The Concept Of Overseas Travel Insurance In A General Contract
The Overseas Travel Insurance is also a very important policy for travel lovers, its aim is to provide protection against all risks while traveling abroad.
Accidents and mishaps can happen anytime and at any place and therefore it is essential for an individual to identify the travel related risks in advance and insure these risks.
Both provide and public sectors insurers sell travel insurance products, example, when an individual on an overseas tour is hospitalized after an accident, the medical expenses would be so high that an average person cannot moment them.
If he is insured under travel accident insurance, the insurer will reimburse the medical expenses up to policy limit.
Travel insurance products can also be purchased from travel agents or from tour operators whenever it is convenient.
Today the importance of travel insurance Is fully recognized and therefore it is often said that this products is purchased not sold.
The Types of travel insurance include: Individual, corporate frequent travellers, student, family.
All risks
All risks Insurance policy covers only those losses or damages which arises due to fire or burglary or theft.
It also covers losses due to accident or unexpected circumstances, since all risk policy cover a wild range of risks and perils, it is difficult for the insured to prove that he has incurred the loss.
This type of policy is especially suitable for variables like jewelry, gold and silver, art and painting works, camera and clocks and other valuables.
It is difficult in all risk policy to estimate the value of risk covered under the policy like art and painting.
In such case, the valuable are insured on value agreed by insured and insurer and claims are settled on this basis after deducting depreciation.
But the value of items like jewellery, gold, and silver plates is calculated by consulting a professional Appraisal.
The policy can be limited to a single article or set of articles.
It inventory and valuation clause is included in the policy, then there is no need for insured to show the invoice and to prove cost.
In this case, the claims are settled according to the values assessed by professional value and mentioned in the policy.
Golfer’s Indemnity Insurance
While playing a sport like golf, if a person accidently injured other persons, then he is responsible for the other person’s injuries.
Gold indemnity insurance provides protection against losses or damages to the gold player and to gold equipment.
It also provides protection against public liability resulting in death or disability all golf players or sports persons can insure themselves under golfer insurance policy in order to protect their rights and interest as sport persons.
Coverage
The following risks are covered under golfer insurance.
- Any material damage to golf equipment while transporting the equipment which includes breakage of golf clubs.
- Injury to third party who is not w family member or employee of insured persons
- If the insured is injured during the golf course in the country he is entitled to receive personal accident benefits up to $2000
Exclusions
The golf indemnity insurance does not cover the following losses;
- Losses due to war or invasion
- Damages due to earthquake, flood etc
- Loss or damages brought about by the insured either directly or indirectly
- Any consequential losses, losses due to depreciation and wear and tear.
Crime insurance
Crime is one thing that all three countries in the world want to eliminate but are unsuccessful, crime has also become one of the most serious problem of the recent times.
Unfortunately crime is also the field that has received less than the required attention from the insurance companies.
A study reveals that in US less than 10% of loss from the ordinary crime is insured.
Imagine then in some third world countries looking at the grave necessity of crime insurance, US federal government itself started extending burglary and robbery insurance.
There are two types of financial protection that are available against the losses caused by crime.
They are fidelity and surely bonds and burglary, robbery and theft insurance. Bonds and insurance are very much alike, a bond is a legal instrument in which a third person (surely) ensures the performance of a contract properly by the principal or the obligator.
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He does this by promising reimbursement of damages in cases of default in the performance of the contract by the principal.
For example, if a contractor is asked to deposit a bond by the owner of a building, it means that surely will pay the damages in case the contractor is not able to complete the project.
Hence to a great extent binds sounds just like insurance. Yet it is not insurance.
We will see the difference between insurance and bonds after going through them, the classification of bonds and insurance is shown in the figure above.
So in the coming section only the definition of these items are given.
Fidelity bonds deal with assurance of bonafide behaviour by an employee during the course of his employement, in fidelity bonds, as the word itself suggest the surety assures the employers of trustworthiness and honesty of the employee and agrees to pay the damages that arise due to the dishonest arts of that employee.
Read more: The Concepts and Application of Insurance Forms in Contracts
If the fidelity bonds is meant for a single individual, his name is mentioned in the band and it is called individual bond, whereas if the bond mentions a class and Indemnifies the act of all the employees failing in that class it is called the scheduled bond.
Surely bonds also called the financial guarantee bonds, are the Bonds in which the surely promises to make good any lose arising from the default of the principal in fulfilling his liabilities towards the obligee.
The example of the contractor we cited in the beginning of the topic falls under this category.
To be more specific, it is an example of the construction bond and the bid bond. In contract construction bond the contractor guarantees that the bidder will sign the contract if it is awarded to him but the end.
Now let us go through the insurance cover available against crime, while reading them, think of the basic difference between the types of perils covered by them and those covered by the bonds.
Insurance coverage is available basically for burglary robbery and theft, it is necessary to see the meaning of each to differentiate them from one another.
When somebody forcefully enters the business premise and unlawfully takes any property, the act is called burglary: the forcefully entry is a prerequisite to burglary.
Hence if a customer hides in the business premise until it closes, steals something and leaves without forcing the door or the windows to open.
The act would not be considered a burglary, personal contact is a pre requisite for robbery, it covers the act of unlawful taking if any property from any person by force, threat or force or violence.
Therefore pickpocketing or the theft of luggage of a person, while he is sleeping, would not be classified as robbery.
Here the personal contact is there but the force, threat of force or violence is missing.
Theft is a wider term that includes all the crimes of stealing, whether or not covered by burglary or robbery, acts like passing false cheques comes under burglary.
Now that we have gone through the various crime bonds and the crime insurance covers, did you notice any difference between the perils covered by the bonds and the insurance?
The bonds covers the losses that arise due to the dishonesty or incapacity of the person entrusted with some work, money or property.
whereas insurance covers the losses due to stealing or theft by strangers, the people who are not trusted by the work, money or property.
