auto insurance

Accident Insurance for Motor Vehicle Passengers

Accident Insurance for Motor Vehicle Passengers

auto insurance

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Insurance companies apply various ways of insuring motor vehicle passengers against traffic accidents. The following ways are the most prevalent in practice:
– Insurance for a specific amount of money;
– Insurance for a specific number of individuals/seats;
– Nominal insurance.
For companies that undertake the transportation of passengers, insurers offer special ways and conditions for insuring the passengers against traffic accidents.
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auto insurance

Insurance for a specific amount of money. The insurance agreement provides the insurance sum regardless of how many seats there are in the vehicle. In case of an insured event the insurance sum is proportionately divided and paid out to all of the injured passengers of the insured vehicle.

Individuals to be considered passengers should be strictly defined in each insurance agreement. Some insurance companies acknowledge as passengers all individuals who were riding in the vehicle, while others acknowledge all except the driver.

Insurance for a specific number of individuals/seats. Having chosen insurance for a specific number of individuals/seats, the policyholder indicates to the insurance company the number of insured passengers and the insurance sum for a single passenger. The insurance sums for each insured individual/seat have to be equal. The driver of the vehicle can be insured along with the other passengers. If the number of passengers who got injured during an insured event exceeds the number of passengers/seats specified in the insurance agreement, the insurance sum is divided by the number of injured individuals. Insurance for a specific number of individuals/seats is only appropriate in cases where the number of regular passengers is not smaller than the number of insured individuals/seats.

auto insurance

Nominal insurance. Nominal insurance is not bound to a particular vehicle. Motor vehicle passenger insurance against traffic accidents and insurance for a specific number of individuals/seats is fulfilled by the driver or owner of the vehicle. Nominal insurance is fulfilled and paid for by the passenger of the vehicle. This type of motor vehicle passenger insurance against traffic accidents is usually chosen by those individuals who have to regularly ride in various vehicles owned by other individuals. The insurance compensation will be paid out to the nominal insurance policyholder regardless of the vehicle he/she was riding in and who the driver of the vehicle was.

Motor vehicle passenger insurance against traffic accidents usually covers the risks of injuries incurred to passengers during vehicle use, resulting disability and death. The concept of vehicle use is defined in the insurance agreement. Vehicle use usually covers both the driving and the getting in/out of the vehicle. Loading and unloading of the vehicle is often considered to be covered by the concept of vehicle use. It can also include the repairs done to the vehicle if it breaks down on the road and the saving of individuals injured in another traffic accident.

life insurance

The Concept Of Life Insurance 2

The Concept Of Life Insurance 2

life insurance

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First of all, because of the tax concessions applied for the life insurance. In most of countries the insurance law foresees that life insurance premiums paid by natural or legal entities reduce a taxable income or respectively taxable profit by a commensurate amount. For the capital accumulated during the period of life insurance policyholders are generally reckoned in a much higher interest rate compared with monetary funds kept in bank accounts. In addition, the law often provides policyholders the right to a certain profit share of the insurance company, received during the investment activities.

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Policyholder’s capital, accumulated during the life insurance activity, must be invested on the basis of profitability, liquidity and safety principles. Cumulative life insurance can be considered as a one of the safest ways of capital accumulation. Life insurance, depending on whether there are being carried out risk operations, capital accumulation and release activity, or both of these activities together, is divided accordingly into: pure risk life insurance; pure capital accumulation insurance; composite life insurance.

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Such a distribution of life insurance covers all possible types and groups of life insurance. On the basis of risk life insurance contract the policyholder undertakes the responsibility to pay a certain amount of insurance premium and the insurer, in the case of insured event (the case of policyholder‘s death to be specific) undertakes the responsibility to pay a certain amount of insurance payout. By signing risk life insurance contract the insurance company takes the risk of death of the insured. In such case capital accumulation activities are not performed. The pure risk life insurance contracts present only a small part of all life insurance contracts.

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auto insurance

The Concept Of Auto Insurance

The Concept Of Auto Insurance

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The development of vehicle civil liability in Europe. Emergence and development of car insurance, including vehicle civil liability insurance, has been closely associated with the discovery of the car and the growth of their usage. So it‘s not surprising that the vehicle civil liability insurance emerged in the first few years after the car was launched to produce in the series. In Germany it was in the beginning of last century. Despite the insurance activity stagnation during the First World War, and afterwards the economic crisis, car insurance has developed rapidly and its importance in respect to other types of insurance increased noticeably.

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Gradually there has been also accumulated a sufficient statistical data base, allowing a correct assessment of individual risks and identification of possibly just insurance premiums rates. The rapidly increasing number of cars conditioned the adoption of laws regulating vehicular rules of the road in many European countries. In the first years of the twentieth century almost all European countries have had their own laws, established on the model of England and France.

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Mostly it was general laws, providing procedures for car registration and number issue, speed and other restrictions. Though vehicle civil liability was permitted by law, a number of drivers were not financially able to compensate the victims for the health or property damage.

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Once again this problem was attempted to solve on many ways. For example, in 1912 Norway introduced a law, which has provided that a permission to operate a vehicle could be issued for the owner only leaving a deposit of 20,000 kronor in the traffic service. Thus, it was guaranteed a compensatory payment for road accident victims in case of car owner’s fault. In 1914 Switzerland adopted a law, providing the compulsory vehicle civil liability insurance for minimum legal seen size amount.

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Compulsory vehicle civil liability insurance did not came at once, and had evolved slowly and in different European countries at different speeds. In the beginning it was compulsory mostly for public transport. The deposit had been considered as a reliable guarantee of compensation for damage not only in Norway, but also in England and the Czech Republic. First countries that legalized compulsory vehicle civil liability insurance were Finland, Norway, Denmark and Sweden.

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