Issue of cover note /Policy document

i) Cover Note

A cover note is a document granting cover provisionally

pending the issue of a regular policy. It happens frequently

that all the details required for the purpose of issuing a

policy are not available. For instance, the name of the

steamer, the number and date of the railway receipt, the

number of packages involved in transit, etc., may not be

known.

ii) Marine Policy

This is a document which is an evidence of the contract of

marine insurance. It contains the individual details such

as name of the insured, details of goods etc. These have

been identified earlier. The policy makes specific reference

to the risks covered. A policy covering a single shipment

or consignment is known as specific policy.

iii) Open Policy

An open policy is also known as ‘floating policy’. It is

worded in general terms and is issued to take care of all

“shipments” coming within its scope. It is issued for a

substantial amount to cover shipments or sending during

a particular period of time. Declarations are made under

the open policy and these go to reduce the sum insured.

Open policies are normally issued for a year. If they are

fully declared before that time, a fresh policy may be

issued, or an endorsement placed on the original policy

for the additional amount. On the other hand, if the policy

has run its normal period and is cancelled, a proportionate

premium on the unutilised balance is refunded to the

insured if full premium had been earlier collected.

On receipt of each declaration, a separate certificate of

insurance is issued. An open policy is a stamped

document, and, therefore, certificates of insurance issued

thereunder need not be stamped.
life insurance quote

Open policies are generally issued to cover inland

consignments.

There are certain advantages of an open policy compared

to specific policies. These are:

(a) Automatic and continuous insurance protection.

(b) Clerical labour is considerably reduced.

(c) Some saving in stamp duty. This may be substantial,

particularly in the case of inland sendings.

iv) Open Cover

An open cover is particularly useful for large export and

import firms-making numerous regular shipments who

would otherwise find it very inconvenient to obtain

insurance cover separately for each and every shipment.

It is also possible that through an oversight on the part of

the insured a particular shipment may remain uncovered

and should a loss arises in respect of such shipment, it

would fall on the insured themselves to be borne by them.

In order to overcome such a disadvantage, a permanent

form of insurance protection by means of an open cover

is taken by big firms having regular shipments.

An open cover describes the cargo, voyage and cover in general

terms and takes care automatically of all shipments which fall

within its scope. It is usually issued for a period of 12 months

and is renewable annually. It is subject to cancellation on

either side, i.e., the insurer or the insured, by giving due

notice.

Since no stamps are affixed to the open cover, specific policies

or certificates of insurance are issued against declaration and

they are required to be stamped according to the Stamp Act.

There is no limit to the total number or value of shipments

that can be declared under the open cover.

The following are the important features of an open policy/

open cover.

(a) Limit per bottom or per conveyance

The limit per bottom means that the value of a single

shipment declared under the open cover should not

exceed the stipulated amount.

(b) Basis of Valuation

The ‘Basis’ normally adopted is the prime cost of the

goods, freight and other charges incidental to shipment,

cost of insurance, plus 10% to cover profits, (the percentage

to cover profits may be sometimes higher by prior

agreement with the clients).

(c) Location Clause

While the limit per bottom mentioned under (a) above is

helpful in restricting the commitment of insurers on any

one vessel, it may happen in actual practice that a number

of different shipments falling under the scope of the open

cover may accumulate at the port of shipment. The

location clause limits the liability of the insurers at any

one time or place before shipment.Generally, this is the same limit as the limit per bottom

or conveyance specified in the cover, but sometimes it

may be agreed at an amount, say, upto 200% thereof.

(d) Rate

A schedule of agreed rates is attached to each open cover.

(e) Terms

There may be different terms applying to different

commodities covered under the open cover, and they are

clearly stipulated.

(f) Declaration Clause

The insured is made responsible to declare each and every

shipment coming within the scope of the open cover. An

unscrupulous insured may omit a few declarations to save

premium, specially when he knows that shipment has

arrived safely. Hence the clause.

(g) Cancellation Clause

This clause provides for cancellation of the contract with

a certain period of notice, e.g., a month’s notice on either

side. In case of War & S.R.C.C. risks, the period of notice

is much shorter.

Distinction between “Open policy” and “Open cover”

The open policy differs from an open cover in certain

important respects. They are :

(a) The open policy is a stamped document and is,

therefore, legally enforceable in itself, whereas an

open cover is unstamped and has no legal validity

unless backed by a stamped policy/certificate of

insurance.

(b) An open policy is issued for a fixed sum insured,

whereas there is no such limit of amount under any

open cover. As and when shipments are made under

the open policy, they have to be declared to the

insurers and the sum insured under the open policy

reduces by the amount of such declarations. When

the total of the declarations amounts to the sum

insured under the open policy, the open policy stands

exhausted and has to be replaced by a fresh one.

h) Certificate of Insurance

A certificate of insurance is issued to satisfy the

requirements of the insured or the banks in respect of

each declaration made under an open cover and / or open

policy. The certificate, which is substituted for specific

policy, is a simple document containing particulars of the

shipment or sending. The number of open contract under

which it is issued is mentioned, and occasionally, terms

and conditions of the original cover are also mentioned.

Certificates need not be stamped when the original policy

has been duly stamped.

Types of Marine Insurance

a) Special Declaration Policy

This is a form of floating policy issued to clients whose

annual estimated dispatches (i.e. turnover) by rail / road

/ inland waterways exceed Rs 2 crores.

Declaration of dispatches shall be made at periodical

intervals and premium is adjusted on expiry of the policy

based on the total declared amount.

When the policy is issued sum insured should be based

on previous year’s turnover or in case of fresh proposals,

on a fair estimate of annual dispatches.

A discount in the rates of premium based on turnover

amount (e.g. exceeding Rs.5 crores etc.) on a slab basis

and loss ratio is applicable.

b) Special Storage Risks Insurance

This insurance is granted in conjunction with an open

policy or a special declaration policy.

The purpose of this policy is to cover goods lying at the

Railway premises or carrier’s godowns after termination

of transit cover under open or special declaration policies

but pending clearance by the consignees. The cover

terminates when delivery is taken by the consignee or

payment is received by the consignor, whichever is earlier.

c) Annual Policy

This policy, issued for 12 months, covers goods belonging

to the insured, which are not under contract of sale, and

which are in transit by rail / road from specified depots /

processing units to other specified depots / processing

units.

d) “Duty”life insurance quote

Cargo imported into India is subject to payment of

Customs Duty, as per the Customs Act. This duty can be

included in the value of the cargo insured under a Marine

Cargo Policy, or a separate policy can be issued in which

case the Duty Insurance Clause is incorporated in the

policy. Warranty provides that the claim under the Duty

Policy would be payable only if the claim under the cargo

policy is payable.

e) “Increased Value” Insurance

Insurance may be ‘goods at destination port’ on the date

of landing if it is higher than the CIF and Duty value of

the cargo.

2.6 PROCEDURE OF CLAIM SETTLEMENT:

As the risk coverages are different for import/export and inland

(with in India) consignments, the procedure of claim settlement

is explained separately.

2.6.1 For Import/Export consignments

Claims Documents

Claims under marine policies have to be supported by certain

documents which vary according to the type of loss as also the

circumstances of the claim and the mode of carriage.

The documents required for any claim are as under:

a) Intimation to the Insurance company: As soon as the

loss is discovered then it is the duty of the policyholder to

inform the Insurance company to enable it to assess the

loss.

b) Policy: The original policy or certificate of insurance is to

be submitted to the company. This document establishes

the claimant’s title and also serves as an evidence of the

subject matter being actually insured.

c) Bill of Lading : Bill of Lading is a document which serves

as evidence that the goods were actually shipped. It also

gives the particulars of cargo.

MARINE INSURANCE

This is the oldest branch of Insurance and is closely linked to

the practice of Bottomry which has been referred to in the

ancient records of Babylonians and the code of Hammurabi

way back in B.C.2250. Manufacturers of goods advanced their

material to traders who gave them receipts for the materials

and a rate of interest was agreed upon. If the trader was robbed

during the journey, he would be freed from the debt but if he

came back, he would pay both the value of the materials and

the interest.

The first known Marine Insurance agreement was executed in

Genoa on 13/10/1347 and marine Insurance was legally

regulated in 1369 there.

 OBJECTIVES

􀁺 Know the meaning of Marine insurance

􀁺 Buy the Marine insurance

􀁺 Settle the claim under Marine Insurance

􀁺 Know the inland transit/overseas transit.

􀁺 Know what is not covered under Marine insurance

MEANING OF MARINE INSURANCE

A contract of marine insurance is an agreement whereby the

insurer undertakes to indemnify the insured, in the manner

and to the extent thereby agreed, against transit losses, that

is to say losses incidental to transit.

A contract of marine insurance may by its express terms or by

usage of trade be extended so as to protect the insured against

losses on inland waters or any land risk which may be

incidental to any sea voyage.

In simple words the marine insurance includes

A. Cargo insurance which provides insurance cover in respect

of loss of or damage to goods during transit by rail, road,

sea or air.

Thus cargo insurance concerns the following :

(i) export and import shipments by ocean-going vessels

of all types,

(ii) coastal shipments by steamers, sailing vessels,

mechanized boats, etc.,

(iii) shipments by inland vessels or country craft, and

(iv) Consignments by rail, road, or air and articles sent

by post.

B. Hull insurance which is concerned with the insurance of

ships (hull, machinery, etc.). This is a highly technical

subject and is not dealt in this module.

2.3 FEATURES OF MARINE INSURANCE

1) Offer & Acceptance: It is a prerequisite to any contract.

Similarly the goods under marine (transit) insurance will

be insured after the offer is accepted by the insurance

company. Example: A proposal submitted to the insurance

company along with premium on 1/4/2011 but the

insurance company accepted the proposal on 15/4/2011.

The risk is covered from 15/4/2011 and any loss prior to

this date will not be covered under marine insurance.

2) Payment of premium: An owner must ensure that the

premium is paid well in advance so that the risk can be

covered. If the payment is made through cheque and it is

DIPLOMA IN INSURANCE SERVICES

MODULE - 4

Notes

Marine Insurance

Practice of General Insurance

20

dishonored then the coverage of risk will not exist. It is as

per section 64VB of Insurance Act 1938- Payment of

premium in advance.(Details under insurance legislation

Module).

3) Contract of Indemnity: Marine insurance is contract of

indemnity and the insurance company is liable only to

the extent of actual loss suffered. If there is no loss there

is no liability even if there is operation of insured peril.

Example: If the property under marine (transit) insurance

is insured for Rs 20 lakhs and during transit it is damaged

to the extent of Rs 10 lakhs then the insurance company

will not pay more than Rs 10 lakhs.

4) Utmost good faith: The owner of goods to be transported

must disclose all the relevant information to the insurance

company while insuring their goods. The marine policy

shall be voidable at the option of the insurer in the event

of misrepresentation, mis-description or non-disclosure

of any material information. Example: The nature of goods

must be disclosed i.e whether the goods are hazardous

in nature or not, as premium rate will be higher for

hazardous goods.

5) Insurable Interest: The marine insurance will be valid if

the person is having insurable interest at the time of loss.

The insurable interest will depend upon the nature of

sales contract. Example: Mr A sends the goods to Mr B on

FOB( Free on Board) basis which means the insurance is

to be arranged by Mr B. And if any loss arises during

transit then Mr B is entitled to get the compensation

from the insurance company.

Example: Mr A sends the goods to Mr B on CIF (Cost,

Insurance and Freight) basis which means the insurance

is to be arranged by Mr A. And if any loss arises during

transit then Mr A is entitled to get the compensation from

the insurance company.

6) Contribution: If a person insures his goods with two

insurance companies, then in case of marine loss both

the insurance companies will pay the loss to the owner

proportionately. Example; Goods worth Rs. 50 lakhs were

insured for marine insurance with Insurance company A

and B. In case of loss, both the insurance companies will

contribute equally.7) Period of marine Insurance: The period of insurance in

the policy is for the normal time taken for a particular

transit. Generally the period of open marine insurance

will not exceed one year. It can also be issued for the

single transit and for specific period but not for more

than a year.

8) Deliberate Act: If goods are damaged or loss occurs during

transit because of deliberate act of an owner then that

damage or loss will not be covered under the policy.

9) Claims: To get the compensation under marine insurance

the owner must inform the insurance company

immediately so that the insurance company can take

necessary steps to determine the loss.

OPERATION OF MARINE INSURANCE

Marine insurance plays an important role in domestic trade

as well as in international trade. Most contracts of sale require

that the goods must be covered, either by the seller or the

buyer, against loss or damage.

Who is responsible for affecting insurance on the goods, which

are the subject of sale? It depends on the terms of the sale

contract. A contract of sale involves mainly a seller and a buyer,

apart from other associated parties like carriers, banks, clearing

agents, etc.

Practice in International trade

The normal practice in export /import trade is for the exporter

to ask the importer to open a letter of credit with a bank in

favour of the exporter. As and when the goods are ready for

shipment by the exporter, he hands over the documents of

title to the bank and gets the bill of exchange drawn by him

on the importer, discounted with the bank. In this process,

the goods which are the subject of the sale are considered by

the bank as physical security against the monies advanced by

it to the exporter. A further security by way of an insurance

policy is also required by the bank to protect its interests in

the event of the goods suffering loss or damage in transit, in

which case the importer may not make the payment. The terms

and conditions of insurance are specified in the letter of credit.

For export/import policies, the-Institute Cargo Clauses (I.C.C.)

are used. These clauses are drafted by the Institute of London

Underwriters (ILU) and are used by insurance companies in a

majority of countries including India.

Overseas travel and medical insurance, Transport accident cover and Rental excess cover

Important information

• Overseas travel and medical insurance Master Policy
(the Travel Master Policy)
• Transport accident cover Master Policy (the Transport
Master Policy)
• Rental excess cover Master Policy (the Rental Excess
Master Policy)
(collectively the Master Policies)
This PDS contains information designed to help you
understand the Master Policies. Other documents may form
part of this document and we will tell you if this is the case in
that document.
The information in this PDS is of a general nature only and has
not considered your objectives, financial situation or needs.
You should carefully consider the information provided, having
regard to your personal circumstances to decide if this insurance
is right for you.
The benefit of cover under the Master Policies is provided to you
under master policy arrangements between Australia and New
Zealand Banking Group Limited and QBE Insurance (Australia)
Limited. Any person seeking to access the cover under any of
the Master Policies needs to read this PDS and the Master Policy
wordings carefully to decide if the cover meets their needs and
will cover their potential loss. It is an important document so
please keep it in a safe place for future reference.
Who provides these Master Policies?
Insurer
These Master Policies are underwritten by QBE Insurance
(Australia) Limited ABN 78 003 191 035, AFS Licence
No. 239545 of Level 5, 2 Park Street, Sydney NSW 2000.
Insured
QBE has issued the Master Policies to Australia and New Zealand
Banking Group Limited (ANZ) ABN 11 005 357 522 of ANZ Centre,
Level 9, 833 Collins Street, Docklands, VIC, 3008 (ANZ, insured).
ANZ is not the issuer of the Master Policies and neither ANZ nor
any of its related corporations guarantee any of the benefits
under the Master Policies. Neither ANZ nor any of its related
corporations are authorised representatives (under the
Corporations Act 2001 (Cth)) of QBE.
About the Master Policies
ANZ has taken out the Master Policies under master policy
arrangements with QBE for the period of insurance. The Master
Policies are contracts of insurance solely between ANZ and QBE.
They are not contracts between QBE and you. The cover under
the Master Policies is provided to you if you meet the eligibility
criteria by operation of section 48 of the Insurance Contracts Act
1984 (Cth) at no additional cost to you. ANZ does not receive any
commission or remuneration from QBE for arranging the Master
Policies. Each of the Master Policies must be read separately as
they contain terms, conditions, limits and exclusions which are
specific to each policy.
ANZ may terminate the Master Policies with QBE at any time and
will provide written notification to you if it does so. Purchases
made in accordance with the Master Policies before a notification
to terminate the cover is given will be covered under the relevant
Master Policy. Purchases made after this notification to terminate
is given will not be eligible for cover under the Master Policy.
Letter of eligibility
A letter of eligibility sets out:
• the QBE / ANZ Premium Cards Insurances policy number
for the Travel Master Policy, the Transport Master Policy
or Rental Excess Master Policy (as applicable); and
• the eligibility criteria which you must have met at the time
of loss or damage if you seek to make a claim under a
particular cover.
If you would like a letter of eligibility, please contact QBE.
About QBE Australia
QBE Insurance (Australia) Limited ABN 78 003 191 035 is a member
of the QBE Insurance Group (ASX: QBE). QBE Insurance Group is
Australia’s largest international general insurance and reinsurance
group, and one of the top 25 insurers and reinsurers worldwide.
The company has been operating in Australia since 1886 and
continues to provide industry-leading insurance solutions that
are focused on the needs of intermediaries and their clients.
QBE is a household name in Australian insurance, backed by
sizeable assets, and well known as a strong and financially
secure organisation.
For more information or to make a claim
Significant risks
These policies may not match your expectations
The Master Policies may not match your expectations (for
example, because an exclusion applies). You should therefore
read this PDS and the terms and conditions of each Master
Policy. Please ask us if you are unsure about any aspect of the
Master Policies.
Are you sure you have the right level of cover?
You need to make sure the limits of cover are appropriate for
your needs. Otherwise you may be under insured and have to
bear part of any loss that exceeds the limits yourself. Please
refer to the applicable limits as set out in the schedule of
benefits and the terms and conditions of each Master Policy.
A claim may be refused
We may refuse to pay or reduce the amount we pay under a
claim if you do not comply with the conditions set out in the
Master Policies, if you make a misrepresentation or if you
make a fraudulent claim.
The Travel Master Policy
The risks which are specific to the Travel Master Policy are set
out below.
Unattended luggage and personal effects
There is no cover for luggage and personal effects that are left
unattended. Please refer to the definition of unattended in
the Master Policy terms and conditions and “What is not
covered?” under Section C1 “Luggage and personal effects”.
Medical and ancillary costs
There is no cover for any medical, dental or ancillary costs
incurred within Australia. Refer to Section A “Overseas
medical and dental expenses” in the Master Policy terms
and conditions.
Non travellers
There is no cover for any costs incurred due to the illness,
injury or death of any person 80 years of age or over not
travelling with you.
The Transport Master Policy
The risks which are specific to the Transport Master Policy are
set out below.
Unlicensed transport operators
There is no cover under this Master Policy whilst travelling on
an aeroplane, tourist bus, train or ferry that is not licensed by
the local regulatory authority to carry fare paying passengers.
8–9
The Rental Excess Master Policy
The risks which are specific to the Rental Excess Master Policy
are set out below.
Have you complied with the conditions of the Rental
Agreement?
There is no cover under this Master Policy where your use
of the rental vehicle is in breach of the conditions of the
Rental Agreement.
GST
If we agree to pay a claim under any of the Master Policies,
the amount we pay covers GST inclusive costs (up to the relevant
limit set out in the schedule of benefits). However, we will reduce
any claim payment by any input tax credit you are or would be
entitled to for the repair or replacement of insured property or
for other things covered by any of the Master Policies.
Privacy
All companies in the QBE Group are committed to
safeguarding your privacy and the confidentiality of your
personal information. QBE collects only that personal
information from or about you for the purpose of assessing
your application for insurance and administering your
insurance policy, including any claim made by you. QBE will
only use and disclose your personal information for a purpose
you would reasonably expect. We will request your consent
for any other purpose.
Without this personal information we may not be able to
administer your insurance or process your claim. Our aim is to
always have accurate and up-to-date information, you should
contact us if the information is not correct.
QBE uses the services of a related company located in the
Philippines to provide Call Centre sales and claims handling,
accounting and administration services to QBE in Australia.
QBE or our authorised agent may collect or disclose your
personal information from or to:
• any person authorised by you;
• a mail house, records management company or
technology services provider (for printing and/or delivery
of mail and email, including secure storage and
management of our records). These companies may be
located or the records stored using ‘Cloud’ technology
overseas, including in India, Ireland, USA or the
Netherlands;
• a financier whose name appears on your Policy Schedule
(for the purpose of confirming the currency of your Policy
or when you have a claim and the insured property is a
total loss, to confirm if the financier has a current interest);
• an organisation that provides you with banking facilities
(for the purpose of arranging direct debit or other
payment transactions or confirming payments made by
you to us);
• a financial services provider or our agent who is arranging
your insurance (for the purpose of confirming your
personal and insurance details);
• another person named as a co-insured on your Policy (for
the purpose of confirming if full disclosure has been made
to us);
• another insurer (to obtain confirmation of your no claim
bonus or to assess insurance risks or to assist with an
investigation);
• our reinsurer that may be located overseas (for the
purpose of seeking recovery from them);
• a dispute resolution organisation such as the Financial
Ombudsman Service (for the purpose of resolving disputes
between QBE and you or between QBE and a third party);
• a company to conduct surveys on our behalf for the
purpose of improved customer services; and
• an insurance reference bureau (to record any claims you
may make upon us).
In addition to the above, in the event of a claim, QBE or our
authorised agent may disclose your personal information:
• to a repairer or supplier (for the purpose of repairing or
replacing your insured items);
• to an investigator, assessor (for the purpose of
investigating or assessing your claim);
• to a lawyer or recovery agent (for the purpose of
defending an action by a third party against you or
recovering our costs including your excess or seeking a
legal opinion regarding the acceptance of a claim);
• to a witness to a claim (for the purpose of obtaining a
witness statement);
• to another party to a claim (for the purpose of obtaining a
statement from them or seeking recovery from them or to
defend an action by a third party).
Personal information (about you) may also be obtained from
the above people or organisations.
In addition we will:
• give you the opportunity to find out what personal
information we hold about you and when necessary,
correct any errors in this information. Generally we will do
this without restriction or charge; and
• provide our dispute resolution procedures to you, should
you wish to complain about how we handle your personal
information.

WHAT IS LIFE INSURANCE

Everyone think that life insurance means the life insurance policy which we can purchase to insure our life. life insurance is not all about policy purchase its all about our life. Life insurance is to ensure our life and became healthy and live good life.

We know protection is better than cure we protect our body by doing yoga 

yoga traditionally is believed to have beneficial effects on physical

 and psychological health. Only recently has it been subjected to empirical studies. Bower, 

Woolery, Sternlieb, and Garet (2005) extensively reviewed yoga

 research, including published papers

and abstracts of conference presentations, that was conducted

with patients with cancer and survivors. They reviewed studies

of yoga used among patients who did not have cancer, evaluating

the symptoms that commonly occur in patients with cancer, such

as insomnia, fatigue, depression, and pain. Bower et al. concluded

that the study results have provided preliminary support for

the efficacy of yoga interventions among patients with cancer.

Positive effects were reported in a variety of outcomes, including

sleep quality, mood, stress, cancer-related distress, cancer-related

symptoms, and overall quality of life, as well as functional and

physiologic measures. As evidence for yoga interventions in

cancer care accumulates, yoga is being incorporated into cancer

programs and national symptom management guidelines.

Exercise is recommended as an evidence-based intervention

for fatigue related to cancer in the Oncology Nursing Society’s

published guidelines (Mitchell, Beck, Hood, Moore, & Tanner,

2007). The recommendation was based on strong evidence

from rigorously designed studies, including two that found that

yoga-like positioning and relaxation breathing significantly

reduced fatigue levels (Decker, Cline-Elsen, & Gallagher, 1992;

Kim & Kim, 2005). Few randomized, controlled trials of yoga

in patients with cancer have been published. However, in one

study, 39 patients with lymphoma who were undergoing treatment

or had finished treatment within the past 12 months were

assigned to a Tibetan yoga group or a wait-list control group

(Cohen, Warneke, Fouladi, Rodriguez, & Chaoul-Reich, 2004).

Tibetan yoga focuses on meditative techniques, emphasizing

controlled breathing, visualization, mindfulness techniques,

and gentle, simple movements. Fifty-eight percent of the

participants attended at least five of seven weekly yoga sessions,

which combined yoga postures with specific breathing

patterns. Daily home practice was encouraged with written

materials and audiotapes. Patients in the yoga group reported

significantly lower sleep disturbance during follow-up compared

with patients in the wait-list control group. No significant

differences were found between the groups in terms of anxiety,

depression, or fatigue. In another study of 38 cancer survivors,

participants were randomly assigned to an intervention (yoga)

or wait-list control group (Culos-Reed, Carlson, Daroux, &

Hately-Aldous, 2004). Most of the participants were female,

had a breast cancer diagnosis, and, on average, were 51 years

old, 56 months after diagnosis, and not currently receiving

therapy. The yoga group participated in 75-minute weekly

classes for seven weeks that were led by an experienced,

certified yoga instructor. Classes consisted of modified yoga

postures with gentle stretching and strengthening, relaxation,

and a focus on breathing. Significant differences between the

yoga and control groups after the intervention were seen in

both psychosocial measurements (mood, quality of life, and

stress) and physical measurements (resting heart rate and

cardiovascular endurance). Yoga participants demonstrated

significant improvements on a number of physical and psychosocial

variables after the intervention.

Pet insurance

Pet insurance pays, partly or in total, for veterinary treatment of the insured person's ill or injured pet. Some policies will pay out when the pet dies, or if the pet is lost or stolen.

As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets' health care and standard of living than previously, the market for pet insurance has increased.

History

The first pet insurance policy was written in 1890 by Claes Virgin. Virgin was the founder of Länsförsäkrings Alliance, at that time he focused on horses and livestock. ^[1] In 1947 the first pet insurance policy was sold in Britain.^[2] As of 2009, Britain has the second-highest level of pet insurance in the world (23%),^[3] behind only Sweden. According to the latest data available from the U.S. Deparment of Clinical Veterinary Science and the Pet Food Institute, only 0.7% of pets in the United States are covered by Pet Insurance.^[4] In 1982, the first pet insurance policy was sold in the United States, and issued to television's Lassie by Veterinary Pet Insurance (VPI).^[5]

How policies work

Many pet owners believe pet insurance is a variation of human health insurance; however, pet insurance is actually a form of property insurance. As such, pet insurance reimburses the owner after the pet has received care and the owner submits a claim to the insurance company.

UK policies may pay 100% of vets fees, but this is not always the case. It is common for UK pet insurance companies to discount their policies by offering customers the chance to pay an "excess", just as with motor insurance. Excess fees can range from £40 to £100.

Policies in the United States and Canada either pay off a benefit schedule or pay a percentage of the vet costs (70-100%), after reaching a deductible, depending on the company and the policy. The owner usually pays the amount due to the veterinarian and then sends in the claim form and receives reimbursement, which some companies and policies limit according to their own schedules of necessary and usual charges. For very high bills, some veterinarians allow the owner to put off payment until the insurance claim is processed. Some insurers pay veterinarians directly on behalf of customers. Most American and Canadian policies require the pet owner to submit a request for fees incurred.

Previously, most pet insurance plans did not pay for preventative care (such as vaccinations) or elective procedures (such as neutering). Recently, however, some companies in Canada, the United Kingdom, and the United States are offering routine-care coverage, sometimes called comprehensive coverage. Dental care, prescription drugs and alternative treatments, such as physiotherapy and acupuncture, are also covered by some providers.

There are two categories of insurance policies for pets: non-lifetime and lifetime. The first covers buyers for most conditions suffered by their pet during the course of a policy year but, on renewal in a following year, a condition that has been claimed for will be excluded. If that condition needs further treatment the pet owner will have to pay for that him/herself. The second category covers a pet for ongoing conditions throughout the pet’s lifetime so that, if a condition is claimed for in the first year, it will not be excluded in subsequent years. However, lifetime policies also have limits: some have limits “per condition”, others have limits “per condition, per year”, and others have limits “per year”, all of which have different implications for a pet owner whose pet needs treatment year after year, so it is wise to be clear which type of lifetime policy you are considering.

In addition, companies often limit coverage for pre-existing conditions in order to eliminate fraudulent consumers, thus giving owners an incentive to insure even very young animals, who are not expected to incur high veterinary costs while they are still healthy.^[6] There is usually a short period after a pet insurance policy is bought when the holder will be unable to claim for sickness, often no more than 14 days from inception. This is to cover illnesses contracted before the pet was covered but whose symptoms appeared only after coverage has begun.

Some insurers offer options not directly related to pet health, including covering boarding costs for animals whose owners are hospitalized, or costs (such as rewards or posters) associated with retrieving lost animals. Some policies also include travel cancellation coverage if owners must remain with pets who need urgent treatment or are dying.

Some British policies for dogs also include third-party liability insurance. Thus, for example, if a dog causes a car accident that damages a vehicle, the insurer will pay to rectify the damage for which the owner is responsible under the Animals Act 1971.^[7]

The difference between companies

Pet insurance companies are beginning to offer the pet owner more of an ability to customize their coverage by allowing them to choose their own level of deductible or co-insurance. This allows the pet owner to control their monthly premium and choose the level of coverage that suits them the best.

Some of the differences in insurance coverage are:

• Which pets are covered (typically dogs and cats, though some insurance companies cover horses or other pets.)^{[citation needed]}
• Whether congenital and hereditary conditions (like hip dysplasia, heart defects, eye cataracts or diabetes) are covered;
• How the reimbursement is calculated (based on the actual vet bill, a benefit schedule or usual and customary rates);
• Whether the deductible is on a per-incident or an annual basis;
• Whether there are any limits or caps applied (per incident, per year, age or over the pet’s lifetime); and
• Whether there is an annual contract that determines anything diagnosed in the previous year of coverage is considered pre-existing the next year.

Pet insurance

Pet insurance pays, partly or in total, for veterinary treatment of the insured person's ill or injured pet. Some policies will pay out when the pet dies, or if the pet is lost or stolen.

As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets' health care and standard of living than previously, the market for pet insurance has increased.

History

The first pet insurance policy was written in 1890 by Claes Virgin. Virgin was the founder of Länsförsäkrings Alliance, at that time he focused on horses and livestock. ^[1] In 1947 the first pet insurance policy was sold in Britain.As of 2009, Britain has the second-highest level of pet insurance in the world (23%),^[3] behind only Sweden. According to the latest data available from the U.S. Deparment of Clinical Veterinary Science and the Pet Food Institute, only 0.7% of pets in the United States are covered by Pet Insurance.^[4] In 1982, the first pet insurance policy was sold in the United States, and issued to television's Lassie by Veterinary Pet Insurance (VPI).^[5]

How policies work

Many pet owners believe pet insurance is a variation of human health insurance; however, pet insurance is actually a form of property insurance. As such, pet insurance reimburses the owner after the pet has received care and the owner submits a claim to the insurance company.

UK policies may pay 100% of vets fees, but this is not always the case. It is common for UK pet insurance companies to discount their policies by offering customers the chance to pay an "excess", just as with motor insurance. Excess fees can range from £40 to £100.

Policies in the United States and Canada either pay off a benefit schedule or pay a percentage of the vet costs (70-100%), after reaching a deductible, depending on the company and the policy. The owner usually pays the amount due to the veterinarian and then sends in the claim form and receives reimbursement, which some companies and policies limit according to their own schedules of necessary and usual charges. For very high bills, some veterinarians allow the owner to put off payment until the insurance claim is processed. Some insurers pay veterinarians directly on behalf of customers. Most American and Canadian policies require the pet owner to submit a request for fees incurred.

Previously, most pet insurance plans did not pay for preventative care (such as vaccinations) or elective procedures (such as neutering). Recently, however, some companies in Canada, the United Kingdom, and the United States are offering routine-care coverage, sometimes called comprehensive coverage. Dental care, prescription drugs and alternative treatments, such as physiotherapy and acupuncture, are also covered by some providers.

There are two categories of insurance policies for pets: non-lifetime and lifetime. The first covers buyers for most conditions suffered by their pet during the course of a policy year but, on renewal in a following year, a condition that has been claimed for will be excluded. If that condition needs further treatment the pet owner will have to pay for that him/herself. The second category covers a pet for ongoing conditions throughout the pet’s lifetime so that, if a condition is claimed for in the first year, it will not be excluded in subsequent years. However, lifetime policies also have limits: some have limits “per condition”, others have limits “per condition, per year”, and others have limits “per year”, all of which have different implications for a pet owner whose pet needs treatment year after year, so it is wise to be clear which type of lifetime policy you are considering.

In addition, companies often limit coverage for pre-existing conditions in order to eliminate fraudulent consumers, thus giving owners an incentive to insure even very young animals, who are not expected to incur high veterinary costs while they are still healthy.^[6] There is usually a short period after a pet insurance policy is bought when the holder will be unable to claim for sickness, often no more than 14 days from inception. This is to cover illnesses contracted before the pet was covered but whose symptoms appeared only after coverage has begun.

Some insurers offer options not directly related to pet health, including covering boarding costs for animals whose owners are hospitalized, or costs (such as rewards or posters) associated with retrieving lost animals. Some policies also include travel cancellation coverage if owners must remain with pets who need urgent treatment or are dying.

Some British policies for dogs also include third-party liability insurance. Thus, for example, if a dog causes a car accident that damages a vehicle, the insurer will pay to rectify the damage for which the owner is responsible under the Animals Act 1971.^[7]

The difference between companies

Pet insurance companies are beginning to offer the pet owner more of an ability to customize their coverage by allowing them to choose their own level of deductible or co-insurance. This allows the pet owner to control their monthly premium and choose the level of coverage that suits them the best.

Some of the differences in insurance coverage are:

• Which pets are covered (typically dogs and cats, though some insurance companies cover horses or other pets.)
• Whether congenital and hereditary conditions (like hip dysplasia, heart defects, eye cataracts or diabetes) are covered;
• How the reimbursement is calculated (based on the actual vet bill, a benefit schedule or usual and customary rates);
• Whether the deductible is on a per-incident or an annual basis;
• Whether there are any limits or caps applied (per incident, per year, age or over the pet’s lifetime); and
• Whether there is an annual contract that determines anything diagnosed in the previous year of coverage is considered pre-existing the next year.

Jump up

Pension

A pension is a fund into which a sum of money is added during an employee's employment years, and from which payments are drawn to support the person's retirement from work in the form of periodic payments. A pension may be a "defined benefit plan" where a fixed sum is paid regularly to a person, or a "defined contribution plan" under which a fixed sum is invested and then becomes available at retirement age.^[1] Pensions should not be confused with severance pay; the former is usually paid in regular installments for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment prior to retirement.

The terms "retirement plan" and "superannuation" tend to refer to a pension granted upon retirement of the individual.^[2] Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. Called retirement plans in the United States, they are commonly known as pension schemes in the United Kingdomand Ireland and superannuation plans (or super^[3]) in Australia and New Zealand. Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity.

A pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension.Labor unions, the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons. Many pensions also contain an additionalinsurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or an annuity) may provide a similar stream of payments.

The common use of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree.

Types of pensions[edit]

Employment-based pensions[edit]

A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both the employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as a retirement income. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes. Pension plans are therefore a form of "deferred compensation". A SSAS is a type of employment-based Pension in the UK.

Some countries also grant pensions to military veterans. Military pensions are overseen by the government; an example of a standing agency is the United States Department of Veterans Affairs. Ad hoc committees may also be formed to investigate specific tasks, such as the U.S. Commission on Veterans' Pensions (commonly known as the "Bradley Commission") in 1955–56. Pensions may extend past the death of the veteran himself, continuing to be paid to the widow; see, for example, the case of Esther Sumner Damon, who was the last surviving American Revolutionary War widow at her death in 1906.

Social and state pensions---

Many countries have created funds for their citizens and residents to provide income when they retire (or in some cases become disabled). Typically this requires payments throughout the citizen's working life in order to qualify for benefits later on. A basic state pension is a "contribution based" benefit, and depends on an individual's contribution history. For examples, see National Insurance in the UK, or Social Security in the United States of America.

Many countries have also put in place a "social pension". These are regular, tax-funded non-contributory cash transfers paid to older people. Over 80 countries have social pensions.^[4] Some are universal benefits, given to all older people regardless of income, assets or employment record. Examples of universal pensions include New ZealandSuperannuation^[5] and the Basic Retirement Pension of Mauritius.^[6] Most social pensions, though, are means-tested, such as Supplemental Security Income in the United States of America or the "older person's grant" in South Africa.^[7]

Disability pensions--

Some pension plans will provide for members in the event they suffer a disability. This may take the form of early entry into a retirement plan for a disabled member below the normal retirement age.

Benefits--

Retirement plans may be classified as defined benefit or defined contribution according to how the benefits are determined.^[8] A defined benefit plan guarantees a certain payout at retirement, according to a fixed formula which usually depends on the member's salary and the number of years' membership in the plan. A defined contribution plan will provide a payout at retirement that is dependent upon the amount of money contributed and the performance of the investment vehicles utilized. Hence, with a defined contribution plan the risk and responsibility lies with the employee that the funding will be sufficient through retirement, whereas with the defined benefit plan the risk and responsibility lies with the employer or plan managers.

Some types of retirement plans, such as cash balance plans, combine features of both defined benefit and defined contribution plans. They are often referred to as hybrid plans. Such plan designs have become increasingly popular in the US since the 1990s. Examples include Cash Balance and Pension Equity plans.

Defined benefit plans--

A traditional defined benefit (DB) plan is a plan in which the benefit on retirement is determined by a set formula, rather than depending on investment returns. Government pensions such as Social Security in the United States are a type of defined benefit pension plan. Traditionally, defined benefit plans for employers have been administered by institutions which exist specifically for that purpose, by large businesses, or, for government workers, by the government itself. A traditional form of defined benefit plan is the final salary plan, under which the pension paid is equal to the number of years worked, multiplied by the member's salary at retirement, multiplied by a factor known as the accrual rate. The final accrued amount is available as a monthly pension or a lump sum, but usually monthly.

The benefit in a defined benefit pension plan is determined by a formula that can incorporate the employee's pay, years of employment, age at retirement, and other factors. A simple example is a Dollars Times Service plan design that provides a certain amount per month based on the time an employee works for a company. For example, a plan offering $100 a month per year of service would provide $3,000 per month to a retiree with 30 years of service. While this type of plan is popular among unionized workers, Final Average Pay (FAP) remains the most common type of defined benefit plan offered in the United States. In FAP plans, the average salary over the final years of an employee's career determines the benefit amount.

Averaging salary over a number of years means that the calculation is averaging different dollars. For example, if salary is averaged over five years, and retirement is in 2009, then salary in 2004 dollars is averaged with salary in 2005 dollars, etc., with 2004 dollars being worth more than the dollars of succeeding years. The pension is then paid in first year of retirement dollars, in this example 2009 dollars, with the lowest value of any dollars in the calculation. Thus inflation in the salary averaging years has a considerable impact on purchasing power and cost, both being reduced equally by inflation

This effect of inflation can be eliminated by converting salaries in the averaging years to first year of retirement dollars, and then averaging.

In the US, 26 U.S.C. § 414(j) specifies a defined benefit plan to be any pension plan that is not a defined contribution plan (see below) where a defined contribution plan is any plan with individual accounts. A traditional pension plan that defines a benefit for an employee upon that employee's retirement is a defined benefit plan. In the U.S., corporate defined benefit plans, along with many other types of defined benefit plans, are governed by the Employee Retirement Income Security Act of 1974 (ERISA).^[9]

In the United Kingdom, benefits are typically indexed for inflation (known as Retail Prices Index (RPI)) as required by law for registered pension plans.^[10] Inflation during an employee's retirement affects the purchasing power of the pension; the higher the inflation rate, the lower the purchasing power of a fixed annual pension. This effect can be mitigated by providing annual increases to the pension at the rate of inflation (usually capped, for instance at 5% in any given year). This method is advantageous for the employee since it stabilizes the purchasing power of pensions to some extent.

If the pension plan allows for early retirement, payments are often reduced to recognize that the retirees will receive the payouts for longer periods of time. In the United States, under the Employee Retirement Income Security Act of 1974, any reduction factor less than or equal to the actuarial early retirement reduction factor is acceptable.^[11]

Many DB plans include early retirement provisions to encourage employees to retire early, before the attainment of normal retirement age (usually age 65). Companies would rather hire younger employees at lower wages. Some of those provisions come in the form of additional temporary or supplemental benefits, which are payable to a certain age, usually before attaining normal retirement age.^[12]

Funding--

Defined benefit plans may be either funded or unfunded.

In an unfunded defined benefit pension, no assets are set aside and the benefits are paid for by the employer or other pension sponsor as and when they are paid. Pension arrangements provided by the state in most countries in the world are unfunded, with benefits paid directly from current workers' contributions and taxes. This method of financing is known as Pay-as-you-go (PAYGO or PAYG).^[13] The social security systems of many European countries are unfunded,^[14] having benefits paid directly out of current taxes and social security contributions, although several countries have hybrid systems which are partially funded. Spain set up the Social Security Reserve Fund and France set up the Pensions Reserve Fund; in Canada the wage-based retirement plan (CPP) is partially funded, with assets managed by the CPP Investment Board while the U.S. Social Security system is partially funded by investment in special U.S. Treasury Bonds.

In a funded plan, contributions from the employer, and sometimes also from plan members, are invested in a fund towards meeting the benefits. All plans must be funded in some way, even if they are pay-as-you-go, so this type of plan is more accurately known as pre-funded. The future returns on the investments, and the future benefits to be paid, are not known in advance, so there is no guarantee that a given level of contributions will be enough to meet the benefits. Typically, the contributions to be paid are regularly reviewed in a valuation of the plan's assets and liabilities, carried out by an actuary to ensure that the pension fund will meet future payment obligations. This means that in a defined benefit pension, investment risk and investment rewards are typically assumed by the sponsor/employer and not by the individual. If a plan is not well-funded, the plan sponsor may not have the financial resources to continue funding the plan. In many countries, such as the USA, the UK and Australia, most private defined benefit plans are funded^{[citation needed]}, because governments there provide tax incentives to funded plans (in Australia they are mandatory). In the United States, non-church-based private employers must pay an insurance-type premium to the Pension Benefit Guaranty Corporation (PBGC), a government agency whose role is to encourage the continuation and maintenance of voluntary private pension plans and provide timely and uninterrupted payment of pension benefits. When the PBGC steps in and takes over a pension plan, it provides payment for pension benefits up to certain maximum amounts, which are indexed for inflation.^[1]