10 Reasons Why People Travel

When people decide to leave the comforts of their home and venture to other locations there is usually a reason behind it. Whether the cause to travel was a last minute whimsy or had an actual purpose, it makes one think about all of the reasons why people travel. Reflect on the last time you left your location and ventured to another one. Did it have a purpose behind it? Let’s look and see if your motive to travel matched any of the one’s listed below. These are not listed in any particular order.

1. Romance- There are thousands of people who are involved in long distance relationships. At some point though, they need to see each other. For the sake of love, people will travel for hours to spend as much time as they can with the love of their life.

2. Relaxation- All work and no play is not a good thing. People need to get away from the stress of everyday life, and a nice sunny location with a beach might just be what the doctor ordered.

3. Family/ Friends -Many people have family/friends that are located in different parts of the world. They need to visit with them even if it’s for a short period of time.

4. Religion- There are places in the world that hold religious importance for many people. Religious travel is often related to a purpose such as seeing where the last pope was buried, or traveling to the town where Jesus was born.

5. Death- A relative, friend or acquaintance has passed away and travel is required to attend the funeral which is located out of town.

6. Honeymoon- You’re getting married and are going somewhere special to celebrate. This usually occurs right after the wedding, but there are many occasions where people celebrate a honeymoon years later.

7. Education-You’re getting your education somewhere other than where you live or you are going away on an educational school trip.

8. Celebration- Wedding, Anniversary, Birthday, Birth- There’s always something to celebrate and it doesn’t always happen where you live.

9. Medical/Health- Sometimes the treatment you need isn’t available in the city/town where you live. Often the best medical care is costly and requires travel to receive it.

10. Work- Job requirements might mean a fair bit of travel is involved. Even if the travel is within your own country it still has a purpose attached to it.

Overall, traveling can be a wonderful experience or it can be draining, expensive and just plain torture. Nonetheless if you need to go then embrace it for what it is, and try to make the best of it even if it wasn’t planned.

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Plannet Marketing Review – Is This Travel Company The Real Deal?

So lately, I’ve been getting a few messages about a new Travel-based Network Marketing company called Plannet Marketing. And chances are if you’re reading this, you’re probably thinking about joining and you’re doing some last minute research on the company. If that’s the case, then look no further. In this Plannet Marketing Review, I’ll cover all the essential details you’ll need before you join. With that said, I do want to disclose that I am not a Plannet Marketing distributor. In all honesty, it really doesn’t matter to me one way or the other if you join so you know you’ll be getting a truly unbiased review.

Who Is Plannet Marketing?

Plannet Marketing is a company that sells travel through a Network Marketing business model. The company is based out of Atlanta, Georgia and as of this writing Plannet Marketing is just over 6 months old. The company was founded by Donald Bradley, formerly of YTB and Paycation Travel. Bradley brings with him 20 years of experience in Network Marketing. Before starting Plannet Marketing, Bradley was the Master Distributor and #1 Income Earner in Paycation Travel. He literally had everyone in Paycation in his downline and was responsible for bringing in the company’s top leadership group. I’m not sure what happened, but around the time Craig Jerabeck and Barry Donalson left 5linx and joined Paycation was the same time Bradley decided to leave. Maybe he didn’t feel good about those guys joining and being sponsored by the company when he was the Master Distributor. Who knows? And who really cares? Regardless of the reason, it looks like Bradley was willing to walk away from everything he built to start from scratch again. Overall, the company looks pretty solid. And while it’s too early to tell if they’ll even be around for the long haul because they’re only a few months old, Bradley and the other members of the Corporate team bring a ton of experience in Network Marketing and Travel, which is a good thing.

How Do You Make Money With Plannet Marketing?

The actual compensation plan provides several ways for distributors to get paid. But the crown jewel of the compensation plan is the 3X9 Matrix. With a Matrix model, it’s critical that you get a spot early on if you want to capitalize on spillover. If you’re positioned underneath a strong builder, you can benefit from their efforts as they place people under you while they’re filling up their Matrix. With a fully filled 3X9 Matrix, you’ll have 29,523 distributors underneath you. If they’re all active and you get $4 monthly from each distributor, you can make up to $118,092 monthly. In addition to your Matrix pay, you can also earn a 10% Match on the Matrix pay of your personally sponsored distributors.

In addition to the Matrix, the company provides monthly bonuses to Directors. Here’s a simple breakdown of how the Director bonuses work:

1 Star Director – 100 active distributors – $500/month

2 Star Director – 300 active distributors – $1,000/month

3 Star Director – 500 active distributors – $2,000/month

4 Star Director – 1,500 active distributors – $5,000/month

5 Star Director – 4,000 active distributors – $10,000/month

6 Star Director – 10,000 active distributors – $16,000/month

7 Star Director – 25,000 active distributors – $30,000/month

8 Star Director – 50,000 active distributors – $50,000/month

9 Star Director – 100,000 active distributors – $100,000/month

Between the Matrix Pay, the 10% Match on your personals and the Director Bonuses, it’s pretty clear that there’s plenty of money on the back end. If you’re a strong team builder and you have a knack for creating good culture, Plannet Marketing might be a very lucrative opportunity for you.

Should You Join Plannet Marketing?

Well, only you can truly answer that. The company certainly looks solid. Travel is a very marketable service that’s easy to talk about. And the compensation plan is generous and lucrative. All those things together should guarantee success, right? Unfortunately, nothing could be further from the truth. At the end of the day, it is your ability to sponsor people into your business on a consistent basis that will lead to your success. This is why I recommend that you learn Attraction Marketing. If you can position yourself in front of prospects that are already looking for what you’re offering, you’ll have no problem getting leads online. And if you have an abundance of quality leads, there’s no telling how successful you can be.

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LA Insurance – Franchise Review

Insurance is a must these days. It has become a necessity. People with insurance sleep better because they know that they and their beneficiaries are covered should something happen. Almost everyone in the United States carry insurance which underscores its importance.

L.A. Insurance Agency is one of the most popular insurance companies in the country today. It is also one of the largest independent insurance agencies in Michigan, Colorado, Nevada, California, Georgia, Florida and many more. The company was founded by Anthony Yousif who started out as an insurance agent. The company headquarters in Michigan.

The company has grown so much that today they have more than 150 locations in the United States. Their primary offering is insurance for a variety of vehicles like motorcycles, cars and boats. They offer insurance for bodily injury liability, property damage liability, uninsured and underinsured motorist coverage and physical damage and recently started offering medical insurance to their clients.

The granting of franchises is the focus of the LA Insurance Agency® Franchise LLC. Individuals interested in being a franchisee will undergo an extensive background check. There is an investigative consumer report and an investigation in accordance with the anti-terrorism legislation of the United States. Among the things which will be examined is creditworthiness. Applicants might also be required to take a standardized Math and English exam. After the form has been filled out and submitted, a representative from the company will contact the interested party by phone or by email.

Aside from extensive credit checks, there are also financial requirements which must be complied with before becoming a franchisee of L.A. Insurance. Failure to comply with the minimum financial requirements will result in the rejection of an application.

While they do not publish the totals, there is the startup cost, franchise fee, minimum liquid assets and operational costs. The company takes care of the advertising, however, it is the franchisee’s responsibility to entice customers to but the insurance he or she is selling.

Once the application has been approved, there will be trainings to undergo. Staff and personnel will be taught how to use the software, as well as how to effectively sell insurance to increase customer base. The company is very hands-on with their franchisees.

When looking to start any business it is important, particularly considering today’s market, that you look for specific ways to cut minimize or reduce overhead and risk. Any business is going to have risk, but it is important to have a full understanding of the amount of investment, startup cost and “ROI” (Return on Investment).

Most people are not aware that 80% of ALL franchise endeavors fail in the first two to five years leaving large debts looming for years thereafter.

One way and in my opinion the best way to cut overhead, startup and investment cost is to take advantage of the new age of entrepreneurship and start a business from the comfort of your home. Opportunities have emerged in the online market that are creating millionaires every single day.

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What Is the Difference Between an Heir and a Beneficiary?

The term ‘heir’ refers to a person who is entitled to property owned by a deceased family member. Individuals can bequeath property to heirs through their last will and testament or a trust. When a person dies without leaving a Will, their assets are given to rightful heirs according to state probate laws.

An heir can be a surviving spouse, minor or adult children, mother, father, or siblings. Heirs can also include direct lineage relatives such as aunts, uncles, and cousins. Individuals can bequeath property to whomever they desire. If they gift items to anyone outside the family, those individuals are referred to as beneficiaries. Although somewhat confusing, heirs can be beneficiaries, but beneficiaries are not always heirs.

The only way to ensure property is distributed according to your wishes is to execute a legal Will. When property is held in a trust, the Will is used to provide directives regarding distribution. Unless inheritance assets are placed into a trust, the estate must undergo the probate process.

Probate is required to settle decedent estates. Two types of probate exist – testate and intestate. Testate refers to estates which include a last Will, while intestate refers to estates where no Will exists. The probate process varies depending on the type. Intestate estates take longer to settle because additional procedures must be taken.

The last will and testament is also used to designate a probate personal representative. This person is responsible for all tasks required to settle the estate. This can include paying any outstanding debts owed by the decedent; filing a final tax return and paying outstanding taxes; obtaining appraisals for valuable property; securing personal property owned by the decedent; and distributing inheritance gifts left to heirs and beneficiaries.

The last will can also be used to disinherit an heir. When a person decides to leave a direct lineage relative out of their Will they must include a disinheritance clause which states the reason for exclusion. While this clause does not prevent heirs from contesting the Will, it can minimize the risk. If a disinheritance statement is not included, heirs can prolong the probate process by claiming the decedent was influenced by another person or not in their right mind when executing the Will.

Contesting a Will is a costly process that often bankrupts estates due to excessive legal fees. Those who have direct lineage relatives whom they do not want to bequeath gifts to should consult with a probate lawyer to ensure their Will is properly executed.

Engaging in estate planning can keep certain assets out of probate and allow quick distribution to heirs. Individuals with checking or savings accounts can designate beneficiaries to receive funds at death. This is referred to as payable on death (POD) beneficiaries. Account holders must fill out POD beneficiary forms to provide the names, addresses, date of birth, and social security number. Upon death, beneficiaries must provide photo ID and a copy of the decedent’s death certificate to claim funds.

Individuals with retirement accounts or financial portfolios can assign transfer on death (TOD) beneficiaries. Upon death, heirs can elect to transfer funds into a new account to avoid estate taxes or cash-out the account. It is best to consult with a tax attorney to discuss tax ramifications before accepting lump sum cash.

Executing a last will and testament is one of the best gifts you can leave loved ones. Wills should be updated when major events occur. These might include buying or selling real estate; starting or closing a business; or when a new heir is born or a designated heir dies.

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Insurance In Tort Laws

INTRODUCTION

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

DEFINITION OF CONSUMER

The words “consumer”, “consumed”, “consumption” is all cognate, and when one is defined, the contents of the definition go into all of them wherever they occur in the same act.

Section 2 of the act wherein ‘consumer’ is defined. According to him, the definition of the consumer will not take a client who engaged the advocate for professional services.

Consumer means any person who-

– Buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system or deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly promised or under any system of deferred payment when such use is made with the approval of the person, but does not include a person who obtains such goods for resale or for any commercial purpose

– Hires or avails of any services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for the consideration paid or promised or partly paid or partly promised or under any system of deferred payment when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial support

In Black’s Law Dictionary it is to mean:

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

OBJECTVES OF THE ACT

The act is dedicated, as its preamble shows, to provide for better protection of rights of consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for settlement of consumer disputes and for other connected matters. In the statement of objects, reasons it is said that and the act seeks to provide speedy and simple redressal to consumer disputes. Quasi judicial body machinery has been set up at the district, state and central levels. These quasi judicial bodies have to observe the principle of natural justice and have been empowered to give relief to a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for non compliance of orders given by quasi judicial bodies have also been provided.

The object and purpose of rendering the act is to render simple, inexpensive and speedy remedy to consumers with complaints against defective goods and deficient services and for that quasi judicial machinery has been sought to be set up at the district, state and national levels. These quasi judicial bodies are required to apply the principle of natural justice and have been empowered to give relief of specific nature and appoint wherever necessary, compensation to consumers.

INSURANCE

An operational definition of insurance is that it is

– the benefit provided by a particular kind of indemnity contract, called an insurance policy;

– that is issued by one of several kinds of legal entities (stock company, mutual company, reciprocal, or Lloyd’s syndicate, for example), any of which may be called an insurer;

– in which the insurer promises to pay on behalf of or to indemnify another party, called a policyholder or insured;

– That protects the insured against loss caused by those perils subject to the indemnity in exchange for consideration known as an insurance premium.

The influence of insurance on the law of torts has been significant, both on theoretical level and on practice. Insurance has undermined one of the two main functions of awarding of damages, and it has in cast doubt on the value judgements made by the courts in determining which particular test of liability is appropriate in the given circumstances.

Regardless of whether in the particular circumstances the appropriate principle of liability is intention is malice, fault or strict liability, the purpose of common law damages remains the same. The primary purpose of an award of damages is to compensate the victim for his loss, with view to restoring him as near as possible to the position he would have been in but for the tort of the wrongdoer. But damages have another: by making the wrongdoer responsible for meeting an award of damages, the courts are trying to deter others from committing similar tortuous wrongs.

Insurance vitiates the secondary purpose of damages, at the same time incidentally ensuring that the primary purpose is more often achieved.

It can scarcely be realistically asserted that insured defendants are deterred by the prospect of losing no-claims bonus or by increasing of premium on renewal of their policies. Once it is conceded that insurance renders compensation for the sole purpose of damages but then the tort action itself becomes vulnerable to attack, for there are many ways-some perhaps fairer and administratively cheaper than tort- of compensating a victim for a loss he has suffered.

Prima facie, where a person suffers loss of recognized kind as the result of another’s act, then the latter should have to make good that loss. But for valid reasons, the courts have held that, in certain circumstances, the actor will have to compensate his victim only if he is at fault. The victim’s right to compensation is, therefore curtailed in an attempt to be fair to both the parties. The courts have made a policy decision that, in the circumstances, it is right to reward a defendant who has been careful by protecting him from liability for the consequences of his actions and that, as a corollary the plaintiff must forego his compensation. The policy decision is made on the supposition that the wrongdoer would himself have to pay for the damages but for this protection; it by no means follows that the same decision would be made if there were no risk of the wrongdoer having to provide the compensation.

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

Again the victim’s right to compensation is being curtailed without any corresponding benefit to the wrongdoer.

However, insurance has influenced the law of tort on a much more practical level as well. While the fact of insurance is not of itself a reason for imposing liability , there can be no doubt that it does add “a little extra tensile strength” to the chain which a wrongdoer to his responsibilities.

As well it has given new horizon to damages ; it is true that traditionally it was considered to inform the court that a defendant was insured , but “those days are long past” and now it is frequently openly recognized that the defendant would be insured.

The policy of insurance constitutes a contract of insurance between Life Insurance Corporation or a subsidiary of General Insurance Company of India, as the case may be, such services such has been undertaken to render under the contract of insurance. However as a rule, occasion to render services arise only when insured surrenders his policy, or the policy matures for payment or the insured dies or any other contingency which gives rise to render service occurs.

Breach of contract of insurance may give rise to a cause of action to file a civil suit, but such breach of contract may itself constitute deficiency in service, so as to give a cause of action to file a complaint under the consumer protection act for one such more relieves awardable hereunder.

Section 13(4) of the act vests in a redressal agency powers of the Civil Court, while trying a suit in respect of such matters as examination of witnesses on oath and production of documents. Declining to exercise jurisdiction in a case before it only because it involves examination and cross examination of facts, witnesses and production and consideration of documents would amount to abdication of its jurisdiction.

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

MOTOR VEHICLE INSURANCE

Where the sale of a vehicle is complete, the title therein passes to the purchaser notwithstanding that his name has not been recorded in the R.C.Book. Such owner is entitled to get his vehicle insured and also to maintain a claim on the basis of such insurance. The earlier owner, who has lost insurable insurance on the sold vehicle, cannot advance a claim on the basis of policy of the said vehicle, earlier taken by him, on the ground that he is still the recorded owner of the said vehicle.

Section 157 of the motor vehicles act is only in respect of third party risks and provides that the certificate of insurance described therein shall be deemed to have been transferred in favour of the person to whom the motor vehicle is being transferred. It does not apply to other risks, if any, covered by the policy. If the transferee wants to avail the benefits of other risks covered by it, he has to enter into an agreement thereof with the investor.

FRAUD BY INSURER

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

DELAY IN SETTLEMENT OF CLAIM

In Sarveshwar Rao v. National Insurance Company Ltd. , it was held that the delay of two or more years in settling the insurance claim would result in inadequacy in the quality, nature and manner of the service which the insurance company has undertaken to render, and amounts to deficiency in service.

In Delkon India Pvt. Ltd. V. The Oriental Insurance Company Ltd. . The National Commission has held that it was a deficiency of service to have delayed the claim by two years on the ground that the final police report was not coming.

INTERPRETATION OF TERMS

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

CONDUCT OF THE INSURER

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

SUICIDE BY THE ASSURED

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

BREACH OF TERMS

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

NOMINEE’S RIGHTS

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

REPUDIATION

Repudiation is defined as the renunciation of a contract (which holds a repudiator liable to be sued for breach of contract, and entitles the repudiatee on accepting the repudiation to treat the contract as at an end

This concept of repudiation is needed in the concept of insurance. The concept of repudiation will be dealt hereto a number of times and to provide beneficiary evidence, the definition has been given.

Unilateral repudiation of its liability, under the contact of by the life insurance corporation or an insurance company does not, by itself oust the jurisdiction of a redressal agency, to go into the sustainability of such repudiation, on facts and in law and to decide and to adjudicate if, in the facts of the case, it amounts to deficiency in service or unfair trade practice, and if so, to award to the aggrieved person, such relief or reliefs under Section 14(1) of the said Act as he or she is entitled to. The fact that before such repudiation it obtained a report from a surveyor or surveyors also does not oust the jurisdiction of a redressal agents to into the merits of such repudiation, for otherwise in each case the corporation or such company, and deprived the aggrieved person of the cheap and expeditious remedy under the consumer protection act.

Where, however the corporation or the company conducts thorough investigations into the facts which have given rise to claim and other associated facts, and repudiates the claims in good faith after exercise with due care and proper application of mind, the redressal agency should decline to go into the merits of such repudiation and leave the aggrieved person to resort to the regular remedy of a suit in a civil court.

The law does not require the life insurance corporation or an insurance company to accept every claim good or bad, true or false, but it does require the corporation or the company to make a thorough investigation into such claim and to take decisions on it, in good faith, after exercise of due care and proper application of mind and where it does so it renders the service required by it and cannot be charged with deficiencies in service, even if, in the ultimate analysis, such decisions is wrong on the facts and in law and the redressal agency would be disinclined to substitute its own judgement in the place of the judgement of the corporation or insurance company.

The question as to whether repudiation of its liability does or does not amount to deficiency in service would depend upon the facts of each case.

Where a cheque sent towards a premium is dishonoured by the drawee bank and consequently the policy is cancelled or it lapses or the injured dies before the proposal is accepted and contract of insurance results, no claim can be founded in such a policy, which was cancelled or has since lapsed, or a contract of insurance, which did not materialize at all. Repudiation of such claim can never amount to deficiency in service.

Insurance agent is not entitled to collect premium on behalf of the corporation. Where an insured issues a bearer cheque towards premium and hands it over the insurance agent who encashes it, but does not deposit the premium with the corporation event till the expiry of the grace period and consequently the policy lapses and meanwhile the insured also dies, his nominee has to blame himself or herself for the indiscretion of the insured and cannot blame or fault the corporation.

BASIC PRINCIPLES OF INSURANCE

There are some basic principles concerning the topic of Consumer Protection Law and Insurance.

– Settlement of insurance claim is service, default or negligence therein is deficiency of that service

In the case of Shri Umedilal Agarwal v. United India Assurance Co. Ltd, the National Commission observed as under:

“We find no merit in the contention put forward by the insurance company that a complaint relating to the failure on the part of the insurer to the settle the claim of the insured within a reasonable time and the prayer for the grant of compensation in respect of such delay will not within the jurisdiction of the redressal forums constituted under the consumer protection act.

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

– L.I.C. Agent has no authority in collecting the premium

The supreme court held that under regulation 8(4) of life insurance corporation of India (agents) regulation, 1972 which had acquired the status of life insurance corporation agents rules with effect from January 31, 1981, which were also published in the gazette, LIC agents were specifically prohibited from collecting premium on behalf of LIC and that in view thereof an inference of implied authority cannot also be raised.

– Rejection of claim as false after full investigation

The national commission held as follows:

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

– Unilateral reduction in the insurance amount.

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

– Mere repudiation does not render the complaint not maintainable.

The national commission overruled the objection of the insurance company that merely because the insurer had totally repudiated its liability in respect of the claim, no proceedings could validly be initiated by the insured under the consumer protection act.

– Mere unilateral repudiation does not oust the jurisdiction.

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

– Mere unilateral repudiation no ground to oust jurisdiction.

The national commission repelled the objection and observed as under:

“Ordinarily a remedy is available to a consumer in Civil Court but mere repudiation of claim arising out of policy of insurance under section 45 of the insurance act, 1938, cannot take away the jurisdiction of the redressal forum constituted under the act. The avowed object of the act is to provide cheap, speedy and efficacious remedy to the consumers and it is with this object that section 3 of the act lies down as follows:

3. Act not in derogation of the provisions of any other law: – the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.”

The national commission overruled the objection in the view of repudiation of contract of insurance by the corporation; the redressal agencies under the act cannot entertain the claim of the insured and reiterated the law laid down by it in the Divisional Manager, Life insurance Corporation of India, Andhra Pradesh v. Shri Bhavnam Srinivas Reddy.

– Removal of insured goods on attachment no theft.

It was ruled in the stated case that attachment of certain items of insured Machinery and goods by the bailiff of a civil court, though later found to be illegal and consequent removal did not amount to theft and or house breaking by force so as to entitle the insured to prefer a claim under the policy.

– When repudiation amounts to deficiency and when it does not?

The national has held:

In M/s Rajdeep Leasing and Finance and others v. New India Assurance Company Limited and others –

That rejection of the claim by the insurance company after examining and considering the two separate survey reports from qualified surveyors and three legal opinions from different oriental counsels could not be said to constitute a deficiency in service so as to give a rise in the cause of action for a complaint under the consumer protection act.

In Oriental Insurance Co. Ltd. V Modern Industries Ltd. , the national commission has held that where the cover note inter alia mentions that the risk is subject to the usual terms and conditions of the standard policy, it is equally the responsibility of the complainant to call for these terms and conditions even if they are not sent by the insurance company, as alleged, to understand the extent of risk covered under the policy and associated aspects.

In Life Insurance Corporation of India v. Dr. Sampooran Singh

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

In LIC of India v M/s Kanchan Murlidhar Akkalwar

The complainant applied to the opposite party for housing loan, and on the advice of the latter, she took two LIC policies, one for Rs. 90000 and the other for Rs. 20000 entered into an agreement for the purchase of the house with the house with the owner on the advice of the opposite party obtained a fire policy for Rs. 2 lakhs. The opposite party advised the complainant to obtain a release deed from the zilla parishad co operative society in respect of the she proposed to purchase with a certificate that the said plot is not mortgaged therein. The complainant got a certificate from the Maharashtra government that the vendor had re paid the housing loan and interest thereon due to Zilla Parishad Krishi Karmachari Sehakari Gribe Narman Sanstha and that there was nothing outstanding from him towards loan amount or interest. Still the opposite party did not release the loan. On these facts the national commission by its majority judgement observed that:

“We have carefully gone through the records and heard the counsel. Clause 1 (c) of the loan offer letter clearly states that the advance of the loan is subject to the property being free from encumbrances to the satisfaction of the insurance company and a good and marketable title. At the same time it appears that the respondent-complainant had to go through a number of steps, although necessary, having financial implications and causing mental and physical stress to her and at the end of all of which she was told that no dues certificate given by the maharashtra government in respect of the prospective seller of the property in question, was not “release of mortgage” certificate that was obtained. The respondent complainant perhaps also had in her mind the case of Mr. Vaishempayam who got the loan under similar circumstances. Thus the evasion petition is disposed of as above.”

CONCLUSION

This project topic is increasingly beneficial in the modern times with the consumer protection rights being redressed with due care. It is being advertised in the mass media in our country. The slogan which our consumer is using is: “JAGO GRAHAK JAGO”. The time has come to realize the ideal market situation in which the buyers are not persuaded or coerced falsely into buying items which are of no use to them at all. Besides the relationship between buyer and seller should not be damaged at any cost. The relationship between the buyer and seller is said to be a fiduciary relationship and the trust between them should remain intact. A time has come in which the customer should get his proper position in the market conditions. He has to have proper knowledge about what is going on in the market and the concerned prices and the supply and the different other practices referred to.

Insurance is a very sensitive issue in the modern times. People are being hoodwinked into signing up in companies which are turning out to be frauds in the true sense of the term. This project has been an eye opener to me and I have come to realize the importance of the consumer protection act and insurance.

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Garage Insurance – Used Car Dealers and Repair Shops Watch Those Symbols

Garage insurance is a much misunderstood policy form. Many professional insurance agents are confused about exactly when to use it and more importantly exactly how. You can use a garage liability policy to protect a used car dealer, often referred to as dealer's insurance, or you can use this same form to protect an automated repair shop or to set up body shop insurance. The trick is to know the symbols. If you own a car dealership or an automotive repair shop and are purchasing insurance for your business, it is advisable that you find an agent who specializes in the garage insurance form to help you with this purchase so you do not end up with the wrong Form and possibly find yourself without coverage after a large loss.

As I mentioned earlier, both types of businesses, auto repair and or body shops and used car dealers both need the garage policy. But exactly what kind of operations are covered in these policies is driven by the symbols shown on the policy. This is very important. If your business is automated repair or body work but your policy is set up with symbols that would apply to a car dealership, you could find yourself without coverage in the event of a liability loss.

So how do you know if you have the correct symbols and then the correct form? Pull out your garage policy and look at the first page. Beside each type of coverage, usually to the left, there will be a least one two digit number between 21 and 31. These symbols will describe what is protected by the coverage shown next to that symbol. Here is a list of the most common symbols and what each one protects:

Symbol 21 Any auto
Symbol 22 All owned autos
Symbol 23 Owned private passenger autos only
Symbol 24 Owned autos other than private passenger
Symbol 25 Owned autos subject to no fault laws
Symbol 26 Owned autos subject to Uninsured Motorists law
Symbol 27 Specifically described autos
Symbol 28 Hired autos only
Symbol 29 Non-Owned autos used in the Garage Business
Symbol 30 Autos Left for Service / Repair / Storage
Symbol 31 Autos on Consignment

As you have probably figured out, if you are an automobile dealer and you have symbol 30 on your policy, you would find yourself without coverage. So why not just put symbol 21 on all coverage? Well, since code 21 is the broadest coverage, you would have to pay for this insurance policy and in some cases you might be purchasing insurance protection that you did not really need.

Take some time to look at your policy carefully and review the symbols for each line of coverage to make sure that they are appropriate for the work you do. If you need help with this process, consult your agent. If you agent does not specialize in businesses needing garage policy, ie dealers insurance and auto repair shop insurance, then find one who does. This protection is just too important to leave up to an agent who is practicing on the job learning on your policies.

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Construction Site Management – Accessibility

Construction sites offer different challenges as far as accessibility is concerned. This follows the fact that there is a mass movement of men (labor) as well as material haulers. These range from pick up trucks to trailers. Depending on the items being moved, the weight is different and as such the capacity of the route to and from site should match these requirements. There will also be visitors in light personal vehicles, especially consultants and prospective property buyers in case of commercial projects or prospective tenants in case of residential or other rental spaces. The available or provided access should well cater for these requirements as far as is possible. The different site conditions include;

· Virgin sites: This reflects to a new site where no other construction activity has been done before. This means that there is no access to the specific point of construction. Where such route may be available, it may not be sufficient and may need improvement. This may include works like cutting down trees, cutting high sections and filling low ones, dumping murram or other appropriate material. It will also include compact, wetting and curing of the dumped material. Being a new and sometimes temporary route, it will need maintenance. Where such access is to pass through other people's property, appropriate permissions should be thought. The local authorities must also be informed and provided with plans like ways of averting problems like ecological disturbance. It is usually wise to have the access route for construction being also the permanent access to the permanent route for accessing the completed facility.

· Existing sites: These are sites that have already been built upon previously. They may have existing access. The only hurdle would be where such access is still in use by others, as it will create an inconvenience and delivery use may be regulated to low peak periods only. There could also arise the need to provide alternative routes for the existing users. A good example here is road maintenance or improvement works, wherey diversions are created and maintained in good order during the construction period. Appropriate arrangements should be made to minimize inconvenience as well as prevent accidents.

· Tight Sites: These are unique sites in the fact that they have minimal space for maneuverability. Examples here are found in town centers or institutions. Regulation here is very strict and as such stringent measures should be put in place to follow such regulations. These sites are very difficult to manage as far as accessibility is concerned. An example is where concrete is to be delivered on site already mixed (In premix trucks). This presents the headache of timing as well as preventing inconvenience to other users.

The provision of access to sites should be a well thought out activity. Maintenance should be in top priority. The design of such access roads should also cater for the traffic envisaged for the said project. Road signage and other such furniture should also be provided and well maintained.

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Benefits of International Travel

International travel can be a great experience; it allows you to witness many new cultures and lifestyles. International travel has many benefits which make it better than your traditional domestic vacation. Depending on your destination, traveling abroad can also save you money because of the current exchange rate. These rates change and may not be available in the future. A good exchange rate or activity that you would like to see may not be available if you put off planning the vacation. Another benefit of planning an international trip today is the current technology, which makes booking a trip easy. Technology can help eliminate the hassle of finding the best prices and locations based on your budget.

Traveling, whether for a long weekend away to a nearby country, or clear across the globe, is invigorating, refreshing and expands so much in one’s life that it is something that more people should do. Traveling abroad can greatly change your life for the better because there are many cultures and lifestyles to experience. These cultures can provide you with an entirely new perspective on life. Once you begin experiencing the beauty of the world, you may even begin planning yearly international vacations.

Currency rates fluctuate regularly and, as stated before, this may be a good reason to plan an international vacation today. Money is necessary if you are planning to travel and see the sights the country has to offer. If your currency can be exchanged at a reasonable rate, this can greatly improve your vacation experience. This is an important reason for traveling internationally now since you can get the most out of your trip. If you put the trip off the exchange rate may change for the worse and you can lose money after arriving at your destination.

Practical reasons

However, let us get down to the more practical reasons for traveling internationally. Frankly, it is understandable why most people would be hesitant to travel now. The economy appears to be in bad shape and many people are trying to save money. However, in some instances, this can be beneficial for travel, the airlines may lower their prices in order to get your business and this can save you money. Airline prices also fluctuate between airlines and by looking around you may find a special promotional vacation package that may not be available in the future.

Vacations are meant to be fun and enjoyable and this is another reason for traveling abroad today. There are many locations to visit from the beaches of the Caribbean to the beautiful and exquisite city of Paris, France. Experiencing something new is always the best way to live and an international vacation provides just that. This can spice up your life by allowing you to find things that you would not normally consider trying.

In fact, these days traveling is so much easier, more efficient and less time consuming than it used to be. We can travel across the globe faster and it requires much less energy than was required years ago. It is also possible watch TV, movies or listening to music while traveling. On some airlines, you can even follow the path of your airplane via satellite!

Technology and travel

Due to the technology available, planning a vacation can be stress-free as well. By using the internet to purchase your international flight tickets, you can plan your trip, get travel advice, and shop around for great deals. Technology has come a long way especially for finding the best travel packages. You can book your hotel, car, flight, and even your entertainment all on one website. If you are unsure of your destination, you can browse through the millions of videos and pictures of different locations to find which location best suits you. Planning an international trip can be an enjoyable experience when compared to the hassle involved years ago.

It is highly recommended to travel abroad at least once in your life and there are many benefits to planning your trip now. Saving money is the main reason for planning your trip today. When traveling abroad, you may have to exchange your money for the local currency. Currency exchange rates change frequently and this can have a large impact on your vacation. Since you do not know what the rates are going to be in the future, it is best to plan your trip while a good rate is available. You should also consider planning a trip because of the cultural value. Experiencing new cultures and lifestyles can help provide much value to your life. It may even change your life completely because you may find something new that you like. If you are planning an international trip, you should consider these suggestions because they can help you get the most out of your trip.

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Tips On How To Clean Your Dirty And Smellygage

Your luggage travels in different conditions. The rain, the muddy pathways and the dirty pavements can all make your luggage dirty and smelly. If you do not take good care of it, your precious travel bag can wear out faster.

Cleaning your dirty and smelly luggage should not be too daunting. Let me tell you some tried and tested cleaning tips:

1. Vacuum your luggage. Try to get rid of as much dirt and dust from your travel bag as you can. Also vacuum the casters and the interior of the bag. You might want to use a vacuum machine with a good filter to effect suck minute dirt and dust particles.

2. If you are using a canvas luggage, try cleaning it with a mild dish washing liquid. Mix two drops of the dish washing liquid in two cups of warm water. Soak a sponge or a clean towel in the mixture. Wring out the excess. Use this to wipe the interior and the exterior of the machine.

Make sure you remove dirt particles. Also wipe away dirt and crusty mud on the wheels of the luggage.

3. For your leather luggage, try to get rid of the mud using a leather polisher. Apply leather polisher on a clean rag. Wipe it all over the bag.

4. Get a soft bristled brush and use this to remove dirt particles in the zippers, wheels and the handles of the bag. You can try soaking the brush in the dish washing liquid solution first. This will loosen up the crusty mud or dirt.

5. Sprinkle baking soda on the interior and exterior of the luggage. Leave it on for an hour. Baking soda can effectively diffuse unwanted luggage odor. This will also help get rid of lingering stains and dirt.

6. After an hour, vacuum the travel bag again to get rid of the baking soda residues.

7. To deodorize the luggage bag once again, try spraying it with lemon juice solution. Just mix one cup of lemon juice with one cup of water. Place it in a spray bottle. Spray it all over the luggage. This should work in diffusing unwanted bag odor.

8. Let it dry completely. Place the bag in an area not directly exposed to the sun.

If you are traveling during rainy seasons, make sure you use a luggage cover for your bag. These can be purchased from travel bag stores. They can protect your bag from further damage.

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Fire Insurance Under Indian Insurance Law

A contract of Insurance comes into being when a person seeking insurance protection enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire and or lightening, explosion, etc. This is primarily a contract and since as is governed by the general law of contract. However, it has certain special features as insurance transactions, such as utmost faith, insurable interest, indemnity, subrogation and contribution, etc. These principles are common in all insurance contracts and are governed by special principles of law.

FIRE INSURANCE:

According to S. 2 (6A), "fire insurance business" means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence, typically included among the risks Insured against in fire insurance business.

According to Halsbury, it is a contract of insurance by which the insurer agreements for consideration to indemnify the assured up to a certain amount and subject to certain terms and conditions against loss or damage by fire, which may happen to the property of the assured during A specific period.
Thus, fire insurance is a contract whereby the person, seeking insurance protection, enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire or lightning, explosion etc. This policy is designed to insure one's property and other items from loss occurring due to complete or partial damage by fire.

In its strict sense, a fire insurance contract is one:

1. Whose principle object is insurance against loss or damage occurred by fire.

2. The extent of insuurer's liability being limited by the sum assured and not necessarily by the amount of loss or damage sustained by the insured: and

3. The insurer having no interest in the safety or destruction of the insured property apart from the liability undertaken under the contract.

LAW GOVERNING FIRE INSURANCE

There is no statutory enactment governing fire insurance, as in the case of marine insurance which is regulated by the Indian Marine Insurance Act, 1963. The Indian Insurance Act, 1938 primarily dispute with regulation of insurance business as such and not with any general or special Principles of the law relating to fire of other insurance contracts. So also the General Insurance Business (Nationalization) Act, 1872. In the absence of any legislative enactment on the subject, the courts in India have in dealing with the topic of fire insurance have relied so far on judicial decisions of Courts and opinions of English Jurists.

In determining the value of property damaged or destroyed by fire for the purpose of indemnity under a policy of fire insurance, it was the value of the property to the insured, which was to be measured. Prima facie that value was measured by reference of the market value of the property before and after the loss. However such method of assessment was not applicable in cases where the market value did not represent the real value of the property to the insured, as where the property was used by the secured as a home or for carrying business. In such cases, the measure of indemnity was the cost of reinstatement. In the case of Lucas v. New Zealand Insurance Co. Ltd. [1] Where the assured property was purchased and held as an income-producing investment, and there before the court held that the proper measure of indemnity for damage to the property by fire was the cost of reinstatement.

INSURABLE INTEREST

A person who is so interested in a property as to have benefit from its existence and prejudice by its destruction is said to have insurable interest in that property. Such a person can insure the property against fire.

The interest in the property must exist both at theception as well as at the time of loss. If it does not exist at the momentment of the contract it can not be the subject-matter of the insurance and if it does not exist at the time of the loss, it suffers no loss and needs no indemnity. Thus, where he sells the insured property and it is damaged by fire thereafter, he suffers no loss.

RISKS COVERED UNDER FIRE INSURANCE POLICY

The date of conclusion of a contract of insurance is issuance of the policy is different from the acceptance or assumption of risk. Section 64-VB only lays down broadly that the insurer can not assume risk prior to the date of receipt of premium. Rule 58 of the Insurance Rules, 1939 speaks about advance payment of premiums in view of sub section (!) Of Section 64 VB which enables the insurer to assume the risk from the date onwards. If the proposer did not desire a particular date, it was possible for the proposer to negotiate with insurer about that term. Precisely, therefore the Apex Court has said that final acceptance is that of the assured or the insurer depends simply on the way in which negotiations for insurance have progressed. Although the following are risks which seem to have covered Fire Insurance Policy but are not entirely covered under the Policy. Some of contentious areas are as follows:

FIRE: Destruction or damage to the property insured by its own fermentation, natural heating or spontaneous combustion or its undergoing any heating or drying process can not be treated as damage due to fire. For eg, paints or chemicals in a factory undergoing heat treatment and consequently damaged by fire is not covered. Further, burning of property insured by order of any Public Authority is excluded from the scope of cover.

LIGHTNING: Lightning may result in fire damage or other types of damage, such as a roof broken by a falling chimney stuck by lightning or cracks in a building due to a lightning strike. Both fire and other types of damages caused by lighting are covered by the policy.

AIRCRAFT DAMAGE: The loss or damage to property (by fire or otherwise) directly caused by aircraft and other aerial devices and / or articles dropped there from is covered. However, destruction or damage resulting from pressure waves caused by aircraft traveling at supersonic speed is excluded from the scope of the policy.

RIOTS, STRIKES, MALICIOUS AND TERRORISM DAMAGES: The act of any person taking part along with others in any disturbance of public peace (other than war, invasion, mutiny, civil commotion etc.) is constrained to be a riot, strike or a terrorist Activity. Unlawful action would not be covered under the policy.

STORM, CYCLONE, TYPHOON, TEMPEST, HURRICANE, TORNADO, FLOOD and INUNDATION: Storm, Cyclone, Typhoon, Tempest, Tornado, and Hurricane are all different types of violent natural disasters that are accompanied by thunder or strong winds or heavy rainfall. Flood or Inundation occurs when the water rises to an abnormal level. Flood or inundation should not only be understood in the common sense of the terms, ie, flood in river or lakes, but also accumulation of water due to choked drains would be deemed to be flood.

IMPACT DAMAGE: Impact by any Rail / Road vehicle or animal by direct contact with the insured property is covered. However, such vehicles or animals should not belong to or owned by the insured or any occupier of the treaties or their employees while acting in the course of their employment.

SUBSIDENCE AND LANDSLIDE INCULUDING ROCKSIDE: Destruction or damage caused by Subsidence of part of the site on which the property stands or Landslide / Rockslide is covered. While Evidence means sinking of land or building to a lower level, Landslide means sliding down land normally on a hill.

However, normal cracking, settlement or bedding down of new structures; Settlement or movement of made up ground; Coastal or river erosion; Defective design or workmanship or use of defective substances; And demolition, construction, structural alterations or repair of any property or ground-works or excavations, are not covered.

BURSTING AND / OR OVERFLOWING OF WATER TANKS, APPARATUS AND PIPES: Loss or damage to property by water or otherwise on account of bursting or accidental overflowing of water tanks, apparatus and pipes is covered.

MISSILE TESTING OPERATIONS: Destruction or damage, due to impact or other from trajectory / projectiles in connection with missile testing operations by the Insured or anyone else, is covered.

LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATIONS: Damage, caused by water accidentally discharged or leaked out from automatic sprinkler installations in the insured's promises, is covered. However, such destruction or damage caused by repairs or alterations to the buildings or concessions; Repairs removal or extension of the sprinkler installation; And defects in construction known to the insured, are not covered.

BUSH FIRE: This covers damage caused by burning, whether incidental or otherwise, of bush and jungles and the clearing of lands by fire, but excluding destruction or damage, caused by Forest Fire.

RISKS NOT COVERED BY FIRE INSURANCE POLICY

Claims not maintained / covered under this policy are as follows:

O Theft during or after the occurrence of any insured risks

O War or nuclear perils

O Electrical breakdowns

O Ordered burning by a public authority

O Subterranean fire

O Loss or damage to bullion, precious stones, curios (value more than Rs.10000), plans, drawings, money, securities, cheque books, computer records except if they are categorically included.

O Loss or damage to property moved to a different location (except machinery and equipment for cleaning, repairs or renovation for more than 60 days).

CHARACTERICTICS OF FIRE INSURANCE CONTRACT

A fire insurance contract has the following characteristics namely:

(A) Fire insurance is a personal contract

A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see that the insured does not suffer loss by reason of his interest in the insured property. His, if his connection with the assured property ceases by being transferred to another person, the contract of insurance also comes to an end. It is not so connected with the subject matter of the insurance as to pass automatically to the new owner to what the subject is transferred. The contract of fire insurance is so a mere a personal contract between the insured and the insurer for the payment of money. It can be validly assigned to another only with the consent of the insurer.

(B) It is an and indivisible contract.

Where the insurance is of a binding and its contents of stock and machinery, the contract is expressly agreed to be divisible. Thus, where the insured is guilty of breach of duty towards the insurer in respect of one subject matters covered by the policy, the insurer can avoid the contract as a whole and not only in respect of that particular subject mater, unless the right is restricted By the terms of the policy.

(C) Cause of fire is immaterial

In insuring against fire, the insured wishes to protect him from any loss or detriment which he may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus, whether it was because the fire was lighted improperly or was lighted properly but negligently attended to thereafter or wherever the fire was caused on account of the negligence of the insured or his servants or strangers is immaterial and the insurer is liable to indemnify the insured . In the absence of fraud, the proximate cause of the loss only is to be looked to.

The cause of the fire however becomes material to be investigated

(1). Where the fire is occurred not by the negligence of, but by the willful

(2) Where the fire is due is to cause falling with the exception in the contract.

LIMITATION OF TIME

Indemnity insurance was an agreement by the insurer to confer on the insured a contractual right, which prima facie, came into existence immediately when the loss was suffered by the happening of an event insured against, to be put by the insurer into the same position in Which the accused would have had the event not occurred but in no better position. There was a primary liability, ie to indemnify, and a secondary liability ie to put the insured in his pre-loss position, either by paying him a specified amount or it might be in some other manner. But the fact that the insurer had an option as to the way in which he would put the insured into pre-loss position did not mean that he was not liable to indemnify him in one way or another, immediately the loss occurred. The primary liability arises on the occurrence of the event insured against. So, the time ran from the date of the loss and not from the date on which the policy was avoided and any suit filed after that time limit would be barred by limitation. [2]

WHO MAY INSURE AGAINST FIRE?

Only those who have insurable interest in a property can take fire insurance thereon. The following are among the class of persons who have been held to possess insurable interest in, property and can insure such property:

1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It is not necessary that they should possession also. Thus a lesser and a lessee can both insure it jointly or severely.

2. The vender and purchaser have both rights to insure. The vendor's interest continues until the conveyance is completed and even thereafter, if he has an unpaid vendor's lien over it.

3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can insure, per Lord Esher MR "The mortgagee does not claim his interest through the mortgagor, but by virtue of the mortgage which has given him an interest distinct from that of The mortgagor "[3]

4. Trustees are legal owners and beneficaries the beneficial owners of trust property and each can insure it.

5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the property entrusted to them and so can insure it.

PERSON NOT ENTITLED TO INSURE

One who has no insurable interest in a property can not insure it. For example:

1. An unsecured creditor can not insure his debtor's property, because his right is only against the debtor personally. He can, however, insure the debtor's life.

2. A shareholder in a company can not insure the property of the company as he has no insurable interest in any asset of the company even if he is the sole shareholder. As was the case of Macaura v. Northen Assurance Co. [4] Macaura. Because neither as a simple creditor nor as a shareholder had he any insurable interest in it.

CONCEPT OF UTMOST FAITH

As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is also under a positive duty to make a full disclosure of all material facts and not to make any misrepresentations or misdescreptions during during the negotiations for obtaining the policy. This duty of utmost good faith applies equally to the insurer and the insured. There must be complete good faith on the part of the assured. This duty to observe utmost good faith is ensured b requiring the proposer to declare that the statements in the proposal form are true, that they shall be the basis of the contract and that any incorrect or false statement therein shall avoid the policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and accept the risk or decline it.

The questions in the proposal form for a fire policy are so framed as to get all information which is material to the insurer to know in order to assess the risk and fix the premium, that is, all material facts. Thus the proposer is required too give information relating to:

O The proposer's name and address and occupation

O The description of the subject matter to be assured sufficient for the purpose of identifying it including,

O A description of the locality where it is situated

O How the property is being used, whether for any manufacturing purpose or hazardousous trade.etc

O Whether it has already been insured

O And also ant personal insurance history including the claims if any made buy the proposer, etc.

Apart from questions in the proposal form, the proposer should disclose whether questioned or not-

1. Any information which would indicate the risk of fire to be above normal;

2. Any fact which would indicate that the insurer's liability may be more than normal can be expected such as existence of valuable manuscripts or documents, etc, and

3. Any information bearing upon the more; Hazard involved.

The proposer is not obligatory to declare-

1. Information which the insurer may be presumed to know in the ordinary course of his business as an insurer;

2. Facts which tend to show that the risk is less than otherwise;

3. Facts as to which information is waived by the insurer; And

4. Facts which need not disclosed in view of a policy condition.

Thus, assured is under a solemn obligation to make full disclosure of material facts which may be relevant for the insurer to take into account while deciding whether the proposal should be accepted or not. While making a disclosure of the relevant facts, the

DOCTRINE OF PROXIMATE CAUSE

Where more perils than one act simultanously or successively, it will be difficult to assess the relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases, the doctrine of proximate cause helps to determine the actual cause of the loss.
Proximate cause was defined in Pawsey v. Scottish Union and National Ins. [5] as "the active, effective cause that sets in motion a train of events which brings about a result without the intervention of any force started and working actively from a new and independent source." It is dominant and effective cause even though it is not the nearest in time. It is therefore necessary when a loss occurs to investigate and ascertain what is the proximate cause of the loss in order to determine whether the insurer is liable for the loss.

PROXIMATE CAUSE OF DAMAGE

A fire policy covers risks where damage is caused by way of fire. The fire may be caused by lightening, by explosion or implosion. It may be result of riot, strike or on account of any, malicious act. However these factors must absolutely lead to a fire and the fire must be the proximate cause of damage. Therefore, a loss caused by theft property by militants would not be covered by the fire policy. The view that the loss was covered under the malicious act clause and therefore. The insurer was liable to meet the claim is untenable, because unless and until fire is the proximate cause f damage, no claim under a fire policy would be maintained. [6 ]

PROCEDURE FOR TAKING A FIRE INSURANCE POLICY

The steps involved for taking a fire insurance policy are stated below:

1. Selection of the Insurance Company:

There are many companies that offer fire insurance against unforeseen events. The individual or the company must take care in the selection of an insurance company. The judgment should rest on factors like goodwill, and long term standing in the market. The insurance companies can either be approached directly or through agents, some of them who are appointed by the company itself.

2. Submission of the Proposal Form:

The individual or the business owner must submit a completed prescribed proposal form with the necessary details to the insurance company for proper consideration and subsequent approval. The information in the Proposal Form should be given in good faith and must be accompanied by documents that verify the actual value of the property or goods that are to be insured. Most of the companies have their own personal Proposal Forms wherein the exact information has to be provided.

3. Survey of the Property / Consideration:

Once the duly filled Proposal Form is submitted to the insurance company, it makes an "on the spot" survey of the property or the goods that are the subject matter of the insurance. This is usually done by the investigators, or the surveyors, who are indicated by the company and they need to report back to them after a thorough research and survey. This is imperative to assess the risk involved and calculate the rate of premium.

4. Acceptance of the Proposal:

Once the detailed and comprehensive report is submitted to the insurance company by the surveyors and related officers, the former makes a thorough perusal of the Proposal form and the report. If the company is satisfied that their is no lacuna or foul play or fraud involved, it typically "accepts" the Proposal Form and routes the insured to pay the first premium to the company. It is to be noted that the insurance policy commences after the payment and the acceptance of the premium by the insured and the company, respectively. The Insurance Company issues a Cover Note after the acceptance of the first premium.

PROCEDURE ON RECEIPT OF NOTICE OF LOSS

On receipt of the notice of loss, the insurer requires the insured to furnish details relating to the loss in a claim from relating to the following information-

1. Circumstances and cause of the fire;

2. Occupancy and situation of the premises in which the fire occurred;

3. Insured's interest in the insured property; That is capacity in which the insured claims and if any others are interested in the property;

4. Other insurances on the property;

5. Value of each item of the property at the time of loss together with proofs thereof, and value of the salvage, if any; And

6. Amount claimed

Furnishing such information relating to the claim is also a condition precedent to the liability of the insurer. The above information will enable the insurer to verify whether-

(1) The policy is in force;

(2) The peril causing the loss is an insured peril;

(3) The property damaged or lost is the insured property.

Rules for calculation of value of property

The value of the insured property is-

1) Its value at the time of loss, and

2) At the place of loss, and

3) Its real or intrinsic value without any regard for its sentimental vale. Loss of prospective profit or other consequential loss is not to be taken into account.

FILING OF CLAIMS

How a claim arises?

After a contract of fire insurance has come into existence, a claim may arise by the operation of one or more insured perils on an unsecured property. There may in addition one or more uninsured perils also operating simultaniously or in succession of the property. In order that the claim should be valid the following conditions must be fulfilled:

1. The occurrence should take place due to the operation of an insured peril or where both insured and other perils operated, the dominant or efficient cause of the loss must have been insured peril;

2. The operation of the peril must not come within the scope of the policy exceptions;

3. The event must have caused loss or damage of the insured property;

4. The occurrence must be during the currency of the policy;

5. The insured must have fulfilled all the policy conditions and should also comply with requirements to be fulfilled after the claim had arisen.

MATERIAL FACTS IN FIRE INSURANCE: PREVIOUS CONVICTION OF THE ACCUSED

The criminal record of an assured could affect the moral hazard, which insurers had to assess, and the non-disclosure of a serious criminal offense like robbery by the plaintiffiff would have a material non-disclosure.

INSURED'S DUTY ON OUTBREAK OF FIRE, IMPLIED DUTY

On the outbreak of a fire the insured is under an obligation duty to observe good faith towards the insurers and the in pursuit of it the insured must do his best to avert or minimize the loss. For this purpose he must (1) take all reasonable measures to put out the fire or prevent its spread, and (2) assist the fire brigade and others in their attempts to do so at any rate not come in their way.
With this object the assured property may be removed to a place of safety. Any loss or damage the assured property may sustain in the course of attempts to combat the fire or during its removal to a place of safety etc., will be deemed to be loss proximately caused by the fire.

If the insured failures in his duty willfully and thenby increases the burden of the insurer, the insured will be deprived of his right to revive any indemnity under the policy. [7]

INSURER'S RIGHTS ON THE OUTBREAK OF FIRE

(A) Implied Rights

Corresponding to the insured's obligations the insurers have rights by the law, in view of the liability that they have undertaken to indemnify the insured. Thus the insurers have a right to-

O Take reasonable measures to extinguish the fire and to minimize the loss to property, and

O For that purpose, to enter upon and take possession of the property.

The insurers will be liable to make good all the damage the property may sustain during the steps taken to put out the fire and as long as it in their possession, because all that is considered the natural and direct consequence of the fire; It has therefore been held in the case of Ahmedbhoy Habibhoy v. Bombay Fire Marine Ins. Co [8] that the extent of the damage flowing from the insured peril must be assessed when the insurer gives back and not as at the time when the peril ceased.

(B) Loss caused by steps taken to avert the risk

Damage sustained due to action taken to avoid an insured risk was not a consequence of that risk and was not recoverable unless the insured risk had begun to operate. In the case of Liverpool and London and Globe Insurance Co. Ltd v. Canadian General Electric Co. Ltd., [9] the Canadian Supreme Court held that "the loss was caused by the fire fighters' mistaken belief that their action was necessary to avert an explosion, and the loss was not recoverable under the insurance policy, which covered only damage caused By fire explosion., And the loss was not recoverable under the insurance policy, which covered only damage caused by fire or explosion. "

(C) Express rights

Condition 5 in order to protect their rights well insurers have prescribed for better rights in this condition according to which on the occurrence of any destruction or damage the insurer and every person authorized by the insurer may enter, take or keep possession of the building Or promises where the damage has happened or require it to be delivered to them and deal with it for all reasonable purposes like examining, arranging, removing or sell or dispose off the same for the account of which it may concern.

When and how a claim is made?

In the event of a fire loss covered under the fire insurance policy, the Insured shall immediately give notice thereof to the insurance company. Within 15 days of the occurrence of such loss, the Insured should submit a claim in writing, giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.

The Insured should procure and produce, at his own expense, any document like plans, account books, investigation reports etc. On demand by the insurance company.

HOW INSURANCE MAY CEASE?

Insurance under a fire policy may cease in any of the following circumstances, namely:

(1) Insurer avoiding the policy by reason of the insured making misrepresentation, misdescription or non-disclosure of any material particular;

(2) If there is a fall or displacement of any insured building range or structure or part thereof, then on the expiration of seven days wherefrom, except where the fall or displacement was due to the action of any insured peril; Notwithstanding this, the insurance may be revived on revised terms if express notice is given to the company as soon as the occurrence takes place;

(3) The insurance may be terminated at any tie at the request of the insured and at the option of the company on 15 days notice to the insured

CONCLUSION

Tangible property is exposed to numerous risks like fire, floods, explosions, earthquake, riot and war, etc. And insurance protection can be had against most of these risks frequently or in combination. The form in which the cover is expressed is numerous and varied. Fire insurance in its strict sense is concerned with giving protection against fire and fire only. So while granting a fire insurance policy all the requisites need to be fulfilled. The insured are under a moral and legal obligation to be at utmost good faith and should be telling true facts and not just fake grounds only with the greed to recover money. Further all insurance policies help in the development of a Developing nation. Hence insurance companies have a hidden to help the insured when the insured are in trouble.

REFERENCE:

1. (1983) VR 698 (Supreme Court of Vienna)

2. Callaghan v. Dominion Insurance Co. Ltd. (1997) 2 Lloyd's Rep. 541 (QBD)

3. Small v. UK Marine Insurance Association (1897) 2 QB 311
4. (1925) AC 619

5. (1907) Case.

6. National Insurance Company v. Ashok Kumar Barariio

7. Devlin v. Queen Insurance Co, (1882) 46 UCR 611.

8. (1912) 40 IA 10 PC

9. (1981) 123 DLR (3d) 513 (Supreme Court of Canada)

Books Referred:

1. The Economics of Fire Protection by Ganapathy Ramachandran

2. Modern Insurance Law, by John Birds

3. The Handbook of Insurance Regulatory and Development Authority Act and Regulations with Allied Laws, by Nagar

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