Tuesday, December 11, 2018

INSURANCE FRAUD AND THE BLACK LIST

It may seem harmless to add an extra tablet or Smartphone to the list of stolen items if your car is broken into, but this is also insurance fraud. Something that puts you on the blacklist of insurers when they find out. Because not only the professional fraudsters are being tackled.


Insurance fraud happens in different grades. Some people think they are innocent, while others are out for the big money. In both cases, the insurer is not happy with you if they find out that you have committed fraud. You end up on the black list of insurers that manages the Central Information System (CIS). The consequences are that it will be very difficult to take out a new insurance, as your former insurer probably terminated your policy.


The insurer can blacklist the insured in several cases:


The insured person caused damage with an uninsured vehicle

The insured party failed to comply with the agreements made with the result that the insurer terminates the insurance

The insurer has committed fraud or has otherwise misused the insurer


As soon as someone is blacklisted and can no longer take out insurance with the regular insurers, the person can turn to De Vereende Verzekeringen (formerly Rialto). This is an insurer that can offer insurance to everyone, despite the claim and payment history. De Vereende Verzekeringen sets higher premiums and may refuse to offer some insurance because of the person’s past. If something really goes wrong, then you are alone. The period that you are on the list can be up to eight years. This is of course an unpleasant situation. It is therefore important to realize that things that seem innocent at first may have very unpleasant consequences..

OVERVIEW OF THE TYPES OF LIABILITY INSURANCE POLICIES

The liability insurance is not mandatory in the Netherlands but is strongly recommended. In general, three different liability insurance policies can be distinguished from each other. In order to provide a clear overview, Verzekering.nl will put these for you in a row.


Private liability insurance


Under this insurance is any form of damage that you, as a private person, someone else brings. This can be done by accidentally knocking over a vase to the injury of another person. It is useful to take out this insurance as the costs for liability can run high. You are already covered from a few bucks every year and that is certainly justified, despite all the trouble.


Additional liability insurance


A basic liability insurance does not cover all cases of damage. With a supplementary insurance you can let yourself be covered for this. In most cases this concerns damage done during a high-risk sport or when you are at work. The choice of whether or not to take this additional insurance is different for everyone, for students it is useful, for example, since they do not have much to spend.


Collective liability insurance


A collective liability insurance is particularly interesting for companies or associations. This insurance is taken out by employers for employees so that they are insured for damage that can be caused during work. Insurance such as this is therefore particularly interesting when it concerns work where the risk of damage is high.

COHABITATION AND INSURANCE

Are you going to live together? This is of course very exciting and fun at first. But in addition, it is also a big step and a number of financial matters will have to be arranged, such as insurance. The chances are of course that you have double insurance policies. But which insurance policies are double and which insurance policies are still missing?


It is wise to look in advance with your partner to see which insurance policies you already have. Think, for example, of the health insurance that is mandatory for every Dutch person. The moment you start living together, you may have to adjust, cancel or re-apply for certain insurance.


Which insurance policies do you need?


– Legal insurance. It is cheaper to conclude this insurance together. The legal expenses insurance helps you out of the fire if you have a legal conflict.

– Home insurance. Together you only need one home insurance.

– Travel insurance. It is cheaper to take out travel insurance together. You can opt for a continuous travel insurance or for short-term travel insurance.

– Building insurance. A building insurance is meant for people with a house. In the case of a mortgage, the bank sometimes states the building insurance as an obligation.

– Car insurance. If you have your own car, it will remain in your name.

– Health insurance. Many people use collectivity. This gives them a discount on their health insurance premium. You can insure your partner with most health insurers.

– Term life insurance. The bank often requires you to take out a term life insurance as soon as you apply for a mortgage. With this insurance, your partner will receive an amount when you die.

– Funeral insurance. With a funeral insurance you insure yourself against the costs of your funeral. With a funeral insurance you can come to one policy together with your partner.


So almost all insurance policies can be taken out together to save money. This is easy to arrange by changing your current insurance and putting it on two names. The other party can then cancel his insurance. Make an insurance contract.

PRINCIPLE OF COMMITMENT IN INSURANCE



Principle of commitment is actualized when numerous insurance strategies are covering a similar property or misfortune, the aggregate installment for real misfortune is relatively isolated among all insurance organizations.


In insurance, the principle of commitment is conceived from principle of indemnity. It is utilized to keep the continued existence to save the principle of indemnity

Thusly, principle of commitment just applies to those insurance contracts which are contracts of indemnity.

Truth be told, be that as it may, there would have been conceivable outcomes of getting more than the genuine misfortune had the principle of commitment not been established with legal power.


Just to give a probability, the insured would have gotten a claim in full, quantities of times, by influencing quantities of approaches with various insurers in this manner vanquishing altogether the principle of indemnity.

Like subrogation, thusly, has come up the principle of commitment with the sole purpose to save the principle of indemnity.


Commitment is a right that an insurer has, who has paid under a policy, of calling other interested insurers in the misfortune to pay or contribute rate-able to the installment.


This implies if at the season of misfortune, it is discovered that there is in excess of one policy covering a similar misfortune then all arrangements should pay the misfortune proportionately to the degree of their separate liabilities with the goal that the insured does not get in excess of one entire misfortune from every one of these sources.


On the off chance that a specific insurer pays the full misfortune then that insurer should have the privilege to call all the interested insurers to pay him back to the degree of their individual liabilities, regardless of whether similarly or something else.


The insured, by no means, might be permitted to take the advantage of the considerable number of arrangements exclusively in order to get the full claim number of times.

Regardless of whether the insured recoups from every one of the approaches, he might need to discount every single such installment in abundance of the genuine misfortune managed.

As this principle for all intents and purposes acts the hero of the principle of indemnity, subsequently, similar to subrogation, the statement "it is an end product to the principle of indemnity" similarly holds well with respect to the principle of commitment.


As life and individual mishap contracts are not contracts of indemnity, this principle does not have any significant bearing thereto.


Principle of Commitment: Apply it to Policy Cases

It is for all intents and purposes in the viewpoint of cases settlement that this convention is of indispensable significance. In such manner, the accompanying contemplations must be noted deliberately;


At the point when Commitment Principle Works

Before commitment can work the accompanying conditions must be satisfied;


1.       There must be in excess of one policy included and every one of the approaches covering the misfortune must be in force.This is surely knew. On the off chance that there is just a single policy required there is nothing which can contribute and also if at the season of misfortune it is discovered that a specific policy in the part isn't in constrain a result of some reason that that policy can't be called upon to contribute.


2.       All the arrangements must cover a similar subject-matter. If every one of the approaches cover a similar insured however extraordinary topics inside and out then the topic of commitment would not emerge.


3.       All the strategies must cover a similar risk causing the loss. If the arrangements cover distinctive perils, some normal and some exceptional, and if the misfortune isn't caused by a typical danger, the subject of commitment would not emerge.


4.       All the arrangements must cover a similar interest of the same insured. An case will make the suggestion clear. Give us a chance to expect that "An" is the proprietor of an auto and has gotten a credit from "B" on the security of the auto. Here both An and B have insurable interest and can, thusly, influence arrangements separately. On account of damage to auto both An and B will get asserts autonomously and no commitment will apply in the middle of the strategies.


The reason being that the interests are unique and furthermore the insureds. It ought to be recollected that if any of the above four components isn't satisfied, commitment won't make a difference;


How Commitment Principle Functions

When it is established that the above variables are fulfilled and commitment is to apply then the following course is to discover the liability under every policy.

More often than not, this is on the total insured premise under every policy and is normally known as the proportionate liability or particular liability of every policy.


Principle of Commitment in Insurance Law and Contract

It ought to be obviously borne at the top of the priority list that despite the fact that there is no commitment condition in the policy, in other words, that, regardless of whether it isn't specified in the policy that commitment would apply, by and by, it is the legal right of the insurers to get the advantage of commitment.


The privilege is suggested at law. In any case, the situation with reference to when and how the privilege can be practiced varies at custom-based law and under policy condition.


Under precedent-based law, the position is this that the insured can guarantee everything of misfortune from any of his preferred insurers when that insurer will have the inconvenience of asking commitment from the other interested insurers.


In any case, under a policy condition the insurers may require the insured to assert proportionately from every one of the insurers comfortable origin as opposed to guaranteeing full from the policy subject to this condition: by and by, non-marine strategies do more often than not contain a condition in that capacity and it is most strange to discover such a condition in marine arrangements..

Monday, December 10, 2018

LIABILITY INSURANCE, HOW DOES IT WORK?




Liability insurance protects you against financial loss if your actions, your negligence or the condition of your property is found to cause a person to be injured or killed, or a person's property to be damaged or destroyed or they suffer loss as a result of relying on your services or advice.
There are three forms of liability insurance:
  • Public liability
  • Professional indemnity
  • Product liability
Liability products are most commonly taken out by businesses for risks involved in their day-to-day operation, but they are also built into many property insurance policies, for example liability cover in home and contents insurance.
Liability insurance covers two key financial risks. One is the legal cost of defending a claim. The second is the compensation that you may be directed to pay the injured or wronged party, plus their legal costs, if a claim against you is upheld.
These usually include an excess to be paid by the policyholder in the event of a claim, and generally set a limit on the total amount payable under the policy, as well as a per-claim limit.
To find an insurer that offers these types of policies,

Public liability

Public liability insurance covers a person, a business, an event, a contractor – even a community building – for costs from legal action if they are found liable for death or injury, loss or damage of property, or economic loss resulting from their negligence.
If you own a business, you may be liable for damages or injuries to another person or property. Though liability insurance is optional in most cases, it is strongly recommended for businesses in all industries as the likelihood of being sued for negligence is unpredictable and potentially very costly.
You can usually choose whether to take out public liability insurance, but in some situations it might be compulsory.
For example, in certain public events and facilities, liability insurance is compulsory and it is checked through a licensing authority.
This type of insurance is becoming more popular, so you might find that it is automatically included in your property insurance policies – such as home, commercial, and marine – and in most business package insurances, but it is also available as a separate policy, particularly to larger businesses and to organisations without premises.
If you own a business, you may be liable for damages or injuries to another person or property. Though liability insurance is optional in most cases, it is strongly recommended for businesses in all industries as the likelihood of being sued for negligence is unpredictable and potentially very costly.
Public liability insurance won’t usually cover you if you are involved in known hazardous activities or criminal actions.
Though you might find that you are covered for public liability as part of other insurance products, make sure that the amount you are covered for public liability insurance is enough, because an insurer might offer a cheaper premium by including only a small amount of public liability insurance.
Make sure you know what your total public liability amount of cover is and that it is sufficient for your needs, particularly if the policy is packaged with other covers.

Professional Indemnity

You might take out professional indemnity insurance if you give professional advice or perform services to customers through the course of your work.
Professional indemnity insurance protects you from legal action taken against you if someone suffers a loss after following your professional advice or as a result of your receiving your service. There are also specific types of professional indemnity insurances for certain professionals. For example, the medical profession will usually have medical indemnity insurance as requirement of their professional registration or licensing.

Product liability

If you manufacture products, sell or distribute products or import products into Australia, you should have product liability insurance.
Product liability insurance covers you for damage or injury that you might cause to another business or person by your product or service.
This type of insurance is very important because people who believe that they have been injured by your product, can take action against you, as a manufacturer or importer.
In many cases, this action can be taken without the person who sues you having to prove you were negligent or had any intention to cause harm.