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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5 Fundamental Principles of Insurance

Insurance is a contract, a risk transfer mechanism whereby a company (Underwriter) promised to compensate or indemnify another party (Policyholder) upon the payment of reasonable premium to the insurance company to cover the subject-matter of insurance. If you are well conversant with these principles, you will be in a better position in negotiating you insurance needs.

1. Insurable interest. This is the financial or monetary interest that the owner or possessor of property has in the subject-matter of insurance. The mere fact that it might be detrimental to him should a loss occurred because of his financial stake in that assets gives him the ability to insure the property. Castellin Vs Preston 1886.

2. Umberima fadei. It means utmost good faith, this principle stated that the parties to insurance contract must disclose accurately and fully all the facts material to the risk being proposed. That is to say that the insured must make known to the insurer all facts regarding the risk to be insured (Looker Vs Law Union and Rock 1928). Likewise, the underwriter must highlight and explain the terms, conditions and exceptions of the insurance policy. And the policy must be void of ‘small prints’.

3. Indemnity. It stated that following a loss, the insurer should ensure that they placed the insured in the exact financial position he enjoyed prior to the loss (Leppard Vs Excess 1930).

4. Contribution. In a situation where two or more insurers is covering a particular risk, if a loss occurred, the insurers must contribute towards the settlement of the claim in accordance with their rateable proportion.

5. Subrogation. It has often been said that contribution and subrogation are corollary of indemnity, which means that these two principles operates so that indemnity does not fail. Subrogation operates mainly on motor insurance. When an accident occurred involving two or more vehicles, there must be tortfeasor(s) who is responsible for accident. On this basis, the insurer covering the policyholder who was not at fault can recover their outlay from the underwriter of the policyholder who is responsible for the incidence.

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Characteristics of Universal Life Insurance

As we mentioned in the previous article, universal life (UL) was introduced in 1981-82, in response to a historically high interest environment and a consumer awareness of the value of self-directed investments because traditional insurance could not compete with short-term interest rates.

Here are some characteristics as follow

1. Account Value

The account value of a universal life plan is the sum of the gross values of all the investment accounts within the policy, including income, after deductions for the current month expenses.

2. Cash Surrender Value

The cash surrender value of a universal life plan is the current account value, less outstanding loans and surrender charges. Surrender charges are usually based upon a multiple of the minimum required premium for the policy back-end charges are larger than front-end charges.

3. Premiums & Contributions

Premiums are those amounts needed to pay the cost of insurance charges and other expenses for the policy. Deposits are those excess amounts that are of a pure investment nature.

4. Death Benefit Options

The amount of death benefit payable under a universal life policy is based upon 1 of 4 different options

a)Level death benefit: Level coverage throughout the lifetime of the policy.

b) Level death benefit plus cumulative gross premiums: Death benefit increases by the amount of each gross deposit to the policy.

c) Level death benefit, indexed: The amount of death benefit increases, yearly, by a predetermined percentage.

d) Level death benefit plus account value: The total amount of death benefit is always equal to the initial face amount, plus the gross account value. This is the most popular chose by 90% of universal life insurance policies’ owners because

the gross account value is tax free.

5. Premium Flexibility

The premium deposits, plus accrued investment income, must be sufficient to pay for all expenses and deductions, so as to keep the policy in force, tax exempt life insurance contract, flexible premium.

Universal life is not for every consumer

It’s flexibility tends to be reflected in much higher administration costs than are found in traditional whole life plans and the variable nature of the plan may make it unsuitable for those clients wanting guarantees

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

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India, The Tourist’s Paradise

India is a land that offers a mind-boggling diversity of natural beauty, flora and fauna, a rich, vibrant and proud history of cultural heritage and is famous for its hospitality to people who are fascinated by the numerous stories enchanting stories about India and come To visit the country. And the country does not disappoint them. The majestic snowcapped mountains, the lush rolling valleys, the gushing rivers, green fields, gorgeous colorful flowers and luscious fruits, the arid deserts, the plateaus, the hills, the tea gardens on the mountain slopes, the orchards, the waterfalls, the list Simply goes on and on. Every year, thousands of tourists from different parts of the world flock to this country for visiting different places, to enjoy different festivals, to take part in adventure tourism, pilgrimages etc. Tourism is one of the largest service industries in India and plays a major role in providing employment to the population and the country's economy. The tourism ministry in the country caters to the various demands and needs of the tourists. The India Tourism Development Corporation is a Government of India undertaking dedicated to taking care of travel needs like hotels, flights, trains, car rentals etc.

If you are coming to India the first time, it is advised that you read about the various destinations you are planning to visit and make full arrangements for accommodations. There are reputed hotel chains which have luxury hotels in different tourist destinations of the country. You can make your bookings online or over the telephone using the useful contact information available in their websites. Check out these sites and know more about the facilities, the tour packages, the tariffs etc available here.

If you are traveling on a tight budget, then there are numerous hotels with affordable rates but with high living standards. Before booking you must ensure that the neighboring area is safe, proper transport facilities are available and you can communicate with the outside world too. Book your hotels, cars etc online and enjoy a reliably hassle-free vacation.

The tourism board advises tourists to contact only fully authorized, reputed and trustworthy tour guides and tour operators to ensure a safe travel. These guides should at least have photo identity cards issued by the Ministry of Tourism. Arrange for proper transportations that will take you to different parts of the country. If you want to visit the more remote and somewhat inhospitable areas like the mountains of Ladakh, or the arid deserts of Rajasthan or forest safaris, then you must take proper precautions against potential dangers, diseases etc.

To arrange for flights, search online for cheap flights to India if the budget is limited. There are many websites which list information about flight ticket prices from different airlines, compare the prices and provide you with the best results. You can also opt for affordable holiday packages in India along with affordable accommodations and transportations. Search multiple travel portals to obtain the best options and cheap tickets to India. Just type in your destination and the sites will return a list of airline ticket prices for you to choose from.

Welcome to India and enjoy a vacation experience of a lifetime!

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Last Will And Testament Provision For Burial

A will or testament provides information about the transfer of property, ornaments or land, from the testator to his beneficiaries, after his death. Everyone, regardless of age, needs a will. Without a will people wouldn’t know to whom their assets would go. A will is a general term and is used as the instrument in a trust, while testament applies only to dispositions of personal property.

Besides mentioning, as to who would own the property, after the death of the testator, the last will and testament also provides details about, carrying out the burial of the testator. He appoints an executor, as his personal representative who takes over the responsibility of paying his left over debts, obligations as well as pays for his funeral expenses. However, the executor is not entitled to get any surety bond connected to the last testament.

A testator may mention in his last will, the name of a particular organization that would conduct the rites of his burial or transference. He may also put a clause, which specifies that, his body be sent without autopsy or embalming, to a funeral home designated by the organization. A copy of the last will is given to the funeral home by the organization, as it helps in preparing and facilitating the transportation of the body.

The last will and testament carries details about the testator’s wishes, including whether or not his body be enshrined or entombed at a chosen place after death. Since the rites of burial and transference can be very elaborate, detailed, thorough, and lengthy, the organization may incur an extensive cost to carry out the rites. In such a case, the testator can make pre-arrangements with the organization, by donating money that would assist them in carrying out his last wishes. The appointed executor is responsible to pay for the burial expenses in case the testator has not made such arrangements. The last will and testament provision for burial gives details of performing the final rites as per the wishes of the testator, soon after his death.

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Could the Great Chicago Fire Been Prevented?

  • Nearly 300 deaths
  • More than 2,000 acres
  • 17,500 buildings
  • 73 miles of road
  • 90,000 left homeless
  • $ 222,000 in damage
  • The destruction of between two and three million books from private library collections

What do these have numbers have in common? If you answered the Great Chicago Fire of October 1893, you would be correct. And while as devastatingly as fire is in Chicago history, it is not the only horrific fire-related Chicago history. In fact, just a few years later (December 1903) there were more than 600 deaths when the Iroquois Theater burned and later listed as the deadliest single-building fire in American history.

What is more interesting, is that while the exact cause of the Chicago fire has ever been determined, the Iroquois Theater fire could have been prevented had the proper measures been taken. History shows that a Chicago fire department captain, toured the facility and noted that "there were no extinguishers, sprinklers, alarms, telephones, or water connections; the only firefighting equipment available were six canisters of a dry chemical called" Kilfyre ", which was Normally used to douse residential chimney fires. "

He reported the problems to his superiors, but was told that nothing could be done, as the building had its own fire warden. In addition to the lack of firefighting equipment, the editor of the Fireproof Magazine , toured the facility and reported that there was an "absence of an seize, or stage draft shaft; the exposed reinforcement of the (proscenium) arch; the presence of wood Trim on everything and the obligation provision of exits. "

After each of these events, Chicago rebuilt. But what if there had been something in place to send out an early alarm? How many lives would have been saved had the Iroquois Theater taken the time to make the necessary changes? Yes, it was a century ago, and modern assumptions as we know today were not available, but that does not excuse the loss of life and property destruction.

So, with a proactive focus in mind, what are you doing to protect your home and family from fire, theft, burglary or mayhem of any sort? Whatever you choose to have utilize the services of one of the local Chicago home security systems or opt for a nationally recognized company, taking care of what matters to you is important. After all, as the early residents of Chicago learned, it's not much fun to clean up after a fire! Do not make the mistake of thinking you could be excuse form personal injury, property damage or a break in. Do your part to keep your family safe.

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The Pros and Cons of Discount Travel Clubs

If you love to travel, but can not seam to do it as often as you would like, you should consider looking into a good travel club.

My wife LOVES to travel the world as I am sure many of you do, but it was always so expensive. I am here to tell you, it does not have to be.

This is how travel clubs work.

When you think about it owning a resort property is just like any other business. They need a steady flow of customers to be profitable. Their unique challenge is, they also need a consistent flow of customers preferably evenly spaced through the entire year other many issues start to become problems for them. To many customers all at once is lost business, probably to your competition. Not enough customers means empty rooms and lost business and revenue, which makes staffing as well as many other things VERY difficult.

The challenge is to keep a steady flow of customers, preferably even spaced all year long. But how do they do that?

One way resort owners have discovered to help with this is by affiliating with travel clubs to offer club members unreserved rooms at deep discounts. This helps keep a steady flow of customers all year long, and helps the owner keep a properly staffed business running.

Think about it from their perspective, would you rather have an empty room and NO income, and have a staff to pay with no customers to serve or income being produced? Or, to keep a good quality staff busy, have customers that may only be paying enough to cover your expenses with little or no profit?

It does not take long as a business owner to figure out that "when possible" you sell at full price, when necessary you take a discount and less profit, and when push comes to shove at least cover expenses to avoid taking a loss.

Even taking some loss is acceptable if it helps with staffing issues, inventory, food shelf life, advertising, budgeting, exposure and many other business issues. As long as it is not the norm, obviously.

Now, keep in mind, all travel clubs are NOT created equal.

The owner of the travel club is also doing business. He wants to provide his members with an attractive offer to build membership, but also wants to make money in HIS business, which IS the travel club. If the owner is more concerned about profit, than they are about giving value to their members, that club has a limited future.

The saying that just popped into my head was "It is better to have a little bit of something, than a whole lot of nothing."

The resort owners are constantly negotiating transactions (level of discount) with hundreds of travel club owners.

The owner of a particular travel club may have negotiated with the resort owners the best prices for his club, but if he is trying to make to much profit with his travel club, his members would not be getting the best deals!

It is very hard to negotiate regardless, without something the other party wants. Therefore, the more members you have in your club the easier it is to negotiate great deals. But getting lots of members is no easy task in itself.

The most successful travel club owner has figured out how to build a large following (with minimal cost) so they have the leverage to negotiate great deals other clubs can not, but because of their low overhead they can pass most of the savings along to Their members.

We all know that the BEST form of advertising is, word of mouth. As luck would have it, it is also the least expensive. (Free) So, if you (as a club owner) were to pay your current members (for new memberships) to advertise by word of mouth or however they choose, and generate members for you just by telling potential members about your club and the Huge savings they had received, you would have a growing membership with minimal expenses, therefore, you could pass dramatic savings on to your members which in turn would help generate more members more easily and get better discounts.

As I stated earlier, not all travel clubs are created equal, just as with any other business. You must do your research to find a club that offers a large inventory of locations, at deep discounts to its members, without charging too much for their membership. That travel club will continue to grow in size and value, and provide you with a lifetime of deeply discounted travel for minimal cost so you can travel the world and enjoy what the world has to offer.

Travel clubs can be a great opportunity to save your hard earned money. Just make sure you do your research and find the right one, otherwise you are not going to get the most value possible for your money.

Good luck, and I'll see you on the beaches of the world.

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Backpacking Vs Organized Tours – A Decision Every Traveler Faces

In planning my RTW adventure, I have been giving considering thought to the options of backpack solo, or booking into an organized tour. In my past travels, I have done a combination of both organized tours and backpacking solo and both have their good and bad points.

ORGANISED TOURS – THE GOOD …

Time Poor – If you only have a limited amount of time to go travel, then an organized tour is great as you will be able to get around and see all the things you want to, without the hassle of organizing the trip yourself.

New Friends – Usually people who book an organized tour with a specific company all have similar interests. I have made some amazing friends through doing organized tours and still, to this day, keep in touch with them.

You can be lazy – Once you have booked your tour, paid and packed your bag, you do not need to worry about a thing! You are in effect paying the tour company to take care of transportation, meals, accommodation and all the hassles involved in traveling.

ORGANISED TOURS – THE BAD …

Usually inept – Every tour has someone on the tour who will drive you nuts. When in India, I was traveling with two girlfriends and because there were 3 of us in total, we had to alternate sharing a room with another female. Unfortunately this female was an older woman who had no self awareness and was clearly an inexperienced traveler, some of the "interesting experiences" we had with her included:

  • She did not shut the door when she went to the bathroom, I would NEVER go to the bathroom with the door open, especially when I had only known the person for a matter of weeks …
  • She did not bring adequate first aid and medication supplies, unfortunately she came down with a mild cold / flu and proceeded to use everyone else's medicine and she never offered to replace it. When we went past a chemist, she was that inconsiderate that she did not even think to buy her own supplies.
  • She forgot her torch, now on this tour we were camping along the Ganges for several days and a torch was essential. So every time she went to the bathroom she borrowed my head torch, the problem was that she put this on her sweaty head and handed it back to me wet .. YUCK!
  • She hung her underwear up all over the bathroom and on my chair and bed, it was not a pleasant experience having to relocate her over sized bloomers every time I wanted to sit down …
  • She would leave the hotel with the key, there were several occasions when I was stranded outside of my room and had to wait for her to return, rule number 1 of an organized tour is ALWAYS leave the key with reception when you go out.

People who do not read the trip notes – Of the tours I have done, I have encountered two travelers, who never should have booked on the types of trips that they did. The first encounter was in Thailand, there were a young English couple on the tour, they had never traveled outside of britain and were both very young. They winged, moaned, sacrificed and did not enjoy themselves and pretty much did everything in their power to let the rest of us know they were not enjoying the experience. Had this couple taken the time to read the trip notes, they probably would have realized what they were getting them into and perhaps, reconsidered their trip.

Waiting, Waiting & Waiting – Now because tour leaders are acutely aware that people are always running late, whenever you need to leave your hotel or meet as a group, the tour leaders always tell you to meet at least 1/2 an hour before the Actual meeting time. This is fine if your the type of person that is always running late, however for the rest of us it means waiting around in lobby's for what looks like forever !!

BACKPACKING – THE GOOD

Now my personal preferred method of traveling is backpacking! And some of my favorite things about this mode of travel include:

  • You do not have to answer to anyone, if you do not like a place, you can simply leave, if you like it, you can stay!
  • You meet some amazing like minded people along the way, hanging out at hostels and having a beer in the lounge can introduce you to some amazing people
  • It is very inspiring hearing what other people have done and are doing, my addition to travel has come out of hearing other peoples stories about what they have done!
  • Other backpackers are generally very considerate and willing to meet new people and share their experiences
  • It is cheaper! You are not paying a premium for a tour company, a tour guide and their accommodation so you can cut costs as you see fit, stay in a nicer hotel or a cheaper hotel if that suits you!
  • If you get drunk and make a fool of yourself, you can just move on! You do not need to deal with anyone the next day!
  • It is easier to have a holiday romance! One of the most amazing romances I have ever had when I finished my organized tour in Thailand and backpacked around for a week, I met a wonderful American man who followed me to Bangkok and then onto Australia! I could not have had a romance when in an organized tour, especially an extended one as if it gets complicated, it can make the entire trip awkward!

BACKPACKING – THE BAD

At times you just want to have someone to take your photo! If you can not find someone to do side trips, you end up getting a lot of self portraits that are not exactly flattering!

It can be frustrating navigating around cities and countries on your own when you do not speak the language. Particularly if you are white and traveling to an Asian country, people know your a tourist and can take advantage of this.

  • You are a target, as a female you can be a target from male advances and this can be quite intimidating if you do not have the confidence to deal with it.
  • It can get lonely, if you do not strike up friends along the way, you can end up spending a lot of time alone, which on occasion can be nice, but it is very nice to share experiences with other people.
  • If you get sick, you are on your own, there is no-one to bring you medicine or look after you!
  • When you get home, you do not have anyone to share your experiences with, when traveling with a partner you can always reminounce about the things you have done, or you can email others from your tour and keep in touch. But when you travel solo, the reality is no one really cares what adventures you have been up to, they pretended, but they are not really interested!

All in all there are definite advantages and disadvantages for both backpacking and organized tours, for my trip I will be doing a combination of both n the beginning, however once I have finished in Africa, it is my intention to go solo for the rest of My trip and meet some new and exciting people along the way!

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Insurance As a Device For Handling Risk

The real nature of insurance is often confused. The word “insurance” is sometimes applied to a fund that is accumulated to meet uncertain losses. For example, a specialty shop dealing in seasonal goods must add to its price early in the season to build up a fund to cover the possibility of loss at the end of the season when the price must be reduced to clear the market. Similarly, life insurance quotes take into consideration the price the policy would cost after collecting premiums from other policyholders.

This method of meeting a risk is not insurance. It takes more than the mere accumulation of funds to meet uncertain losses to constitute insurance. A transfer of risk is sometimes spoken of as insurance. A store that sells television sets promises to service the set for one year free of charge and to replace the picture tube should the glories of television prove too much for its delicate wiring. The salesman may refer to this agreement as an “insurance policy.” It is true that it does represent a transfer of risk, but it is not insurance.

An adequate definition of insurance must include both the building-up of a fund or the transference of risk and a combination of a large number of separate, independent exposures to loss. Only then is there true insurance. Insurance may be defined as a social device for reducing risk by combining a sufficient number of exposure units to make the loss predictable.

The predictable loss is then shared proportionately by all those in the combination. Not only is uncertainty reduced, but losses are shared. These are the important essentials of insurance. One man who owns 10,000 small dwellings, widely scattered, is in almost the same position from the standpoint of insurance as an insurance company with 10,000 policyholders who each own a small dwelling.

The former case may be a subject for self-insurance, whereas the latter represents commercial insurance. From the point of view of the individual insured, insurance is a device that makes it possible for him to substitute a small, definite loss for a large but uncertain loss under an arrangement whereby the fortunate many who escape loss will help to compensate the unfortunate few who suffer loss.

The Law of Large Numbers

To repeat, insurance reduces risk. Paying a premium on a home owners insurance policy will reduce the chance that an individual will lose their home. At first glance, it may seem strange that a combination of individual risks would result in the reduction of risk. The principle that explains this phenomenon is called in mathematics the “law of large numbers.” It is sometimes loosely referred to as the “law of averages” or the “law of probability.” Actually, it is but one portion of the subject of probability. The latter is not a law at all but merely a branch of mathematics.

In the seventeenth century, European mathematicians were constructing crude mortality tables. From these investigations, they discovered that the percentage of males and females among each year’s births tended everywhere toward a certain constant if sufficient numbers of births were tabulated. In the nineteenth century, Simeon Denis Poisson gave to this principle the name “law of large numbers.”

This law is based on the regularity of the occurrence of events, so that what seems random occurrence in the individual happening simply seems so because of insufficient or incomplete knowledge of what is expected to occur. For all practical purposes the law of large numbers may be stated as follows:

The greater the number of exposures, the more nearly will the actual results obtained approach the probable result expected with an infinite number of exposures. This means that, if you flip a coin a sufficiently large number of times, the results of your trials will approach one-half heads and one-half tails, the theoretical probability if the coin is flipped an infinite number of times.

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Understanding the Extrajudicial Settlement of Estate in the Philippines

Not a lot of people know what an extrajudicial settlement of the estate is. Well, not unless they have experienced losing a member of the family and dividing his remaining properties.

Extrajudicial settlement of the estate simply means drafting a contract where the properties are divided among the heirs, as the latter may see fit. Enumerated in the contract are the properties left by the deceased, collectively called the “estate”. The properties may range from real properties such as parcels of land, buildings, or personal properties such as money left in the bank, cars, jewelry, furniture and even shares in a corporation.

It should be well-noted that an extrajudicial settlement by agreement is only possible if there is no will left by the deceased. Even if there is a will but the will does not include all of the decedent’s estate, then those not covered can by extrajudicially partitioned by agreement.

Moreover, extrajudicial settlement is not possible if the heirs cannot agree on how the properties will be divided. In that case, they can file and ordinary action for partition.

Publication requirement

After the settlement agreement is signed, the heirs should cause the publication of the agreement in a newspaper of general circulation to ensure that interested parties, if there are any, such as creditors and unknown heirs, will be given due notice.

Payment of Estate tax

After the publication, transfer of title may follow. Upon the transfer of the estate, the Estate Tax must be paid in accordance with Section 84 of the National Internal Revenue Code of the Philippines.

Estate tax is defined as a tax on the right of the deceased person to transmit his estate to his lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is a form of transfer tax, not a property tax. More particularly, it is a tax on the privilege of transferring the property of the decedent to the heirs.

The Estate Tax Return must be filed within six (6) months from the decedent’s death. The deadline may be extended by the Commissioner of the BIR, in meritorious cases, not exceeding thirty (30) days.

It is interesting to note that the estate itself will have its own Tax Identification Number (TIN). The BIR treats the estate as a juridical person.

The Estate Tax Return is filed with Revenue District Office (RDO) having jurisdiction over the place of residence of the decedent at the time of his death.

If the decedent has no legal residence in the Philippines, then the return can be filed with:

1. The Office of the Revenue District Officer, Revenue District Office No. 39, South Quezon City; or

2. The Philippine Embassy or Consulate in the country where decedent is residing at the time of his death.

For estate taxes, the BIR imposes the pay-to-file system which means that you have to pay the estate tax at the same time the return is filed.

In cases involving a huge estate where the tax imposed can get too high, or in cases where the decedent left properties which are difficult to liquidate and they do not have the cash to pay the taxes, the BIR Commissioner can extend the time of payment but the extension cannot be over two (2) years if the estate is settled extrajudicially. If an extension is granted, the BIR Commissioner may require a bond in such amount, not exceeding double the amount of tax, as it deems necessary.

The estate tax is based on the value of the net estate as follows:

1. If not over P200,000, it is exempt

2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P200,000

3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of the excess over P500,000

4. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% of the excess over P2,000,000

5. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% of the excess over P5,000,000

6. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,000,000

In computing the net estate, allowable deductions shall always be considered. These deductions include funeral expenses, share of the surviving spouse, medical expenses incurred by the decedent within one (1) year prior to his death, family home deduction of not more than P1,000,000.00, standard deduction of P1,000,000.00, among others. It is best to consult a lawyer or an accountant to determine to ensure that the heirs can properly indicate the deductions and exemptions and thereby determine the accurate net estate of the decedent.

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