Nothing Much in Budget 2012 for Insurance Industry

The insurance sector has had a neutral reaction to the 2012 budget. Most experts believe the hike in service tax will not affect the sector. Industry experts said that while in the past it was a common practice for companies to pay the service tax charges incurred by their agents. The recent trend was towards slowly passing these charges on to the customers and hence the rise in service tax does not pose a major threat to revenues.

While the insurance industry's main demand from this budget was for the Foreign Direct Investment cap in Insurance to be raised from 26 percent to 49 percent, experts believe that this demand will take longer. Although the finance minister has announced an amendment to the laws, experts believe that this announcement is a routine one. The Insurance Laws (Amendment) Bill will allow an increase of FDI in Indian insurance companies' up to 49 percent from the current ceiling of 26 percent. The bill also proposes to do away with the provision of Indian promoters of insurance companies having to reduce their stakes to 26 percent over a period of time.

The proposal to tax customers on policy maturity has also put the life insurance industry on its guard. Industry insiders believe that this will lead to a loss of business and make insurance unattractive to investors.

The budget has been received with no cheer by the insurance industry as top executives believe that nothing much has changed for them post the budget. The word "status-quo" is the most popular way to describe the reaction of the Indian insurance industry to the Budget 2012 proposals.

When Do You Need GAP Insurance?

Imagine you are out on the road with your new car and suddenly a rash driver smashes his car into yours. All what you are left behind would be a bare escaped survival for you if you are lucky enough but a fully damaged car of yours from everywhere. So it is quite evident that accidents on roads are not always due to our own mistakes but can be the mistakes of the other people that's why it is good in fact essential to get an Insurance coverage immediately after buying the car. Without an Insurance coverage, it will be up on you completely to bear all the costs in case of the occurrence of any accident. When you purchase a car, rightly after you drive that car of the lot, your car will lose its value and price significantly and value reduction is as much as 20% to 30%.

Sometimes, these accidents are of very cruel nature that they even damage the car beyond the level of repair. That's the point where this Insurance coverage becomes null as they can't protect the total expense of car in these severe cases which occurs once in a blue moon. In case you meet any accident, the total what you will get would be equal to the currently existing market price of the car which would definitely be 25 or 30% lesser than the cost price, incurred earlier.

Significance of GAP Insurance

Consider the example; Let us suppose that you have bought a car worth $31,000 and you have driven it of the lot. Now your actual lease payments are off course based on the cost you incurred while buying but the value of the car is nearly 30% less than the value it had when bought. When the Insurance company would pay you, they will definitely pay you $ 22000 (approximate figure showing 30% reduction) where as your lease payments would still be based over that initial $31000 plus interest.

GAP Insurance plays important role if this kind of situations arises as they would serve you at the time, when your car would be completely wrecked up by covering the whole money, you owe to the company who has provided you loan. This coverage of car Insurance is known as Guaranteed Auto Protection. This is actually the coverage between the cost you indebted on the car and the price of your car. With the help of this guaranteed auto protection, you would have a crystal clear record with your existing lender of the vehicle as this additional coverage will pay the outstanding balance for you.

Comprehensive Travel Insurance

Comprehensive travel insurance these days can protect you and your family whenever you are going out of town. It might be for a long hiking trip during the weekend or a holiday in another country for two weeks. Coverage is intended to get you medical attention in the event of an injury, illness, delay or other unforeseen expenses. You may find a short term/long term policy right online or by a local agent for coverage you can count on.

Why can it be a wise choice to purchase coverage for the next time you travel? Well, since there can be anything from delays, lost luggage, an accident or medical emergency it may pay to be prepared. Not only can this get you the medical attention you need, but won't incur unforeseen expenses while you're traveling.

What does cheap comprehensive travel insurance cover for those that are traveling? Well, it basically covers you in the event you are in need of medical care, experience delays, lose luggage and other unforeseen circumstances. It might be just to ensure you're trip goes well while hiking in the mountains or just for a relaxing time by the pool at a resort.

To get an affordable bargain shopping around and comparing rates is key. This way before you leave you know what it may cost you for the time you're traveling and for any destination you're going to. No matter if it's a short trip to hike in Europe or a relaxing time in the mountains.