Ok, I have to admit…. I am a science fiction junky. I love all of it, the technology, the positive hope for the future like Star Trek and the scary parts like Aliens! So, I have been following with interest Google’s Autonomous Vehicles. In case you haven’t heard, Google has a fleet of vehicles driving around California and Nevada with no one on board but a computer.
While I am disappointed that the cars don’t fly like in Back to the Future it is pretty incredible technologically that we have self driven vehicles. Now you’re probably wondering so what? What does this mean to me and why should I care?
The early adopters of this technology will be business. Imagine a service company that has crews delivering products or services all day long. Instead of the employees spending their time navigating the road from point to destination they can be processing invoices, preparing for the next appointment and making calls for future appointments, answering questions by phone and email and even participating in meetings by Skype.
It is all about productivity and for the businesses that outlay huge sums for payroll while employees drive, they will invest in this technology and lower insurance costs because the vehicles do not speed, do not tailgate, get angry or distracted.
Eventually, autonomous vehicles will be a standard feature and will change the way we drive and the insurance industry will need to change with it. Watch for big changes in this category in the next five years! I can’t wait!
Monday, 14 October 2013
Protect Yourself, Important Steps in an Auto Accident
One of my clients recently had an auto accident. He was at an intersection in a lane that went straight. The other party was on his right and turned left into his vehicle. They traded license and insurance information at the scene of the accident just like they were supposed to do.
My client was alone in his car and the other party was alone in their car. Shortly after the accident the other party claimed that my client was at fault and was supposed to turn left and instead went straight. My client informed me that was simply untrue and he was in a lane that was straight ahead and the other party made an illegal left hand turn.
In the end, the insurance carriers for my client and the other party agreed to just pay their own client claims because there was no way to prove who was at fault. So, problem solved right?
Not exactly, had the other party been found at fault it would have been their insurance that would have paid for the damage to my client. Instead, my clients insurance paid for the damage to his own vehicle which was considered an at fault accident. What is the big deal? Well, an at fault accident in most states will stay on your record for five years and you get to pay more insurance premium because of that. Needless to say my client was really upset and felt this was unfair. Some of you will say that you have accident forgiveness with your insurance carrier. That is nice and means that your insurance carrier won’t surcharge you for your first accident however that won’t protect you from the loss of a claims free discount which for most insurance companies is significant. With or without accident forgiveness you’re going to pay more.
Regardless who is at fault insurance is incredibly important to fix your car, fix the other party’s car if you were at fault and pay for your medical bills and the other party’s medical bills. I want all of my clients to be safe and to avoid accidents if they can. If you do have an accident, that is why we have insurance and it will be there to help when you need it. However, if you were not at fault I need some additional information to fight for you.
In addition to trading license and insurance information I want you to take photos. Odds are your phone takes pictures. Even the oldest cell phones have a camera. I realize that having an accident is traumatic and when it happens it is easy to forget but when it is safe to do so take photos of the accident scene. Take photos of where you were and where your vehicle is now. Take photos of the damage to your car and the damage to the other car. Take photos of the license plate on the other vehicle and of the driver of the other car and any passengers. The more information that you have will help your insurance claim and protect you if the other driver was at fault.
I had an accident (my first) this year. I not only took photos of the accident but my phone allows me to take video as well. I had the other driver on video saying that he wasn’t paying attention, he was texting and didn’t see me until it was too late. End of story, he was at fault. And, yes his insurance carrier tried to indicate that we shared blame until I played back the audio from the video with their client apologizing and indicating that he wasn’t paying attention. That was that, they accepted full responsibility.
My client was alone in his car and the other party was alone in their car. Shortly after the accident the other party claimed that my client was at fault and was supposed to turn left and instead went straight. My client informed me that was simply untrue and he was in a lane that was straight ahead and the other party made an illegal left hand turn.
In the end, the insurance carriers for my client and the other party agreed to just pay their own client claims because there was no way to prove who was at fault. So, problem solved right?
Not exactly, had the other party been found at fault it would have been their insurance that would have paid for the damage to my client. Instead, my clients insurance paid for the damage to his own vehicle which was considered an at fault accident. What is the big deal? Well, an at fault accident in most states will stay on your record for five years and you get to pay more insurance premium because of that. Needless to say my client was really upset and felt this was unfair. Some of you will say that you have accident forgiveness with your insurance carrier. That is nice and means that your insurance carrier won’t surcharge you for your first accident however that won’t protect you from the loss of a claims free discount which for most insurance companies is significant. With or without accident forgiveness you’re going to pay more.
Regardless who is at fault insurance is incredibly important to fix your car, fix the other party’s car if you were at fault and pay for your medical bills and the other party’s medical bills. I want all of my clients to be safe and to avoid accidents if they can. If you do have an accident, that is why we have insurance and it will be there to help when you need it. However, if you were not at fault I need some additional information to fight for you.
In addition to trading license and insurance information I want you to take photos. Odds are your phone takes pictures. Even the oldest cell phones have a camera. I realize that having an accident is traumatic and when it happens it is easy to forget but when it is safe to do so take photos of the accident scene. Take photos of where you were and where your vehicle is now. Take photos of the damage to your car and the damage to the other car. Take photos of the license plate on the other vehicle and of the driver of the other car and any passengers. The more information that you have will help your insurance claim and protect you if the other driver was at fault.
I had an accident (my first) this year. I not only took photos of the accident but my phone allows me to take video as well. I had the other driver on video saying that he wasn’t paying attention, he was texting and didn’t see me until it was too late. End of story, he was at fault. And, yes his insurance carrier tried to indicate that we shared blame until I played back the audio from the video with their client apologizing and indicating that he wasn’t paying attention. That was that, they accepted full responsibility.
Sunday, 13 October 2013
Benefits of Insurance Depot
Getting the right type of insurance for your vehicle can be very difficult for you unless and until you do a full search of the market. Deposit insurance is an excellent system that can really help to use the services of good insurance for your car or cars. It provides you with full coverage and even updates your liability coverage within a given period of time. With the help of this system would be able to obtain insurance cover that's within your budget. It also provides you a fast and comprehensive search of different types' car insurance cover.
If you're interested in getting coverage for your vehicle, then looking for a deposit insurance would be better for you. In this article, I especially like to tell you some ways through which you can get insurance cover.
If you're looking for adequate insurance cover, then it's very essential for you to conduct a through market research. You should look for companies that provide effective policies within your budget. Various online sites are operating successfully on the Internet that gives you-all the essential information you need about different types of policies. These websites will also encourage some online businesses that you can contact directly with the help of these websites.
It's the most appropriate place where you can get several different insurance coverings. You can contact the depot auto insurance by phone or with the help of the websites online. You'll see that's found in numerous different places and we sell different types of covers. As for insurance coverage is also necessary questions about your boat and RV coverage.
Get insurance coverage within the budget can be a very hectic job for you. A very beneficial to the search for adequate coverage is to consult the deposit insurance. These stores can offer insurance coverage to everything from health to auto insurance. All websites deposit insurance to provide adequate information about the different types of covers that are available to them. These stores also help maximize coverage to most of your budget.
If you're interested in getting coverage for your vehicle, then looking for a deposit insurance would be better for you. In this article, I especially like to tell you some ways through which you can get insurance cover.
If you're looking for adequate insurance cover, then it's very essential for you to conduct a through market research. You should look for companies that provide effective policies within your budget. Various online sites are operating successfully on the Internet that gives you-all the essential information you need about different types of policies. These websites will also encourage some online businesses that you can contact directly with the help of these websites.
It's the most appropriate place where you can get several different insurance coverings. You can contact the depot auto insurance by phone or with the help of the websites online. You'll see that's found in numerous different places and we sell different types of covers. As for insurance coverage is also necessary questions about your boat and RV coverage.
Get insurance coverage within the budget can be a very hectic job for you. A very beneficial to the search for adequate coverage is to consult the deposit insurance. These stores can offer insurance coverage to everything from health to auto insurance. All websites deposit insurance to provide adequate information about the different types of covers that are available to them. These stores also help maximize coverage to most of your budget.
Best Insurance in Indonesian 2012
Life insurance premium income growth rate (premium immediate closure) 26.02%, insurance general closure of the direct premium growth recorded 20.04%, and reinsurance premiums recorded a growth of 17.65% indirect closure. While the indicator of profit after tax, life insurance industry recorded growth of 41.63%, 43.58% of general insurance, reinsurance and 23.51%. The figures obtained from the 130 companies included in the ranking Insurance Media conducted this year, the 44 life insurance companies, 82 general insurance and reinsurance four companies.
Currently in Indonesia operates four reinsurance companies, 44 life insurance companies, 83 general insurance companies, five social security insurance company, so that overall there are 136 insurance and reinsurance companies. Five insurance companies social security and a general insurance company has not published financial statements, not data processed. In Insurance Award 2012 ceremony that took place on Thursday (07.06.2012) last night, it was decided there were 27 -12 and casualty insurance companies, 12 insurance soul, and a three-reinsurance as Best Insurance 2012.
Twenty-seven insurance companies are best suited to its peer group, ie, reinsurance, insurance companies (life and general) to Rp750 billion to the equity, insurance companies (life and general) to Rp250-750 billion of equity, insurance companies (life and general) to Rp100, 250 billion of equity, and insurance companies (life and general) to Rp100 billion equity down. From 82 general insurance companies that have issued financial balance no later than 30 April 2012, only nine companies that posted losses in 2011. Numbers decline over the previous year, of which 13 companies posted losses.
While in life insurance, there are 44 companies from eight companies that lose money in 2011, better than the previous year by 12 companies. While life insurance assets in 2011 grew 24.66%, from Rp181, 08 trillion a year earlier to Rp225, 74 2011.Dari trillion in assets of that, the life insurance market is still dominated by the 15 largest companies. Visible with 87.69% market share or reach Rp197, 95 trillion.
Compared to 2010, the dominance of these 15 life insurance companies continues to expand, because the previous year only controlled 86.91% market share in terms of assets. In terms of premiums, the company holds a 15 premium income of 78.76% or Rp73, 98 trillion of the total achievement of the overall premium Rp93, 93 trillion. In the meantime, the general insurer also recorded a good performance last year. General insurance gross premium grew 20.86%, from Rp24, 93 trillion in 2010 to Rp30, 13 trillion in 2011. While the underwriting result rose 28.36%, from Rp 5, 03 trillion in 2010 to Rp 6, 46 trillion years ago. gross reinsurance premiums also increased, which is 19.97%. From Rp2, 02 trillion in 2010 to Rp2, 42 trillion in 2011. While the reinsurance underwriting result rose 33.9% to Rp251, 49 billion in 2011, from Rp187, 82 billion in 2010. increase in gross premiums, both general insurance and reinsurance companies, much higher than the gross claims payable by the general insurance and reinsurance companies. Gross claims general insurance companies grew only 9.22% during 2011 to Rp12, 76 trillion. While the gross reinsurance claims even decreased by 0.09% to Rp1, 54 trillion during 2011. A total of 15 general insurance companies with the largest assets, controls 72.47% or Rp38, 72 trillion of total assets of 82 general insurance companies in 2011 amounting to Rp53 , 43 trillion. Asset share of the market leaders are indeed slightly eroded, as in the previous year to reach 73.04%. As for the best insurance companies for 2012 consist of life insurance, PT Sinarmas MSIG Insurance, PT Indolife Pensiontama, PT Life Insurance Inhetalth for equity in excess of Rp750 billion. Medium-750 to Rp250 billion equity PT Cigna Insurance, Life Insurance Adisaranan Wanartha PT, PT Bringin Life Insurance Welfare was named the best insurance.
Currently in Indonesia operates four reinsurance companies, 44 life insurance companies, 83 general insurance companies, five social security insurance company, so that overall there are 136 insurance and reinsurance companies. Five insurance companies social security and a general insurance company has not published financial statements, not data processed. In Insurance Award 2012 ceremony that took place on Thursday (07.06.2012) last night, it was decided there were 27 -12 and casualty insurance companies, 12 insurance soul, and a three-reinsurance as Best Insurance 2012.
Twenty-seven insurance companies are best suited to its peer group, ie, reinsurance, insurance companies (life and general) to Rp750 billion to the equity, insurance companies (life and general) to Rp250-750 billion of equity, insurance companies (life and general) to Rp100, 250 billion of equity, and insurance companies (life and general) to Rp100 billion equity down. From 82 general insurance companies that have issued financial balance no later than 30 April 2012, only nine companies that posted losses in 2011. Numbers decline over the previous year, of which 13 companies posted losses.
While in life insurance, there are 44 companies from eight companies that lose money in 2011, better than the previous year by 12 companies. While life insurance assets in 2011 grew 24.66%, from Rp181, 08 trillion a year earlier to Rp225, 74 2011.Dari trillion in assets of that, the life insurance market is still dominated by the 15 largest companies. Visible with 87.69% market share or reach Rp197, 95 trillion.
Compared to 2010, the dominance of these 15 life insurance companies continues to expand, because the previous year only controlled 86.91% market share in terms of assets. In terms of premiums, the company holds a 15 premium income of 78.76% or Rp73, 98 trillion of the total achievement of the overall premium Rp93, 93 trillion. In the meantime, the general insurer also recorded a good performance last year. General insurance gross premium grew 20.86%, from Rp24, 93 trillion in 2010 to Rp30, 13 trillion in 2011. While the underwriting result rose 28.36%, from Rp 5, 03 trillion in 2010 to Rp 6, 46 trillion years ago. gross reinsurance premiums also increased, which is 19.97%. From Rp2, 02 trillion in 2010 to Rp2, 42 trillion in 2011. While the reinsurance underwriting result rose 33.9% to Rp251, 49 billion in 2011, from Rp187, 82 billion in 2010. increase in gross premiums, both general insurance and reinsurance companies, much higher than the gross claims payable by the general insurance and reinsurance companies. Gross claims general insurance companies grew only 9.22% during 2011 to Rp12, 76 trillion. While the gross reinsurance claims even decreased by 0.09% to Rp1, 54 trillion during 2011. A total of 15 general insurance companies with the largest assets, controls 72.47% or Rp38, 72 trillion of total assets of 82 general insurance companies in 2011 amounting to Rp53 , 43 trillion. Asset share of the market leaders are indeed slightly eroded, as in the previous year to reach 73.04%. As for the best insurance companies for 2012 consist of life insurance, PT Sinarmas MSIG Insurance, PT Indolife Pensiontama, PT Life Insurance Inhetalth for equity in excess of Rp750 billion. Medium-750 to Rp250 billion equity PT Cigna Insurance, Life Insurance Adisaranan Wanartha PT, PT Bringin Life Insurance Welfare was named the best insurance.
Saturday, 12 October 2013
Fed may send mortgage rates higher
Experts in housing markets are closlyh monitoring the Federal Reserve as they nervously await word on whether the agency will start pulling back on its controversial stimulus program, known as quantitative easing according to a report on CCN.
The Fed has been buying $85 billion in mortgage-backed securities and Treasury bonds a month to help support the economy since September last year. The purchases have been credited for the historically low mortgage rates seen this year, which ultimately helped stimulate home sales and boost prices.
Doug Duncan, chief economist for Fannie Mae said that the Fed is expected to announce that it will scale back on its bond-buying program which is expected to cause rates to slowly rise.
The mortgage market has already factored in a modest cutback in the Fed's purchases. Mortgage rates have risen 1.2 percentage points since May when Fed chairman Ben Bernanke mentioned the possibility of reducing the agency's bond-buying program. In June, he noted that the tapering could begin as early as September, if the economic recovery continued on course.
However, even if the Fed started cutting back on its bond purchases this month, many don't expect the cuts to be sizable. "The recovery has been weaker the past couple of months than what the Fed had been talking about," said Duncan. "It would be a surprise if they act aggressively."
Source CNN Money
The Fed has been buying $85 billion in mortgage-backed securities and Treasury bonds a month to help support the economy since September last year. The purchases have been credited for the historically low mortgage rates seen this year, which ultimately helped stimulate home sales and boost prices.
Doug Duncan, chief economist for Fannie Mae said that the Fed is expected to announce that it will scale back on its bond-buying program which is expected to cause rates to slowly rise.
The mortgage market has already factored in a modest cutback in the Fed's purchases. Mortgage rates have risen 1.2 percentage points since May when Fed chairman Ben Bernanke mentioned the possibility of reducing the agency's bond-buying program. In June, he noted that the tapering could begin as early as September, if the economic recovery continued on course.
However, even if the Fed started cutting back on its bond purchases this month, many don't expect the cuts to be sizable. "The recovery has been weaker the past couple of months than what the Fed had been talking about," said Duncan. "It would be a surprise if they act aggressively."
Source CNN Money
U.S. Companies that Offers Pet Insurance as Benefits
Some U.S. Companies now offer pet insurance as a benefit to their employees. Fortune 500 companies that offer pet insurance as a benefit are Hewlett-Packard (HPQ), Amazon (AMZN), Procter & Gamble (PG) and Ford Motor (F). Others companies are Chipotle Mexican Grill (CMG) and Staples (SPLS).
Chipotle began offering the benefit in 2002. Covering one pet costs $10 to $57 a month, depending on coverage plans and deductible. But only about 100 of the eatery chain's 3,000 eligible employees get the insurance because its mostly younger employees have other financial priorities.
Chipotle began offering the benefit in 2002. Covering one pet costs $10 to $57 a month, depending on coverage plans and deductible. But only about 100 of the eatery chain's 3,000 eligible employees get the insurance because its mostly younger employees have other financial priorities.
Friday, 11 October 2013
The real cost of saying 'No'
I sell a product that most of my clients won’t use. Every day I take money from people in exchange for a promise from me and the companies I represent – a promise of restoration – basically that if you experience a financial setback under certain circumstances you will be restored to the financial position you were in before that disaster occurred (stick with me here, it gets more interesting).
The majority of people who turn their hard-earned money over to me in exchange for this promise never experience such a loss. Think about that. They pay but get no material object or physical property in return. So, when people pay for years and years and seemingly get nothing for it, some become embittered about the insurance transaction and the industry in general, and begin complaining about how much they’re paying.
I completely understand this by the way. I mean, I’d rather pay $100 for something I’m not going to use rather than $200, if I’m forced to buy it at all.
So what happens? People search out the cheapest coverage they can find. The decision to buy becomes based solely on whose price is the lowest. Often, the differences only become evident when it comes time to make a claim. Have you ever had to make a home insurance claim? Ever had your home damaged and discovered you did not have sufficient coverage?
Imagine for a second this scenario – your sewer backs up and there’s three inches of black water in your recently re-finished basement. You submit a claim only to find out that you’re not covered for this because you opted to save the $10 premium.
Or, let’s go future-tense here – The Big One is coming, we all know it. You decide that $40 per year is too much to pay for earthquake coverage for your condo or tenants package. Guess what happens when there’s a 7.0 nearby and your house starts rocking? All those broken dishes, toppled LCD and Plasma TV screens, smashed bookcases – none of it will be covered by your insurance policy.
If you’re a home owner and see cracks in the walls and ceilings, broken pipes etc., you’ll be concerned with the possibility of structural damage to your home. Again, if no earthquake coverage was paid for there will be no money from the insurance company to pay for these repairs. (Earthquake coverage for homeowner policies does cost more, depending on home values).
Bottom line (though it’s a tired cliché), you get what you pay for. That doesn’t mean you need to get the most expensive policy you can find either. You just need to make sure you know where the gaps in your coverage are and consider the effects of declining the coverages that would fill those gaps. (My Dad used to remind me all the time that you can choose your actions, but you can’t choose the consequences of those actions – discuss).
So. Now what?
You’re not an ‘Insurance Professional’ and may not know where to start or who to trust. Maybe you’ve put off the idea of home insurance because you think insurance companies just want your money and never actually pay out claims.
Or maybe you’re like I was before I ever bought a policy of my own - I found the whole application process overwhelming so I kept procrastinating, congratulating myself at the end of every month that went by and I’d kept that premium in my pocket. Each day that passed without disaster occurring enabled that once-pressing need for insurance to quietly fade into the background…
That works for a while - until your best friend’s mom loses her house in a fire. Or you hear a story about a relative who didn’t have insurance and had their dishwasher flood their kitchen and damage the neighbour’s place downstairs. The majority of first-time applicants that I see are either those who are buying their first condo, or individuals who’ve heard too-close-to-home stories of financial hardship caused when someone they love didn’t have adequate insurance. All of a sudden it becomes much easier to visualize ourselves in the same predicament.
Once you’ve made the decision to get started, don’t just walk into an insurance agency and HOPE the person behind the counter knows what they’re doing. I can tell you this sad-but-true fact: not all insurance agents are capable of correctly issuing a home insurance policy.
Find someone with a demonstrated ability to ask the right questions, explain the coverage in a manner you understand, provide the right information and arrange the proper coverage. You want to leave their office feeling like, “Wow, that person really knows what they’re doing – that was a great experience.”
How do you find that individual? Talk to your friends and do some research. Ask people you trust about their experiences, read up on the industry and do some homework. Don’t give up because it seems like too much work – it’s too important a subject to ignore. Losses like this do happen every day, and you can’t arrange for insurance after you experience a loss.
If you’re ready to begin having this conversation now, contact me at dfeswick@londondrugs.com for an explanation of our process, and to find out how much it might cost to insure your home.
Written by Derek F
Insurance Services Manager, New Westminster London Drugs
The majority of people who turn their hard-earned money over to me in exchange for this promise never experience such a loss. Think about that. They pay but get no material object or physical property in return. So, when people pay for years and years and seemingly get nothing for it, some become embittered about the insurance transaction and the industry in general, and begin complaining about how much they’re paying.
I completely understand this by the way. I mean, I’d rather pay $100 for something I’m not going to use rather than $200, if I’m forced to buy it at all.
So what happens? People search out the cheapest coverage they can find. The decision to buy becomes based solely on whose price is the lowest. Often, the differences only become evident when it comes time to make a claim. Have you ever had to make a home insurance claim? Ever had your home damaged and discovered you did not have sufficient coverage?
Imagine for a second this scenario – your sewer backs up and there’s three inches of black water in your recently re-finished basement. You submit a claim only to find out that you’re not covered for this because you opted to save the $10 premium.
Or, let’s go future-tense here – The Big One is coming, we all know it. You decide that $40 per year is too much to pay for earthquake coverage for your condo or tenants package. Guess what happens when there’s a 7.0 nearby and your house starts rocking? All those broken dishes, toppled LCD and Plasma TV screens, smashed bookcases – none of it will be covered by your insurance policy.
If you’re a home owner and see cracks in the walls and ceilings, broken pipes etc., you’ll be concerned with the possibility of structural damage to your home. Again, if no earthquake coverage was paid for there will be no money from the insurance company to pay for these repairs. (Earthquake coverage for homeowner policies does cost more, depending on home values).
Bottom line (though it’s a tired cliché), you get what you pay for. That doesn’t mean you need to get the most expensive policy you can find either. You just need to make sure you know where the gaps in your coverage are and consider the effects of declining the coverages that would fill those gaps. (My Dad used to remind me all the time that you can choose your actions, but you can’t choose the consequences of those actions – discuss).
So. Now what?
You’re not an ‘Insurance Professional’ and may not know where to start or who to trust. Maybe you’ve put off the idea of home insurance because you think insurance companies just want your money and never actually pay out claims.
Or maybe you’re like I was before I ever bought a policy of my own - I found the whole application process overwhelming so I kept procrastinating, congratulating myself at the end of every month that went by and I’d kept that premium in my pocket. Each day that passed without disaster occurring enabled that once-pressing need for insurance to quietly fade into the background…
That works for a while - until your best friend’s mom loses her house in a fire. Or you hear a story about a relative who didn’t have insurance and had their dishwasher flood their kitchen and damage the neighbour’s place downstairs. The majority of first-time applicants that I see are either those who are buying their first condo, or individuals who’ve heard too-close-to-home stories of financial hardship caused when someone they love didn’t have adequate insurance. All of a sudden it becomes much easier to visualize ourselves in the same predicament.
Once you’ve made the decision to get started, don’t just walk into an insurance agency and HOPE the person behind the counter knows what they’re doing. I can tell you this sad-but-true fact: not all insurance agents are capable of correctly issuing a home insurance policy.
Find someone with a demonstrated ability to ask the right questions, explain the coverage in a manner you understand, provide the right information and arrange the proper coverage. You want to leave their office feeling like, “Wow, that person really knows what they’re doing – that was a great experience.”
How do you find that individual? Talk to your friends and do some research. Ask people you trust about their experiences, read up on the industry and do some homework. Don’t give up because it seems like too much work – it’s too important a subject to ignore. Losses like this do happen every day, and you can’t arrange for insurance after you experience a loss.
If you’re ready to begin having this conversation now, contact me at dfeswick@londondrugs.com for an explanation of our process, and to find out how much it might cost to insure your home.
Written by Derek F
Insurance Services Manager, New Westminster London Drugs
7 things to consider when you buy travel insurance
While it's not as exciting as choosing your hotel, or deciding which excursions you want to add on to your holiday, making sure you have adequate travel insurance for yourself and your family may be the most important decision you make.
Credit cards and travel agents offer insurance packages, but it's important to have a thorough discussion about where you're travelling to and what you're planning to do, to make sure you have the right coverages in place. Here are 7 reasons why you should purchase separate travel insurance:
1) Anytime, anywhere coverage—Not just your flight, not just a hospital stay…travel insurance protects you on your trip at any time and at any place. This includes medical and family emergencies, travel delays or theft.
2) Provincial health care only goes so far—The provincial government health care plan provides only limited coverage for medical treatment and hospital costs outside of Canada—ambulance services, emergency dental treatment and prescription drugs may not be covered by some provincial health insurance plans.
3) High-risk activities—There's nothing better than learning something new while on holiday, like scuba diving in Hawaii. But check your policy before you book that lesson, or agree to learn from your new friend you met at the beach. Some activities won't be covered unless they're conducted by a company accredited by a known organization in that sport.
4) Medication change—If you've had a prescription change for a medical condition—either increased, decreased, started or stopped—an insurer will consider you to have an "unstable medical condition" for which your treatment is changing. Consult the fine print for the time period after which the insurer will cover you for travel.
5) Destination coverage—Many destinations are experiencing political upheaval. Check the policy to discover what the guidelines are for determining if your destination falls into that category.
6) Unstable medical condition—Policies may not cover a traveller if they are travelling within a certain time period between a medical event, such as having chemotherapy treatment or heart surgery.
7) Rental car protection—If you'll be renting a car at your destination, you want to make sure the vehicle, your belongings and all passengers have adequate coverage.
Vacations can be expensive—not only do you want to protect your health, you want to protect the investment you're making in your holiday. You can speak with one of our advisors at London Drugs Insurance Services to make sure you've considered every contingency, and can have complete peace of mind for your vacation. Visit LD Insurance at http://www.ldinsurance.ca/insurance.aspx#travel to get started!
Credit cards and travel agents offer insurance packages, but it's important to have a thorough discussion about where you're travelling to and what you're planning to do, to make sure you have the right coverages in place. Here are 7 reasons why you should purchase separate travel insurance:
1) Anytime, anywhere coverage—Not just your flight, not just a hospital stay…travel insurance protects you on your trip at any time and at any place. This includes medical and family emergencies, travel delays or theft.
2) Provincial health care only goes so far—The provincial government health care plan provides only limited coverage for medical treatment and hospital costs outside of Canada—ambulance services, emergency dental treatment and prescription drugs may not be covered by some provincial health insurance plans.
3) High-risk activities—There's nothing better than learning something new while on holiday, like scuba diving in Hawaii. But check your policy before you book that lesson, or agree to learn from your new friend you met at the beach. Some activities won't be covered unless they're conducted by a company accredited by a known organization in that sport.
4) Medication change—If you've had a prescription change for a medical condition—either increased, decreased, started or stopped—an insurer will consider you to have an "unstable medical condition" for which your treatment is changing. Consult the fine print for the time period after which the insurer will cover you for travel.
5) Destination coverage—Many destinations are experiencing political upheaval. Check the policy to discover what the guidelines are for determining if your destination falls into that category.
6) Unstable medical condition—Policies may not cover a traveller if they are travelling within a certain time period between a medical event, such as having chemotherapy treatment or heart surgery.
7) Rental car protection—If you'll be renting a car at your destination, you want to make sure the vehicle, your belongings and all passengers have adequate coverage.
Vacations can be expensive—not only do you want to protect your health, you want to protect the investment you're making in your holiday. You can speak with one of our advisors at London Drugs Insurance Services to make sure you've considered every contingency, and can have complete peace of mind for your vacation. Visit LD Insurance at http://www.ldinsurance.ca/insurance.aspx#travel to get started!
Wednesday, 9 October 2013
Motion to Add Municipal Defendant Dismissed
A motion to add a municipality as a defendant was recently dismissed.
In Temporin v. DiVincenzo, 2012 ONSC 5213 (S.C.J.), the plaintiff was injured in a 2007 motor vehicle accident. Although the City of Burlington had been named as a third party, the plaintiff did not move to add it as a defendant until 2012. The plaintiff ordered the police report in 2007, but did not receive officer's notes as counsel had inadvertently neglected to send payment. The notes were ultimately received in 2010 when a follow up request was made. They referred to road conditions consisting of "fierce" black ice. The plaintiff argued that the two year limitation period for adding the municipality began in 2010.
Parayeski J. dismissed the motion. The failure to follow up for police notes until 2010 did not give rise to a discoverability issue. The plaintiff had not exercised reasonable diligence and even though there was no prejudice to the municipality, this did not justify it being added as a defendant post-limitation.
This decision is a good example of the maxim that limitation periods are not enacted to be ignored. The burden is on plaintiffs to act diligently to identify defendants within the appropriate limitation period.
In Temporin v. DiVincenzo, 2012 ONSC 5213 (S.C.J.), the plaintiff was injured in a 2007 motor vehicle accident. Although the City of Burlington had been named as a third party, the plaintiff did not move to add it as a defendant until 2012. The plaintiff ordered the police report in 2007, but did not receive officer's notes as counsel had inadvertently neglected to send payment. The notes were ultimately received in 2010 when a follow up request was made. They referred to road conditions consisting of "fierce" black ice. The plaintiff argued that the two year limitation period for adding the municipality began in 2010.
Parayeski J. dismissed the motion. The failure to follow up for police notes until 2010 did not give rise to a discoverability issue. The plaintiff had not exercised reasonable diligence and even though there was no prejudice to the municipality, this did not justify it being added as a defendant post-limitation.
This decision is a good example of the maxim that limitation periods are not enacted to be ignored. The burden is on plaintiffs to act diligently to identify defendants within the appropriate limitation period.
Deduction of Collateral Benefits at Trial
Brown v. Campbell, (2012) 109 O.R. (3rd) 306 (S.C.J.)
After a jury trial where the plaintiff was awarded damages for past income loss, the defendant asked the judge to reduce the amount by long term disability benefits received the plaintiff. The plaintiff was self-employed and had purchased a long term disability policy for himself. The request for the deduction had not been made at trial, and had first arisen when the final judgment was being taken out. Both parties had addressed the issue in their evidence. The jury award for past income loss did not match either the amount suggested by the plaintiff or the defendant. Justice Nolan refused to make a deduction post trial. She held the defendant should have made be request at trial so she could have charged the jury on it. In addition, since the jury's verdict was less than the amounts submitted by both parties, it appeared the jury had in fact made the deduction in their assessment of the damages.
One issue left open by the Court is whether the disability benefits would have been deductible in any event, given that the plaintiff was self-employed and Justice Nolan noted the law is not settled with respect to whether LTD benefits purchased privately are captured by s. 267.8 of the Insurance Act.
After a jury trial where the plaintiff was awarded damages for past income loss, the defendant asked the judge to reduce the amount by long term disability benefits received the plaintiff. The plaintiff was self-employed and had purchased a long term disability policy for himself. The request for the deduction had not been made at trial, and had first arisen when the final judgment was being taken out. Both parties had addressed the issue in their evidence. The jury award for past income loss did not match either the amount suggested by the plaintiff or the defendant. Justice Nolan refused to make a deduction post trial. She held the defendant should have made be request at trial so she could have charged the jury on it. In addition, since the jury's verdict was less than the amounts submitted by both parties, it appeared the jury had in fact made the deduction in their assessment of the damages.
One issue left open by the Court is whether the disability benefits would have been deductible in any event, given that the plaintiff was self-employed and Justice Nolan noted the law is not settled with respect to whether LTD benefits purchased privately are captured by s. 267.8 of the Insurance Act.
Sunday, 6 October 2013
Excess Insurance
Excess insurers may be interested in the recently reported decision of ACE INA Insurance v. Associated Electric & Gas Insurance Services Ltd., [2012] O.J. No. 6500 (S.C.J.).
ACE insured Toronto Hydro, which was sued over an explosion that occurred in the underground parking of a high-rise apartment building. AEGIS was the excess insurer. Although there was no explicit duty to defend under the AEGIS policy, ACE brought an application that AEGIS had a duty to pay defence costs pursuant to the doctrine of equitable contribution.
The AEGIS policy was an "indemnity policy" rather than a "liability policy". Under its policy, AEGIS limited its indemnity obligation where there is other insurance, and limited its duty to indemnify to defence costs incurred by the insured, not those incurred by a third-party such as ACE. Defence counsel had been appointed by ACE rather than the insured. AEGIS's obligation was only to indemnify defence costs at the end of the litigation, where the costs were not covered by other insurance.
Justice C.J. Brown rejected the argument that AEGIS had an equitable duty to contribute to defence costs despite the clear wording of the policy. There is no equitable obligation to defend where an excess policy precludes a duty to defend. In addition, a relevant factor was that any defence costs paid by AEGIS would reduce the policy limits available to the insured so there was potential prejudice to Toronto Hydro.
ACE insured Toronto Hydro, which was sued over an explosion that occurred in the underground parking of a high-rise apartment building. AEGIS was the excess insurer. Although there was no explicit duty to defend under the AEGIS policy, ACE brought an application that AEGIS had a duty to pay defence costs pursuant to the doctrine of equitable contribution.
The AEGIS policy was an "indemnity policy" rather than a "liability policy". Under its policy, AEGIS limited its indemnity obligation where there is other insurance, and limited its duty to indemnify to defence costs incurred by the insured, not those incurred by a third-party such as ACE. Defence counsel had been appointed by ACE rather than the insured. AEGIS's obligation was only to indemnify defence costs at the end of the litigation, where the costs were not covered by other insurance.
Justice C.J. Brown rejected the argument that AEGIS had an equitable duty to contribute to defence costs despite the clear wording of the policy. There is no equitable obligation to defend where an excess policy precludes a duty to defend. In addition, a relevant factor was that any defence costs paid by AEGIS would reduce the policy limits available to the insured so there was potential prejudice to Toronto Hydro.
Timing of Summary Judgment Motions
At what point in a lawsuit is it appropriate to bring a summary judgment motion?
In Stever v. Rainbow International Carpet Dyeing & Cleaning Inc., 2013 ONSC 4054 (S.C.J.), the defendant brought a summary judgment motion prior to discoveries, alleging there was no issue requiring a trial as the limitation period had expired. Justice Morgan held that summary judgment motions typically proceed after discoveries are complete, or with affidavit evidence and cross-examinations that "go a long way to replicating what will be produced at discoveries." Justice Morgan adjourned the summary judgment until after discoveries had been completed.
Stever is in line with the Court of Appeal's decision in Combined Air, which held:
58 Moreover, the record built through affidavits and cross-examinations at an early stage may offer a less complete picture of the case than the responding party could present at trial. As we point out below, at para. 68, counsel have an obligation to ensure that they are adopting an appropriate litigation strategy. A party faced with a premature or inappropriate summary judgment motion should have the option of moving to stay or dismiss the motion where the most efficient means of developing a record capable of satisfying the full appreciation test is to proceed through the normal route of discovery. This option is available by way of a motion for directions pursuant to rules 1.04(1), (1.1), (2) and 1.05.
In many cases, especially where there is an issue of discoverability, summary judgment is likely not appropriate until discoveries are complete.
In Stever v. Rainbow International Carpet Dyeing & Cleaning Inc., 2013 ONSC 4054 (S.C.J.), the defendant brought a summary judgment motion prior to discoveries, alleging there was no issue requiring a trial as the limitation period had expired. Justice Morgan held that summary judgment motions typically proceed after discoveries are complete, or with affidavit evidence and cross-examinations that "go a long way to replicating what will be produced at discoveries." Justice Morgan adjourned the summary judgment until after discoveries had been completed.
Stever is in line with the Court of Appeal's decision in Combined Air, which held:
58 Moreover, the record built through affidavits and cross-examinations at an early stage may offer a less complete picture of the case than the responding party could present at trial. As we point out below, at para. 68, counsel have an obligation to ensure that they are adopting an appropriate litigation strategy. A party faced with a premature or inappropriate summary judgment motion should have the option of moving to stay or dismiss the motion where the most efficient means of developing a record capable of satisfying the full appreciation test is to proceed through the normal route of discovery. This option is available by way of a motion for directions pursuant to rules 1.04(1), (1.1), (2) and 1.05.
In many cases, especially where there is an issue of discoverability, summary judgment is likely not appropriate until discoveries are complete.
Thursday, 3 October 2013
Are You Part of the 98%?
According to a survey by Nationwide Financial, almost no consumers who are married, partnered or have dependents had enough life insurance to replace their income. The survey showed that 98% of the consumers questioned did not have enough insurance to replace their lifetime income.
The average consumer surveyed will earn $1.5 million in a lifetime and has $300,000 in life insurance coverage. This would replace 16% of they will earn before retirement, even though 33% of those surveyed said their most important consideration when purchasing life insurance was replacing their income.
The survey found that consumers are willing to pay $99 a month on average to insure their family. For this amount, a healthy 35-year-old man can purchase a 20-year term life policy worth more than $2.3 million, and a healthy 35-year-old woman can purchase more than $2.6 million in life insurance, but only 29% of those surveyed believed they could afford enough life insurance to replace their income.
Two-thirds of those who have life insurance are “somewhat” or “very certain” they have enough insurance to replace the income they or their spouse or partner would make during the remainder of their working careers. However, when asked how long their family could maintain its standard of living if a breadwinner died, 62% say they either don’t know, or think they could do so for just four years or less.
And while 35% of those surveyed worked with an insurance agent or financial advisor to figure out how much life insurance coverage they need, 20% say they simply guessed how much coverage they needed.
If you are unsure as to the proper amount of life insurance for you, use either the Life Insurance Needs Calculator or the Human Life Value Calculator to determine what is appropriate for you. It’s Life Insurance Awareness Month—a great time to make sure you have enough coverage.
The average consumer surveyed will earn $1.5 million in a lifetime and has $300,000 in life insurance coverage. This would replace 16% of they will earn before retirement, even though 33% of those surveyed said their most important consideration when purchasing life insurance was replacing their income.
The survey found that consumers are willing to pay $99 a month on average to insure their family. For this amount, a healthy 35-year-old man can purchase a 20-year term life policy worth more than $2.3 million, and a healthy 35-year-old woman can purchase more than $2.6 million in life insurance, but only 29% of those surveyed believed they could afford enough life insurance to replace their income.
Two-thirds of those who have life insurance are “somewhat” or “very certain” they have enough insurance to replace the income they or their spouse or partner would make during the remainder of their working careers. However, when asked how long their family could maintain its standard of living if a breadwinner died, 62% say they either don’t know, or think they could do so for just four years or less.
And while 35% of those surveyed worked with an insurance agent or financial advisor to figure out how much life insurance coverage they need, 20% say they simply guessed how much coverage they needed.
If you are unsure as to the proper amount of life insurance for you, use either the Life Insurance Needs Calculator or the Human Life Value Calculator to determine what is appropriate for you. It’s Life Insurance Awareness Month—a great time to make sure you have enough coverage.
Are You an “Ant” or a “Grasshopper”?
Hard as it is to believe, there are only a few more months until the December holidays. And then we are back to January—and those pesky New Year’s resolutions. You know: lose weight, exercise more, get a handle on our finances.
And we mean to follow through. We really do. But something happens—or more precisely, life happens—and we just don’t have the time or energy or the incentive to do the things we said we wanted to do.
Remember the story of the ant and the grasshopper? The ant worked hard all summer, gathering wheat grains to store for winter. And the grasshopper? He just hopped around, enjoying the sunshine and laughing at that sweaty ant. Well, once winter hit, the grasshopper wasn’t laughing, but was cold and miserable and hungry. And the ant? He had plenty of food and could now toast his toes in front of his warm fire.
The point is, instead of waiting for January 1 to make your next set of New Year’s resolutions, start now working on those you made eight months ago, working on the principle that there is no time like the present. Here are four quick tasks to undertake—one for each week of this coming month—to get your financial life under control and heading in the right direction. (You’re on your own with the diet and exercising!)
1. Start saving now. Have a set amount of money deducted from your paycheck and sent directly to a “don’t touch no matter what” savings account. Self-employed? Do your own auto-deduction from your checking account. (Bonus tip: save your change and once a month, make a coin drop to your account. Or go even further: Don’t spend those one dollar bills but instead save them. When you get 10, deposit them. It’s amazing how quickly your savings balance will grow!)
2. Review your life, business, auto and home policies. Do you have enough coverage—and the right kind? Can you increase your deductibles to save a few dollars? Do you need to add any extra options, riders or increase existing coverage amounts? Schedule a session with your insurance agent for a complete evaluation of your existing policies. (Bonus tip: Not sure how much life insurance you need? Check out the LIFE’s Life Insurance Needs Calculator.)
3. Pull your credit score. Go to Annual Credit Report.com—one central site where you can request a free credit file disclosure (also called a credit report) once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. Look for any errors or unexpected information and then get it corrected—ASAP!
4. Create a workable financial plan. Do you know where your money goes each month? Take a look at your income and outgo. Are there expenses you can reduce or eliminate? If so, use the extra money to either pay down debt or save for a rainy day. Consider the “Latte Factor”: the concept that many small purchases can add up to a significant expenditure over time. For example, a $3 coffee five days a week is an expenditure of $780 a year. Settle for a regular cup of joe at half the price, save the rest and, at minimum without factoring in interest, you’ll have $390. Every little bit helps, whether it’s spending more or adding more to your monthly payments.
By the end of September, you’ll be in better shape financially, and feel more secure and less stressed about your overall financial plan.
And we mean to follow through. We really do. But something happens—or more precisely, life happens—and we just don’t have the time or energy or the incentive to do the things we said we wanted to do.
Remember the story of the ant and the grasshopper? The ant worked hard all summer, gathering wheat grains to store for winter. And the grasshopper? He just hopped around, enjoying the sunshine and laughing at that sweaty ant. Well, once winter hit, the grasshopper wasn’t laughing, but was cold and miserable and hungry. And the ant? He had plenty of food and could now toast his toes in front of his warm fire.
The point is, instead of waiting for January 1 to make your next set of New Year’s resolutions, start now working on those you made eight months ago, working on the principle that there is no time like the present. Here are four quick tasks to undertake—one for each week of this coming month—to get your financial life under control and heading in the right direction. (You’re on your own with the diet and exercising!)
1. Start saving now. Have a set amount of money deducted from your paycheck and sent directly to a “don’t touch no matter what” savings account. Self-employed? Do your own auto-deduction from your checking account. (Bonus tip: save your change and once a month, make a coin drop to your account. Or go even further: Don’t spend those one dollar bills but instead save them. When you get 10, deposit them. It’s amazing how quickly your savings balance will grow!)
2. Review your life, business, auto and home policies. Do you have enough coverage—and the right kind? Can you increase your deductibles to save a few dollars? Do you need to add any extra options, riders or increase existing coverage amounts? Schedule a session with your insurance agent for a complete evaluation of your existing policies. (Bonus tip: Not sure how much life insurance you need? Check out the LIFE’s Life Insurance Needs Calculator.)
3. Pull your credit score. Go to Annual Credit Report.com—one central site where you can request a free credit file disclosure (also called a credit report) once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. Look for any errors or unexpected information and then get it corrected—ASAP!
4. Create a workable financial plan. Do you know where your money goes each month? Take a look at your income and outgo. Are there expenses you can reduce or eliminate? If so, use the extra money to either pay down debt or save for a rainy day. Consider the “Latte Factor”: the concept that many small purchases can add up to a significant expenditure over time. For example, a $3 coffee five days a week is an expenditure of $780 a year. Settle for a regular cup of joe at half the price, save the rest and, at minimum without factoring in interest, you’ll have $390. Every little bit helps, whether it’s spending more or adding more to your monthly payments.
By the end of September, you’ll be in better shape financially, and feel more secure and less stressed about your overall financial plan.
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