Insurance is normally defined as the cover for the risk management of a contingent or we can say against the uncertain loss. It is also used for hedging. The loss is equitably transferred from one entity to the other in exchange of payment.
Insurer is the one selling the product of the insurance and the insured is the one who is the policy holder. The amount charged by the insurance company above the actual amount is called insurance premium.
The insured in agreement to pay a specified small amount per month, quarter, half yearly or yearly to get the benefit to indemnify the loss caused to him or his property duly insured by the insurance company. The detailed terms and conditions are specified in the contract of insurance policy.
The most common form of insurance now days is Vehicle insurance which is also termed as GAP insurance, motor insurance, car insurance or auto insurance. The primary objective of the insurance of vehicle is to provide protection for physical accident or damage to the body of the vehicle. The protection is also provided against theft or damage due to cir circumstances other than the collusion or accident.
Public policies of Different Countries about Insurance:
Most of the countries have made it mandatory to get the vehicle insured before taking it out on the public road. Where, both the cart itself and the driver are insured. But it vary from country to country.
In Australia to drivers over seventeen years of age, insurance policy from the third party is mandatory in the license and registration documents.
Many provinces of Canada are providing auto insurance under the public law system and the remaining provinces are providing insurance services privately. Basic or minimum requirements for auto insurance are mandatory in Canada and additional benefits and options are available to those who want additional options.
The legislation started in the year 1939 when it was made mandatory to the vehicles insured through third party before moving it on the public/federal roads. There are different ceilings of insurance for different categories. Fine slabs are defined if the insurance is not done or if violation is done.
European Union policies are applicable in Hungry for the insurance related legislation. Limits and fine slabs are also defined in detail.
The Act of 1933 which is called the Road Traffic Act make it compulsory not to take vehicles to public places until they are insured as per the act. The also said if the vehicle is driven by someone else than the owner, even than the damage is to be indemnified by the insurance company.
United Kingdom in the year 1930 made the legislation about the vehicle insurance in the form of 1930 road traffic Act. The last amendment in the act was made in the year 1991 which gave it a modified form.
The legislative regulations of vehicle insurance vary from state to state and almost more or less different in all the fifty states. The coverage levels are different, the depreciation or most commonly known as the excess is vary a lot in different states. There are cases in states where the law of compulsory excess is prevailing along with the voluntary excess. Premium charging rates are different against the coverage limits. Gender discrimination to risk prone to accidents is no more due to European Court of Justice Legislation in March 2011.