Insurance companies you can count on

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When a storm slams through your front door, the damages you suffer are often determined by fate. But how easily you can pick up the pieces may be determined by your home insurer. Most people are pretty satisfied with their insurance company - until they put in a claim. And most people only shop for home insurance once and then forget about it. So you never really have a chance to test your policy until you have a problem. Consumer Reports wanted to find out which insurers really come through for people when they need them most. Consumer Reports surveyed nearly 10,000 subscribers who filed homeowner's insurance claims and found some companies fared better than others. Companies were rated based on damage estimates, problem-free claims experience, premium paid, agent courtesy and timely payment. Some homeowners reported quick response and few hassles. Others had to fight to get their claims honored. Still others were told their policy was not being renewed because of their claim. For best results when you need to file a claim for major repairs, Consumer Reports suggests going with a top-rated insurer. Amica, USAA and Auto-Owners (not available in Washington State) all received top ratings. By contrast, some of the most visible companies, scored surprisingly low. The results are included in the May 2014 issue of Consumer Reports magazine on newsstands through May 5. YouNews

Snoqualmie Falls Aerial Video

A close up view of Snoqualmie Falls taken by a multi-copter.

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Hike in third

(Irda issued a circular...)

Your car insurance premium for third-party liability coverage is set to rise 20% from April 1. The Insurance Regulatory and Development Authority (Irda) issued a circular last week spelling out the quantum of hike applicable to private cars, two-wheelers and commercial vehicles for the financial year 2014-15. The premium for your third-party liability cover, which is mandated by law for all vehicles, will go up when you renew your policy this financial year. The thirdparty insurance premium tariff is fixed by the insurance regulator every year. The hike for private cars was in the region of 20% last year as well.

Insurers and industry watchers feel the impact of increase in premium will be nominal for car owners. "For private cars, the share of third-party component in the overall premium is quite small at 15%. So, the overall increase in premium will be just 1-2%," says Sanjay Datta, chief of underwriting and claims, ICICI Lombard General Insurance. If you own a car with engine capacity of less than 1000cc, your third-party premium will amount to Rs 1,129, up by Rs 188 compared to last year. Similarly, for cars with an engine capacity between 1000cc and 1500cc, the premium increase will be Rs 222. For cars with engine capacity exceeding 1500cc, the third-party premium will go up by Rs685 to Rs4,109 this year. "The maximum increase for private car owners will be close to Rs700. An increase of a few hundred rupees, in absolute terms, should not worry policyholders," says Deepak Yohannan, CEO of insurance aggregator portal myinsuranceclub.com.



Your comprehensive motor insurance policy is essentially made up of two parts - own damage component and third-party cover. The latter comes into the picture when an individual - who has sustained injuries or whose property has suffered damage in accidents caused by the policyholder's vehicle - has to be compensated. The reimbursement payable in case of injury or death is determined by the Motor Claims Accident Tribunal. Liability due to damage caused to property is restricted to Rs7.5 lakh.

Now, you can neither control the third-party premium, nor avoid buying it. So, if you feel the spike in premium will pinch your pocket, you will have to focus on the own damage component of the policy.

Own damage component covers expenses policyholders incur on getting your car repaired in case of a collision or an accident. Since this does not involve any 'third-party', and is meant for your own consumption, the premiums depend on the insurer's pricing structure, your driving behaviour and the add-ons you may have chosen.

At your end, you can take measures to reduce the own damage premium. "For instance, you can opt for voluntary deductibles that result in direct discounts in your premium; and not buying add-ons like (zero depreciation cover and engine protection cover) will reduce the premium, but these are not recommended. After all, the idea of buying comprehensive insurance is to adequately protect your vehicle," says Madhukar Sinha, national head - personal lines, Tata-AIG General.

You can also opt for voluntary deductibles - the initial expenses that you have to bear before the insurer steps in - ranging from Rs1,000 toRs25,000, which could entitle you to discounts of 5-25%, depending on your insurer. "You can also let go of smaller claims of Rs5,000-10,000 to retain the no-claim bonus (20-50%), which can reduce your renewal premium," says Datta of ICICI Lombard.

Then, there are other options like installing an anti-theft device and declaring a lower Insured Declared Value, which is the market value of your car, in simple terms. "You can do so if you car is say over four-years-old and you are confident shouldering the burden of any claim, should it exceed this limit," says Yohannan.





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Why would my insurer cancel or not renew my policy?

Technically, in most states your insurer can cancel your policy only if:
• you fail to pay your premium;
• a driver loses his or her driver’s license;
• you are guilty of material misrepresentation during the application process (e.g., you fail to notify your insurer of a recorded violation such as a drunk- driving offense)
However, your insurer can choose not to renew your policy for a variety of reasons,from driving citations to poor driving experience.

Where do you live? Has the neighborhood changed in the last few years? Have the accident or crime rates risen noticeably? As regions are reassessed periodically, their status could change and you could suddenly find yourself living in a high-risk area where your insurer’s rates may not be adequate to cover losses.