The answer is simple – travel insurance. It can protect you from the most common to the oddest of travel perils. There are provisions to take care of your medical expenses, compensate you for lost baggage and documents, the cost of postponing or canceling a vacation and much more. It all sounds great till you go out to buy travel insurance to cover your upcoming vacation. Insurance scams and unreasonable exclusions can me the process of purchasing travel insurance a little problematic.

Here are a few tips that might help you to find the perfect policy which can keep you and your family safe while you travel for business or pleasure:

• Annual or multi trip coverage policies cost lesser than periodic or short term coverage plans. The difference in cost may not be apparent at first glance, but you will definitely save more with an annual coverage plan.

• You may be planning you holiday in the Bahamas or up in the Alps. Remember that each destination has a different set of inherent risks. Vacationing near the seas of course entails the risk of drowning or facing natural calamities like sea storms. Up in the mountains, you may face a different set of perils altogether. Check your policy carefully and find out if all the necessary angels are covered.

• Policies don’t generally include coverage for any and all situations. For example, it might not cover you for injuries resulting from winter sports like skiing or snowboarding. A very common exclusion in case of travel insurance coverage is that of injuries sustained due to assisted diving activities like scuba diving and submarine trips. Check to see if your policy has coverage for the specific vacation activity you want to engage in.

• You might already be covered under your existing health plan but you need to remember that it won’t be applicable in certain situations. Healthcare and private health coverage doesn’t cover you oversees or on a vehicle flying under a foreign flag. You need to look for a travel insurance policy which will cover you within your nation’s border as well as beyond it.

• Most people don’t take the idea of travel insurance seriously and settle for the coverage provided by the travel agency. You should essentially avoid doing so or at least review the policy before going along with it. Agency provided policies have multiple loopholes and coverage gaps. It is a better idea to get your own policy through an experienced insurance agent.

• Don’t fall for such products as ‘Flight insurance’. Flight insurance is nothing but a life insurance policy which covers you while you are on the aircraft. If you and your family members are insured by a life insurance policy, there is no need to invest in this option. A life insurance policy covers the death of the insured if the insured was traveling in a commercial airline. Private or chartered flights are excluded in case of life insurance as well as flight insurance.

Holidays and vacations are tiny periods of time when you and your family are together, enjoying yourselves without having to worry about work or household chores. Travel insurance lets you lay back and relax with the feeling that your family and your possessions are protected.

Who needs fine art insurance?

Anybody and everybody directly dealing in or with fine art should consider purchasing art insurance. Fine art insurance buyers include artists, private collectors, auction houses, art dealers, museums and galleries. Policies are designed to cover the specific needs of each category.

How does it work?

Fine art is not just for collectors; even pure investors are interested in art simply because it appreciates in value over time. The investors buy fine art not for the purpose of collecting but for the sole purpose of trading it. Insuring artwork is thus rendered a little more complicated by the sheer volume and cost of the property to be insured.

Most art insurers won’t cover art work which is priced anything less than $100,000. Art valued below that amount is covered under regular homeowner’s insurance in case of private collectors and property insurance for museums and galleries. If your art collection is worth anything less than the stated amount, you should appraise it and list it under your homeowners policy.

What is covered?

The most integral area of coverage for any art insurance policy is theft. Given the irreplaceable nature of the insured asset, a replacement cost clause is ineffective. In case of theft, you will be compensated with the price of the painting which you can use to investigate the theft and possibly recover the painting.

General hazards like fire damage, water damage, unnatural deterioration, mildew and pests are covered by the policy. ‘Ageing’ and war are generally excluded from coverage. Some insurers even pay for restoration specialists. Natural disasters like earthquakes, floods and hurricanes are also covered by most art insurance policies.

Specialized services provided under art insurance

Art insurers offer a plethora of services designed specifically to serve the fine arts community of collectors, dealers and institutions. ‘All Risk Formulas’ are implemented by insurance companies specifically dealing with fine art. It covers restoration costs and subsequent depreciation of value in case of partial damage to a piece of art. Insurers also give the option of insuring a selection of paintings or the collection as a whole. This enables the insured to cover his collection exactly as required.

Fine art insurance companies have integrated services packaged with the policy which enables the automatic inclusion of any new additions to the collection under the policy. Some policies also appraise and update the value of each insured painting according to prices registered in the international auctions companies’ database.

Fine art insurance coverage provides financial protection for your priceless collection of art. It is tailor made to suit the needs of avid collectors, museum curators and art dealers alike. It provides coverage against a host of natural and artificial hazards which can harm your irreplaceable collection of paintings.

Every airline company has thus taken a huge risk upon themselves. They are in charge of safely transporting materials and men over great distances. The sky is a tricky place and needless to say, moving at 10,000 ft. above the ground has its own set of risks. Airline companies, like every other business, have resorted to insurance to protect their interests and assets.

What is aviation insurance?

It is a specifically designed insurance developed for the aviation industry. The rules and regulations of the airline business are markedly different from all other industries. There are different types of aircrafts and pilots and each of them needs to be covered by a specific type of insurance. Like any other form of insurance, there are a number of coverage options to protect the insured and his asset from various threats.

Normally, aviation insurance covers the legal liability of owning and operating an aircraft. It also covers any physical damage to the vessel itself. There are policies to cover the liability of businesses involved in owning or operating a hangar (or an airport) and selling any sort of aviation product.

Risks involved

Aviation insurance is an expensive coverage solution. The object to be insured, that is, the aircraft itself, is worth millions. Flying is a risky line of business. Shifting air currents, changing whether patterns, visibility problems and mid air mechanical issues are commonplace adversities. Even a flock of birds flying towards the aircraft at a high altitude can pose a grave threat. The slightest bit of human error or natural hazard can lead to catastrophic losses. The cost of lives lost and damages incurred can be overwhelming.

What is covered by aviation insurance?

Aviation insurance products carry a comprehensive series of coverage for a variety of situations. Some of them are:

• Public liability coverage – It covers the owner of the aircraft for damages caused to third party property by the airplane. It doesn’t cover passengers or physical damage of the aircraft itself. Most countries make it mandatory for commercial as well as private operators to carry public liability coverage.

• Passenger liability coverage- It covers the owner of the aircraft for passenger injuries and casualties caused in the course of an accident. Most insurers tend to sell this type of coverage on a ‘per seat’ basis with a cap on coverage for each seat.

• Combined single limit coverage (CSL) – It is a combined coverage aimed at dealing with both public and passenger liability. CSL coverage is usually more lenient towards honoring passenger injury and casualty claim than a third party damage claim.

• Ground risk hull coverage (GRHC) – This is the single most important coverage for protecting your asset while it’s on the ground, standing still or moving. In case the aircraft is standing still, it is covered for theft, fire, vandalism, damage caused by an uninsured vehicle, falling objects, animals, wind and hail or flood. It usually comes with a heavy deductible in order to discourage business owners from making small claims. In case the aircraft is moving (taxiing), it is covered for all of the same things. It should be noted that coverage is not in effect while taking off or landing.

• In-flight hull coverage – This covers the aircraft against damages for the length of time it spends in the air. It covers mechanical malfunctions, damage due to weather conditions, mid air collisions, crash landings, landing break failure and engine stalls. It is at least 6 times more expensive than GRHC.

Who needs aviation insurance?

Aviation insurance was primarily created to mitigate the risks inherent of the commercial airline industry. Fleets are underwritten for comprehensive hull and liability coverage. Major international airliners, domestic as well as low cost carriers (LCCs) usually invest in aviation insurance.

The aviation industry, having diversified itself over the years, has created greater scope for insurance companies to increase their aviation insurance clientele. Aircraft manufacturers as well as aviation services and products developers have begun to invest in aviation insurance to manage and cover their risks. Private aircraft and helicopter owners are also opting for this type of insurance to cover their assets.

Other than the private and commercial aviation sector, this form of insurance has started attracting companies from the field of aerospace. Aviation insurance companies have started providing coverage for missions into space. It covers satellite commissioning, subspace and orbital maintenance and liability operations, launches and recovery. A range of space worthy vehicles are covered including suborbital satellites, geostationary commercial satellites, launch vehicles and a variety of space sensors and equipment.

The risks involved in operating and commercially using airplanes and flying vehicles are great. Aviation insurance is the perfect product tailor made to cover all the risks involved in the business and keep your operations running efficiently.

There are times when model employees with an exemplary work record and background commit a serious financial crime at the workplace. The criminal charges would be administered by the law, but what about the losses incurred by the company? Crime insurance is what every business needs to mitigate the risk of financial damage due to criminal or unethical employee practices.

What is crime insurance?

Crime insurance is a form of risk management used primarily to hedge against the risk of an uncertain loss incurred due to criminal practices. Crime as a potential business risk can be detrimental to the efficient profit earning functions of a business. In most cases, large companies are the ones who usually purchase crime insurance. Smaller companies tend to trust their employees and as such, they don’t think about purchasing cover against employee dishonesty. Some companies choose to buy surety bonds instead of crime insurance.

What is covered by crime insurance?

Crime insurance covers a range of risks and potential losses due to employee malpractice. The list of crimes committed by employees keep growing by the day. Some of the risks covered under crime insurance are:

• Cash larceny
• Forgery and duplication
• Documents and records alteration
• Burglary, robbery and theft
• Electronic fraud
• Embezzlement
• Bills and expenses reimbursement fraud
• Intellectual property theft

Why is it important?

The Association of Certified Fraud Examiners (AFCE) stated that American companies lose somewhere between $380 billion and $430 billion per year to employee committed crimes. The average company loses a neat 6% of the total revenue to the fraudulent and criminal activities of an employee.

There are even cases of intellectual property theft wherein an employee steal a client list or an application in development and sells it to a competitor. Crime insurance indemnifies you against such major losses. It pays the legal fees for filing a law suit, consulting a lawyer, court dates, financial damages suffered, loss of business and compensation to any company which has been collaterally damaged.

Identifying criminal activities

Crimes at the workplace are mostly committed by model employees. The ACFE has concluded that in most cases a financial crime committed by an employee is brought to the attention of the management by an employee who has been able to recognize it. Training your workforce to recognize the various methods of conducting financial frauds and crimes is the best way to prevent such things. Crime insurance also requires the company to identify and persecute the perpetrator before writing a check to cover the losses. It is therefore absolutely imperative to identify and curb criminal activities at the work place.

Most companies think that they can mitigate and distribute the losses of one financial quarter over the succeeding quarters. What they don’t realize is that most embezzlement cases span an extensive period of time and are so well disguised that internal audits can’t root them out. Companies never manage to fully recover after it has been subjected to the fraudulent or criminal activity of an employee. Crime insurance is there to help organizations get back up on their feet and protect themselves from workplace criminal activity.

Why is diving insurance important?

Diving is risky business. The entire underwater world is full of potential threats. It can range from serious medical and health conditions to critical equipment malfunction. Severe medical conditions like decompression sickness and gas embolism are very common among divers and treatment is expensive. Equipment failure like a jammed breathing regulator can contribute to deadly underwater accidents. Moreover, most insurance companies do not provide diving coverage under their standard travel insurance policies.

There are a number of risks associated with recreational diving business. Businesses conducting guided underwater tours or renting diving equipment to vacationers risk facing law suits from customers for various reasons. Liabilities can range from equipment failure, liability of operating a compressor or failure to provide proper advice and guidance. It is necessary for such businesses to be covered by specific diving trade liability insurance.

What are the benefits of diving insurance?

Travelers and vacationers can opt for diving insurance if they plan on going scuba diving or snorkeling on their vacation. It covers a myriad of risks and hazards.

• Equipment coverage – This includes coverage for aqualungs, regulators, air tanks and underwater photography equipment. It also includes coverage for diving scooters and diver propulsion vehicles. Underwater photographic equipment can be specifically covered with a rider. The equipment is covered is covered in storage, transit and while its being used.

• Emergency coverage – It covers the cost of emergency medical assistance, hyperbaric oxygen therapy, air lift, medical repatriation and search and rescue services. Additional transport and accommodation cost can also be covered depending on the policy limit. Policies are designed to cover the cost of consulting doctors specializing in dive medicine.

• Disability and death coverage – Diving accidents are not uncommon. A good diving insurance policy would cover the loss of one or more limbs and eyesight. Death benefits and permanent total disability coverage is also a part of the package.

• Diver liability coverage – It covers traders and individuals against civil liabilities. The policy covers legal expenses in case a member of the public decides to file a law suit against a dive shop or a venue provider for negligence or bodily injury.

• Special coverage – Under this heading you are likely to find coverage for cancellation or curtailment of the dive due to adverse weather conditions, delayed or missed departures, hijack and piracy, loss of traveling documents (like passport, tickets) and piste closure.

What are the exclusions?

Most insurance policies contain their own set of standard exclusions. Diving insurance, like any other traveling insurance has its own unique set of exclusions.

• Losses due to diving endurance races and other strenuous underwater activities are excluded. Accidents which occur during an organized sporting event are also excluded.

• Accidents and injuries caused while the diver was intoxicated.

• Breaking the depth limit also forms grounds for exclusion. The diving depth limit depends on how much experience and training the diver has had. Diver’s certification needs to be submitted so that the underwriters can assert the amount of experience you have and the registered depth limit.

• Deliberately causing underwater accidents or injuries and intentionally breaching the depth limit will also form grounds for exclusion under the policy.

• Under some policies, extremely expensive alternative therapies (like hyperbaric oxygen therapy) and decompression therapy are excluded.

It’s a good idea to purchase insurance for any risky activity you might be engaging in, be it a deep sea dive or a cross country drive. Underwater hazards are not covered by your standard health or life insurance policies. Diving insurance is especially important for you in case you are interested in scuba diving, marine wild life and photography and reef diving. Be safe, dive insured.

Traffic violations can range from minor offenses like a parking violation or unknowingly breaking the speed limit to major and grievous offenses like DUI or reckless driving. Whatever be the offense, if you are cited for a traffic violation, minor or major, it is going to show up on your driving record. The smallest indication of a traffic violation on your record will drive up your premium rates by a substantial margin.

What are the effects of a bad driving record?

Traffic violations can have a very detrimental effect on your driving record which in turn will affect your personal and professional life.

•    Professional problems – Potential employers will go through your driving record before they consider recruiting you. In case you have a major violation on your record, he will definitely think twice before he recruits you. Any organization would prefer to employ people with a clean background.

•    Higher interest rates – Car financing companies may refuse to give you an auto loan in case your driving record is questionable. They might even charge you a higher rate of interest on your loan if you have minor traffic violations on your record. Rental services can deny your request to rent a car in case you have a poor driving record.

•    Higher premium rates – Insurance companies will definitely charge higher premiums if they find traffic violations on your record. An insurance company can even choose to cancel your policy in case you were involved in a major driving violation. Life insurance premiums would also go up if you have a poor driving record.

•    Fines and penalties – Your finances may be adversely affected since you will be subjected to heavy fines and legal procedures. You might even have your driving license suspended if your record shows that you are responsible for a number of infractions, major or minor, in a very short span of time.

Parking infractions may or may not be recorded on your driving record. It is dictated by state law so you’d have to go find out from the state Department of Motor Vehicles. A few tickets a year can get your license suspended. Parking tickets will show up on your record for the next 7 years. There is nothing worse than an unpaid parking ticket showing up on your record so try and pay them off as soon as you can.

What are the insurance benefits of a clean driving record?

Insurance companies prefer to do business with low risk drivers who are least likely to commit traffic violations.

•    Reduced premiums let you save more money every month.

•    The insurance company might let you off the hook for minor traffic violations if you already have an excellent driving record.

•    A clean driving record will allow you to choose a reduced deductible if you want.

•    You might also be eligible for discounts and other such incentive based programs

How can you keep minor offenses and tickets off your record?

A combination of strategy and common sense can help you keep your driving record clean and your premium rates low. The most sensible and simplest thing to do would be to drive safely and obey traffic rules. There is no substitute for vigilance and alertness. Not only does it let you maintain a clean driving history, it ensures on-road safety.

In case you do end up with a minor traffic violation charge, you can decide to contest it in court. There is a good chance that the case might be dismissed entirely or you could also end up with a lesser penalty or charge. In case the court upholds the infraction, you will just have to pay for the ticket like you would even if you didn’t contest the infraction.

A driver with a good record with a minor traffic violation is allowed to attend traffic school instead of paying the fine outright. Attending 6 to 8 hours of classes will essentially wipe the violation off the record. Remember that your chances of being allowed to go to traffic school solely depend on the degree of the violation you are charged with. The more serious the offense, the less chances you have of going to traffic school.

A clean driving record allows you to keep your insurance rates low and your finances stable. Obeying the traffic rules and understanding your state’s driving laws are essential to keep your record clean. A good driving record is a mark of responsible driver.

Purchasing an insurance policy doesn’t cover each and every one of your losses by default. Never be under that misconception. Insurance companies list certain events and incidents which are not covered by their policy. These specific set of events and incidents are known as exclusions. Exclusions help the insurance company to keep the average premium rate low by evading the possibility of paying for a few very expensive claims from high risk clients.

Each type of policy sold by insurance companies carries different exclusions. It is essential for every buyer to read the fine print of the policy and have a thorough understanding of every exclusion before deciding to purchase one.

Health insurance exclusions

Pre-existing health conditions form a large part of health insurance exclusions. A pre-existing condition is defined as a condition which has received medical attention prior to applying for the policy. Subsequent medical expenses directly related to an ailment arising out of a pre-existing condition are also excluded. Most health insurers have a specified waiting period after which they will bear some of the expenses related to pre-existing conditions. Pre-existing conditions also include long term injuries or chronic diseases resulting from war or a similar situation.

Coverage for certain specific procedures and ailments are also excluded. These may include vasectomy, hysterectomy, Calculus disease, cataract, etc. Alternative therapies like acupuncture, abortions, pregnancy care, cosmetic surgeries and additional hospital charges (extra blankets, band-aids, bed fees), etc. are common exclusions Congestive heart diseases, degenerative neurological diseases and certain types of cancer are usually excluded or find very limited coverage. Eye and dental care are excluded from health insurance coverage since there is a separate market for vision and dental insurance.

Don’t get deterred from buying health insurance by looking at so many exclusions. Always remember that coverage for some pre-existing conditions begin after a specified waiting period. There are state laws which also prevent insurance companies from imposing unfair exclusions on an insured.

<a h

A very well known and common set of exclusions under a homeowners policy are floods and earthquakes. Most people don’t bother to know beyond that. Some insurers exclude business related liability coverage for homeowners. Like flood and earthquake insurance, this coverage can be purchased separately. It is especially recommended for people who run home-based businesses.

Water damages are excluded under some policies. This may include water damage by seepage into the walls or the foundation of the home or water damage caused by a storm. Since water damage facilitates the growth of molds and spores and also induces rot, they are sometimes excluded from standard policies. Damage caused by insects and pests like termite and rats are a definite exclusion.

Sewage and water channel back-ups are some of the worst situations a homeowner might have to endure. Read your policy’s exclusions carefully since most insurers don’t cover such events.

It is a good idea to invest a few extra dollars for additional protection like flood and earthquake coverage. In case of a catastrophe, you will be adequately compensated. Take note of the fact that if a peril is not explicitly excluded by your policy, it doesn’t automatically mean that you are covered for it.

Auto insurance

Auto insurance can be broadly divided under a couple of heads – collision coverage and comprehensive coverage. Each has its own set of exclusions. The most common exclusion that people are not aware of is depreciation of the vehicle. Damage due to normal wear and tear is not covered by insurance policies. Parts which have been installed in the car by a third party or an unregistered body shop and after market parts are not covered as a rule-of-thumb. You might need to purchase a rider to cover such components.

Mechanical breakdown and failure of components like drive trains, engines, etc is excluded. You would have to check if your car’s warranty covers such damages. The risks of an unprecedented catastrophic events suck as earthquakes, floods and nuclear fallout are common exclusions on an auto insurance policy.

Cost of repair for damages caused intentionally cannot be claimed from the insurance company. If they find out that you had filed a claim after intentionally crashing your car, it would amount to insurance fraud which is a criminal offence. Damages caused by an accident where the driver had been charged with DUI or DWI is also liable for exclusion. In case there is any damage which has been caused by an unauthorized driver who is not insured under your policy, the insurance company can deny your claim.

Life insurance exclusions

Life insurance underwriters base their calculations on the age of the insured. It is best to not misstate your age since this will form a major ground for exclusion and also amount to insurance fraud.

In case the insured dies in the process of carrying out an illegal activity, the insurance company is exempt from paying the death benefit. This exclusion also applies in case the insured dies due to the consumption of illegal substances or alcohol abuse. The scope of this exclusion is somewhat open to interpretation. The exclusion may be applicable even if the cause of death cannot be directly attributed to the consumption of illegal or banned substances, simply because the insured was consuming such a substance at the time of his death.

Other common exclusions on a life insurance policy includes death due to engaging in dangerous and life threatening activities and death in an aviation accident where the insured was a passenger on a private aircraft.

Suicide of the insured is a slightly controversial ground for exclusion since suicide is not an unlawful act and the insured has the right to take his life if he so pleases. Most insurance companies have an ‘elimination period’ or a waiting period of about 2 years. The claim will not be paid if the insured commits suicide within this stipulated time period of 2 years.

Understanding your policy is the key to knowing if you are covered for all the perils you are expecting and even those which you are not. It is not prudent to wait around for a calamity to occur, and then find out that you are not covered for it. Read the fine print very carefully, try and understand the language of the policy, especially what is covered and what isn’t. Different policies have different exclusion clauses. You should take the time to sit down with your agent and understand each of them before you decide to buy a policy.

Auto insurance is designed to protect your car from damage, loss or any sort of accidental occurrences. On the other hand, an accident which occurs after drinking and driving cannot be deemed as an accident. This is because the driver could have chosen not to drink and in doing so, avoid the accident altogether. Thus, auto insurance and DUI/DWI laws are closely interlinked. Both are designed to protect property and lives.

What is DUI?

The National Highway Traffic Safety Administration had calculated that at least one alcohol related driving fatality occurred every 48 minutes. The states are enforcing DUI/DWI laws to discourage drunk driving and imposing heavy penalties. DUI is a complex bit of legislation and it has manifold effect on an individual’s record.

Blood Alcohol Content (BAC) is a measure of how much alcohol you have in your system. It is usually measured by testing blood, urine or breath, and traffic cops carry the necessary equipment to perform tests on spot. One fluid ounce (about 30ml) of alcohol raises the BAC in an average person’s body by 0.03%. The BAC limit for every state in the US is fixed at 0.08% for adult private vehicle drivers, 0.04% for commercial vehicle drivers and 0.02% for minors (under 21 years of age).

What are the penalties?

If you have been caught driving under the influence of alcohol or any other intoxicant, the penalties and legal ramifications are huge. First time offenders are penalized with:

•    A fine which ranges somewhere between $750 and $1500
•    A jail term which can be as long as 6 months
•    Driver’s license suspension for a period of 12 months to 2 years
•    A court order to install an ignition interlock (only applicable if BAC is 0.20 or more)
•    Court ordered community service for a specified number of hours
•    Mandatory enrollment in a substance abuse program under court order
•    Possible enrollment in driver improvement program under court order

If you manage to obtain a restricted license under probation, you will need to file a lot of paper work and you may even have to install the ignition interlock.

What are the insurance related problems?

Insurance becomes a major issue for anyone convicted of DUI or DWI. It is mandatory to fill out an SR22 insurance form and file it with your insurance company. The SR22 insurance form is a proof of financial responsibility which shows that you are carrying the bare minimum coverage that is required to drive. The minimum coverage limit varies from state to state. Under SR22, bodily injury liability and property damage liability are covered. If you have auto insurance, you can file it with your insurance company. The cost of filing will be somewhere between $20 and $30 but if you want to obtain a restricted driving permit, you’ll need to pay another $100 to $300.

Filing an SR22 will automatically put you in the high risk category. In turn it will increase your premium rates by 3 to 5 times of what you were paying. Yes, it is costly! A DUI conviction on your record entails more severe problems. There are greater hurdles than just the cost. Your current insurance company might cancel your policy and drop your coverage. They can refuse to cover you for damages to the vehicle (if there is any).

A first offence DUI or DWI will affect your insurance rates for the next 3 to 5 years and every subsequent conviction will lengthen that time period. Even if you try to change carriers, they will look into your record and find out you have a DUI charge. They may choose to reject your application or charge you an exorbitant premium.

The FR44

An FR44 is a new type of high risk liability insurance that carries double or greater amount of minimum coverage than SR22. Increased coverage means greater protection for all parties involved. The FR44 costs significantly more than the SR22 and as such the greater financial burden of a heavy premium deters drivers from repeating the offense.

The upside of buying FR44 insurance is that the policy holders, having carried high liability limits, become eligible for greater discounts when they renew their policy. Furthermore, carrying so much liability and bearing such a heavy financial burden makes the driver more aware of his actions, and thus modifies his driving qualities for the better.

Insurance, being an instrument of protection against liability, protects you from major financial and legal problems that come with a DUI conviction. Your premium rates may go up in the process but it saves you from greater damage.  A DUI or a DWI is a terrible conviction to have on your record. It affects your life on a financial, professional as well as on a personal level. You cannot pay for a life lost in a drunk driving accident with all the money in the world, neither can you mend your reputation.

Drink responsibly, drive safe and always carry insurance.

A claims handler working for a big insurance company suddenly noticed that a ‘pet owner’ filed a series of claims, the total of which amounted to almost $12,000. On investigating the next claim, it was discovered that the man picked up dead animals off the road and stored them in the freezer. He would then take out insurance policies on the animals and claim the death benefit after a short while.

An insurance scam or fraud can be defined as an instance when either party willingly and knowingly lies to deny or obtain financial benefits which he isn’t entitled to. Insurance scams and frauds cost the economy millions of dollars each year, financially damaging both the policy holders and the insurers.

How do you spot a scam?

A fraudulent sales pitch is not very hard to spot. All you need to do is keep your eyes and ears open and keep a few simple pointers in mind.

• Total coverage at unbelievably low prices – The premium rate is so low that you might as well pay with pocket change. The policy might also come with a Waiver of Premium rider

• Abnormally simple procedure – The signup procedure involves ticking a few boxes and signing at the bottom, there are no medical checkups, no exclusion for serious pre-existing conditions.

• Pushy sales pitch – The sales pitch is too pushy and the sales representative keeps shoving the pen in your hand, asking you to sign on the dotted line because “it’s a special offer, a one time deal which isn’t going to last long unless you take it up right now”.

• Invasive marketing – Your inbox is bombarded with e-mails every hour telling you about the great benefits you can get at the lowest of rates, the phone is ringing every hour and there is a telemarketer on the other end of the line telling you about the numerous benefits of signing up with them.

• Federally mandated – These conmen might even tell you that they are federally mandated and they are regulated by ERISA or some other federal law. They might even tell you that a certain insurance product is required by health-care reform regulation. The most common pitch along this line these days seem to be Obamacare. PPACA or Obamacare is not a product that is sold from door to door.

• Groups and unions – The agent asks you to join some sort of group or association so that you will be able to buy coverage. These are fake groups used to create the illusion of group health coverage.

How do you avoid scams?

You can go through a series of simple steps to protect yourself from getting scammed while ensuring that you understand the product as well as the company you are about to invest in.

• Check the company’s rating – Check up on the company’s rating with one of the leading insurance rating services like Standard & Poor’s, Moody’s, Fitch Ratings or A.M. Best before signing the contract. Companies which have had consistent AAA ratings over the last 5 to 9 years can be trusted.

• Don’t pay cash – Make the down payment with a check payable to the insurance company, not the agent. You can use a credit card if you like. This way you make it easy to cancel the payment if you sense something is wrong. It also makes it hard for the conman to steal from you.

• Check license and ID – Ask the agent for his license number and if you think there is something wrong, call up your state insurance department or any other licensing agency and confirm the ID with them.

• Read the fine print – Extra perks and unnecessary financial services being offered along with the policy is simply designed to tempt and draw the victim in. Read the fine print very carefully and find out what you need and what you don’t. More importantly, find out if the new policy has sufficient coverage for your needs.

Insurance is a complicated subject and most of us tend to trust anybody and everybody who knows even a little about it. Con-men take advantage of this factor to scam people out of their hard earned money and leave them without the protection of insurance when they need it the most. Take some time to shop around for insurance and it will help you understand the product a little better. A few simple steps and a little smart thinking is all you need to protect yourself against frauds and con-artists.

Why should you get pet insurance?

Dogs, cats or any other recognized category of pets require specialized medical care, the cost of which can run into thousands of dollars. There can also be cases where you might have to consult a specialist or a surgeon. The insurance company will take care of a substantial portion of the medical bill and let you consult the best vets without having to worry about money.

Pet insurance covers your pet’s health as well as any liability that might arise out of your pet’s actions. Pet liability insurance takes care of legal and medical costs associated with the incident your pet is involved in. The cost and the premium will depend on the type and the breed of your pet.

When should you get pet insurance?

It is best to insure your pet at the earliest age possible. To insurance companies, a young pet is a healthy pet. You will be able to get lower rates. On the other hand, you are likely to pay a hefty premium for your pet if he is older. Older pets are more likely to face pre-existing condition exclusions.

What else does pet insurance cover?

Pet insurance covers a myriad of situations and needs. Some of them are:

• Preventive care – Preventive care costs like the cost of yearly injections, dental care, regular blood tests and annual health checkups are necessary for the continued wellbeing of your pet. The cost of such preventive care is covered under pet insurance policies.

• Chronic or recurring illness – Like humans, pets may also suffer from various recurring illnesses like flu or diarrhea. As they grow older, they might start showing symptoms of chronic illnesses like cancer or diabetes as well. Such conditions are treatable and in some cases curable with the right medication and treatment. The cost of such continued care can be disbursed with the right pet insurance policy.

• Accidental Injury – Accidents happen! Insurance is purchased to cover the unpredictable. Pet insurance protects you and, your pet and takes care of all ensuing costs.

• Shots and vaccination – Contrary to popular belief, vaccination isn’t a short or a cheap process. Most pups or kittens require a minimum of two multivalent vaccines administered three to four weeks from each other. There are booster shots and rabies shots to think of as well. Most pet insurance policies will either cover the full cost of vaccination, a certain number of shots in a year or at least a significant portion of the total cost.

• Neutering and Spaying – Desexing your pet is an extremely important process that no pet owner should skip unless they are planning to breed them. Spaying or neutering within the first year reduces the risk of genital cancer and other fatal diseases. A surgical process like desexing costs a lot of money. Pet insurance will cover a large portion of the bill after a small deductible.

• Death or loss – The death of a pet can take an emotional toll. Subject to certain exclusions, some pet insurance policies pay a death benefit when the unthinkable happens. The sum paid is equal to the market value or the cost price of your pet (whichever is less). They money can be used to cover the cost of burial or any other subsequent expenses.

• Travel – Your pet is your constant companion so even when you are traveling, you will want to bring them along. Some pet insurance policies cover the additional cost of renting a traveling container and freight charges.

Pet insurance lets you breath easy as far as the health and wellbeing of your furry friend is concerned. It provides you with the financial security to take care of your pets while knowing that you are being able to provide the best possible resources for your pet.