Banks Making Inroads Into Insurance Market
Auto Insurance protects you at the time of an accident and from a variety of perils that can cause losses. When you purchase auto Insurance you’re purchasing coverage for more than the replacement or repair of your vehicle after an auto accident. You are purchasing financial protection for one of the largest investments you will make. Financial loss may include medical bills and legal services as a result of an accident caused by you, someone else or an act of nature. Options for automobile coverage can range from the most basic protection plans that meet or exceed the required minimums set in place by your state to extra protection to keep you and your loved ones financially safe and secure.
Our Insurance consultants are well-versed on the auto insurance options that exist in today’s insurance marketplace and because we represent some of the finest national and regional carriers in the country, we can help you choose the coverage that’s right for your needs, goals and budget. Every company has a different policy when it comes to traffic tickets. Some will raise your rates for 3-5 years, while others may apply a surcharge for the first year. A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
Your driving record tells insurance companies a lot about you. If your driving history contains numerous examples of poor judgment and unsafe driving habits, most Insurance companies will view you as an unattractive customer, and may either refuse to provide coverage or provide coverage at a higher rate. As the rules of the Central Bank of Iran prohibit lenders from offering high deposit rates to lure more savings, some banks have come up with alternative methods to get ahead in the race to attract savings, both big and small. However, different insurers may charge different premiums for similar policies; so, finding the price that is right for you requires some legwork.
However, the bank has set some conditions for the special privilege: for a property insurance coverage you need to at least have 100 million rials ($3,290) in your account. For coverage against natural disasters and accidents you need to have 500 million rials and if you can boast 1 billion rials in your account you will be eligible for a free supplementary health Insurance. But for the average folks things are obviously not so plain and simple. Ali Hadavand, a 55-year-old truck driver says he was offered with considerable discounts on his third-party vehicle policy when he went to Saman Bank. The policy limit is the maximum amount an insurer will pay under a policy for a covered loss. Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum.
The Insurance industry in Pakistan is relatively small compared to its peers in the region. The insurance penetration and density remained very modest as compared to other jurisdictions while the insurance sector remained underdeveloped relative to its potential. The Pakistani insurance market has undergone major structural changes in last few years through mergers of companies to meet the increased statutory requirement of minimum paid up capital as per Insurance Ordinance 2000. Some companies who were unable to raise this capital have been asked to close down their operations. The Security and Exchange Commission of Pakistan (SECP), Insurance Division.
Businesses require special types of Insurance policies that insure against specific types of risks faced by the particular business. For example, a fast food restaurant needs a policy that covers damage or injury that occurs as a result of cooking with a deep fryer. An auto dealer is not subject to this type of risk but does require coverage for damage or injury that could occur during test drives. There are also insurance policies available for very specific needs, such as kidnap and ransom (K&R), medical malpractice, and professional liability insurance, also known as errors and omissions insurance. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single mid-range sedan and a perfect driving record.
