Cheap Insurance Companies and Their Services

To some people, cheap insurance companies are merely a myth, to others a reality they do not ever want to acknowledge, but one fact remains the same. Cheap insurance businesses are a commodity most people do not avail for different reasons. Some are scared that they might end up paying more than advertised others just do not want the extra expense.

It is true that there are quite a lot of insurance businesses out there on the internet that are not cheap at all, as well as insurance companies that are cheap and offer the best service. Then there are also cheap insurance businesses that are not just cheap with awful service (these are the ones you would want to avoid). If you want to save money while spending yet at the same time get the best service you will have to do some search into various cheap insurance companies.

There are two ways to find a good insurance company; online and by roaming around, but there is only one way to get a cheap insurance from a company i. E. Search the internet. The reason is simple, where an insurance company caters to clients across the state or just in your area, an online insurance company caters to people across America, and more business means better competition, which ultimately leads to cheaper and lower rates.

Keeping the above equation I know you will agree that the best deals are to be found online, however if you up and want to do business with the most advertised of insurance dealers, you are surely in for a heart-break. These companies in order to compensate for the high costs of advertisements offer some pretty high rates to their customers.

If you truly are looking for a cheap and reliable rate for your insurance, it would be wise for you go for the moderate kind of insurance businesses. These companies could be anywhere after the first ten or so search results. You can also choose to narrow down your results to your city, state, or even by using your zip code if you are searching for a company locally.

Remember to check on the bare minimum of insurance prerequisite in your state and then go forth with negotiating the essentials before negotiating the rates. Almost every state has some sort of bare minimum for their citizens insurance policies these days and it is entirely up to you to convert this slight problem into a blessing that does the most good for you.

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All About Insurance and How to Find Cheap Insurance

Insurance is very important. The way that insurance works is that a whole lot of people pay a small amount of money into an insurance pool. This pool of money will protect these people against some sort of risk, such as the risk of your car getting stolen. Because many people pay money into the pool, the pool becomes rich and full of money. Then if one person who has paid money into the pool gets their car stolen, then the insurance company will give them money out of the pool. The insurance pool can pay out much more money than that individual person had by himself.

The only reason that insurance works is because the problem that is the risk isn’t so big that it happens to everyone. Just think if everyone who invested money into the insurance pool had a car that got stolen, the insurance company wouldn’t be able to pay everyone out lots of money. Insurance companies spend huge amounts of money paying risk analyzers to work out how much risk is in place. They also pay an effective legal team to stipulate good terms and conditions so that clients don’t take advantage of the insurance company by making false claims.

Of course the bigger the company and the more clients it is, the more likely it is to be able to offer cheap insurance to the buyer. The more people that pay money into the pool, the bigger the pool of money becomes.

Well known companies are also able to offer cheap insurance, because they have a far bigger marketing budget, so they can reach more people and potential clients. It s also good to go with a big company, because they are more likely to be able to pay you out. They have a reputation to uphold.

On the other hand, big insurance companies have very good legal teams, so they might have to get out of paying you, by referring to small print in the contract that you may not have seen. So whenever you buy cheap insurance be sure to read the small print.

It is easy to find cheap insurance nowadays. Many companies are offering great deals. And a simple internet search will have you face to face with insurance quotes in no time at all.

Insurance is available in all sorts of areas. You can get insurance for your possessions such as your house, car or boat. You can also get health insurance or travel insurance. Some Insurance companies offer cheaper insurance packages to women. Some health insurance companies will not cover you if you have pre-existing medical conditions. You also get cheap life insurance or funeral plans.

Some people may want to insure their body parts, for example a hand model may insure her hands, because if she no longer has them she cannot work. You can basically find someone to insure you for just about anything. When you make a deal with an insurer, you are basically saying, in exchange for paying you a small fee, you will take financial responsibility for me if the stipulated event occurs.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance Quotes

How does your decision to compare cheap insurance quotes on the internet help you save precious time and money? The insurance market has become so competitive that it is impossible to identify a single insurance company as the best one around. There are many variable factors including the type of insurance that one wants, income and lifestyle of the individual, the asset that one wants to insure and the amount of premium that one is prepared to pay. In such a scenario, one cannot blame an individual for opting to compare cheap insurance quotes instead of entering the confusing world of insurance analysis.

How do you save money when you compare cheap insurance quotes? If you opt for quotes comparison, chances are very high that you will quickly identify the cheapest and most beneficial insurance policy for your life, car, home or any other asset. You will get a clear tabular analysis which will tell you how much one has to pay for each and every policy under consideration. If you do not compare cheap insurance quotes, you will have to prepare a comparative statement manually. This is next to impossible considering the fact that the average individual is rarely, if ever, conversant with how insurance policies work.

Another reason why one should compare cheap insurance quotes is that it helps save a lot of time. Getting quotes online helps you get all the information you want in a jiffy. You need not visit each and every insurance company’s office just to compare cheap insurance quotes. You need to state the amount of coverage you want and the amount of premium that you will have to pay will be flashed on the screen instantly. You can also get quotes through the telephone. In either case, a lot of time and effort shall be saved. If one considers the gas that one saves by avoiding visits to numerous insurance offices, the benefits of these free insurance quotes become even more significant. Never again will you have to take time out of your busy schedule to complete insurance related paper work. The web will help you take care of all that.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance

Before the invention and wide accessibility of the internet, people had to call around to compare cheap insurance quotes. They could spend hours of their lives on the phone only to find out that the best policy for them was the first one they called. They would then have to call the office back and go through the explanation again. Once they did they still had to go down to the local office and sign paper work and make a payment before they were insured.

Thankfully, times have changed and people don’t have to spend hours on the phone just to find the best rate. Logging on and going to your prospective insurance company takes a lot of time too. So how do you compare cheap insurance quotes to get the best deal on your car insurance? Just go to your favorite search engine instead.

By doing a search to compare cheap insurance quotes you will find a list of sites that offer multiple comparisons right on their site. Generally, these sites are not affiliated with any specific insurance company so you can be assured an accurate comparison.

It’s simple to compare cheap insurance quotes this way. All you have to do is input your information one time. Set the restrictions for coverage type and deductibles and hit the compare/search button. Within seconds a listing of all the major insurance companies will be appear on your screen. You can scroll through them and find the one that has the best coverage at the best price for you.

Often these sites will allow you to purchase insurance directly from them and offer discounts for doing so. By comparing cheap insurance quotes on line through one of the sites will save you time and money.

If you prefer spending endless hours on the phone just to get the best rate go right ahead. Using the internet can take the hassle out of buying car insurance. Who needs another headache when all you’re looking for is the best coverage in your price range?

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Comparing Cheap Insurance Quotes – The Best Trade Off Between Premium and Deductible

Shopping in general involves a lot of decision making. You have to be even more careful and use more analysis when buying insurance irrespective of the type of coverage you are looking for. You have to get an affordable deal that offers sufficient coverage. The best way in which you can do this is to collect as many cheap insurance quotes as possible. You can get this job done in no more than half an hour if you use the services of an online provider that gives you a bunch of offers from different insurers for free.

The more difficult part comes next. You will have to compare the different cheap insurance quotes you have obtained. It is essential for you to look for the most affordable of all deals. Apart from analyzing the rates you should check whether the insurance company offers any discounts that you might be eligible for. More importantly, you have to decide on the trade off between the premium and the deductible you will have to pay. Setting these two costs correctly will allow you to save a lot of money and to manage your budget more efficiently.

The premium is basically the fee that you have to pay annually or monthly for the coverage you get. In case you make a claim on your policy and the insurer approves it you will have to pay a deductible. It can be a set sum, but in most cases it is a percentage of the cost of the claim. You should also keep in mind that with health insurance plans the deductible is fixed and has to be paid once a year. Generally, the higher the deductible is the lower the premium is and vice versa.

You can save a lot by increasing your deductible. This is particularly beneficial when you buy auto and home insurance policies since you will have to incur this cost in an event that may never actually happen. At the same time everything is possible. Thus, it is best for you to set a deductible that you can afford to pay it at any time. You have to decide on how much you would want to increase this cost depending on a number of factors.

The main one is the premium. Generally, the experts recommend to any buyer to accept as high premium as they can comfortably afford. You should do some calculations in order to decide how much of your monthly income you can set aside for insurance. At the same time you have to take into account your savings. They will allow you to determine how much you could afford to take out of your pocket if you made a claim today. If this sum is not very large, you may think twice before setting a way too large deductible.

Overall, it is up to you to decide on the best trade off between premium and deductible. This is an individual decision that you have to take when comparing cheap insurance quotes. You have to make your choice by taking into consideration all relevant factors.

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Low Rate Health Insurance Quotes – Find and Compare Cheap Insurance Rates Online

First, ask your friends around you about the insurance policies, which they are using, but the most important thing to keep in mind is that your friend’s need may be different from the one, which is used by you.

The other thing is that you should not opt for a particular plan just because your friend has recommended to you. Instead, you have to go through the plan carefully and see that the plan provides you with different type of services that you are looking for. After all the research, one could choose a plan and can proceed with the plan.

The advantage for looking out for cheap rates online is the competition that is present among the insurance company’s, and each insurance company is alert of it. If you are looking to have cheap insurance then you have to compare the rates with different companies.

The most important thing to look out for is the zip codes, which are even ten miles from each one can actually have a huge difference in the periodical premium charges that is to be paid. This is also based on cost of livelihood and other factors as well.

If you are making a health insurance online, then you have to fill up the form online, where you have to answer some questions and it is a very fast process. There would be some general questions asked such as the age, the degree of risks, and the terms of premium and there benefits that is offered on the plan.

You can opt for a particular plan, which offers the services and the features, and if you think that, it will help your needs then you can opt for it. Some of them are comfortable with catastrophic insurances that would guard you from costly hospital and medical bills, but cannot have the coverage of doctor’s visits until a huge deductible is met.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Questions to Ask Your Insurance Broker or Any Insurance Representative

We all put up with rising insurance premium because the subject matter of insurance is valuable or in the case of Life insurance, invaluable. It therefore makes sense to ensure that we get value for money and pay only for insurance cover that would serve the purpose when we need it.

The process starts with knowing how to select the right insurance representative. Except you are confident about the insurance product you are buying it is usually a good idea to go through an experienced insurance representative. This could be through an insurance broker or an insurance agent and to ensure you are making an informed decision on the representative to entrust you insurance arrangement with, the following are key questions to ask.

What primary services does the representative provide?

A service level agreement is beneficial in these cases, you want to know upfront the value the representative will add to your insurances. From visiting you to help understand your business and risks to informing you about market conditions.

Are you going to receive information on risk management measures that will positively influence the Insurers and thus reduce your insurance costs?

Will the service include claim management and is the representative prepared to take on old/existing cases?

Does the representative have a Professional Indemnity policy in place?

This is mandatory especially where the professional gives advice and with the potentially huge liability they can incur through acts or omission in carrying out their duties it is crucial that you ask to see evidence of the level of cover in place.

Is the representative able to access insurance products from the whole market or just a selection of Insurers?

It is commonplace in some countries for an insurance agent to be tied to one or just a few insurance companies. Insurance brokers often have more leeway. A truthful response to this question should give you an idea of how competitive the quotes the representative is able to obtain.

Are you able to contact the representative’s existing clients for reference?

You will most probably get names of clients that are most likely to rate them favourably. Randomly and where possible make discrete enquiries from the list provided. These references combined with other information obtained should give a fair insight into the level of service and competency of the firm or individual.

What proof of the representative’s credentials are you able to sight?

This would involve questions on their current membership of any association and whether they are regulated by the industry recognized authority.

You need to know what the certification the management team of the firm hold and also those of key staff who will be dealing with your case (as well as their experience with insurances for businesses akin to yours)

Does the representative have vested interest in any insurance company?

Sometimes enquiring about an insurance representative from its competitor can yield useful information. It is very unlikely that a competitor with heap praise on one another but if more than one competitor independently express adverse views about your agent or broker then there is reason to probe further.

For instance if you are informed that the representative is ‘on the payroll’ of an insurance company, this should definitely be a cause for worry. Like in any business, insurance companies vying for patronage from insurance representatives holding considerable insurance business sometimes use various means to outwit the competition.

It could be in the form of holiday coupons to outright illegal payments on top of the usual commission payment, if a broker has been compromised in any form, the level of professionalism is likely to diminish.

How is the representative remunerated for the service?

Most get paid an insurance commission which vary by class of business. It is not a secret payment as some regulatory authorities stipulate that the client must be informed of the payment.

It is therefore important that you establish whether you will be required to pay for any added services such as management of old claims.

How does the firm rate the insurance companies they decide to place risks with?

There are a few rating agencies that provide information about the top insurance companies. These ratings are not necessarily the only criterion to base the decision on whether to place a risk with an insurance company besides these international rating agencies are not entirely familiar with markets in the developing countries.

Amongst other things when deciding on which insurance company to place a risk with, the representative sometimes takes account of its goodwill with a given insurance company. That representative is able to leverage on this relationship in borderline cases to get a claim settled.

As well as relying on previous experiences with an insurance company, a good representative will conduct an independent appraisal of the financial records of the insurance company by reviewing its published accounts. You should get a satisfactory response to this question.

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How Can I Find a Good Insurance Agent?

Insurance agents are professionals, through whom you can buy insurance products such as life insurance, disability insurance, homeowner’s insurance, and car insurance. The insurance business is a state regulated business, which means that each state sets its own rules about various aspects of the insurance business. One of the common features of these rules is that all insurance agents have to be registered with a state’s insurance commission. In order to register, insurance agents have to fulfill certain requirements like passing state-issued exams and regularly completing continuing education courses.

Insurance agents are supposed to work in the best interest of a client, as is the case with all financial professionals. Unfortunately the reality is such that insurance agents and other financial professionals are often swayed by the commission they receive for selling you, the client, certain financial products like an insurance policy. The problem comes in when they push you to buy a product that may not be suitable for you, but one that provides the insurance agent with a handsome commission.

As a client, you have the right to ask an insurance agent to tell you the amount of the commission he or she receives for selling you one product or another. If you do not understand the impact your insurance agent’s commission has on your insurance policy and your financial well-being, ask the agent out right. You will quickly find out how forthcoming he or she is about answering such sensitive questions. If you get the sense that your insurance agent is not honest, trust your instinct and get help and advice from another agent. Be aware that there is nothing wrong with an insurance agent or any other financial professionals to get paid for his or her services to you as long as he or she gets paid for a service valuable to you, the client.

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Life Insurance – Learn From an Old Agent

Life Insurance is an insurance product that pays at the death of the insured. It really should be called “Death Insurance,” but people don’t like that name. But it insures the death of an individual. Actually, what is insured is the economic loss that would occur at the death of the person insured.

Those economic losses take a lot of different forms, such as:

- the income stream of either “breadwinner” in a family
- the loss of services to the family of a stay-at-home-mom
- the final expenses at the death of a child
- final expenses of an individual after an illness and medical treatment
- “Keyman” coverage, which insures the owner or valuable employee of a business against the economic loss the business would suffer at their death
- estate planning insurance, where a person is insured to pay estate taxes at death
- “Buy and Sell Agreements,” in which life insurance is purchased to fund a business transaction at the untimely death of parties in the transaction
- Accidental death insurance, in which a person buys a policy that pays in case they die due to an accident
- Mortgage life insurance, in which the borrower buys a policy that pays off the mortgage at death – and many more.

Life insurance has been around for hundreds of years, and in some cases, has become a much better product. The insurance companies have been able to develop mortality tables, which are studies of statistical patterns of human death over time…usually over a lifetime of 100 years. These mortality tables are surprisingly accurate, and allow the insurance companies to closely predict how many people of any given age will die each year. From these tables and other information, the insurance companies derive the cost of the insurance policy.

The cost is customarily expressed in an annual cost per thousand of coverage. For example, if you wanted to buy $10,000 of coverage, and the cost per thousand was $10.00, your annual premium would be $100.00.

Modern medicine and better nutrition has increased the life expectancy of most people. Increased life expectancy has facilitated a sharp decrease in life insurance premiums. In many cases, the cost of insurance is only pennies per thousand.

There is really only one type of life insurance, and that is Term Insurance. That means that a person is insured for a certain period of time, or a term. All of the other life insurance products have term insurance as their main ingredient. There is no other ingredient they can use. However, the insurance companies have invented many, many other life products that tend to obscure the reasons for life insurance. They also vastly enrich the insurance companies.

Term Insurance

The most basic life insurance is an annual renewable term policy. Each year, the premium is a little higher as a person ages. The insurance companies designed a level premium policy, which stopped the annual premium increases for policyholders. The insurers basically added up all the premiums from age 0 to age 100 and then divided by 100. That means that in the early years of the policy, the policyholder pays in more money that it takes to fund the pure insurance cost, and then in later years the premium is less than the pure insurance cost.

The same level term product can be designed for terms of any length, like 5, 10, 20, 25 or 30 year terms. The method of premium averaging is much the same in each case.

But this new product caused some problems. Insurers know that the vast majority of policyholders do not keep a policy for life. Consequently the level term policyholders were paying future premiums and then cancelling their policies. The insurance companies were delighted because they got to keep the money. But over time, they developed the concept of Cash Value.

Cash Value Insurance

With Cash Value insurance, a portion of the unused premium you spend is credited to an account tied to your policy. The money is not yours…it belongs entirely to the insurance company. If you cancel your policy and request a refund, they will refund that money to you. Otherwise, you have other choices:

1. Use the cash value to buy more insurance
2. Use the cash value to pay existing premiums
3. You may borrow the money at interest
4. If you die, the insurance company keeps the cash value and only pays the face amount of the insurance policy.

So, does this cash value product make sense? My response is “NO!”

Cash Value Life Insurance comes in lots of other names, such as:

- Whole Life
- Universal Life
- Variable Life
- Interest Sensitive Life
- Non-Participating Life (no dividends)
- Participating Life (pays dividends)

Many life insurance agents and companies tout their products as an investment product. But cash value insurance is not an investment. Investment dollars and insurance premiums should never be combined into one product. And investment dollars should NEVER be invested with an insurance company. They are middle men. They will take your investment and invest it themselves, and keep the difference.

Think about the methods that agents use to sell life insurance, and compare them to any other type of insurance. What you’ll see is that life insurance sales tactics and techniques are ridiculous when compared to other insurance products.

Would you ever consider buying a car insurance policy, or homeowners policy, or business insurance policy in which you paid extra premium that the insurance company kept, or made you borrow from them? But, curiously, life insurance agents have been wildly successful convincing otherwise intelligent people that cash value life insurance is a good product to buy.

Care to guess why insurance agents have aggressively sold cash value insurance and eschewed term insurance?

Commissions.

The insurance companies have become vastly wealthy on cash value insurance. So, to encourage sales, they pay huge commissions. Term insurance commissions can range from 10% to 50%, sometimes even 100%. But cash value insurance commissions can be up to 100% of the first year’s premium, and handsome renewal commissions for years after.

But it’s not just the commission rate that matters. It’s also the premium rates that come into play. Term insurance is FAR CHEAPER than cash value insurance.

Here’s an example of a 30 year old male, non-smoker, buying $100,000 of coverage:

Term insurance costs $0.50 per thousand for a premium of $50.00. At 100% commission, the commission would be $50.00.

Cash Value insurance costs $12.50 per thousand for a premium of $1,250.00. At 100% commission, the commission would be $1,250.00.

So you see that it would be easy for an agent to place his own financial well-being ahead of the well-being of his client. He would have to sell 25 term policies to make the same commission as only one cash value policy.

But, in my opinion, that agent would have violated his fiduciary duty to the client, which is the duty to place the client’s needs above his own. The agent would also have to set aside his conscience.

My opinion is that life insurance agents operate from one of three positions:

1. Ignorance – they simply don’t know how cash value insurance works.
2. Greed – they know exactly how cash value insurance works and sell it anyway.
3. Knowledge and Duty – they sell term insurance.

Which agent do you want to do business with?

How do I know this stuff? Because I sold cash value life insurance early in my career.

When I started as an insurance agent in 1973 I knew absolutely nothing about how life insurance worked. The insurance company taught me to sell whole life insurance, and to discourage clients from term insurance. But, after some time of reading and research, I learned that cash value insurance is a bad deal. I began to sell only term insurance. I refused to set aside my conscience. I also went back to some early clients and switched their policies from cash value to term.

The insurance company fired me for that decision.

I found a new insurance company that only sold term insurance and also paid high commissions. I made a good living selling term insurance, so I know it can be done.

So, as you shop for life insurance, please accept the advice of an old agent. Never, never, ever buy cash value life insurance. Buy term insurance.

Now, I’d like to offer you two special reports at no cost. One is “5 Things To Do When Shopping For Car Insurance,” and the other is “5 Things To Avoid When Shopping For Car Insurance.” Each one is a $9.95 value, but free to you when you sign up for my newsletter at the website address below.

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Insurance In Tort Laws

INTRODUCTION
This project has been an eye opener for me. It is extremely relevant to the modern times and as the future of India we should understand that it is the common mass that runs the country. Consumer protection rights are an important issue in modern days. The law can be effectively used to stop any abuse of the common people especially illiterate masses who do not understand the rules and regulations which is to be followed while buying particular item. It is law, the controller of the entire society which can stop this abuse from taking place. It can place effective standards guiding a product’s genuinity and the proper verification of its price. No extra taxes should be issued according to the seller’s wish. I have proceeded by referring to the books written by Avtar Singh, Venkat Rao and others. It has been a wonderful and educational delight in going about this topic and making a project which is of greatest importance in the present day scenario.

DEFINITION OF CONSUMER
The words “consumer”, “consumed”, “consumption” is all cognate, and when one is defined, the contents of the definition go into all of them wherever they occur in the same act.
Section 2 of the act wherein ‘consumer’ is defined. According to him, the definition of the consumer will not take a client who engaged the advocate for professional services.
Consumer means any person who-
- Buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system or deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly promised or under any system of deferred payment when such use is made with the approval of the person, but does not include a person who obtains such goods for resale or for any commercial purpose
- Hires or avails of any services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for the consideration paid or promised or partly paid or partly promised or under any system of deferred payment when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial support

In Black’s Law Dictionary it is to mean:
One who consumes. Individuals who purchase, use, maintain or dispose of products and services. A member of that broad class of people who are influenced by pricing policies, financing practices, quality of goods and services, credit reporting debt collection and other trade practices for which the state and federal consumer laws are enacted.

OBJECTVES OF THE ACT
The act is dedicated, as its preamble shows, to provide for better protection of rights of consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for settlement of consumer disputes and for other connected matters. In the statement of objects, reasons it is said that and the act seeks to provide speedy and simple redressal to consumer disputes. Quasi judicial body machinery has been set up at the district, state and central levels. These quasi judicial bodies have to observe the principle of natural justice and have been empowered to give relief to a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for non compliance of orders given by quasi judicial bodies have also been provided.
The object and purpose of rendering the act is to render simple, inexpensive and speedy remedy to consumers with complaints against defective goods and deficient services and for that quasi judicial machinery has been sought to be set up at the district, state and national levels. These quasi judicial bodies are required to apply the principle of natural justice and have been empowered to give relief of specific nature and appoint wherever necessary, compensation to consumers.

INSURANCE
An operational definition of insurance is that it is
- the benefit provided by a particular kind of indemnity contract, called an insurance policy;
- that is issued by one of several kinds of legal entities (stock company, mutual company, reciprocal, or Lloyd’s syndicate, for example), any of which may be called an insurer;
- in which the insurer promises to pay on behalf of or to indemnify another party, called a policyholder or insured;
- That protects the insured against loss caused by those perils subject to the indemnity in exchange for consideration known as an insurance premium.
The influence of insurance on the law of torts has been significant, both on theoretical level and on practice. Insurance has undermined one of the two main functions of awarding of damages, and it has in cast doubt on the value judgements made by the courts in determining which particular test of liability is appropriate in the given circumstances.
Regardless of whether in the particular circumstances the appropriate principle of liability is intention is malice, fault or strict liability, the purpose of common law damages remains the same. The primary purpose of an award of damages is to compensate the victim for his loss, with view to restoring him as near as possible to the position he would have been in but for the tort of the wrongdoer. But damages have another: by making the wrongdoer responsible for meeting an award of damages, the courts are trying to deter others from committing similar tortuous wrongs.

Insurance vitiates the secondary purpose of damages, at the same time incidentally ensuring that the primary purpose is more often achieved.
It can scarcely be realistically asserted that insured defendants are deterred by the prospect of losing no-claims bonus or by increasing of premium on renewal of their policies. Once it is conceded that insurance renders compensation for the sole purpose of damages but then the tort action itself becomes vulnerable to attack, for there are many ways-some perhaps fairer and administratively cheaper than tort- of compensating a victim for a loss he has suffered.
Prima facie, where a person suffers loss of recognized kind as the result of another’s act, then the latter should have to make good that loss. But for valid reasons, the courts have held that, in certain circumstances, the actor will have to compensate his victim only if he is at fault. The victim’s right to compensation is, therefore curtailed in an attempt to be fair to both the parties. The courts have made a policy decision that, in the circumstances, it is right to reward a defendant who has been careful by protecting him from liability for the consequences of his actions and that, as a corollary the plaintiff must forego his compensation. The policy decision is made on the supposition that the wrongdoer would himself have to pay for the damages but for this protection; it by no means follows that the same decision would be made if there were no risk of the wrongdoer having to provide the compensation.

It is difficult to judge the victim’s right to compensation should be curtailed when that curtailment is not justified by a corresponding benefit to the wrongdoer. The requirement of fault ceases to play its role as the leveler between the victim’s legitimate expectations and the wrongdoer’s legitimate expectations, and becomes simply a hurdle to the victim’s progress to compensation. If it is accepted that no one can insure against liability for harm caused by intentionally to another , then similar arguments can be made by the inappropriateness of the victim’s having, in certain circumstances to prove an intention to do him wrong or harm, when it is irrelevant to the wrongdoer whether he had such an intention or not.

Again the victim’s right to compensation is being curtailed without any corresponding benefit to the wrongdoer.
However, insurance has influenced the law of tort on a much more practical level as well. While the fact of insurance is not of itself a reason for imposing liability , there can be no doubt that it does add “a little extra tensile strength” to the chain which a wrongdoer to his responsibilities.
As well it has given new horizon to damages ; it is true that traditionally it was considered to inform the court that a defendant was insured , but “those days are long past” and now it is frequently openly recognized that the defendant would be insured.

The policy of insurance constitutes a contract of insurance between Life Insurance Corporation or a subsidiary of General Insurance Company of India, as the case may be, such services such has been undertaken to render under the contract of insurance. However as a rule, occasion to render services arise only when insured surrenders his policy, or the policy matures for payment or the insured dies or any other contingency which gives rise to render service occurs.
Breach of contract of insurance may give rise to a cause of action to file a civil suit, but such breach of contract may itself constitute deficiency in service, so as to give a cause of action to file a complaint under the consumer protection act for one such more relieves awardable hereunder.
Section 13(4) of the act vests in a redressal agency powers of the Civil Court, while trying a suit in respect of such matters as examination of witnesses on oath and production of documents. Declining to exercise jurisdiction in a case before it only because it involves examination and cross examination of facts, witnesses and production and consideration of documents would amount to abdication of its jurisdiction.

Such discretion can be exercised only when the gives rise to several issues and necessities taking of voluminous oral and documentary evidence, or otherwise involve complex questions of fact and law which cannot be decided in time bound proceedings under the consumer protection act.

MOTOR VEHICLE INSURANCE
Where the sale of a vehicle is complete, the title therein passes to the purchaser notwithstanding that his name has not been recorded in the R.C.Book. Such owner is entitled to get his vehicle insured and also to maintain a claim on the basis of such insurance. The earlier owner, who has lost insurable insurance on the sold vehicle, cannot advance a claim on the basis of policy of the said vehicle, earlier taken by him, on the ground that he is still the recorded owner of the said vehicle.
Section 157 of the motor vehicles act is only in respect of third party risks and provides that the certificate of insurance described therein shall be deemed to have been transferred in favour of the person to whom the motor vehicle is being transferred. It does not apply to other risks, if any, covered by the policy. If the transferee wants to avail the benefits of other risks covered by it, he has to enter into an agreement thereof with the investor.

FRAUD BY INSURER
If it is established that the discharge voucher was obtained by fraud, misrepresentation, undue influence or coercive bargaining or compelled by circumstances, the authority of the consumer forum may be justified in granting relief. Mere execution of the discharge voucher would not deprive the consumer of his claim in deficiency of service.

DELAY IN SETTLEMENT OF CLAIM
In Sarveshwar Rao v. National Insurance Company Ltd. , it was held that the delay of two or more years in settling the insurance claim would result in inadequacy in the quality, nature and manner of the service which the insurance company has undertaken to render, and amounts to deficiency in service.
In Delkon India Pvt. Ltd. V. The Oriental Insurance Company Ltd. . The National Commission has held that it was a deficiency of service to have delayed the claim by two years on the ground that the final police report was not coming.

INTERPRETATION OF TERMS

In Skandia Insurance Company v. Kokilaben Chandravadan , the honorable Supreme Court ruled that the exclusion terms of the insurance must be read with so as to serve the main purpose of the policy, which is to indemnify the damages caused to the vehicle.

CONDUCT OF THE INSURER
In Oriental Insurance Co. Ltd. V. Mayur Restaurant and bar , the conduct of the insurer was under question. The commission held that deficiency of the service was established on the part of the opposite party on two counts i)delay in settlement of claims and ii) unreasonable and un maintainable reasons for repudiating the claim of the complainant, and the compensation with the interest and cost was awarded.

SUICIDE BY THE ASSURED
In Life Insurance Corporation v Dharma Vir Anand, the national commission refused to hold the insurance commission liable as the insured committed suicide before the expiry of three years from the date of the policy.

BREACH OF TERMS
In B.V.Nagarjuna v Oriental Insurance Company Ltd., the terms of insurance contract permitted the insured vehicle to carry six passengers at a time but the driver allowed two more persons to get in. It was held that merely adding two more persons without the knowledge of the driver did not amount to indemnification by the insurance company.

NOMINEE’S RIGHTS
In Jagdish Prakash Dagar v. Life Insurance Corporation , it was held that a nominee under a policy of life insurance will be a consumer within the meaning of section 2(1) (d) of the Consumer Protection Act. The commission held that the nominee could legislatively maintain an action against deficiency raised in service by the arbitrary decision of the insurer.

REPUDIATION
Repudiation is defined as the renunciation of a contract (which holds a repudiator liable to be sued for breach of contract, and entitles the repudiatee on accepting the repudiation to treat the contract as at an end
This concept of repudiation is needed in the concept of insurance. The concept of repudiation will be dealt hereto a number of times and to provide beneficiary evidence, the definition has been given.
Unilateral repudiation of its liability, under the contact of by the life insurance corporation or an insurance company does not, by itself oust the jurisdiction of a redressal agency, to go into the sustainability of such repudiation, on facts and in law and to decide and to adjudicate if, in the facts of the case, it amounts to deficiency in service or unfair trade practice, and if so, to award to the aggrieved person, such relief or reliefs under Section 14(1) of the said Act as he or she is entitled to. The fact that before such repudiation it obtained a report from a surveyor or surveyors also does not oust the jurisdiction of a redressal agents to into the merits of such repudiation, for otherwise in each case the corporation or such company, and deprived the aggrieved person of the cheap and expeditious remedy under the consumer protection act.
Where, however the corporation or the company conducts thorough investigations into the facts which have given rise to claim and other associated facts, and repudiates the claims in good faith after exercise with due care and proper application of mind, the redressal agency should decline to go into the merits of such repudiation and leave the aggrieved person to resort to the regular remedy of a suit in a civil court.
The law does not require the life insurance corporation or an insurance company to accept every claim good or bad, true or false, but it does require the corporation or the company to make a thorough investigation into such claim and to take decisions on it, in good faith, after exercise of due care and proper application of mind and where it does so it renders the service required by it and cannot be charged with deficiencies in service, even if, in the ultimate analysis, such decisions is wrong on the facts and in law and the redressal agency would be disinclined to substitute its own judgement in the place of the judgement of the corporation or insurance company.
The question as to whether repudiation of its liability does or does not amount to deficiency in service would depend upon the facts of each case.
Where a cheque sent towards a premium is dishonoured by the drawee bank and consequently the policy is cancelled or it lapses or the injured dies before the proposal is accepted and contract of insurance results, no claim can be founded in such a policy, which was cancelled or has since lapsed, or a contract of insurance, which did not materialize at all. Repudiation of such claim can never amount to deficiency in service.
Insurance agent is not entitled to collect premium on behalf of the corporation. Where an insured issues a bearer cheque towards premium and hands it over the insurance agent who encashes it, but does not deposit the premium with the corporation event till the expiry of the grace period and consequently the policy lapses and meanwhile the insured also dies, his nominee has to blame himself or herself for the indiscretion of the insured and cannot blame or fault the corporation.

BASIC PRINCIPLES OF INSURANCE

There are some basic principles concerning the topic of Consumer Protection Law and Insurance.
- Settlement of insurance claim is service, default or negligence therein is deficiency of that service
In the case of Shri Umedilal Agarwal v. United India Assurance Co. Ltd, the National Commission observed as under:
“We find no merit in the contention put forward by the insurance company that a complaint relating to the failure on the part of the insurer to the settle the claim of the insured within a reasonable time and the prayer for the grant of compensation in respect of such delay will not within the jurisdiction of the redressal forums constituted under the consumer protection act.

The provision of facilities in connection with insurance has been specifically included within the scope of the expression “service” by the definition of the said word contained in section 2(i) (o) of the act. Our attention was invited by Mr. Malhotra, learned counsel for the insurance company to the decision of the Queen’s Bench in national transit co. ltd. V. customs and central excise commissioners . The observations contained in the said judgement relating to the scope of the expression insurance occurring in the schedule of the enactment referred to therein are of no assistance to all of us in this case because the context in which that expression is used in the English enactment considered in that case is completely different. Having regard to the philosophy of the consumer protection act and its avowed object of providing cheap and speedy redressal to customers affected by the failure on the part of persons providing service for a consideration, we do not find it possible to hold that the settlement of insurance claims will not be covered by the expression insurance occurring in section 2(1)(d).Whenever there is a fault of negligence that will constitute a deficiency in the service on the part of the insurance company and it will perfectly open to the concerned aggrieved customer to approach the Redressal Forums under the act seeking appropriate relief.”

- L.I.C. Agent has no authority in collecting the premium
The supreme court held that under regulation 8(4) of life insurance corporation of India (agents) regulation, 1972 which had acquired the status of life insurance corporation agents rules with effect from January 31, 1981, which were also published in the gazette, LIC agents were specifically prohibited from collecting premium on behalf of LIC and that in view thereof an inference of implied authority cannot also be raised.

- Rejection of claim as false after full investigation
The national commission held as follows:
” from the facts disclosed by the record and particularly averments contained in the consumer affidavit filed by the first respondent it is seen that the insurance company had fully investigated into the claims put forward by the complainant that his claim was rejected. Thus it is not a case where the insurance company did not take a prompt and immediate option for deciding the claims against the insurance company. Having regards to the facts and circumstances of this case and the nature of the controversy between the parties we consider that this is a matter that should be adjudicated before a civil court where the complainant as well as the respondent will have ample opportunities to examine witnesses at length, take out the commission for local inspections etc. and have an elaborate trial of the case.”

- Unilateral reduction in the insurance amount.
The national commission held that the insurance company is not entitled to make a unilateral reduction of Rs. 4, 29,771 from Rs. 30, 12,549 at which its own surveyor assessed the loss.

- Mere repudiation does not render the complaint not maintainable.
The national commission overruled the objection of the insurance company that merely because the insurer had totally repudiated its liability in respect of the claim, no proceedings could validly be initiated by the insured under the consumer protection act.

- Mere unilateral repudiation does not oust the jurisdiction.
The national commission held that merely because the insurer has repudiated the insurance claim under the policy unilaterally, it is difficult to hold that the various redressal forums constituted under the consumer protection act, 1986 will have no jurisdiction to deal with the matter that if such a contention of the insurance company can get a report from the surveyors, repudiate the claim and oust the jurisdiction of the redressal forums, that the redressal forums are, therefore, bound to see whether or not the repudiation was made in good faith on valid and justifiable grounds that if the surveyor or surveyors choose to submit the wrong report and the insurance company repudiates the claims without applying its mind then the repudiation cannot be said to be justified that the report of the surveyor will show that the investigations have been proper, fair and thorough and that it has to be remembered that the surveyors bread comes from the employer.

- Mere unilateral repudiation no ground to oust jurisdiction.
The national commission repelled the objection and observed as under:
“Ordinarily a remedy is available to a consumer in Civil Court but mere repudiation of claim arising out of policy of insurance under section 45 of the insurance act, 1938, cannot take away the jurisdiction of the redressal forum constituted under the act. The avowed object of the act is to provide cheap, speedy and efficacious remedy to the consumers and it is with this object that section 3 of the act lies down as follows:
3. Act not in derogation of the provisions of any other law: – the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.”
The national commission overruled the objection in the view of repudiation of contract of insurance by the corporation; the redressal agencies under the act cannot entertain the claim of the insured and reiterated the law laid down by it in the Divisional Manager, Life insurance Corporation of India, Andhra Pradesh v. Shri Bhavnam Srinivas Reddy.

- Removal of insured goods on attachment no theft.
It was ruled in the stated case that attachment of certain items of insured Machinery and goods by the bailiff of a civil court, though later found to be illegal and consequent removal did not amount to theft and or house breaking by force so as to entitle the insured to prefer a claim under the policy.

- When repudiation amounts to deficiency and when it does not?
The national has held:
In M/s Rajdeep Leasing and Finance and others v. New India Assurance Company Limited and others –
That rejection of the claim by the insurance company after examining and considering the two separate survey reports from qualified surveyors and three legal opinions from different oriental counsels could not be said to constitute a deficiency in service so as to give a rise in the cause of action for a complaint under the consumer protection act.
In Oriental Insurance Co. Ltd. V Modern Industries Ltd. , the national commission has held that where the cover note inter alia mentions that the risk is subject to the usual terms and conditions of the standard policy, it is equally the responsibility of the complainant to call for these terms and conditions even if they are not sent by the insurance company, as alleged, to understand the extent of risk covered under the policy and associated aspects.

In Life Insurance Corporation of India v. Dr. Sampooran Singh
The complainant had taken out an insurance policy of 40,000 rupees in 1982, for the purpose of payment of estate duty on his only residential house in chandigarh in the event of his death and paid 5 premia, but with the abolition of estate duty on one residential house owner in 1985, the policy became inoperative due to the act of the state and not due to any deficiency on the part of the corporation any dispute between the parties as to the amount payable there under cannot be construed as deficiency in service on part of the corporation.

In LIC of India v M/s Kanchan Murlidhar Akkalwar
The complainant applied to the opposite party for housing loan, and on the advice of the latter, she took two LIC policies, one for Rs. 90000 and the other for Rs. 20000 entered into an agreement for the purchase of the house with the house with the owner on the advice of the opposite party obtained a fire policy for Rs. 2 lakhs. The opposite party advised the complainant to obtain a release deed from the zilla parishad co operative society in respect of the she proposed to purchase with a certificate that the said plot is not mortgaged therein. The complainant got a certificate from the Maharashtra government that the vendor had re paid the housing loan and interest thereon due to Zilla Parishad Krishi Karmachari Sehakari Gribe Narman Sanstha and that there was nothing outstanding from him towards loan amount or interest. Still the opposite party did not release the loan. On these facts the national commission by its majority judgement observed that:
“We have carefully gone through the records and heard the counsel. Clause 1 (c) of the loan offer letter clearly states that the advance of the loan is subject to the property being free from encumbrances to the satisfaction of the insurance company and a good and marketable title. At the same time it appears that the respondent-complainant had to go through a number of steps, although necessary, having financial implications and causing mental and physical stress to her and at the end of all of which she was told that no dues certificate given by the maharashtra government in respect of the prospective seller of the property in question, was not “release of mortgage” certificate that was obtained. The respondent complainant perhaps also had in her mind the case of Mr. Vaishempayam who got the loan under similar circumstances. Thus the evasion petition is disposed of as above.”

CONCLUSION
This project topic is increasingly beneficial in the modern times with the consumer protection rights being redressed with due care. It is being advertised in the mass media in our country. The slogan which our consumer is using is: “JAGO GRAHAK JAGO”. The time has come to realize the ideal market situation in which the buyers are not persuaded or coerced falsely into buying items which are of no use to them at all. Besides the relationship between buyer and seller should not be damaged at any cost. The relationship between the buyer and seller is said to be a fiduciary relationship and the trust between them should remain intact. A time has come in which the customer should get his proper position in the market conditions. He has to have proper knowledge about what is going on in the market and the concerned prices and the supply and the different other practices referred to.
Insurance is a very sensitive issue in the modern times. People are being hoodwinked into signing up in companies which are turning out to be frauds in the true sense of the term. This project has been an eye opener to me and I have come to realize the importance of the consumer protection act and insurance.

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