Classification Of Insurance Policy

Insurance policy can be categorized into indemnity insurance and non-indemnity insurance.

What is indemnity insurance?

This is a guarantee for providing security or protection against possible hurt, damage, loss or liability. Here, an agreed lump sum (as stated inside the policy) is paid as compensation on the risk insured against any incurred loss or damage.

Indemnity insurance is broadly divided into three forms, as follows:

1. Marine

2. Aviation, and

3. Others (other indemnity insurance)

Marine insurance

This includes all vessels designed for aquatic transportation, both on marine and freshwater territories. This includes the huge commercial insurance on hull s and cargo, sailing dinghies, yachts, motor boats, and small crafts generally.

Marine insurance covers these areas of the ship:

· Hull insurance

· Cargo insurance

· Freight insurance

· Others such as insurance of liability

The marine insurance can be insured in different policy forms such as:

· Voyage policy

· Time policy

· Valued policy

· Un-valued policy

· Floating policy

Aviation insurance

This guarantees hulls of aircraft, third party liability, and legal liability to passengers. Compensations, or rather claims, often reach extremely vast amount, although liability to passengers is limited by international conventions.

All the above marine insurance coverage areas and policy are also applicable to aviation industry, with little or no exception.

Other indemnity insurance

These are listed as follows:

· Fire

· Theft and burglary

· Insurance of liability (including third party)

· Insurance of interest

· Consequential loss of profit

· Agricultural

· Bad debts

· Export credits, etc.

What is non-indemnity insurance?

Non-indemnity insurance is different from indemnity. In case of death, sickness or personal accident, no amount of compensation can equate the emotional disruption being experienced from the death of a loved one through sickness or accident, neither can being compensated counter-balance the pain experienced from a sickness, nor monetary payment from any insurance company compensate for the loss of a leg or an arm in an accident.

Here, the logic of compensation, no matter how large it may be, is to present the monetary payment to the insured as a form of "consolation" or "benefit" payment.

Let's take it this way, if Mr. Adam takes non-indemnity insurance and after some years of paying faithfully the premiums, he has an accident and dies. The insurance company will pay Mr. Adam's family, or whoever is the beneficiary, the sum-assured. The money being paid to Mr. Adam's family cannot bring back Mr. Adam, his love for his family, neither can the money redeem the emotional pain being experienced by his loved ones nor compensate for Mr. Adam's presence and his actions.

In case of loss of any of his limbs, no amount of compensation can erase the pains being experienced by Mr. Adam from the limbless-ness or the emotional imbalance resulting from becoming a physically challenged person. Any compensation paid to Mr. Adam by the insurance company in this case is in form of "benefit" or "consolation" payment.

Non-indemnity insurance consists of both life insurance and non-life insurance.

Non-indemnity life insurance exists in three forms:

Whole life insurance,

Term Insurance, and

Endowment insurance

Non-indemnity non-life insurance policies exist in two forms of:

· Sickness

A non-indemnity non-life insurance policy is the insurance policy taken because of any eventuality of any form of sickness. Let's assume Mr. Adam takes a non-indemnity non-life insurance and he suddenly falls sick. The insurance company will pay his medical bills, and some other compensation as covered in his insurance policy. This may include, but not limited to, payment for the loss of remuneration during the period of sickness, etc.

· Personal accident resulting in death or disability

An insurance policy may also be taken as a protection against any personal accident. In a situation where a policy-holder has an accident and, as a result, loses a limb or dies, the insurance company will pay the insured amount (as in the insurance policy) to the benefactor i.e. the person (in case of personal accident resulting in losing of limb(s)) or the relative/person whose name is on the policy (in case of death).

However, apart from personal accident insurance, accident insurance includes and is sub-divided into:

· Burglary and 'all-risks'

· Employer's liability and public liability

· Contractors' all-risks

· Motor

· Fidelity guarantee and contingency

· Livestock

· Glass

· Weather

· Engineering

· Travel, and so on.

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Medicare Supplement Plan N - A New Option For the Cost Conscious

Starting in June of 2010, Medicare Supplement Plan N will become available. This plan is geared towards providing a supplement plan at a lower cost.

What does Medicare Supplement Plan N provide for the insured? This plan puts co-pays to work. For each visit to the doctor, there will be a $20 co-pay applied. For an emergency room visit, the co-payment is $50. This plan does cover 100% of the Part A deductible. It will provide 100% coverage of the coinsurance requirement for hospital stays that last more than 60 days. It adds 365 additional hospital days once Medicare benefit limits are reached. The plan would also cover 100% of the coinsurance requirements in Part B for lab, doctor and outpatient costs. It will cover the costs of the first three pints of blood when required. This plan also provides a coinsurance payment for an extended visit to a skilled nursing facility. When traveling overseas, this plan helps cover the costs of any emergency care you need.

With the emergence of Medicare Supplement Plan N, Medicare Advantage customers may want to take a peek. There are reports all over the place about reduced benefits and higher premiums. Plan N may be a good solution to this problem. For a similar premium price, Plan N could provide more comprehensive coverage than you have now. The only way that you can be sure is to do some homework and make sure.

How will you know if Medicare Supplement Plan N is the right plan for you? Our insurance specialists can help you review your current coverage. And, if it needs to be updated, we can also provide quotes. We work with name brand insurance companies from all over the United States. We can find a plan at a premium that will fit within your financial plan. And, you want to know a secret? All supplement plans by the same name are the same everywhere. So, Plan N at Company A has the same coverage as Plan N at Company B. We can show you the differences in price though. Premiums can be very different at each company. We can show you the differences.

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Reduce Roofers' Workers' Compensation With a PEO Company

Among the industries that can benefit from a PEO company, roofers are near the top of the list. Professional, legitimately run roofing businesses are at a serious disadvantage against their competition that employs under the table, cash only paid roofers. A PEO company can level the playing field.

When bidding jobs, a legitimate roofing company must consider much more then just the cost of supplies and hourly wages. They must also consider their payroll taxes and workers' compensation costs. For many roofers, the costs associated with workers' compensation may be the biggest factor in determining the competitiveness of their bids.

Before PEO services, small and new roofing companies had little choice in workers' compensation insurance because few of the traditional insurance companies would work with roofers. The insurance companies that would offer work comp insurance for roofers only worked with large, established companies that had the best safety records. If the traditional insurance company would not write a policy for your company, your only option was to go with a state workers' compensation program. Either way, whether with a traditional insurance company or going through the state work comp program, roofers workers' comp premiums were almost completely unaffordable.

Professional Employer Organizations work with roofers to scale down their work comp insurance. When roofers use a PEO company, they can see dramatic savings- which bring down the employee-related costs of the work performed. A roofer can see workers' compensation savings of 15 - 40% when using a PEO company. Unlike with traditional insurance or a state work comp program that require thousands of dollars to get started plus the monthly premiums, a PEO company will also allow roofers to only pay a few hundred dollars to get started or $0 down, pay-as-you-go terms.

PEO services can provide much more for a roofing business then just large workers' compensation savings. They can take on the responsibilities of managing payroll- saving time for the roofing business by providing employee checks and depositing payroll tax deposits. Roofers can focus on bidding jobs instead of the many payroll concerns such as possible audits, end of year responsibilities such as W-2s, or preparing government payroll reports ever again.

When the costs and time invested on the payroll move more in favor of the legitimate roofing business, they can bid competitively, win more jobs, and see significant increases in their profits.

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Best Dental Plans: Questions to Ask

Who does not want to have the best dental plans? Of course, getting the best dental care for yourself and your family, in a reasonable price is definitely a good thing. But there are a lot dental plans to choose from. Identifying the best option could be a bit overwhelming, especially, if you have no relative experience in dental insurance.

When looking for the dental plans, consider asking these questions.

1. What are covered?

Make sure to have an idea what dental care are fully and partially covered by the plans. Upon learning their coverage, you could compare the different plans and choose which one suits your yearly demands and needs.

2. Is going to your regular dentist covered by the dental plan?

Working with a new dental care provider could be hard for some people sometimes. Dental plans would normally limit plan holders to network dental providers. For example, a DHMO or dental HMO plan would require you to get dental services from their provider network only. Getting services outside the network would forfeit your benefits. PPO dental plans are a little flexible, you could get dental service outside the network but the full benefits of the plan would not be used. You may consider getting a plan where your dentist is already a member of.

3. Are appointments necessary?

There are some dental providers who would only entertain dental holders in specific time or day. You need to know these, to have an idea if it would be able to fit your schedule, especially if you are working or studying.

4. Does the plan suit your budget?

You do not want to overspend. Make sure that you will be paying for something reasonable. If you are paying for premiums more that you actually spend on dental care, then you need to think about it again.

5. Is the insurance company stable and customer friendly?

Make sure to get insurance from financially stable insurance company. Also check customer feedback and reviews. There are different websites that allow customers and clients to rate and review insurance companies and their dental plans.

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