CHANGES TO INSURANCE CLAIMS IN TEXAS

Insurance claim process might change:

There is the latest news that insurance claim process may change when a new law goes effect from 1st of Sept. 2017.

House Bill 1774 was passed by the Texas Legislature during the regular session and signed by Gov. Greg Abbott in May.

This law was brought against insurance companies who take a long time to process the payment for policyholders.

If a person claims insurance amount before this law goes into effect and insurance company does not pay on time then the insurance company will pay 18% as a penalty in addition to claim amount.

After getting effective of this law, Under HB 1774, the penalty amount will be reduced to 10 % from 18 %. It means this is going to be a big relief for insurance companies.

Here is what you need to do if you have damage:

– Turn in your claim as soon as possible.

– Keep copies of receipts you submit to your insurance company

– Watch out for contractors and other people asking to do repairs. Storms bring out unscrupulous vendors. Keep a claims notebook that is names of phone numbers, adjusters, contractors, future damages, everything associated with the damage and repairs.

Types of Insurance

There are many insurances for an individual but these are common and important for our life:

  • Health Insurance
  • Motor Insurance
  • Home Insurance
  • Travel Insurance
  • Rural Insurance
  • Marine(cargo) Insurance
  • Commercial Insurance

Let’s Understand One by One:

Health Insurance

Health insurance is very much important for every individual because health care costs are increasing day by day. Modern life style & stress at work affect the health and can result in a critical illness or medical emergency.

Such situation can surely affect one financially due to the massive outlay of money on medical expenditure. Health Insurance policy really helps in optimizing our financial risks. This gives peace of mind in times of crisis and ensures own health and that of one’s family.

Health insurance covers the medical and surgical expenses of the insured individual because of hospitalization from an illness. Additional riders enhance the benefits and scope of the cover.

Health insurance often includes the cashless facility at most of the hospitals, pre and post hospitalization expenses, ambulance charges, daily cash allowance etc.

Health insurance policies include:

  • Individual Policy
  • Family Floater Policy
  • Surgery Cover
  • Comprehensive Health Insurance

Motor Insurance

In today’s life, we are very much dependent on our own vehicle while traveling to any place. This saves our time as well as we get complete time to have fun with family & friends.

While doing that we should keep one thing in mind is motor insurance is very much important nowadays. This covers all damages and liability to a vehicle against various on-road and off-road emergencies. A comprehensive policy even secures against damage caused by natural and man-made calamities, including acts of terrorism.

Motor insurance is mandatory in India as per the Motor Vehicles Act, 1988 and needs to be renewed every year. Driving a motor vehicle without insurance in a public place is a punishable offense.

Motor insurance categories include:

  • Two Wheeler Insurance
  • commercial Vehicle Insurance
  • Car Insurance

Some attractive benefits of motor insurance include roadside assistance, cashless servicing at a nation-wide network of workshops and garages, personal accident cover, towing assistance.

Home Insurance

I believe Home is a most important part of any individual and also the big financial investment for one.

Home insurance covers the house and content in it as per insurance policy. It secures the home against natural calamities and man-made disasters and threats. Home insurance provides protection against risks and damages from fire, burglary, theft, flood, earthquakes etc. covering the physical asset (building structure) and valuables (contents) in it.

It helps in saving your money while any threats to your house.

 

Travel Insurance

Travel insurance is also one of the most important things in our life. This helps us in covering loss of baggage, loss of passport, delay in flight, medical emergency etc. Such eventualities will surely take the fun away from traveling.

Travel insurance policies include:

  • Student Travel Insurance
  • Individual Travel Policy
  • Family Travel Policy
  • Senior Citizens Travel Policy

In addition to the above, some insurance companies offer special plans like a corporate travel policy or comprehensive policy for travel to special destinations like Asia and/or Europe.

Rural Insurance

Rural insurance is basically for rural business and agriculture. IRDA has stipulated annual targets for insurers to provide insurance to the rural and social sector.

As per these regulations, insurers are required to meet year-wise targets:

  • In percentage terms of policies underwritten and percentage of total gross premium income by general insurers under rural obligation
  • In terms of the number of lives under social obligation

Marine (Cargo) Insurance

Cargo insurance is mainly for import export business or while shifting your goods from one to another place. Movement of goods is very risky while moving from one to another place.  This insurance covers substantial losses for both the importers as well as the exporters.

Marine cargo insurance covers goods, freight, cargo and other interests against loss or damage during transit by rail, road, sea and/or air. Maine cargo ensures that your shipment is secure till it reaches to you and if something happens to it like, damaged, stolen, defective ETC.

The party responsible for ensuring the goods is determined by the sales contract. Marine cargo insurance policy can be taken by buyers, sellers, import/export merchants, buying agents, contractors, banks etc. The policy usually covers the cargo, but can also be extended to cover the interest of a third party post transfer of ownership as determined by terms of sale.

 Types of policies can be taken:

  • Specific Voyage Policy
  • Open Cover
  • Open Policy
  • Annual Policy

 

The hull of a ship or boat can be insured under marine hull insurance.

Commercial Insurance

Commercial Insurance is basically for all sectors of the Industry arising out of business insurance. Insurance solutions for automotive, aviation, construction, chemicals, foods and beverages, manufacturing, oil and gas, pharmaceuticals, power, technology, telecom, textiles, transport, and logistics sectors. It covers small and medium scale enterprises, large corporations as well as multinational companies.

Types of commercial insurance:

  • Engineering Insurance
  • Property Insurance
  • Marine Insurance
  • Liability Insurance
  • Financial Lines Insurance
  • International Insurance Solutions
  • Energy Insurance
  • Employee Benefits Insurance

Other Types of General Insurance:

  • Shopkeeper
  • Property Insurance
  • Personal Accident
  • Householder
  • Corporate Insurance
  • Commercial Insurance
  • Crop Insurance
  • Fire Insurance

To be continued with other policies……..