The Difference Between Comprehensive and Third Party car Insurance..............

When it comes to buying insurance for your car, you are supposed to consider plenty of important factors. One of these factors is the type of insurance coverage you are looking for your car. People tend to confuse between a comprehensive insurance policy and a third party insurance policy when looking for car insurance. This article will help you to understand the basic difference between both these car insurance policies:

What is a Comprehensive Car Insurance Plan?

A comprehensive car insurance plan offers complete protection against the damages to your car due to an accident or a road-mishap. This plan is called a comprehensive plan because it provides coverage for the damages to your car, third-party legal liability, theft, along with the personal accident coverage. The coverage can be boosted by selecting additional covers, such as engine protector, accessories cover, medical expenses, zero depreciation cover, etc. This cover is widely popular, as it offers full-fledged coverage and it leaves the policyholder stress-free.

A comprehensive car insurance plan includes coverage for fire, theft, natural and man-made catastrophes, such as a tornado, hurricane vandalism, damage caused to your vehicle by animals, falling objects, civil disturbance, such as a riot that causes damages to your car.

The Benefits of Purchasing a Comprehensive Car Insurance Plan

A comprehensive car insurance plan safeguards the insured vehicle against the following:

• Vandalism
• Theft
• Glass damage like as a damaged windshield
• Damages caused by a bird or an animal
• Damage caused by falling objects, missiles etc.
• Fire
• Flood
• Damages caused by a natural disaster like a wind storm, hail storm, tornado, hurricane, etc.
• Third-party liability

Without a comprehensive insurance plan, a  claim can’t be filed if your car is damaged and the reason isn’t a road mishap.

You may like to Read: What is Comprehensive Car Insurance

Comprehensive Car Insurance Plan Exclusions

Here are the factors that are excluded from the coverage of a comprehensive insurance plan:

• Wear and tear and aging of the automobile
• Depreciation
• Mechanical or electrical breakdown
• Damages caused to tubes and tyres. In case the vehicle has got its tubes and tyres damaged because of an accident, then the liability of the insurance provider would be restricted to 50 percent of the total replacement charges.
• Damages caused by a driver driving without a valid driving license.
• Damages caused due to driving under the influence of intoxicants.
• Any loss or damage due to mutiny war, or a nuclear attack

Third-Party Car Insurance Plan

A third-party car insurance plan provides coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault. It covers damages and injuries caused by the insured vehicle, to a third-party person or property. As per the Motor Vehicles Act, 1988, it is mandatory for every motor vehicle owner to buy at least third-party insurance coverage in India.

Benefits of Purchasing a Third-Party Car Insurance Plan

A third-party car insurance plan covers a vehicle’s owner against any legal liability, including death or bodily injury to a third party or damage to their property with the involvement of the insured vehicle. As per the Motor Vehicle Act, a third-party claim can be filed under the category of "no fault liability claims" in which the claimant is not obligatory to allege or prove the negligence on the part of the involved vehicle that has caused the accident or "fault liability claims".

Third-Party Car Insurance Plan Exclusions

A third-party car insurance plan doesn’t provide coverage for the cost of damage caused to any automobile or any belongings in the automobile if there is any accident. Along with that, it won’t provide coverage to your car or if you belongings are damaged or stolen.

Difference between a Third-Party Cover and Comprehensive Cover

The pros and cons of these two kinds of car insurance plans depend on many elements. It is crucial to understand these factors so that you can analyze, compare, and then make a wise decision.

1. The Value of a Car

In case the value of your vehicle is low, it’s recommended to buy third-party insurance only, as the repairs to the damages could be managed very easily. It is economical to pay the repair bills as compared to paying for the high premium of a comprehensive insurance cover.

On the other hand, if your car is new and expensive, it is recommended to buy comprehensive insurance coverage.

2. Coverage

A third-party insurance plan provides coverage against the damages to any third-party vehicle and bodily injuries caused to any third party due to an accident. There are a few insurance providers that charge a little extra for third-party coverage. It doesn’t provide any coverage against the damages caused to your own vehicle.

In case you’re seeking coverage for your vehicle, you should buy a comprehensive car insurance plan. It offers a wide coverage, as it includes third-party liability as well. A comprehensive plan is expensive as compared to a third-party insurance plan, as it offers broader coverage.

3. Expenses

A comprehensive plan is expensive as compared to a third-party plan because it offers coverage for injuries, damages, and theft.

It is good to be safe than sorry. A road mishap is unfortunate and it can wash out your savings in one go. There can be minor variations when it comes to the exclusions and benefits, as it varies insurer to insurer. If you want the peace of mind and the right insurance coverage for your vehicle at the same time, then you should buy a comprehensive car insurance plan since it will fulfill all your insurance expectations.

Insurance Today................

What is 'Life Insurance'

Life insurance is a protection against financial loss that would result from the premature death of an insured. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. The death benefit is paid by a life insurer in consideration for premium payments made by the insured.

BREAKING DOWN 'Life Insurance'

The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.

How Life Insurance Works

Life insurance is a contract between an individual with an insurable interest and a life insurance company to transfer the financial risk of a premature death to the insurer in exchange for a specified amount of premium. The three main components of the life insurance contract are a death benefit, a premium payment and, in the case of permanent life insurance, a cash value account.

Death Benefit: The death benefit is the amount of money the insured’s beneficiaries will receive from the insurer upon the death of the insured. Although the death benefit amount is determined by the insured, the insurer must determine whether there is an insurable interest and whether the insured can qualify for the coverage based on its underwriting requirements.

Premium Payment: Using actuarially based statistics, the insurer determines the amount of premium it needs to cover mortality costs. Factors such as the insured’s age, personal and family medical history, and lifestyle are the main risk determinants. As long as the insured pays the premium as agreed, the insurer remains obligated to pay the death benefit. For term policies, the premium amount includes the cost of insurance. For permanent policies, the premium amount includes the cost of insurance plus an amount that is deposited to a cash value account.

Cash Value: Permanent life insurance includes a cash value component which serves two purposes. It is a savings account that allows the insured to accumulate capital that can become a living benefit. The capital accumulates on a tax-deferred basis and can be used for any purpose while the insured is alive. It is also used by the insurer to mitigate its risk. As the cash value accumulates, the amount the insurer is at risk for the entire death benefit decreases, which is how it is able to charge a fixed, level premium.
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Insurance today............ (Fire Insurance Cover)

What is 'Fire Insurance'

Fire insurance covers damage or loss to a property because of fire. It is a specific form of insurance in addition to homeowner’s or property insurance, and it covers the cost of replacement and repair or reconstruction above what the property insurance policy covers. Fire insurance policies cover damage to the property, and may also cover damage to nearby structures, personal property and costs because of not having the capacity to live in or use the property if damages occur.

!--break--Homeowners should document the property and its contents, which makes it easier to determine the value of items damaged or lost due to a fire outbreak. A fire insurance policy may contain exclusions based on the cause of the fire, such as not covering a fire caused by war.

The policy typically includes additional coverage against smoke or water damage due to a fire. A fire insurance policy is usually set up for one year. The policyholder may renew the policy according to the terms of the policy.

Some standard homeowner’s insurance policies include fire coverage, but others may not. This coverage may need to be purchased separately, particularly if the property contains valuable items that are excluded from coverage. The insurance company’s liability is limited by the policy value and not by the extent of damage or loss sustained by the property owner.

Policy Coverage

Fire insurance covers a policyholder against fire loss or damage brought about by the ignition of fire, electricity, lightning or explosion of gas, natural disasters, and bursting and overflowing of a water tank or pipes.

Most policies cover a home regardless of whether the fire originates from within the home or from outside the home. Coverage limits are dependent on the cause of the fire. The policy reimburses the policyholder on a replacement-cost basis in the event the property is lost, or on an actual cash value basis for damages.

If the home is considered a total loss, the insurance company may reimburse the owner for the current market value. If most of the possessions were destroyed in the fire, typically the insurance company offers a market value compensation for each item. For example, if a policy insures a home for $350,000, the contents are usually covered for at least 50-70% of the policy value, or $175,000 to $245,000. Many policies limit how much insurance companies pay for items such as luxury paintings, diamond rings or fur coats.

Coverage Assessment

A policyholder should check his home's value every year to determine if there is a need to increase coverage. He can set coverage limits using factors such as the value of the home and its contents. However, a policy may offer lower coverage limits for certain items, in which case it helps to purchase additional coverage for luxury items such as jewelry, art and other assets.

to be continued........

Adamawa: Troops intercept suicide bomber in Madagali

Vigilant troops of Operation LAFIYA DOLE Saturday morning intercepted and neutralized a male suicide bomber at Madagali, Adamawa State.

EFCC goes after Fani-Kayode over fresh N4.9bn scandal

The Economic and Financial Crimes Commission has filed fresh money laundering charges against a former Minister of Aviation, Mr. Femi Fani- Kayode before a Federal High Court in Abuja.

‘Buhari Is Using Fake Chibok Girls’ Release To Divert Our Attention’ – Fayose

Ekiti State Governor, Mr Ayodele Fayose has said the news of the release of 21 Chibok girls abducted by the Boko Haram insurgents is just a diversionary tactic by the government.

Fayose said that “it has become the practice of the All Progressives Congress (APC) led federal government to divert the attention of Nigerians each time it goofs.”

He noted that the report could be a way to shift attention from the last week assault on our judges and the Judiciary by federal government , which has been widely condemned.

Reacting through through his Special Assistant on Public Communications and New Media, Lere Olayinka, Governor Fayose said;

“Nigerians are no longer interested in the lies and make believes of the APC led federal government. Rather, Nigerians want the economy fixed and food on their tables.”

He said Nigerians should wait to see the set of girls said to have been released this time around before drawing any conclusion.

“As for me, I keep my fingers crossed on this reported release of 21 Chibok girls. This is because we were once told by this same government that one of the girls was released and the girl, who was supposed to be writing Physics WAEC examination then could not speak one sentence in English.

“Again, it was reported yesterday that Boko Haram bombed Maiduguri, Borno State and killed more than 10 people. How the same Boko Haram insurgents that bombed Maiduguri yesterday could release 21 Chibok girls today is a question Nigerians must ask.

“Until proved otherwise, the story still appears like one of the diversionary tactics of the federal government,” he said.

Speaking further, Governor Fayose said; “The economy deserves more attention than all these lies and propaganda.

“We have heard enough stories on corruption, the federal government should give Nigerians food. The people are suffering and their sufferings must be attended to by the federal government. “Propaganda, cheap lies and diversionary tactics must give way for serious governance

‘Vincent Enyeama Set To Return To Super Eagles’ – Coach Gernot Rohr

Super Eagles technical adviser Gernot Rohr has made a stunning revelation of a possible return for former Nigeria captain Vincent Enyeama who quit the Super Eagles last year.

Rohr noted that Enyeama will return to the Super Eagles once the team has fought for, and clinched the ticket to the Russia 2018 World cup.

Rohr has said even though Carl Ikeme has been wonderful, Enyeama will still come back to the team to add more experience and competition

“I’ve known him (Ikeme) before now. I have seen him in his club, Wolverhampton Wanderers a second division side in England. I like his approach to the game, his concentration, calmness, attitude to training and games.’ Rohr told CompleteSportsNigeria.

“He is a good goalkeeper and I must commend him for his saves in Ndola. Carl kept us in the game by pulling at least three great saves. He was the man of the match against Zambia. Great guy.

“I said it that I wanted Vincent Enyeama to return from retirement and I called him and we spoke with him. He will come back if we qualify for the World Cup. We need very good goalkeepers in the Eagles.

“We have two local goalkeepers whom I don’t know if they will fit in if Carl sustains an injury, so I think we need two big goalkeepers.

“Of course for this moment, Carl is number one. We cannot change him, he will be number one for the next game”