What is the principle of insurable interest in fire insurance?

In fire insurance, insurable interest must exist at the time of both policy purchase and loss. Property owners, leaseholders, and mortgage lenders typically have an insurable interest in buildings. This principle ensures that only those financially affected by fire damage can claim compensation.

Is long-term disability insurance taxable?

If your employer pays the premiums, benefits are taxable. If you pay with after-tax dollars, benefits are tax-free. Consult a tax professional to understand your specific situation.

How does UBI work for auto insurance?

For auto insurance, UBI typically uses a telematics device or smartphone app to track driving behavior, such as speed, mileage, and braking, to calculate premiums based on driving habits.

How does a claims-made policy affect the limit of liability?

A claims-made policy covers claims reported during the policy period, regardless of when the incident occurred. The limit of liability applies based on when the claim is made, not when the event happened. This differs from occurrence-based policies, which cover events that happen during the policy period regardless of when the claim is reported.

How does ACV work in auto insurance claims?

In auto insurance, ACV represents the car’s market value at the time of loss, factoring in depreciation, mileage, prior damage, and resale trends. It determines how much the insurer pays for a total loss.

What is the role of IRDAI in the insurance sector?

IRDAI regulates and supervises the functioning of insurance companies, ensures policyholder protection, sets guidelines for premiums, and fosters the development of the insurance market in India.

What role does cyber hygiene play in ransomware insurance eligibility?

Strong cyber hygiene, including regular updates, employee training, access controls, and endpoint security, is crucial. Insurers evaluate these factors before granting coverage or determining premium costs.

Are HMOs a good choice for families?

HMOs can be a cost-effective option for families who want comprehensive healthcare, coordinated services, and lower out-of-pocket costs while staying within a provider network.