes the redistribution and balancing Royal Bank shares to meet the legal requirements. In retrospect it can be seen as a strategic blunder to move the equipment from the bank's ownership. Considering the "sale" of assets of Royal Bank ZABG, and if they were stored on the property has been RFH takeover difficult. This highlights the problem sometimes entrepreneurs assessed the asset protection mechanisms, while still small.

However, the RBZ accused of shareholders, depositors' money for recapitalization of the bank. This is partly due to a misunderstanding that the RFH holding in Royal Bank and Royal Financial Holdings so sometimes resulting bills were recorded in the RBZ investigators at the Royal Bank funds. They formed part of the allegations against the alleged fraud and Mzwimbi Durajadi when he was arrested in September 2004. Subsequently, the court cleared them of any fraudulent activity in January 2007

Leadership Challenges

Subsequently Mzwimbi viewing the leadership team to be excellent with a few "weaknesses in the finance department." He has assembled a strong team of different backgrounds bank. The most significant became the founding shareholders as Simba Durajadi the Treasury, the late Sibanda responsible for the lending department. Hit-Ngwabi Bhebhe and British, helped lay a solid foundation for human resource systems for the bank.

However, it was a challenge to find a CFO. The new legal instrument to resume all corporate officers assessment should be made when the request for authorization. They could not promise anyone a job in the current place of work without permission, and send your CV as this reflects badly on the supporters. Finally, an accountant hired without banking experience. Initially, it was thought that this is a stop-gap measure.

The expected growth, but forgot to get back in this department to confirm. Because of these deficiencies, the bank will continue to face challenges in the Ministry of Finance, despite the gallant efforts of the Chief Financial Officer. Oddly enough, when other executives were arrested in the FD was left untouched, and yet all of the issues in question resulted from treasury activities. It seems that in retrospect the FD intimidated incriminating evidence of insurance for others. He was also threatened with arrest.

Successful entrepreneurial growth stage companies need both strong leaders and strong managers. It is not enough to provide strong leadership skills. As Ed Cole said. "It is easier to acquire than to maintain" The role of strong leaders to create the ability to maintain the strength of corporate managers gain. Interestingly, a new area of ​​research, Enterprise Strategy now recognize that both the entrepreneurial and strategic management skills, successful companies.

Strategic Growth Plans

Royal Bank's strategic intent was to create a house full of financial services. The plan includes a commercial bank, discount house, an insurance company, building society and wealth management services. However, later they refined the idea and the plans were dropped at a discount house, having a strong commercial banking powerful treasuryjével would serve the same purpose. A strong asset management relieve the need for a housing allowance.

The major branch network of commercial banks was solid, but need to have a presence in some major centers such as Gweru and Masvingo. The Gweru were unable to find suitable premises. After

The Masvingo, they are fighting areas that were previously earmarked Trust Bank. The Trust Bank is facing challenges, then they abandoned Masvingo. However, under the Royal curator it was when it was the move.

Royal Bank Asset Managers has been courted Finsreal a possible synergies and joint acquisition were hit. It was a solid corporate customer base and very good growth prospects, since it led a skillful entrepreneur. Unfortunately, the deal was canceled at the last moment, when the owner has opted out. After the flop Finsreal, Mzwimbi and his team continued organic growth in asset management. They developed their own company -old Asset Managers – in the last quarter of 2003 at this stage of capital requirements and licensing procedures trustees is fairly simple. Asset managers were quite profitable, with minimal regulatory controls. Regal Asset Managers completed two good offer, namely: a management buyout Screen litho, printing concern and a great deal their first joint demutualization.

The screen lithograph deal had been offered to venture capitalists, but their demands were excessive. This is when Regal Asset Managers has been established and concluded a financing transaction by Royal Financial Holdings (RFH), which is the RFH holding 99% of the screen lithograph which was to off-load handling was stable financial situation . Screen Litho performs very well, and therefore this investment, which proved successful. Entrepreneurial Mzwimbi so diversified financial portfolio in this business.

The building society, Royal eyed First National Building Society (FNBS) and almost signed a memorandum of agreement. Royal Bank is almost ready to transfer the mortgage facility staff FNBS, a close friend, a strong position in society discouraged it has agreed to the deal without betrayed the cause. A short time later came under FNBS curator, citing fraud in the RBZ senior managers. The ever-acquisitive Royal Bank shifted to contractors and trained their guns at Beverly Building Society. Intermarket no longer fulfilled engaged in Beverley. Royal Bank is now competing with African Banking Corporation (ABC), which beat out the agreement, but did not get shareholder authority to complete the deal. Royal Bank then went back to courting Shingai Mutasa TA Holdings in order to increase its main shareholder base. He was enthusiastic about the deal.

Mutasa described the two British owners Beverley and one of the directors sitting on the Beverley Building Society board. Their support would be crucial to the business. However, this process was preceded by events such as incoming superintended RBZ governor's monetary policy and financial sector led to a tailspin.

Some young entrepreneurs approached Royal Bank aims to create support for an insurance company. Since this was in line with the strategic plan to the Royal has not helped, and helped to launch the Regal Insurance. Royal Bank name comes from the Regal Insurance.

After a permit has been acquired ownership disputes and Royal Bank distanced itself from the deal. The young entrepreneurs who have supported Royal Bank lost the company to other shareholders.

The final thrust of the strategic plan is the establishment of a stock broking company. A peculiarity of the stock broking licenses that are not issued to an institution, but a person. International Market had the largest number of stock broking licenses. Mzwimbi close to International Market Stock Broking CEO, who was a friend of obtaining the outlook is one of the stockbrokers and does not seem to have a problem. Ugyanakkor Victor Chando, egyik fő részvényese a Royal Bank, letett az asztalra ő érdeke megszerzése Barnfords értékpapír. Ő ösztönözte, hogy folytassa az üzlet segítségével Royal Bank a terv hozza házon a lehető leghamarabb. Minden Royal Bank foglalkozik lenne most keresztül Barnfords.

Úgy tűnik, hogy a Royal Bank kifejlesztett egy erős étvágy foglalkozik. Az ember kíváncsi, mi lett volna, mint ha vett idő alatt fejlődnek ki az erős és rendszerek kapacitását, mielőtt annyi foglalkozik. Mi lehetett volna kerülni, ha az étvágya foglalkozik már ellenőrzik? A vállalkozók kell gyakorolni hátráltatja azok bővítési annak érdekében, hogy megkötő képességét, és megszilárdítsa a növekedést.

Source by Dr Tawafadza A. Makoni

Car Insurance – Understanding the significance of Car Insurance

Any vehicles in public places as a potential threat to the life of the driver, passengers and pedestrians. It can also cause damage to your own or third-party properties. To hold these probabilities in mind, the car insurance law has made it compulsory for all car owner or driver of the vehicle provided, as well as themselves.

Car insurance is nothing more than a guarantee of financial risks of an accident. Not everyone can afford an unexpected expenditure, as well as legal issues, which are caused by accidents and try to empty your wallet to pay for them all to yourself.

However, car owners who are safe drivers ask why they need car insurance while you have all safety precautions driving – such as seat belts and maintaining enough gap between the car and the one in front and breaking it's time? At the end of the day, if driving carefully and is confident and comfortable behind the wheel, you will not be afraid to meet the accident.

The above question may sound justified, but there is another side to it. Perhaps a careful driver, and follow the safety precautions. But is it really the immune system at all hazards? Accidents happen in all it is not necessary to be a fault of their own. As one of the famous tire brand advertising right when he says: "The roads are full of idiots." Accidents never pre-planned, it just happens a flick of a second. Expenses due to accidental damage are usually high and they cover all the costs of the pocket is a fortune. It is in these situations that the car insurance comes to financial support.

There are several reasons why car insurance is important to prove? Consider a situation where someone or uncontrolled rash driving caused the death of a pedestrian, or damage to the property someone. If the driver is not able to pay for the damage, and if the vehicle is not insured, then he will get the soup. Besides, the physical damage and third-party victims usually involve extensive legal procedures to find the perpetrator, which is also very expensive. They will cover all of these costs if you have a car insurance.

The above points are thus clearly explain why car insurance is made mandatory, not optional. So, if you own a car, there is no ambiguity buy car insurance. Only together all the relevant policies online as per your requirements and the best one to protect yourself, your car and your co-passengers unforeseen event.

Source by Aditya Ram

Why a career in financial services?

The old days of a career in finance provides no more than a back-office record keeping work. The financial person must be understood in the registration of a person organization.

However, the evolution of the role of finance in the business environment has evolved and has become more challenging. In today's financial organizations engaged person decision-making, planning and controlling financial operations involving a much larger role in the business.

within finance, you can find a variety of jobs that are not restricted to the field of accounting. You can explore financial career opportunities in various industries, such as financial services, financial planning, fund management, legal requirements, commercial, financial management, and so on.

They are needed for various tasks that based on completely different skill sets, and you can choose a financial career that suits your personality and skill level.

When analytically oriented, you can opt for a career in risk management, where your task is to measure and manage the risk borne by the bank or financial institution. Alternatively, you can join the insurance industry as an actuary ass where the risk of loss, and the design and the price of new insurance products. These jobs require high-level skills. It is also expected to be very diligent as a small mistake can turn into big losses.

On the other hand, if a very outgoing person and I love meeting people, you may be better suited for the sale of financial assets. You may want to join a bank or an insurance company, and promote their financial products to prospective buyers. A bank, you will be expected to sell financial products such as deposit accounts, credit cards, personal loans, home loans, etc. career in sales, most organizations provide you with a thorough training in sales techniques and common products. You will be expected to become a go-getter with the ability to close deals quickly. Most financial institutions, they are paid a decent salary and a commission based on sales targets.

a lucrative career option trading. As a trader uses, the employer or client funds to trade financial products such as stocks, bonds, currencies and currencies in an attempt to make a profit. Traders studying definition of financial markets and opportunities to make a profit. This is a high-stress job, and requires strong analytical skills and a tough attitude. The trading career is a good paycheck and bonuses and incentives linked to performance.

Although these facilities are some of the important career in finance, people interested in this area to choose from a much wider range of job roles. Good luck financial careers !

Source by Sam Pearson

Car Insurance – Be Careful Before You Buy!

What looks while choosing car insurance?

The most important considerations include the five "C" s. Here is a brief description of each:

claims policy – The real test of the insurance company at the time of the actual insurance claim. It is possible to check if the company is looking at past records, with the resolution. Now is the time to check if your existing insurance in the case be transferred to another insurance company has paid benefits without loss.

coverage – What is the right coverage for you? Usually car insurance to cover liability insurance and Casco. According to the Vehicle Code, mandatory to choose insurance coverage while their injuries is not mandatory. All the usual selection procedure, as cover for damage to third party accidents and mishaps. Most insurance companies 'add-ons' to the basic policy.

Customer Service – Thanks to technology, the insurance policies it off immediately. In addition, other issues such as policy changes or cancellations are processed quickly. In the event of a claim, cashless settlement is available to post-delivery repair bills quickly without the workshop. It is therefore important to check with the insurance company's network this option. The larger the network, the better the opportunities require.

Access Communications – The insurance company's contact information must be easily accessible. If there is a problem of the insured person to be who they need to contact, and the procedure to be followed.

Cost – Last but not least, the price or premium. Car insurance rates based on the "insured declared value" or IDV and speed multiplication, and depends on the car model, the age of the car, daily mileage and the location of the terrain. It is important to determine the correct IDV and select a policy that ensures maximum IDV even if I did not wear a slightly higher fee.

In addition, the following benefits to look for:

No claim bonus – if no claim has been submitted during the insurance period, a non- statement offered a discount at the time of renewal of Casco risk coverage policy. Each successive adjustment-free year the discount is gradually increasing. The point to note is that no claim bonus entitlement is valid, even in the case of acquisition or before the expiry of the deadline for the renewal of existing insurance with another insurer for a new vehicle.

is deductible – drivers with a good record opt for 'voluntary excess' is not deductible to lower premium payments, in addition to the statutory surplus. In the case of compulsory excess, the insured must pay a certain amount if the claim is the next category.

based on car type Premium – If your car has extra security features such as anti-theft alarm system the chance of theft can come lower insurance premium is lower.

insurance renewal time – If you have car insurance is not renewed before the expiry date of the renewal fee may result in loss of coverage, especially if you have an accident, and it also means no discount on the non-claim bonus.

Optional Add-ons – In addition to the basic car insurance, insurance companies will offer a variety of optional accessories. It is important to choose the right approach, and only pay for those. For example, if you have a medical cost coverage or hospital cash cover and make sure that you have a health insurance, which is included in them.

to renew or not to renew – the same insurance provider? When it comes time to renew your car insurance, compare your insurance, what they offer before making a decision. The car insurance industry is very competitive and with the same coverage, you can probably get a better price elsewhere.

last few precautions in mind are:

• Make sure that the original insurance policy. Always buy your car insurance directly from the insurance company or its authorized agents.

• Always get a premium payment receipt.

• When you receive the policy document, check the IDV claims bonus is not deductible for details and to make sure that what you chose. Any discrepancies must be communicated and fixed immediately.

• Make sure you only sign in the form of the proposal and always read before signing

• Do not opt ​​for the monthly payments, as it is more expensive than the annual payments

Remember that car insurance protect you and the passengers in the car for two reasons: claims arising from accidental damage and third party if you are responsible for the accident. Therefore choose with care.

Source by Krishan Dwivedi

Health insurance companies are now biometric technologies to approve or reject the Te coverage

The next time you apply for individual health insurance must be made in the various preliminary evaluation of testing procedures that you reject or accept the insurance you including: testing of blood, urine, presence of alcohol or tobacco, and assess the genetic composition.

individual private healthcare market is the concept of health insurance, medical underwriting. This includes assessing and quantifying the prospective applicant who applies for coverage as a potential liability or professional risk by the insurance underwriter. The process is similar to applying for a loan from a commercial bank. Basically three types of risk screening of the insurer.

(1) Physical risks; The primary concern with regard to the applicant. In this context, the question with regard to the medical condition of the proposed or provided to the family defined by cancer predisposition history.

(2) moral hazard; The potential outcome of the insurer in respect of a waiver request, if there is an explicit or implicit evidence of the applicant participating in hazardous avocations, sports and occupations.

(3) The moral hazard; The insurer will definitely try to avoid speculation ensure an applicant who has a tendency to suicidal tendencies, delinquent behavior, and certain lifestyle habits or intentions.

Years insurers define trust from multiple sub-strategic, cumulative integration of intelligent computers to draw conclusions for the purpose of risk assessment. A new technology is currently funded through the Kaiser University, discovered an experimental phase to determine statistical methodology, and combine all three risk categories during the chorus medical underwriting purposes of using genetically date in real time risk scoring algorithms. This application is a highly interoperable biometric screening more connected healthcare relational databases. The silicon device utilizes infrared heat-sensing touch screen, biometric identification that verifies the integrity of your personal genetic profile of the applicant credentialing he is against federal law enforcement databases for the national automated fingerprint verification systems, and the table is a compilation of DNA repositories razor-sharp precision.


human DNA blueprint contains 23 pairs of chromosomes. One member of each pair of chromosomes comes from their mother and one from their father is. Each cell of a human body contains a copy of the DNA. The vast majority of DNA is no different from individual to individual, but 0.10 percent of the total genome of a person would be individual. This means that 3 million base pairs of DNA. In clinical trials it has proved percentile sensible enough to structurally complex predictive assessment of relevance to an insurance company, including the approximate personal behavioral tendencies and psychological expertise, and expected mortality or morbidity. It has become so familiar with the screening of the risk that a law recently passed to protect the insured employees and applicants discriminatory prejudice to the known genetic information is not discriminatory law. However, the law of the convoluted pretenses, directly or indirectly imposed by the Health Insurance Portability and Accountability Act places some restrictions on the information that can be shared within organizations covered by HIPPA.

What does DNA do with My Health Insurance?

over the past few decades, the insurance carriers began to data warehouses in many popular DNA databases, such as the Integrated Automated Fingerprint Identification System and CODIS mixed use-owned commercial data sets, such as Ingenix medical Computer Network, Intelliscript, Medical Information Bureau, or even compiled by Secure Flight Passenger data Transportation Security Administration. The goal was called, authentication, and the last clause of the electronic health record identity theft, the credibility of the applicant was required to exploit an alibi insurance companies get away with this and, at the same time create a stronger underwriting system. Remember, the next time you visit your family doctor signed a petition form will enable all parties to share knowledge to manage care of your health which gives unique circumstances, special permissions over all parties.

How This New System Works.

made a number of fingerprint ridges and valleys on the surface of the finger. The top layer of the skin ridges of finger segment and the lower segment of the valleys. The ridges form a so-called minutiae points: Ridge endings (where the end of the spine) and ridge bifurcations (where the spine splits). There are many types meticulous exists, including points (very small ridges), Philippines (ridges slightly longer than the points, occupying a central square of two temporarily distinct ridges), lakes, ponds (between empty spaces both temporarily distinct ridges), spurs (one protruding spine degrees), bridges (more than two small ridges connecting adjacent ridges) and crossover (two ridges, which cross each other) .The uniqueness of a fingerprint can be determined by the pattern of ridges and grooves, as well as the detailed points. There are five basic fingerprint patterns: arch, tented arch, left loop, right loop and whorl. Loops make up 60% of all fingerprints, spirals around 30%, 10% and arches. Acc generally considered to be unique, it is not exactly the same characteristics of the skin spine with two fingers. The biometric device measures the kinetic heat frequencies tap an applicant spread minutia points and automate the encryption key query ridges recognition by invitation to hold an encrypted interface terminal control program. Basically, it presented to him on the basis of the examiner to inquire about information and wait for a response from the remote mainframe computer closeness. I do not know about you, but somehow the thought, the data travels through a typical client / server architecture does not feel good at all. Just imagine all the errors that could go wrong. The new system is ripe for exploits addition to all levels of society all rights invading the privacy of citizens, and not even eligible for coverage.

is something I Can Do

If you do not want the insurance companies to have access to in the sensitive personal health information about many other things, such as financial prowess, consumption, personality or lifestyle the first thing you should do is to avoid the use of at Kaiser permanent and insurers in other Member companies owned by the National Electronic Information Corporation, it's bad enough we have to be ordained by the medical Information Bureau only that, even just for health insurance in the first place .

The second thing you can do is to visit our website to find more health insurance information or simply leave information (the solitude, you will not have to leave in order to protect any other information not feel comfortable to share ) We will be happy to quote a competitive Major Medical insurance carriers, who are not involved in this practice. Not all insurance carriers are involved in this type of screening tests but will probably want to avoid the carriers do when you have a system, and that the one place you do not want if you value your health and how much you spend on it.

Source by Carlos Diez

home insurance should not cover Woodpecker Damage

Meet Amy, City Girl has that small town residents after the marriage of George. The sharp difference between urban civilization and live in the middle of a town house a bit of adjustment Amy. Sure, you love the sights and sounds of nature subject to: the lake, the trees, the grass, the flowers and the bright colors feathered birds. Nevertheless, he missed the buzz and – yes – even the noise that you have always recognized commercial shopping centers, auto and bus traffic – contains honking – and life as he has been bred to appreciate!

Although the noise has always been the essence of its existence, the incessant hierarchy roof side of his small town America, where it currently has set up residence in anything good for the nerves. At five o'clock, you see a woman in the world too early, as he did to her rudely awakened dormant state. And the fact that the hierarchy comes the fine-feathered "friends" commonly known as the woodpecker did little to placate confusion.

Then came the crisis, which really threw off Amy. It seemed annoying woodpecker began to damage her beautiful home! But there is nothing to appease Amy, when he discovered that a standard homeowners insurance does not cover the damage and he is now for it!

"You see, ma'am," explained a nice insurance agent, "Insurance companies simply can not cover the overall home responsibilities, which woodpecker damage that could have been avoided adequate housing to see wrought iron negligence. Actually."

If you only have Amy! He will certainly have to face the dangerous little revenge. Now it seemed that it was too late, and she and her husband would have to bear the losses of pocket expenses.

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

"Learn of me," says Amy, a former city dweller. "Do not let pests get better or you risk your home!"

How to deal with the problem woodpecker? There are a number of practical methods:

• Go out and buy a tool that the market in respect of woodpecker deterrents.

• Surround outside the dwelling places that connect the roof-wire fence.

• Install attic colored ribbons and the entire roof gutters.

• Seal holes and attic of the house was standing next to seals and other materials.

• Hire eliminating the pest company to take care of the problem.

• Discover your creative management of the ugly tree hierarchy problem.

Ask Amy. He explains, actually warned forearmed: an independent insurance agent to talk to your homeowners insurance to make sure it is tailored to your needs.

Source by M Wyzanski

Globlization and its impact on the insurance industry in India


The "fear" only four alphabets, like love, but both are very different in this sense. Whatever man (mishap) woman have families that love always begins with the background of fear. In general, so many have been asking themselves what would happen if we were not there, but continued to ask, rather than doing something about it. Time is precious, you do not stop at all and we live in a world of uncertainty; the uncertainty of work, the instability of the currency, the instability of the property and so the story continued throughout the life of a man.

a thriving insurance sector is vital to any modern economy. On the one hand, it encourages the habit of saving, and secondly because it provides a safety net in rural and urban enterprises and productive individuals. And perhaps most importantly, to generate long-term sources of invisible infrastructure building. The nature of the insurance business is to provide the cash flow of companies, until the payment is deferred and emergency-related.

This feature allows the business to insurance companies are the largest investors in long-gestation infrastructure development projects, all developed and emerging countries. This is the most compelling reason why the private sector (and foreign) companies, which will spread the habits of social insurance and consumer interests are urgently needed in this vital economic sector. Opening the insurance private sector including foreign participation as a result of a variety of opportunities and challenges in India.

life insurance market

The life insurance market in India is underdeveloped market, which just tapped the state-owned LIC till the entry of private insurers. After the penetration of life insurance products and 19 percent of the total population of 400 million can be ensured. insurance tax as the state-owned LIC sold a means, not a product that protection. Most customers were provided with low elasticity or lack of transparency in the products. The entry of private insurers in the rules of the game have changed.

The 12 private insurers in the life insurance market has been gripped by nearly 9 percent of the market for premium income. The new business premium of 12 private operators Rs 1000 crore tripled in 2002 to 03 last year. Meanwhile, having regard to the state-owned LIC new premium business fell.

Innovative products, smart marketing and aggressive marketing. This triple whammy combination that has enabled fledgling private insurance to sign up Indian customers faster than anyone had expected. Indians, who have always seen life insurance tax saving device suddenly turns to the private sector and snapping up new, innovative products to offer.

The growing popularity of private insurers prove otherwise. They are squeezing money from new niches to which they preside. State-owned enterprises still dominate segments like endowments and money back policy. But the pension or annuity products business, private insurers have been twisted more than 33 percent of the market. And the popular unit-linked insurance schemes are practically a monopoly, more than 90 percent of customers.

Private insurers also seem to have great defense in other ways- persuading people to make up the larger policy. For example, the average size of about a life insurance policy before privatization Rs 50,000. It has grown to about Rs 80,000. But the private insurance companies ahead in this game, and the average size is around Rs 1.1 lakh policies Rs 1.2 lakh- way higher than the industry average.

Buoyed by a faster than expected success, rapid transmission of nearly all private insurers in the second phase of the expansion plans. There is no doubt that the aggressive stance of private insurers is already paying rich dividends. But the rejuvenated LIC is also trying to fight to woo new customers.

Insurance today

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor RN Malhotra, was formed to evaluate the Indian insurance industry and suggests a future direction. The Malhotra committee was set up with the aim of which is complementary to the initiated reforms in the financial sector.

setting, the Insurance Regulatory Development Authority (IRDA) started reforms in the insurance sector. Then it became necessary, if we compare the insurance premium per capita penetration and per capita will be far behind the rest of the world. The above table gives the statistics for the year 2000

The expected growth in the per capita income of 6% in the next 10 years and the improvement in the level of awareness, the demand for insurance is expected to increase.

As an independent consulting firm, Monitor Group estimates that the growth form Rs. Rs 218 billion. 1003 billion in 2008 estimations seem feasible than the performance of 13 life insurance players in India in the years 2002 to 2003 (up to October based on the first year premium) of Rs. 66683000 LIC that the greatest extent of Rs. 59 187 million. Since LIC now has 2050 branches in 7 zones 5,60,000 strong team of agents.


While the nationalized insurance companies have performed commendable job expansion of the business volume, opening up the insurance industry's own players were needed in the context of the globalization of the financial sector. If the traditional semi public goods and infrastructure industries, such as banking, airlines, telecommunications, energy, etc. The presence of significant private sector continued state monopoly on insurance was indefensible, and that the globalization of the insurance has been previously discussed. The effect has been to create a variety of opportunities and challenges visible form.

The introduction of private sector actors added to the muted colors of the industry. The initiatives of the private players are very competitive, and I have a huge competition in the market monopoly of LIC time. Since the advent of private players in the industry has seen new and innovative measures taken by the players in the sector. The new players have improved the quality of service of insurance. As a result, LIC years of falling down her career. Market share was divided among the private players. While LIC is still 75% due to the impending nature of the insurance sector to private operators enough to compete more of LIC in the near future. LIC's market share decreased from 95% (2002-03), 81% (2004-05). The company is following the rest of the market share in the insurance sector.



player's name in market share (%)

82.3 LIC


2.56 Birla Sun Life






AVIVA 0.79

OM Kotak Mahindra 0.51

ING Vyasa 0.37

AMP Sanmar 0.26

MetLife 0.21

in this case, globalization

a tough battle to expand the market share of private sector life insurance industry, which 14 life insurance companies, 26% lost 3% market share in the state-owned life insurance Corporation (LIC) in the domestic life insurance industry in 2006-07. According to data published Insurance Regulatory and Development Authority, the total fee of 14 companies went up 90% Rs 19,471.83 crore in 2006-07 Rs 10, 252 crore.

LIC total premium of Rs 55 934 crore mobilization was able to maintain a market share of 74.26% during the reporting period. Overall, the life insurance industry in the first year premium grew 110% over Rs 75, 406 crore in 2006-07. The 2006-07 performance threw a few surprises in the ranking of private sector life insurance companies. New entrants such as Reliance Life and SBI Life has shown tremendous growth over 381% and 210% during the year. Reliance Life, which became one of the top five companies in the premium of Rs 930 crore during the year of the year.

Although ICICI Prudential Life Insurance has remained as the No 1 private sector life insurance company during the year. Bajaj Allianz has overtaken ICICI Prudential Monthly terms of market share in March, for the first time. Private operators are not one-time fee Bajaj's market share in March was 29.1% vs. ICICI Prudential 23.8%. Bajaj gained 4.6 percentage points of market share in the distribution of the private sector in FY07.

among private players, SBI Life and Reliance Life is still good, everything is becoming a 4% market share in FY07. SBI Life ascendance growing contribution of ULIP premiums. Another notable developments in the 2006-07 performance has been the expansion of the retail markets for life insurance comapnies. Bajaj Life Insurance Alliannz has added 20 lakh policies while ICICI Prudential has expanded over 19 lakh policies during the year.

Most life insurance policies in force in the world, insurance happens to be a mega facility in India. This is a business growing at the rate of 15-20 percent per year, currently the order of Rs 450,000,000,000th Together with banking services, it adds about seven per cent of the country's GDP. Gross premium collection to-GDP ratio and the available funds by nearly 2 percent to 8 percent of GDP investment in LIC.

Still, nearly 80 percent of the Indian population does not cover life insurance, while health insurance and non-life insurance also falls short of international standards. And this part applies to the population of poor social security and pension systems were just the security of retirement income. This in itself indicates that the enormous growth potential for the insurance sector.

developed and evolved insurance sector is needed for economic development as it provides the long-term resources for infrastructure development and also strengthen the risk-taking ability. It is estimated that India would be in the magnitude of $ 1000000000000 investments needed over the next ten years. The insurance sector to some extent is to enable infrastructure projects to sustain economic growth in the country.

insurance is a federal subject in India. There are two laws that govern the insurance sector of the IRDA ACT 1938 and ACT 1999 The insurance sector in India has become a full circle from being an open competitive market to nationalization and back again in a liberalized market. Follow developments in the Indian insurance sector reveals a 360-degree turn over witness for almost two centuries.

An important milestone in the life insurance business in India

1912: The Indian life insurance companies which are legally, as a first statutes to regulate the life insurance business.

1928: the Indian Insurance Companies Act brought order to the government to collect statistical information on both the life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended the Insurance Act with the aim of protecting the interests of the insurer.

1956: 245 Indian and foreign insurance companies and the central government took over and nationalized. created by Act of Parliament- LIC LIC Act of 1956 capital contribution of Rs. 5 crore to Government of India.

a tough battle to expand the market share of private sector life insurance industry, which is providing 14 life insurance companies, 26% have lost 3% market share in the state-owned Life Insurance Corporation (LIC) in the domestic life insurance industry in 2006-07. According to data published Insurance Regulatory and Development Authority, the total fee for the 14 companies shot up 90% Rs 19,471.83 crore in 2006-07 Rs 10, 252 crore.

LIC premium to mobilize a total of Rs 55 934 crore has been able to maintain its market share of 74.26% during the reporting period. Overall, the life insurance industry in the first year premium grew 110% over Rs 75, 406 crore in 2006-07. The 2006-07 performance threw a few surprises in the ranking of private sector life insurance companies. New entrants such as Reliance Life and SBI Life has shown tremendous growth over 381% and 210% during the year. Reliance Life, which became one of the top five companies in the premium of Rs 930 crore during the year of the year.

Although ICICI Prudential Life Insurance has remained as the No 1 private sector life insurance company Bajaj Allianz has overtaken ICICI Prudential Monthly terms of market share during the year in March, for the first time. Private operators are not one-time fee Bajaj's market share in March was 29.1% vs. ICICI Prudential 23.8%. Bajaj gained 4.6 percentage points of market share in the distribution of the private sector in FY07.

among private players, SBI Life and Reliance Life is still good, everything is becoming a 4% market share in FY07. SBI Life ascendance growing contribution of ULIP premiums. Another notable development in the 2006-07 performance has been the expansion of the retail markets for life insurance companies. Bajaj Life Insurance Alliannz has added 20 lakh policies while ICICI Prudential has expanded over 19 lakh policies during the year.


– a state monopoly little incentive or a wide range of innovative products. It can be seen the lack of categorization of individual products portfolio of LIC and GIC is not a more robust risk products, such as health insurance. More competition in this business incentive for companies to offer several new products and more complex and detailed risk rating.

– This may also result in better customer service and improve the variety and the price of insurance products.

– the entry of new actors to accelerate the spread of both life and general insurance. Measure the spread of insurance penetration and insurance density measure.

– The entry of private institutions, it is expected that the insurance business year roughly 400 billion rupees, more than 20 percent year even if we disregard the relatively underdeveloped sectors of health insurance, pen More importantly, it also provides a great mobalisation the funds can be used for the purpose of infrastructure development, which is a factor taken into globalization insurance.

– more importantly, it also provides a great moblisation the funds can be used for the purpose of infrastructure development, which is a factor taken into globalization insurance.

– it allows the economic interests of foreign companies either itself or its subsidiary or candidates not exceeding 26% of paid-up capital of Indian partners will be operated on as a result of supplementing domestic savings and increasing economic development in the nation. Agreements with various companies has been discussed later in this paper.

– It is estimated that the growth of the insurance sector for more than three times the growth of the economy in India. Thus, business or domestic companies try to invest in the insurance sector. In fact, the growth of the insurance business in India is 13 times the growth of insurance in developed countries. So it is natural that foreign companies will cultivate a very strong desire to invest something in the insurance business in India.

– the most important in the least will create huge employment opportunities in the field of insurance, which is a pressing problem in today's contemporary issues. BEFORE


when new companies started business discussed earlier. Some of these companies have been able to float 3 or 4 products only to achieve a target level of 8 or 10 products. Currently, these companies are not in a position to pose a challenge LIC and all the other four companies operating in the general insurance sector, but if we see the quality and standards of products they issue, it is undoubtedly a challenge for the future. Because of these challenges throughout the environment caused by the challenges of globalization and liberalization of the sector before.

– The current insurer, LIC and GIC, we have created a large group of dissatisfied customers due to the poor quality of service. So there will be no change in the number of large customers LIC and GIC private insurers.

– a large number of LIC policies against the transfer problem, the new insurers to woo them to offer innovative products at lower prices.

– for corporate customers and payments systems group savings schemes may shift their allegiance LIC private insurers.

– there is a probability of exit dynamic young executives in the private insurer LIC, as will be higher than the pay package.

– LIC is overstaffing and the introduction of full computerization of many employees will be redundant. However, they can not be closed ,. Thus, the operating costs can not be reduced LIC. It will be a disadvantage in the competition, as the new insurers will work in small offices and high technology reduce operating costs.

– GIC and four subsidiary companies will face more challenges because the administrative costs are very high due to additional staff. Not because they can reduce their number of service rules.

– Manage your debts strain on the financial resources, GIC and its subsidiaries because it does not meet the mark.

– LIC products and GLC over 60, more than 180 products in its kitty, which has become obsolete in the present context, because they are not suited to the changing needs of customers. Not only that, it is not competent enough to complete the new products offered by foreign companies in the market.

– Reaching the consumer expectations on par with foreign firms such as improved yield and better quality of service, particularly in the area of ​​claims management, issue of the new policy, transfer policy and revival of the policy of a liberalized market is very difficult to LIC and GIC.

– Strong competition for new insurance for consumers gain more -Distribution channels, including agents, corporate agents, bank branches, affinity groups and direct marketing through telesales and interest.

– The market very soon flooded with a large number of products rather large number of insurers operating in the Indian market. Even a limited range of products offered by LIC and GIC, consumers confuse the market. The confusion continued to increase in the face large number of products on the market. The current level of consumer awareness of insurance products is very low. This is so because only 62% of the Indian population is literate, and less than 10% are trained. Even educated consumers are not familiar with a variety of insurance products.

– Insurers face a serious problem for redressal of grievances of consumers' lack of products and services.

– increasing awareness will be completed by a number of legal cases, consumers, insurers are expected to increase substantially in the future.

– Major challenges canalizing the growth of the insurance sector, product innovation, distribution network, investment management, support and education.

Essentials challenges

– Indian insurance industry to the next, to meet the global challenges

– understanding the customer better enable determination of products of insurance companies designing appropriate prices correctly and increase profitability.

– Selection of the right type of sales channel mix together with prudent and effective management of FOS [Fleet On Street].

– an effective CRM system that is ultimately sustainable competitive advantages and build a long term relationship

– or the insurance companies follow the best investment practices and should be a strong asset management companies to maximize their returns.

– insurers need to increase the customer base, semi-urban and rural areas, which offer huge potential.

– Promoting health insurance and e-brokerage business increased.


This is the last one based on the above discussion we can conclude that there is a need to increase justified by the private sector entries operational efficiency, higher density and insurance coverage in the country and greater mobilization of long-term savings, long-gestation infrastructure projects. In the wake of such competition it is essential that government monopolies (LIC and GIC) to quickly add or existing technology, transforming themselves more efficient business lines and operate in a wide. New players should not be treated as a rivalry in government companies but also their objective to complement the growth of the insurance business in India.

* Associate Professor, Department of Commerce, Bharathiar University, Coimbatore-46

e-mail –

** Ph.D Scholar, Department of Commerce, Bharathiar University, Coimbatore. E-mail –

Source by Bala Murugan

Maritime fraud

What is fraud? International trade operations in many semi-exporter, the importer, the ship's owner, charterer, master of the vessel, officers and crew, insurance, banker, broker or freight forwarder. Maritime fraud occurs when one of the parties unfairly favoring other goods or money. In some cases, several of these parties attest to defraud others of collusive behavior. Banks and insurers are often the victims of such scams.

The sinking ship provided over into a high-value non-existent cargo at regular intervals. In periods of economic and political upheaval and depression, the shipping business, events were unusual losses. In the past few years, these and other factors have led to a significant increase in the number of incidents that can be called "maritime fraud."

The types of fraud

Maritime fraud in many of its manifestations and methods open to endless variations. The majority of these crimes can be divided into four categories, such as:

o scuttling ships

o Documentary fraud

o Cargo Thefts

o Fraud in rental boats

scuttling ships

also known as "rust bucket" fraud, it involves fraud against the interests of the meaning of the deliberate sinking ship cargo and hull. The occasional exceptions, these crimes shipowners in a situation where the ship is approaching or at the end of economic life, taking into account the age of the ship, its condition and the prevailing freight market. The offense is intended to the hull insurers alone or against both hull and cargo interests.

For example, the shower may approach it is dishonest exporters and offered to bring the next big freight of ships. The exporter is to arrange the contract and the proposed buyer to open the letter of credit to pay for them in his favor. actually delivered or to be delivered, but the ship owner agrees to supply bills of lading indicate that the goods are loaded on a ship is not goods. bills of lading, together with such other documents as are necessary to negotiate the letter of credit presented to the bank. The banker pay against the documents, not goods. After stating that the cargo description meets the requirements stipulated in the L / C, the bank, under normal circumstances, release of funds under the terms of the L / C

The ship is no longer paid, but non-existent goods leaves port. It does not reach its destination, of course, because they need to lead this lack of cargo immediately to the discovery of the fraud. To avoid this, finally, the ship intentionally sunk in an appropriate place, so as to remove the evidence of a non-existent delivery is too prospect of the end of each test.

The shipowner entering the insurance claim in her hull underwriters and he can share in the revenue from letters of credit from the exporter, so the hapless buyer to proceed losses / non-compliance with the insurance claim to the cargo.

documentary fraud

This type of fraud involving the sale of goods o documentary credit conditions and some or all of the documents specified to be provided by the buyer, the seller to the bank in order to receive payment counterfeited. Bankers' pay against documents. The forged documents to try to cover up the fact that the goods actually do not exist, or that the quality is not ordered by the buyer. If the hapless buyer of goods belatedly aware that no goods arrive, start control, only to find that the ships, or the alleged transport does not exist or some other problem loading port at that time.

Banks deal with documents and goods are not affected them. The bank, which accepts letters of credit under a series of documents, which seems to be a regular on their face, are not bound to the client if the documents turn out to be false or contains false allegations. Thus, the confirming bank is entitled to request documents against the issuing bank and the issuing bank is entitled to receive them from the buyer. Thus, the loss is usually borne by the buyer.

This is precisely to discourage the export-related activities of fraudsters cargo ship that formed GIC approval system. This has been extended to a full load of cargo is imported. The boats usually used by fraudsters: -vessels

flags of convenience


for 15 or 20 years of age

-Usually small vessels 7,000 GRT 10000

[19459002vessels] for having changed their names and owners a few months before the last trip.

Cargo thefts

many versions of the operating mode of the cargo thefts. In a typical example, the ship, having loaded a cargo, and a different path to a port convenience. Such ports of Tripoli, Beitun, Almina, Jouneih, Ras Salaata and others along the coasts of Greece, Lebanon and Suria. The cargo can only discharges and the wharf or in a more sophisticated manner. Such an act is often accompanied by c changed to the name or subsequent scuttling of the ship to hide the evidence of the theft. The whole process of investigation proved difficult as the time of the loss is known, the cargo disappears and the actual recovery products is unlikely. The owners of such vessels are "on paper" set a few days before the surgery.

related fraud rent boats

This is also known as Charter parts fraud. "Creating the rental company is obliged to modest initial financial commitment and are usually subject to little regulation. Depressive conditions shipping market, there is no need for tonnage and the owners are anxious to be avoided in their boats tend to charter them without unknown companies require substantial financial performance guarantee of the lease.

cheat rented turn this situation to his advantage. Having rented a boat on an unsuspecting owner, chartered canvases cargo, knowing that in a depressed economy, shippers will be willing to cut corners in hopes of reducing transport costs and making savings on freight to those goods more affordable tenant provides a basic low freight charges prepaid . you can afford to do as he has no intention of completing the journey.

Shortly after the ship sails in the port of Chartered disappear. You may have paid the first month's rent or maybe you have not paid rents that are due to him. Meanwhile, the ship's owner finds himself meeting with major accounts of the port authorities, ship's itinerary, as well as staff salaries availability and use of the ship. Even worse, you may find that the owner of the ship to ship, failing to load the recipients, they have been arrested, and this leads to lengthy and expensive legal wrangle.

In order for the goods to the destination, suppliers also undertake to pay the shipping plus or agree to cover the costs of diversion and sale of the goods, and then enter the export process from the beginning. Sometimes, when there is no such compromise can be reached, the owner instructs the master to divert his ship and sell the cargo, where it can, and it will be as much a criminal as a tenant.

Prevention precautionary fraud

There are sea against certain basic precautions fraud that commercial interests as an exporter and importer, should be banks and insurance companies, aware and be able to to implement.

exporters and importers

controls and precautions to buy, and sellers can implement the following:

o Caution should be exercised when dealing with unknown party for the first time. Careful studies need to be fixed and their integrity before a binding agreement.

o be proven delivery boat service. In India, GIC approved by ships should be preferred.

o the cargo owners to take care of

    – If the freight is too attractive

    – If the shipowner is owned by one of the ship's only9 & # 39; singleton)

    – If the boat has more than 15 years old.

    – If the ship passed through the various owners.

o Payment irrevocable, confirmed the bank's sale country provides the best assurance of the seller. If the seller has any doubts about the authenticity of the letter of credit, he immediately contact your bank before parting with the goods.

o As for the buyer, it must be ensured that receives the documents he provided in his letter of application.

o as far as the buyer, you need to ensure that he receives the documents stipulated film credit application. Therefore, the buyer must be examined carefully to see which documents are required. For example, an independent "certification loading" significantly increase the protection would be detailed guidance to shipping or freight forwarder to use it. It must be on board at the time of loading of controlling shipments close as possible.

o order to ensure that the theme of cargo is actually loaded in the specified ship, the buyer may require a "report on the ship" an independent third party.

o Meeting of lading or national lines and need to use the sign of "prepaid" clearly the amount of freight bill of lading.

o services of a reliable and well-known freight forwarders, who are also members of the national associations, should be involved.

o buyers and sellers should try to determine whether the ship charter, and who babblers and the owners and are used only to hire agents and reputable institutions.


banks should take the following precautions to maritime fraud.

    o make us Bankers Lloyd shipping index. Important points to check with regard to the ownership of the ship, age, size and main position of the vessel when the bill of lading dated.

    o If such controls are not considered difficult for the bank, because the amount of work involved, it might be a "super service" in additional costs should be considered as an external agent or agents by the actual checks to consumers remains an annual fee.

    o It is necessary to examine ways to improve the use of credit operations computerized and modern business methods.


The marine insurers have to take the following precautions against fraud.

    o If the name of the ship is not known at the point where the insurance is taken, to insure the Institute Classification Clause and the requirement that the ship carrying the goods comply with the provisions of the clause.

    o The insured is obliged to notify the insurers the name of the ship, as it is known. If the ships meet the requirements of clause classifications, paid the standard rate fee. Otherwise, more attracted to the premium of over-age, under capacity, not the classification and registration of FOC.

    o In India, exporters are encouraged to "approved by GIC" export cargo ships to carry out. This system also applies if the import cargo ship brings the total import cargo loads India imports vessels in Singapore, Malaysia and the Far East (excluding Japan and China).

Source by Latha Sundar

Twelve Secrets and Tricks to Buy Life Insurance

first secret you do not spend too much time in a life insurance quote.

Do not be fooled by the low price offers and that – they do not apply to you if you are very healthy. Statistically, only 10% of people who apply actually get the lowest-priced policy. The premium you pay nothing at the end of the initial quote you get online or an agent. Amazing to me how often I see people getting duped an agent who quotes the company X at a lower price than the other agent.

Life insurance policies are the same price no matter who buys! One of the agents or the website quoted a lower premium does not mean anything. Rates are based on a policy of age and health. There are some exceptions to this, however, it is beyond the width of this article.

Most life insurance companies based on a variety of health 10-20 / price, and not an agent or website can assure you the quote given is accurate. It should be applied, then a check up, and then go through underwriting (that is, if the entire mini-exam sister's home, then the company's control medical records and reviews, as well as "gold" for health care) that the real price of the policy. Remember that the health assessment may also play a role in your family history, driving record and the type of occupation there. Only quotes to narrow down the choices to the largest companies. It may be worth without a load or low politics. The more to save on commissions, the more money you accumulate in politics. Whether you buy term insurance without a load, and save a lot of awards. You can not get help from the drug, which is worth something, if you are very good.

The most important factor that determines the price is appropriate for the health history of the company's most niche. For example, Company X may be best for the smokers, cancer survivors Company Y, Company Z, who have high blood pressure, etc.

2. Secret Ignore the hype, the term versus permanent cash value insurance.

go crazy reading what everyone says buy term insurance versus whole or universal life insurance. Big name websites advise that I think borders on fraudulent. Simply put, there is no simple answer is that you need to buy a permanent policy cash value or term insurance.

But I think there is a simple rule – buy term insurance needs of the temporary and permanent cash value insurance needs. I have read various magazines and run my math equations, which basically shows that if there is a need for security after 20 years, it is worth a certain amount of permanent insurance. This is due to the increase in the tax allowance in cash value in a permanent policy. I am divorced and took care of my children I die. Maybe you do not need as much insurance as now. I have earned great return policy, and unpaid taxes. I no longer pay the fees, because we have so much cash in the policy. I let my policy pay for themselves. I would not call most of the life insurance is a good investment. Because I was the right policy, and paid almost no sales commission policy was probably the best investment. I do not own them, so if I die beneficiaries and the money tax-free, tax-exempt property.

Since most people are short-term needs, such as your mortgage or your kids need a home run. In addition, most people want some life insurance in force throughout his life to pay for burial, helping unpaid medical bills and property taxes and so bought with a fixed-term political policy.

3. Secret consider the two companies at once.

Life insurance companies really do not like this "trick" because it gives them the race and increase the subscription costs.

Secret # 4: Avoid prison for life insurance agents.

Find a life insurance agent who represents at least fifty life insurance companies and ask them if more companies showing the best price quotations to each other. Some people try to reduce the agent and only online submissions. Just remember not to save so because the committees are generally obtained only hold the agent of the insurance company or the insurance company's website without having to reduce the premium.

Plus a good agent can help you maneuver through some of the complexity by completing the application that created the beneficiaries, avoid errors by selecting who the owner is, the best way to pay the premium, and will be there to give out the check and help loved ones if life insurance is ever used.

Secret # 5: Consider refinancing old life insurance.

most companies will not tell you, but the price you pay for the old policy will probably come down drastically if in good health. Over the past few years, the life insurance companies updated their predictions about how long people live. Since live longer, they lower their rates quite dramatically. Beware that the agent can obtain the new Commission, so make sure it really makes sense.

really am amazed at how often we see that customers of the old policy twice as expensive as a new. If you need a new life insurance is "refinancing" of the old politics and the old politics of the savings to pay for new policies – so there is no extra out-of-pocket costs. We like to think of this process of "refinancing of life insurance" – just like you can refinance your mortgage.

Secret # 6: Feedback life insurance companies target niches that are constantly changing.

One day the company "X" will give a good price that people who are a little overweight, and next month they are super strict. Company & # 39; Y & # 39; be lenient with diabetes because diabetics are not many books – which means giving a good price for diabetics. However, the company has a "W" may be very high, people with diabetes because they provide a lot of diabetics and fear that too great a risk to the area – which means giving a bad rate of new diabetes patients who apply.

Unfortunately, when applying for a life insurance company will not say, "Hey, we just raised our prices with diabetes." They are just happy to take your money if you are not smart enough to shop around. This is the number one area of ​​an intelligent agent can come in handy. Since continuously use a good multi-company multi-agent deal with the company he will be good, who is currently the least you subscribe to a given situation. The problem is that it is hard work and a lot of agents, or too busy, or not configured to effectively shop around the various signatories immediately and who would be the best deal. This is much harder than just running a quote online.

Secret # 7: Do not forget customer service.

Most people focus on buying insurance with the lowest price and the best financial rating. Unfortunately I know several A + rated companies at a low price who was not affected by the ten-foot pole simply because it is easier to give birth to a porcupine day, then that customer service from them.

before you understood this, I used a life insurance company that gave a customer a high rate, but two years later the client called and said: "I have mailed my payments on time, but only received a notice saying that the policy is gone. " It turned out that the company has been making a lot of mistakes and lost the back office to the charge!

we were able to fix it because the problem is caught so early. But if the customer happens to be dead a short period, the policy is passed, the family might have had a hard time proving that the insurance premium is paid on time, and you may not get the life insurance money – the loss of hundreds of thousands of dollars in case.

Secret # 8: Apply 3-6 months prior to the time you need to ensure, if possible.

do not hurry to make a policy if you already have some coverage in force. But he knew immediately apply to be necessary, shop around for months, if not the first company to get a good rate. Despite the fact that the life insurance industry is becoming automated application still often held up for weeks or months while the insurance company is waiting for the doctor's office for them to mail you a copy of medical records.

If you are in a hurry and buy a makeshift "non-subscription" policy does not go through the entire health checks and underwriting the majority of life insurance company requires, you end up paying 20% ​​-50% more for the insurance company will automatically charge the higher rates because they do not know how healthy or is about to die the next day.

Secret # 9: Avoid buying extra life insurance through work, if healthy.

I'm sure there are exceptions to this "trick", but I rarely agree. By all means keep the free life insurance from the employer. But if you are healthy and you pay through payroll deductions supplementary life insurance will almost certainly paying too much. What happens is that the "overpayment" ends support for unhealthy people in the company who buy life insurance through payroll deduction.

Generally, the life insurance company cut a deal with the employer and forgo the necessary medical examination of all the staff – all the staff were interested only in the average price for one or two offers and the proportion of males and females of a given age. Life insurance companies can pick up a lot of unhealthy clients in this way, so Jack up the price of all that healthy people eventually overpaying to unhealthy employees can get a cheaper policy. Furthermore, contrary to offer the guaranteed term policies, most buy life insurance through work will become more expensive as you get older.

is group life insurance are generally not portable when you retire or change jobs means that if you retire or change jobs you may have to re-apply, even if it is older and probably not so healthy, it risks He rejected the policy. If the group does not plan allows portability is generally limited by the conversion options and force you to go into the expensive cash value plans.

I remember someone help assess the additional life insurance. He was sure that it was a better deal than any of the policy could be found. You did not know that the price of the group's plan would go every year? What would retire the premium rose to more than $ 10,000 / year. I found him a policy for about $ 1000 / year, which will never go up. Also, unlike the old group life insurance could make the individual policy with him when he changed jobs or retired.

Secret # 10: There is a trial application on the basis of the COD payment.

only send money to the request, if you need life insurance coverage immediately. Send a check for the application of a conventional agents used to practice – I think mostly because they have commissions faster. If you send money to claim you usually get temporary coverage right away, but if you already have plenty of cover, and just trying to get better prices check with your agent to do a test application on the basis of the COD so you only pay if the policy is approved. If you do not give money, and then you die before the policy pays no coverage.

Secret # 11: Wear shoes when the nurse to measure the height.

When the insurance company will send a nurse to the condition does not attempt to be as high as possible if you are overweight? In most states it is allowed to wear shoes, and if you are a bit overweight the higher height / weight ratio a little better the signatories, who determine the health rating and the political price. Also not in the exam early in the morning is not the food – it's going to get your cholesterol number and variety of health care at the best rates.

Secret # 12: Be careful, extra benefits and riders.

most of the policy options comes as accidental death benefit, child rider, riders handicap, etc. If you do not return the premium mathematics, most of these "extras" are usually not smart financial sense. Life insurance companies to make money, and these drivers are usually profitable because they do not cover something that rarely happens, or is so severe that the board does not get paid. For simplicity, and in particular the acquisition of a life insurance to cover your life without a lot of it. Again, a good agent can help you weigh the benefits of the extra riders. But be wary of an agent who is trying in every possible direction extra rider.

Source by L Lance Wallach