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In this blog, we shall discuss No Claim Bonus, also abbreviated as NCB! One of the most satisfying features of car insurance is the No Claim Bonus offered to safe drivers. It helps such drivers save on renewal premiums.

What is No Claim Bonus (NCB)? 

No Claim Bonus is a discount offered by the insurance companies to its policyholders incase they have made no claims during the period covered in the respective policies. It is a boon to all good drivers. The more the years go without raising a claim, the bigger the discount at renewal.

It can go up to 50% if you keep renewing your insurance without making even a single claim. Kind of a pay for traveling safely. It’s similar to a loyalty program when it is like, the safer you drive, the more you save .

NCB applies just to ‘Own Damage’ component of the insurance premium and does not have any effect on third-party liability part of the premium, which is of a statutory nature.

How Does NCB Work? 

NCB is a pretty simple concept, though it can still yield big premium savings. This is how it works:

• If you do not raise any claims during the policy term – you get a rebate at the time of renewal.
• The % rebate starts at 20% after the first claim-free year and can go all the way up to 50% after five consecutive years of being claim-free.

This would mean that if you can drive safely and avoid making claims on the insurance, the premiums paid for car insurance may become significantly cheaper in the long term.

Example:

You have brought car insurance for ₹ 22,000, and haven’t raised any claims in the first year.

So on renewal, you get a discount of 20% on your premium, which brings it down to ₹17,600. And if you keep driving safely for five years without raising a claim, then renewal premium might have a discount of up to 50%, bringing it down to just ₹ 11,000!

NCB Year-wise Discount Breakdown

Here is a straightforward progression of how No Claim Bonus accumulates with each year of having no claim at all:

• First year: 20% discount on the premium
• Second year: 25% discount on the renewal premium
• Third year: 35% discount on the renewal premium
• Fourth year: 45% discount on the renewal premium
• Fifth year: 50% discount on the renewal premium.

Why Care About NCB? 

Simply put, NCB is an incentive for the policyholders to drive safely and not to make claims for low-grade damage. For obvious savings, it also encourages a roadworthy driving habit that reduces the probability of accidents and serious damage to your vehicle.

What’s more, NCB is the best way through which you can decrease the premium of your car insurance gradually without compromising on any kind of coverage received. Here are some key reasons through which one should make an effort to maximize his/her NCB:

1. . Savings Over Time: And we have reminded you of the fact that such discount can reach up to 50%. Think about what difference it will make when it comes to saving insurance for five years through simple  safety in driving!
2. Transferable Benefit: You change your car or change your insurance provider? No problem! The NCB is transferred into the new car or for your new insurer, and it continues to generate your safe-driving effort.
3. NCB Protection: Many of the insurers offer NCB Protection Add-on, which ensures that the discount you have developed doesn’t get eaten away even if you want to make a claim. Therefore, you can make any number of claims during a policy period and retain all of your hard-earned discount.

Protecting Your NCB with Add-ons

While the greatest concern on behalf of a policyholder is losing his/her NCB at the time of raising a claim, the general good news provided through the new add-on cover called NCB Protection is that you will receive protection on discount after a claim.

Here’s how it works: If you choose to go for the NCB Protection Add-on, you can make one or two claims in a policy period and still retain your NCB. It is just excellent for those who want peace of mind knowing that a single claim won’t wipe out their accumulated discount.

For instance, if you are a four-year safe driver with a 45% NCB, a minor claim in the fifth year can reset your discount to zero. The NCB Protection Add-on, however, allows you to file that claim without losing your discount the following year.

All the best to happy and safe driving !

How to Buy Family Health Insurance as a Millennial

Family health insurance is a somewhat complex thing, especially for millennial individuals with careers, family, and finances. But it does not have to be so. Understand your needs and make informed choices about protecting your loved ones. A right plan will ensure the well-being of your family and avoid surprise medical costs.

Why Millennials Should Consider Family Health Insurance

We millennials value experiences, financial independence, and living on our own terms, but in life’s journey, whether that’s the arrival of new family members or supporting an aging parent, a good health insurance plan becomes a game-changer. Here’s why it deserves your attention:

Life can throw some curveballs your way, and medical emergencies often form part of the most expensive. From accidents to sudden illnesses, massive hospital bills sometimes hit hard. However, having a comprehensive family health insurance plan takes care of those unwanted expenses; hence you will not have to dip into your savings or compromise on the care your family needs.

For most families who suffer from chronic health conditions, money can fast pour in for your pocket. Maintenance treatments, drugs, and consultations all hit your wallet at every turn. Health insurance ensures that these basics are covered without having to worry about how much it costs.

Quality Access to Healthcare

The best health insurance plans cover not only emergencies, but also give you access to a very expansive network of healthcare providers. Whether annual check-ups or specialized treatments, the easy access to a trusted network of doctors and hospitals is in their best interest-the family’s care.

Many health insurance policies include vaccinations, check-ups and medical screenings. Problems that are identified before they become expensive ones.

Access to quality health care and the list of benefits and services that can be enjoyed by preventive care; network of healthcare providers, screenings, and wellness services for peace of mind every day.
Health insurance is not just something to pay bills; it is a means to keep your peace of mind going. With assured health, you can focus much more on life, running after your dreams, and enjoying time with those you love-not haunted by looming medical costs.

Financially, health insurance guards your savings from the devastating falls into huge hospital bills. It is such security that you need to cover your various financial burdens.

Life changes-in sometimes unexpected ways. Whether you’re expanding your family or assisting aging parents, health insurance is a must. You will get to cover all your needs from the time the wife has maternity care through pediatric visits when they are old enough-and even elder care. A good health insurance plan ensures your children come into this world healthy and helps you manage the medical needs of aging parents without breaking the bank.

Financial and Tax benefits

Don’t forget the financial benefits! A great many people consider the health insurance premiums as a deductible from their taxable income. It helps save money at tax time. It is a smart move both financially and as protection.

Being a millennial, one can give up on health insurance in the rush of daily life, but juggling with family, career, and future goals makes a solid health insurance all the more pertinent. ‘Investing in the family health insurance, one invests in security for the family as a whole wherein loved ones would receive their due care without the financial burden on their heads.”.

At Troth Insurance Broking, we keep our interest in making health insurance as smooth and uncomplicated as possible. We aim at linking the right health plans to the needy families in order to take all stress away from them so they can focus on what matters most-your family.

In making health insurance for your family, that’s a healthier, more secure future for you. And in choosing the right plan, you are not covered of your medical expenses-thereby you have peace of mind.

Cargo insurance is only for big shipments. Marine insurance covers all risks comprehensively and coordinating with a cargo insurance company is a heavy task. All these are myths about marine insurance.

While putting your shipment at risk, these myths and misconceptions around transit insurance can prevent you from enjoying all the advantages of marine insurance. We got our experts to debunk the most common myths about marine cargo insurance.

Myth 1: Only Large Shipments Need Marine Insurance
Expert Insight:

A common myth about cargo insurance is that small shipments don’t need it, and only precious cargo requires safeguarding. Experts in the maritime insurance industry emphasise that the shipment size doesn’t correlate with the level of risk involved.

Even small parcels or packages can be exposed to hazards such as rough weather, accidents, theft, or vessel sinking, ultimately resulting in financial loss. Likewise, Forwarders and Customs House Agents must tap into the cargo insurance opportunities for both, large and small shipments.

Myth 2: Cargo Insurance Coverage Only Apply To Goods on Water
Expert Insight:

Marine insurance isn’t confined to goods shipped solely by sea; it encompasses goods transported via various modes such as air or land.
If you want to send your fabric shipment to the USA, for instance, it’s crucial to insure goods from their starting point to their destination, regardless of the mode of transport. Risks to cargo stand at each point of the transit and you must be prepared against it.

Myth 3: All Risks are Covered by Default
Expert Insight:

While marine insurance provides coverage for various risks associated with the transportation of goods over water, it doesn’t cover every possible scenario. Every policy has its limits and exclusions, depending on the terms and conditions of the policy.

Exclusions such as acts of terrorism, war risks, and pre-existing damage to cargo or vessels are commonly found in marine insurance policies. Shippers should carefully review their insurance policies to understand the extent of coverage provided.

Myth 4: Cargo Insurances Are Too Complicated and Time Consuming
Expert Insight:

Traditionally marine insurance process was done on paper, making it complicated and overly time-consuming. But with insurance digitalisation, online portals like Aapka Transit are making buying marine insurance smooth, error-free, easy and quick.

Now Forwarders and insurance agents can buy insurance from reputed cargo insurance companies in India within 3 minutes and your cargo is ready to be shipped. Developed with an easy-to-interact dashboard and secured technology, the Aapka Transit marine insurance portal simplifies your cargo insurance experience.

Aapka Transit simplifies the process of obtaining marine insurance, offering an intuitive online platform for transparency, trust, security and efficiency. We provide a convenient avenue for shippers to secure comprehensive coverage tailored to their needs, offering peace of mind throughout their maritime ventures.

Sail to cargo security with Aapka Transit. Start your journey today.

Life insurance is a very critical financial instrument by which you can assure yourself and your family members from uncertainties. This will act as a financial protection scheme so that, in case of your sudden death, your family does not suffer from financial crises. Still, people find the process of buying life insurance quite confusing and overwhelming. This full guide is to help you through the process and give you a clear roadmap on how to get life insurance easily.

Understanding Basics of Life Insurance Before delving deeper into the process, it becomes very important to understand the kinds of life insurance available. There are majorly two categories: term life insurance and permanent life insurance.

1. Term Life Insurance: This is the type of policy where a person is covered for a defined period, say 10, 20, or 30 years. This type usually is less expensive and less complicated. It is perfect for one looking for temporary coverage to fill certain financial obligations, such as a mortgage or a child’s education.
2. Permanent Life Insurance: Whole life, universal life, and variable life are examples. Permanent life insurance is whole-life coverage with a savings element building up within the policy over some period, known as cash value. This will be a more comprehensive and costly option but offers long-term, stable benefits.

Ten Easy Steps to Buy Life Insurance

1. Determine Your Insurance Needs The first step in buying any life insurance policy is to calculate your financial needs and objectives. Consider the following— Dependents: How many people depend upon your income? Debts: Do you have a mortgage, car loan, or some other major debt? Expenses in the future: Your children’s education and the retirement of your spouse.

A good rule of thumb is to have coverage that equals 10-15 times your annual income, but again, this can vary based on your individual situation.

2. Understand Your Options Having a sense of your needs clearly in mind, research life insurance products available in the marketplace. Compare term and permanent life insurance with cost, coverage, and flexibility in mind. Online resources, financial advisors, and insurance agents are useful sources to gather information.
3. Calculate adequate coverage. Consider your current financial obligations against future financial goals and what income replacement may be necessary. There are many free online life insurance calculators that can help in determining an appropriate level of coverage.
4. Shop and compare quotes The cost of life insurance varies among insurance companies. Obtain several quotes from different insurers to compare them regarding the cost and benefits. This can be done faster at present with online sites working out quotes of variety of insurers.
5. Evaluate the Insurer Choosing the right insurance provider is equivalent to choosing the proper policy. One must see the financial strength assessment of the insurers through agencies like A.M. Best, Moody’s, and Standard & Poor’s. Customer reviews and testimonials will guide you as to the service quality and the claim handling process of the firm.
6. Apply for Policy After you choose a policy and the insurer, it will be time to apply. This submission will normally require you to do the following: Give Your Personal Information: You will need to fill in your details regarding your age, case history, lifestyle, and the occupation you are involved in. Undergo a Medical Examination: Most policies will require you to undergo a medical check so that your health status will determine the setting of premium rates. There are those with no exam policies, but they usually cost more. Policy Terms: Review the policy terms, coverage details, exclusions, and any riders or additional benefits you may have added to your policy.
7. Wait for Underwriting Once you have submitted your application form, it is then that the insurance company will review your information—a process called underwriting. This may last a few days or stretch into several weeks, depending on how complicated your health situation may be, and the kind of policy you are applying for.
8. Receive and Review Your Policy On approval, your policy documents will be returned to you for checking all the information for accuracy and that the policy does indeed meet your expectations. Check especially for the premium amount, premium payable schedule, coverage details, and additional riders.
9. Pay Your Premiums You have to pay premiums regularly to keep the policy in force. The insurer will allow you to pay your premium, either monthly, quarterly, semi-annually, or annually, in varying premium payments. Be sure to know the terms of such premium payment and set reminders to help you remember when your premiums are due.
10. Keep Your Policy Up to Date These include major changes in your life resulting from factors such as marriage or the birth of a child, and significant improvements in your financial status—all affecting your life insurance coverage. You should therefore check your policy periodically so it raises sufficient protection to be raised as events may dictate. This will involve raising the coverage, including riders, and obtaining coverage for other dependants as various situations change in your life.

How to Buy Life Insurance Without a Hitch

1. Be Honest in Your Application It’s important that you provide relevant, accurate, and truthful information during the application process, since otherwise, misrepresentation may result in denial of claim or cancellation of your policy.
2. Consider Your Budget While sufficient cover is important, it is also equally important that you opt for a policy that fits your budget. There definitely is no point in overstretched pocket by opting for a policy with high premiums that are difficult to sustain and unaffordable internationally.
3. Seek Professional Advice If the process looks overwhelming, or if your needs are complex, consider a financial advisor or insurance broker for professional advice. He/she can give you personalized advice and help you in making the right decisions.
4. Avail of Insurance Provided by Your Employer: Many employers offer group life insurance as part of normal work benefits. Although it is usually limited, this additional coverage could be used to get more value out of your personal life insurance policy.

Life insurance is often perceived as a complex and daunting financial product, shrouded in mystery and loaded with jargon that can intimidate even the most financially savvy individuals. However, the importance of life insurance cannot be overstated. It is a critical component of a comprehensive financial plan, offering peace of mind, financial security, and a means to protect your loved ones from unforeseen circumstances. In this blog, we will delve into the myriad reasons why choosing life insurance is a wise and necessary decision.

1. Financial Security for Loved Ones The primary purpose of life insurance is to provide financial security to your dependents in the event of your untimely demise. If you are the primary breadwinner in your family, your death could leave your loved ones in a precarious financial situation. Life insurance ensures that your family will have the necessary funds to cover daily living expenses, pay off debts, and maintain their standard of living.

2. Debt Repayment Many individuals have outstanding debts such as mortgages, car loans, and credit card balances. In the event of your death, these debts do not disappear. Instead, they become the responsibility of your estate, and ultimately, your family. Life insurance can cover these liabilities, preventing your loved ones from being burdened with debt during an already difficult time.

3. Income Replacement One of the most significant benefits of life insurance is its ability to replace lost income. This is particularly crucial for families that rely on a single income. The death benefit from a life insurance policy can act as a substitute for the lost income, ensuring that your family can continue to meet their financial obligations, such as paying for groceries, utilities, and education expenses.

4. Covering Final Expenses Funerals and associated expenses can be surprisingly costly, often running into thousands of dollars. Without life insurance, these costs can fall on your family, adding financial strain to their emotional burden. A life insurance policy can cover funeral costs, ensuring that your family does not have to worry about these expenses during their time of grief.

5. Building Cash Value Certain types of life insurance policies, such as whole life or universal life insurance, offer a cash value component that grows over time. This cash value can be borrowed against or withdrawn, providing a financial resource that can be used for various purposes, such as funding a child’s education, supplementing retirement income, or handling unexpected expenses.

6. Business Continuity For business owners, life insurance is essential for ensuring the continuity of the business in the event of their death. Life insurance can be used to fund a buy-sell agreement, providing the necessary funds for surviving business partners to buy out the deceased owner’s share. It can also cover business debts and provide a financial cushion to help the business transition during a difficult period.

7. Estate Planning Life insurance plays a crucial role in estate planning. It can provide liquidity to cover estate taxes and other expenses, ensuring that your heirs receive the full value of their inheritance. Without life insurance, your heirs might be forced to sell assets to cover these costs, potentially losing a significant portion of the estate’s value.

8. Peace of Mind Perhaps one of the most overlooked benefits of life insurance is the peace of mind it provides. Knowing that your loved ones will be financially secure in your absence can alleviate a significant source of stress and anxiety. This peace of mind allows you to focus on living your life to the fullest, confident that you have taken steps to protect your family’s future.

9. Charitable Contributions Life insurance can also be used as a means of making charitable contributions. By naming a charity as the beneficiary of your policy, you can leave a lasting legacy and support causes that are important to you. This can be a meaningful way to give back to your community and make a positive impact even after you are gone.

10. Affordability and Flexibility Contrary to popular belief, life insurance is often more affordable than many people realize. Term life insurance, in particular, offers substantial coverage at relatively low premiums, making it accessible for most individuals. Additionally, life insurance policies are highly customizable, allowing you to tailor the coverage amount and term length to fit your specific needs and budget.

Life itself is a journey full of uncertainty. Any given moment might bring on to you an ace—the natural disasters, medical emergencies, or basically life’s unplanned nature that can throw one off balance into financial instability and stress. This is where insurance comes to your aid as a safety net. The competition in insurance, in its varied forms, brings peace of mind to financial security—surety that one, families, and businesses hold a better position to deal with the uncertainties of life. This blog will elaborate on the essence of insurance in our lives by elaborating on the different types involved, the benefits derived, and why it has turned into a crucial requirement in the present times.

What is Insurance?

Insurance is a contract by which an individual or entity is provided with financial protection or reimbursement against losses by an insurance company. The company pools clients’ risk to make the premium affordable to the entity insured. In essence, it’s a form of risk mitigation that helps protect against unforeseen financial losses.

Types of Insurance

There are many types of insurance that protect against many forms of risk. Some are more common than others. Here are a few:

1. Health Insurance: This type of insurance reimburses or pays for medical treatments due to sickness or accidental injuries, hospitalization, surgical operations, consulting fees of doctors, cost of medicines, and the like.
2. Life Insurance: A financial payout is given upon the policyholder’s death. Here, one may also be assured that dependents are well off even in the event of an unfortunate demise.
3. Auto Insurance: This covers damage to your vehicle and bodily harm for the persons involved in a car accident. It can also guard against the occurrence of theft and vandalism.
4. Homeowners/Renters Insurance: It repairs damages to one’s home or rented property and the things inside the same. The basic coverage typically includes losses from intruder attacks, fire, and some natural disasters.
5. Disability Insurance: The policy replaces income if the holder is disabled and incapable of working.
6. Tavel Insurance: Cancellation of travel, loss of baggage, and health cover during travel.
7. Business Insurance: Against loss due to events like damaged property, liability claims, or business interruption.

Merits of Insurance

1. Financial Security: The greatest merit of purchasing insurance is financial security. It ensures that sudden expenses do not recoil upon the members of a family or an individual.
2. Peace of Mind: If you know that you have insurance, then you would be at peace. It will enable you to live your life and not constantly worry about the ‘what-ifs’.
3. Risk Management: Insurance is a very good risk management tool. Through the spreading out of the risk amongst many policyholders, insurance companies can make rather large payouts where necessary without placing too great a burden on any one policyholder.
4. Economic Stability: It is another essential function of insurance in the economy. It provides stability by encouraging investment and entrepreneurship. Potential losses, otherwise called risks, are covered through insurance to provide a safety net.
5. Compliance and Legal Requirements: There exist several requirements wherein insurance is legally necessary. For example, one cannot, in many places, use a motor vehicle without buying motor insurance. In many instances, businesses require some form of insurance to satisfy most regulations.
6. Investment and Savings: A portion of many insurance policies, such as whole-life insurance, has an investment component that yields cash value over time. It could prove to be a source of savings and investment for the policyholder.

Why Insurance is Indispensable

1. Health and Well-being: Medical emergencies can knock at the door at any point in life, and health care costs are only increasing. Health insurance makes sure that everybody can get required medical attention without fear regarding the money that has to be spent for the same.
2. Protecting Loved Ones: Life insurance is a must for even those with dependents. It ensures that in case of the policyholder’s death, his family shall not have to endure monetary hardships.
3. Source of Asset Protection: For many, their house or their vehicle is one of their most valued possessions. Insurance protects these valuables from damage, theft, and a host of other perils.
4. Business Nurture: In the case of businesspeople, insurance assumes the role of an unsparing friend who can help them safeguard their interests against a slew of lawsuits, property damage, and loss of income. It lends businesses the confidence to do business, since they are covered.
5. Travel Safety: This may include unexpected or unforeseeable events from medical emergencies to cancellation or loss of your trip or luggage while traveling, especially internationally. In such uncertainties, travel insurance will provide sure footing so that you’re never caught in a situation where you might end up in a lurch or are drained financially.

Real Life Examples

1. Natural Disasters: Imagine the scene after a hurricane or an earthquake. For people who are homeowners or renters but do not have such valorous insurance, this would mean prohibitively large sums to repair or replace their property. Those with insurance can expect the financial support they need to rebuild their lives.
2. Medical Emergencies: Sudden sickness or an accident may result in heavy bills, which are covered by health insurance, relieving the patient from financial debt by expenditure on treatment.
3. Automobile Accidents: In case one gets involved in an automobile accident, auto insurance is supposed to be able to pay for repairs, medical costs, and liability claims that will keep the policyholder out of financial ruin.
4. Sudden Death: The family will suddenly find themselves in financial straits in case of sudden death of the bread earner. Life insurance will step in to help the spouse and children from this by bearing some expenses for ordinary daily needs, paying outstanding debts, or continuing education.