India, The Tourist’s Paradise

India is a land that offers a mind-boggling diversity of natural beauty, flora and fauna, a rich, vibrant and proud history of cultural heritage and is famous for its hospitality to people who are fascinated by the numerous stories enchanting stories about India and come To visit the country. And the country does not disappoint them. The majestic snowcapped mountains, the lush rolling valleys, the gushing rivers, green fields, gorgeous colorful flowers and luscious fruits, the arid deserts, the plateaus, the hills, the tea gardens on the mountain slopes, the orchards, the waterfalls, the list Simply goes on and on. Every year, thousands of tourists from different parts of the world flock to this country for visiting different places, to enjoy different festivals, to take part in adventure tourism, pilgrimages etc. Tourism is one of the largest service industries in India and plays a major role in providing employment to the population and the country's economy. The tourism ministry in the country caters to the various demands and needs of the tourists. The India Tourism Development Corporation is a Government of India undertaking dedicated to taking care of travel needs like hotels, flights, trains, car rentals etc.

If you are coming to India the first time, it is advised that you read about the various destinations you are planning to visit and make full arrangements for accommodations. There are reputed hotel chains which have luxury hotels in different tourist destinations of the country. You can make your bookings online or over the telephone using the useful contact information available in their websites. Check out these sites and know more about the facilities, the tour packages, the tariffs etc available here.

If you are traveling on a tight budget, then there are numerous hotels with affordable rates but with high living standards. Before booking you must ensure that the neighboring area is safe, proper transport facilities are available and you can communicate with the outside world too. Book your hotels, cars etc online and enjoy a reliably hassle-free vacation.

The tourism board advises tourists to contact only fully authorized, reputed and trustworthy tour guides and tour operators to ensure a safe travel. These guides should at least have photo identity cards issued by the Ministry of Tourism. Arrange for proper transportations that will take you to different parts of the country. If you want to visit the more remote and somewhat inhospitable areas like the mountains of Ladakh, or the arid deserts of Rajasthan or forest safaris, then you must take proper precautions against potential dangers, diseases etc.

To arrange for flights, search online for cheap flights to India if the budget is limited. There are many websites which list information about flight ticket prices from different airlines, compare the prices and provide you with the best results. You can also opt for affordable holiday packages in India along with affordable accommodations and transportations. Search multiple travel portals to obtain the best options and cheap tickets to India. Just type in your destination and the sites will return a list of airline ticket prices for you to choose from.

Welcome to India and enjoy a vacation experience of a lifetime!

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BCIN? Difference Between Designer, Architect and Engineer According to the Ontario Building Code

As I meet with new clients and friends every day, I commonly hear the same questions “What is a BCIN?” “When is a BCIN required?” etc. Here is some clarification to the public on some important issues about choosing a company to provide you with plans. Please note that this information applies only in the Province of Ontario.

What is a BCIN?

A BCIN stands for ‘Building Code Identification Number’. This number is assigned by the Ministry of Municipal Affairs & Housing, to successful applicants who have completed the requirements outlined in Division C Section 3.2 of the Ontario Building Code. There are two distinct types of BCIN number, individuals & firms. Individuals are people who have completed the exams and have received a BCIN from the MAH; however, they do NOT carry any insurance. As a result this limits the types of projects that the person can do. Firm BCIN’s on the other hand MUST carry valid liability insurance, and depending on the amount of designs fees that a firm charges in a year will dictate the required amount of insurance coverage they must have. Insurance is expensive but it is there to protect you so avoid working with companies who do not have it. For most people, a home is your single largest asset; do you really want to get plans from someone without insurance?

How do I know if I am choosing a registered company?

The Ministry of Municipal Affairs & Housing maintains a database of all registered BCIN holders. The registry is available through a system called QUARTS. Once on the Public Registry, this system allows you to search by the individual’s name, the company’s name or the BCIN #. Once you have found a business or individual, it will bring you to a page with details on the company. It lists the mailing address of the business & contact details. At the bottom it should also show the Registration as ‘Registered Designer’ and the Status as ‘Current’. If it shows up as ‘lapsed or expired’ then this means that they either do not have valid insurance for that year, or that they are late in filing their paperwork.

Do I need an architect or engineer for my project?

Probably not! There have been massive changes to the system in the last few years, opening the doorway for a new title; designers. Architects & Engineers are NOT required for any project less than 600m² (6,458 sq.ft.) and less than 4 storeys. For most residential and small commercial projects, you do NOT need an architect or an engineer. However, and this is important, if the project involves severe structural modifications, an engineer may be requested by the municipality to review the plans. On this note, there is a BCIN exam which will supersede this requirement! If your design company is a registered company in the Category of ‘Building Structural’ then they can complete the plans.

When do I need a BCIN ‘stamp’ for my project?

Depending on the type of project you may or may not need a BCIN number on your drawings. You do not need a BCIN number if the project relates to the construction of a house that is owned by the person who produces the drawings or if it relates to a farm building less than 3 storeys. There are a few other instances, but these are probably the two most important. Often I hear homeowners ask for just the drawings to submit for permit (no stamp). This is allowed, but as the homeowner you must be knowledgeable of the drawings (after all, you are claiming that you have produced them). It is okay to admit to the municipality that you hired someone to draw them for you, but at the end of the day you will be responsible to ensure that the drawings meet code. If the city has approved your building permit based on the drawings and you proceed to build your project to the drawings only to later find out that there is a problem, you will be on the hook to make any necessary adjustments to pass inspection. Most companies will charge from $200 to $2000 for the use of their BCIN number on the drawings. This may seem expensive but it is the security blanket that will keep you safe and ensure that your drawings meet code! I also personally apply for the permits and handle all the paperwork on my client’s behalf when I charge this fee; which most people prefer as nobody likes to stand in line for half a day to submit paperwork to the City.

I hope that this will help to clarify any questions you may have had regarding the requirements of having someone produce building permits for your project. I look forward to working with you, and if you have any questions then please don’t hesitate to ask!

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How to Do a Sales Pitch in Commercial Real Estate

In commercial real estate, you will undertake a variety of presentations, in a variety of circumstances. Most of them are business-like in nature, focusing on the needs of the tenant, the property buyer, or the property seller.

Get to the core issues

Each of these groups has unique property requirements and points of focus. It is their needs which must be identified and clearly addressed in the sales pitch or presentation. Many successful commercial real estate agents will have a preliminary meeting with the client or customer so that they can identify key issues and concerns. This allows the commercial agent to return to the client or customer in a few days with a well structured proposal that addresses the needs of the customer or client.

It’s all about THEM, not YOU!

When you design an investment or commercial property proposal for presentation, the document should be 90% regards the property and the client. Frequently you see this rule disregarded or broken with the proposal document being largely regards the agency and the personnel.

Rarely is the property transaction a simple matter of the property rental, the property price, or the physical elements of the property. In most situations, it is the combination of these things which must satisfy a fundamental equation of need that the customer or client has. In getting them to this fundamental need, you will identify an element of pain that the customer or client is experiencing. This is what you focus on.

They are Experienced

It is interesting to note that many clients and customers in commercial real estate are reasonably comfortable in circumstances of business negotiation. This means they may not tell you the total big picture or all the elements of a transaction until they are ready. Conversation and connection in the presentation process should be biased towards the client or customer using well selected questions which allow the agent to interpret the body language coming from the client’s response.

When you believe you have identified the element of clients pain related to the property transaction, you start to magnify the problem in terms of today’s market, then offering stable and logical solutions that your real estate agency business can provide to the client or customer. Invariably, the commercial real estate transaction in today’s market centres on financial matters such as:

  • High vacancy factors
  • Other property choices and chances are available
  • Underperforming leases
  • Unstable cash flow
  • Unstable tenancy mix
  • Tenanted conflict
  • Escalating building operating costs
  • A shift in demographics which exposes the property to a unstable future
  • Mortgage payment pressures
  • Age of the asset
  • Needs for refurbishment or extension
  • Competition properties attracting tenants away from the subject property

This type of information and interpretation requires your intimate knowledge of the local region. This is by both property type and by location. This is the higher value that you bring to the customer or client. Being able to distinctly define local market awareness is a major advantage in any commercial real estate presentation or sales pitch. You must be seen as the best knowledgeable solution to the problem.

From Experience

After many years working exclusively in the commercial real estate industry, I found that my unique skill was in market knowledge and the display of that in any formal presentation to the client. Being able to talk about market trends and financial performance in a solid and sound way will help the client understand that they need your services. Coupling that with your extensive and relevant database of enquiry clearly shows the client that they need you.

A fantastic commercial real estate presentation is a function and balance of lots of things. Things like:

  1. A well established pre-planning process is a strategic advantage for every commercial real estate presentation. Strategy is everything in commercial real estate. Every property presentation requires planning.
  2. Making sure you are asking the right questions of the client or prospect. Plan your questions relative to the subject property so that you help the client think about opportunity and changes that are possible.
  3. Using your market knowledge and giving good answers. Have a variety of market facts and trends available to call on. Feed them into your presentation; facts are always useful. They can also be used as a channel to direct the discussion when the client is forcing you to justify your approach or your experience. Confidence and control must be the basic rule of your property presentation. When the client takes control of the presentation you have lost.
  4. Using your experience in the marketplace so that you are telling relevant stories of success in similar properties. Stories of other properties will always interest of the client.
  5. Making sure your personal presentation is optimised for the connection in the presentation. It can be that you are using a combination of the proposal document, the marketing document, and computer slide presentation, samples of your database, photographs of the subject property projected on to slides, and photographs of comparable properties projected on to slides.
  6. Choosing the placement of people at the table or strategically positioning them in the room is always important. Much has been written about where you should sit relative to the client. The basic rule is adjacent to the client rather than across an area of barrier such as a table. Being within arm’s reach allows you to pass documentation to the client at the appropriate time. Documentation should not be provided to the client until you are ready for them to review it; otherwise it is a distraction of their attention.
  7. Make sure that your proposal is simple and yet well directed with a clearly defined outcomes of sale or lease. Many proposal documents in commercial real estate are much too wordy so the main messages are lost and not clearly defined. The best proposals are less wordy and more illustrative. The best balance of a commercial real estate proposal is a mixture of 25% words, 25% pictures, 25% graphs, and 25% white space. This becomes a document which is clearly read and understood.
  8. Combine good illustrations and photographs of the subject property into the proposal or presentation so that any lengthy descriptions or paragraphs are broken up. This will keep interest of the client in your documentation.
  9. Make sure that your marketing package is value for money, and yet reaching the target market that the property serves or needs to attract. All too often, we see examples of generic marketing by the commercial real estate agent to the broader and less specific marketplace. Showing the client that you clearly know and will attract best the target market will always help your conversion to a potential listing. Be very specific about the target market and how you will reach it.
  10. Ensure that your commission costs are fair and reasonable for the location. In most circumstances, discounting your commission should not be an option as it will make you poor and remove or detract from your enthusiasm for the sale or lease. ‘Cheap’ means ‘cheap and without focus’ and the client needs to know this. The property deserves better. You are not cheap because you are the best and you do a great job. A fair commission is always paid for a positive property outcome.
  11. Always provide testimonials that are relevant to the property transaction. When you combine relevant history and details of happy customers into your presentation you will make the client feel more comfortable.
  12. Always display clear and sound market knowledge that impresses the client relative to their property. This will include extensive awareness of comparable properties that compete with the subject property. You should be able to talk solidly about property prices, comparable rents, rental growth, returns on investment, changes to the future demographics of the area, and properties in the immediate precinct of relevance. In many cases, it pays to walk around the local area just prior to any property presentation so that you bring immediate and clear pictures of the precinct to the discussion. Many times this has been of significant advantage in my presentation processes. Talking about neighbouring properties localises the client and their thought processes.
  13. Come up with a variety of ways to serve the client. Innovation and relevance will always impress. In today’s market, this is relatively easy considering the marketing opportunities and tools provided by the internet & technology. Be proactive in your property promotion processes so that the listing for sale or lease stands uniquely different in its marketing campaign from the others in the area. This does not have to be expensive to the client or to your office, given that the internet and electronic technology is historically cost effective. In today’s market, the traditional methods of publicising the property in the property pages of the local paper, is becoming much less important in the marketing campaign. Most commercial property buyers and tenants research the market from the Internet first and foremost.
  14. Almost every property agency will say that they have excellent communication and connection skills to support the property promotion process. From experience, this is largely incorrect and typically the average commercial salesperson or leasing person will exercise ordinary communication channels with the client. Put yourself in the shoes of the client. They expect and deserve frequent updates on the promotion of the property even when nothing is happening or when the adverts are producing little response. When a property campaign is not producing the results, it is important that you act or adjust with alternative recommendations and strategic changes to the promotional campaign for the client to consider. Rarely would you get to the property campaign correct in the first week. It is in this time that you must consider fine tuning the promotion process so that the target market is being reached in a timely and effective way. This means that every property enquiry generated from your promotions must be tabulated so that you understand what channels of marketing work most effectively with the property in question.
  15. When addressing the client or the client group in a formal property presentation, the answers and information you give must be delivered well and provide relevant solid property knowledge, in a practiced and professional delivery. Any sales or presentation tools relative to the property must be relevant and you should know how to use them with exceptional skill. Fumbling and faking information is not tolerated by the client.

So there you have it. These are some of the key skills to use in a commercial real estate presentation. Whilst many real estate agents think that they are the best alternative in the market to promote sell and rent commercial property, the reality is they do not get the message across when it matters most in front of the client.

To be the best commercial real estate agent in your area, you must show that you are just so, and you do this in the first 10 minutes of the time that your presentation takes. The client will have formed an opinion by then.

Be prepared to walk away from any demands for discounting that the client or customer demands. In this market they need a great commercial real estate agent providing a great job; discounting is not an option. Show pride in your services and walk away when the client demands discount in marketing or lower commissions.

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Insurable and Non-Insulative Risks

When we talk of insurance, we are referring to risks in all forms. Here, having for an insurance policy is just a way of sharing our risks with other people with similar risks.
However, while some risks can be insured (ie insurable risks), some can not be insured according to their nature (ie non-insurable risks).

Insurable Risks

Insufficient risks are the type of risks in which the insurer makes provision for or insures against because it is possible to collect, calculate and estimate the likely future losses. Insurable risks have previous statistics which are used as a basis for estimating the premium. It holds out the prospect of loss but not gain. The risks can be forecast and measured eg motor insurance, marine insurance, life insurance etc.

This type of risk is the one in which the chance of occurrence can be reduced, from the available information on the frequency of similar past occurrence. Examples of what an insurable risk is as explained:

Example 1: The probability (or chance) that a certain vehicle will be involved in an accident in year 2011 (out of the total vehicle insured that year 2011) can be determined from the number of vehicles that were involved in accidents in each of some previous Years (out of the total vehicle insured years).

Example2: The probability (or chance) that a man (or woman) of a certain age will die in the ensuing year can be estimated by the fraction of people of that age that died in each of some previous years.

Non-insurable Risks

Non-insurable risks are type of risks which the insurer is not ready to insure against simply because the likely future losses can not be estimated and calculated. It holds the prospect of gain as well as loss. The risk can not be forecast and measured.

Example1: The chance that the demand for a commodity will fall next year due to a change in consumers' taste will be difficult to estimate as previous statistics needed for it may not be available.

Example 2: The chance that a present production technique will become obsolescent or out-of-date by next year as a result of technological advancement.

Other examples of non-insurable risks are:

1. Acts of God: All risks involving natural disasters referred to as acts of God such as

A. Earthquake

B. War

C. Flood

It should be noted that any building, property or life insured but lost during an occurrence of any act of God (listed above) can not be compensated by an insurer. Also, this non-insurability is being extended to those in connection with radioactive contamination.

2. Gambling: You can not insure your chances of losing a gambling game.

3. Loss of profit through competition: You can not insure your chances of winning or losing in a competition.

4. Launching of new product: A manufacturer launching a new product can not insure the chances of acceptance of the new product since it has not been market-tested.

5. Loss incurred as a result of bad / inefficient management: The ability to successfully manage an organization depends on many factors and the profit / loss depends on the judicious utilization of these factors, one of which is efficient management capability. The expected loss in an organization as a result of inefficiency can not be insured.

6. Poor location of a business: A person situating a business in a poor location must know that the probability of its success is slim. Insuring such business is a sure way of duping an insurer.

7. Loss of profit as a result of fall in demand: The demand for any product varies with time and other factors. An insurer will never insure based on expected loss due to decrease in demand.

8. Speculation: This is the engagement in a venture offering the chance of considerable gain but the possibility of loss. A typical example is the action or practice of investing in stocks, property, etc., in the hope of profit from a rise or fall in market value but with the possibility of a loss. This can not be insured because it is considered as a non-insurable risk.

9. Opening of a new shop / office: The opening of a new shop is considered a non-insurable risk. You do not know what to expect in the operation of the new shop; It is ellogical for an insurer to accept in insuring a new shop for you.

10. Change in fashion: Fashion is a trend which can not be predicted. Any expected change in fashion can not be insured. A fashion house can not be insured because the components of the fashion house may become outdated at any point in time.

11. Motoring offsets: You can not obtain an insurance policy against expected fines for offsigned compliance while on wheels.

However, it should be noted that there is no clear distinction between insurable and non-insurable risks. Theoretically, an insurance company should be ready to insure anything if a sufficient high premium would be paid. Neverheless, the distinction is useful for practical purposes.

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Five Reasons Why You Should Work For the Travel and Tourism Industry

The travel and tourism industry is a massive global industry that caters for the needs of those who have to travel away from home in terms of providing facilities and services like hotel accommodation, air and road transport. Close to a billion people are involved in international travel in this industry which generates billions of dollars every year. Sometimes making a decision on which industry to work for can be quite hard given the many options available today across the globe. Below are five reasons why you should consider working in the travel and tourism industry.

1. There are lots of work opportunities. The travel and tourism industry has a lot of opportunities employment for those seeking employment. You can work in the aviation sector, road, rail and water transport, accommodation providers like hotels and lodges, leisure and business travel agents and tour guides. It is now also possible to work from home thanks to technology which is convenient for some people like mums who have a child or children and do not want to be far away from home.

2. The perks are good. The travel industry provides rewards that not many other industries do. For example those working in the airline industry can get free tickets for themselves and immediate family members to fly to any destination that the airline they work for flies to. Those who work as travel agents can get reduced travel fares and even pay reduced accommodation rates. Then there are the familiarization trips that those who work in the industry have the opportunity to take. Just think of an all expenses paid trip to places like the Seychelles, France, the Kenyan coast of Mombasa to name just a few.

3. It is a growing industry. In spite of the recent downturn because of the threat of terrorism and the world recession, travel industry players are optimistic about its growth. In good times and bad times people always get the urge to move. And with more and more places becoming accessible because of air travel and with both air travel and hotel rates coming down in order to accommodate peoples pocket there is reason to believe that the travel industry will continue to grow and more markets will be reached which is good news for service providers. Furthermore technology like the internet has made it possible to access markets anywhere in the world, at any time of the day.

4. It is never boring. Working in the industry almost means that you will meet new people from time to time. This is especially true for those who work as frontline staff in travel agencies, airline offices or hotels. Those who work in the airline industry as flight attendants have the opportunity to travel to different parts of the world, visit different towns and cities and see and experience different cultures. That can never be a boring job.

5. You do not need years of studying to work in the industry. You may love a certain profession but because of the years of studying involved in learning it you may be discouraged from joining it. Not so with the travel and tourism industry. Three to six months may be enough depending on what qualification you are studying for to get you started working for this exciting industry. Some people because of their love for the work and experience gained in certain areas of the industry have even started working and studied for the paper qualifications later.

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History of Travel & Tourism

2000 years Before Christ, in India and Mesopotamia

Travel for trade was an important feature since the beginning of civilisation. The port at Lothal was an important centre of trade between the Indus valley civilisation and the Sumerian civilisation.

600 BC and thereafter

The earliest form of leisure tourism can be traced as far back as the Babylonian and Egyptian empires. A museum of historic antiquities was open to the public in Babylon. The Egyptians held many religious festivals that attracted the devout and many people who thronged to cities to see famous works of arts and buildings.

In India, as elsewhere, kings travelled for empire building. The Brahmins and the common people travelled for religious purposes. Thousands of Brahmins and the common folk thronged Sarnath and Sravasti to be greeted by the inscrutable smile of the Enlightened One- the Buddha.

500 BC, the Greek civilisation

The Greek tourists travelled to sites of healing gods. The Greeks also enjoyed their religious festivals that increasingly became a pursuit of pleasure, and in particular, sport. Athens had become an important site for travellers visiting the major sights such as the Parthenon. Inns were established in large towns and seaports to provide for travellers’ needs. Courtesans were the principal entertainment offered.

 

This era also saw the birth of travel writing. Herodotus was the worlds’ first travel writer. Guidebooks also made their appearance in the fourth century covering destinations such as Athens, Sparta and Troy. Advertisements in the way of signs directing people to inns are also known in this period.

The Roman Empire

With no foreign borders between England and Syria, and with safe seas from piracy due to Roman patrols, the conditions favouring travel had arrived. First class roads coupled with staging inns (precursors of modern motels) promoted the growth of travel. Romans travelled to Sicily, Greece, Rhodes, Troy and Egypt. From 300 AD travel to the Holy Land also became very popular. The Romans introduced their guidebooks (itineraria), listing hotels with symbols to identify quality.

Second homes were built by the rich near Rome, occupied primarily during springtime social season. The most fashionable resorts were found around Bay of Naples. Naples attracted the retired and the intellectuals, Cumae attracted the fashionable while Baiae attracted the down market tourist, becoming noted for its rowdiness, drunkenness and all- night singing.

Travel and Tourism were to never attain a similar status until the modern times.

In the Middle Ages

Travel became difficult and dangerous as people travelled for business or for a sense of obligation and duty.

Adventurers sought fame and fortune through travel. The Europeans tried to discover a sea route to India for trade purposes and in this fashion discovered America and explored parts of Africa. Strolling players and minstrels made their living by performing as they travelled. Missionaries, saints, etc. travelled to spread the sacred word.

Leisure travel in India was introduced by the Mughals. The Mughal kings built luxurious palaces and enchanting gardens at places of natural and scenic beauty (for example Jehangir travelled to Kashmir drawn by its beauty.

Travel for empire building and pilgrimage was a regular feature.

The Grand Tour

From the early seventeenth century, a new form of tourism was developed as a direct outcome of the Renaissance. Under the reign of Elizabeth 1, young men seeking positions at court were encouraged to travel to continent to finish their education. Later, it became customary for education of gentleman to be completed by a ‘Grand Tour’ accompanied by a tutor and lasting for three or more years. While ostensibly educational, the pleasure seeking men travelled to enjoy life and culture of Paris, Venice or Florence. By the end of eighteenth century, the custom had become institutionalised in the gentry. Gradually pleasure travel displaced educational travel. The advent of Napoleonic wars inhibited travel for around 30 years and led to the decline of the custom of the Grand Tour.

The development of the spas

The spas grew in popularity in the seventeenth century in Britain and a little later in the European Continent as awareness about the therapeutic qualities of mineral water increased. Taking the cure in the spa rapidly acquired the nature of a status symbol. The resorts changed in character as pleasure became the motivation of visits. They became an important centre of social life for the high society.

In the nineteenth century they were gradually replaced by the seaside resort.

The sun, sand and sea resorts

The sea water became associated with health benefits. The earliest visitors therefore drank it and did not bathe in it. By the early eighteenth century, small fishing resorts sprung up in England for visitors who drank and immersed themselves in sea water. With the overcrowding of inland spas, the new sea side resorts grew in popularity. The introduction of steamboat services in 19th century introduced more resorts in the circuit. The seaside resort gradually became a social meeting point

 Role of the industrial revolution in promoting travel in the west

 The rapid urbanisation due to industrialisation led to mass immigration in cities. These people were lured into travel to escape their environment to places of natural beauty, often to the countryside they had come from change of routine from a physically and psychologically stressful jobs to a leisurely pace in countryside.

Highlights of travel in the nineteenth century 

·        Advent of railway initially catalysed business travel and later leisure travel. Gradually special trains were chartered to only take leisure travel to their destinations.

·        Package tours organised by entrepreneurs such as Thomas Cook.

·        The European countries indulged in a lot of business travel often to their colonies to buy raw material and sell finished goods.

·        The invention of photography acted as a status-enhancing tool and promoted overseas travel.

·        The formation of first hotel chains; pioneered by the railway companies who established great railway terminus hotels.

·        Seaside resorts began to develop different images as for day-trippers, elite, for gambling.

·        Other types of destinations-ski resorts, hill stations, mountaineering spots etc.

·        The technological development in steamships promoted travel between North America and Europe.

·        The Suez Canal opened direct sea routes to India and the Far East.

·        The cult of the guidebook followed the development of photography.

 

 

Tourism in the Twentieth Century

 

The First World War gave first hand experience of countries and aroused a sense of curiosity about international travel among less well off sector for the first time. The large scale of migration to the US meant a lot of travel across the Atlantic. Private motoring began to encourage domestic travel in Europe and the west.  The sea side resort became annual family holiday destination in Britain and increased in popularity in other countries of the west. Hotels proliferated in these destinations.

The birth of air travel and after

The wars increased interest in international travel. This interest was given the shape of mass tourism by the aviation industry. The surplus of aircraft and growth of private airlines aided the expansion of air travel. The aircraft had become comfortable, faster and steadily cheaper for overseas travel. With the introduction of Boeing 707 jet in 1958, the age of air travel for the masses had arrived. The beginning of chartered flights boosted the package tour market and led to the establishment of organised mass tourism. The Boeing 747, a 400 seat craft, brought the cost of travel down sharply. The seaside resorts in the Mediterranean, North Africa and the Caribbean were the initial hot spots of mass tourism.

A corresponding growth in hotel industry led to the establishment of world-wide chains. Tourism also began to diversify as people began to flock alternative destinations in the 70s. Nepal and India received a throng of tourists lured by Hare Krishna movement and transcendental meditation. The beginning of individual travel in a significant volume only occurred in the 80s. Air travel also led to a continuous growth in business travel especially with the emergence of the MNCs.

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New York Life Insurance Company Career – New Personal Financial Representatives Doomed?

New York Life Insurance Company is large and successful. If you think life insurance professionals are easy, think again. If you think personal financial representatives are entry level careers, you are doomed. Want the true facts about life insurance careers and personal financial representatives? Read this article.

I remember that years ago 15% of the women entering life insurance careers were women. Today with some career life insurance companies like New York Life Insurance Company that figure is now approaching close to 50%. Moreover, in a business already flooded with far too many male and female life insurance agents, their recruiting figures are up. This is a marketing scheme. Change the name to possible applicants from life insurance agents to financial representatives and suddenly an image of prestige and easy money appears. However, ask yourself why the insurer's name is New York Life Insurance Company and not New York Financial Company. It is just a name game.

FACTUAL INFORMATION Recruiters of insurance agents or so called personal financial representatives have severely been able to increase their retention rate during the first year and a half of the new recruit's career. 10 years ago, 86% of newcomers left life insurance selling during their first 18 months, now that figure is 85% leaving, 15% remaining. After four full years of gaining experience, only 7% remain, and gender is not a factor.

Why does a highly responsive company like New York Life Insurance Company hire over 3,500 reps in 2008? Their figures show appointing around 3,200 in 2007, and expecting 2009 to produce 3,500 new financial representations to train. To me that adds up to 10,200 inexperienced reps in 3 years. Does anyone logically look at the numbers? This financially solid company founded in 1845 has a total agency force numbering slightly over 11,500. 90% of these are certainly not new financial representatives. The common interpretation of new hires retaining a lasting career is False . My analytical studies of New York Life Insurance Agents indicate slightly elevated retention than others. A similar insurance provider loses at least 70% of their first year agents.

New York Life Insurance Company still has poor retention rates. However, during the past 10 years they have implemented a strategy that few of their competitors have not been as successful at imitating. That strategic method means recruiting agents, "financial representives" with a keen emphasis on a wide diversity of cultural backgrounds. This is a rapidly expanding area underserved by agents possessing the same nationality and ability to speak the language. This strategy involves personal representation into Chinese, Korean, Vietnamese, India, Asian along with Hispanic and African-American and other cultural residents.

Even though New York Life Insurance Company enrolls excessive numbers of agents, to result with the skilled few, this is the same numbers game practiced by competitors. Actually, it is a profitable tradition for the insurance provider, as departing agents sacrifice 100% of premiums collected to the company. To the credit of New York Life Insurance Company is this distinction. For many years, they hold the preliminary recognition of having the most MDRT, million dollar roundtable members. This does not mean making anywhere near a million dollars. However MDRT selling principals and promotions are adjusted annually and consistently enforced to make sure qualifying is left to many of the best of the best.

A new agent is not a financial representative. This is where calling a new agent a financial representative or financial advisor, hurts all the truly experienced and knowledgeable professional personal financial representatives and planners. New York Life Insurance Company mentions on their website regarding new enrollments the opportunity to provide vital insurance protection and financial advice . Be honest here. An agent trainee is barely able to properly perform prospecting and life insurance sales effectively. This explains why industry turnover is so great. Selling life insurance to cover death expenses or pay off a mortgage is a far cry from providing the accurate financial advice of a professional. Likewise obtaining a variable contract license to sell investment products does not mean an agent has the ability to do so properly.

A true financial representative must be very qualified to give advice. This often means meeting semi-wealthy to wealthy prospects and advising them how to lay out their entitlement financial situation. The planning could involve rearranging hundreds of thousands of dollars of assets. Given the economics of the near past, even some of the best financial planners have been given the cold shoulder by clients seeing their wealth accumulation slashed in half. New York Life Insurance Company certainly has some of the best experienced financial representatives in the business. However, most of these pros average 10 years of continued education and specialization while attending various designs as proof of their abilities.

An agent trainee is in the wonder years. Just selling enough insurance to survive the critical beginning years is a challenge few can master. Taking agents living in a $ 45,000 income area environment and getting them in front of million dollar clients is really throwing them in the furnace to be burned. All salespeople have a comfort level of selling starting with prospects close to their own level. After sales skills and product knowledge, this level gradually increases. Few new agents comfortable with clients making $ 50,000 a year can quickly adapt to working in the $ 200,000 + yearly income bracket clientele. Ordinary middle class Americans do not need a financial representative, the service of a hard working life insurance agent will do fine.

Can a new financial representative make it? Although New York Life Company provides quality training, it can not guarantee success. My previous insurance career and 25 years as an insurance advisor analyzing mountains of agent data says NO . However if a rep already has most of the following qualities or characteristics I could have explained to say a 50/50 chance at best. You must enter the business in good financial condition, no loaded up credit cards, and hopefully a decent nest egg. If you have the ability to speak fluently a second language and are going to concentrate on your ethnic group that is a plus.

You must realize the average insurance agent earns around $ 25,000 annually in the early stages, so you have to view this career as a step building process. Very few insurance agents or financial representatives, percentage wise, earn $ 100,000, especially during their initial four years. While product knowledge and most selling skills are learned over time, other career makers must already exist. An extraordinary dose of never-ending determination to break the odds, backed up with phenomenal self-confidence, plus a lack of fear and rejection are required prerequisites. Add to this the ability to take everything you are initially taught as a grain of salt and then revise it to perfection.

Never are you in the business as a company representative, you are in business for yourself. Financial rewards only come to those that separate themselves quickly from the failing masses . IF you still really feel you have what it takes after reading this article , a New York Life Insurance Company Career could become a reality.

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Eviction Notice – Difference Between Personal Service and Tack and Mail When Evicting a Tenant

As a landlord, sooner or later you will have to evict a tenant for either not paying rent or for violating one or more terms of the lease. When a tenant violates their lease the landlord must immediately start the eviction process. The eviction process is handled by the county where the property is located. Even though you file eviction papers in the county where the property is located, it is state law, not county law, which controls the eviction process.

The eviction process starts with the landlord filing the paperwork for the eviction at the courthouse in the county where the property is located. Once the paperwork for the eviction has been filed, the paperwork will be handed over to either the Sheriff or Marshall’s office. Some counties use the Sheriff to serve notice of the eviction filing while others use the Marshall’s office. Regardless of the office, they will serve your tenant with notice of the eviction. This service will be either Personal Service or Tack and Mail. I will discuss the difference between the two.

Tack and Mail

When the Sheriff arrives at the property, they will try to get someone to answer the door. If nobody is home they will leave a copy of the eviction notice at the door. This is where the “tack” portion of tack and mail service originated. The Sheriff will actually tack a copy of the notice at the front door for the tenant to find when they return home. The Sheriff will also “mail” a copy of the eviction notice to the tenant. The Sheriff will mail the notice regular mail. It will not be mailed certified mail. The date the Sheriff tacks a copy to the door is the day that is recorded at the courthouse for the date of service.

Personal Service

When the Sheriff arrives at your property, they may find the tenant is home. If the Sheriff actually gives the notice to the tenant this is called Personal Service. As a landlord you would much rather the tenant be served with personal service.

The difference between the two types of service is that Personal Service has more advantages in the eviction process. If you tenant is served personal service and then does not show up for the court date, you can get a judgment against the tenant. If the tenant does not answer the eviction process after being served personally, you can get a judgment against the tenant. In both of these situations if the tenant was served tack and mail then you would have to sue the tenant in small claims court to get a judgment against them.

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Factors That Affect the Cost of Travel Insurance

Travel insurance policies come in different types of packages, with all manner of options and choices. It is designed this way for a reason, of course. You would not want to pay for cover that you are illegally to need, or skimp on cover you should have.

A basic policy may be adequate, or you may find you'll be more comfortable paying a bit more to obtain higher levels of cover, as needed. It often depends on where you plan to travel. Let's say you plan to travel to a destination such as Madagascar, which has limited medical facilities. In the case of a serious medical emergency you may have to be transferred by air ambulance to another country for treatment. Therefore, you would be wise to pick a policy that offers the maximum cover for medical emergencies. It should also include cover for air ambulance and medical repatriation. If you check you may find that a very cheap policy does not include this cover.

You will need to decide whether to opt for a Single Trip or Annual Multi-trip policy. If there is any possibility that you may take more than one trip in a year the Annual policy is usually the best value for money. On many policies children are included free – which is a major saving for family holidays.

Travel insurance premiums usually increase increasing depending on where in the world you are traveling. For example, the cost of travel insurance for a British citizen traveling to Europe would be less than if they were flying long-haul to a destination such as North America or Australia.

Most travel insurance companies offer different levels of cover so that you can choose. Paying a bit more for the next level should affect the amount the insurer will pay on a claim, or increase the amount of items covered. Pay attention to the amount of Excess (Deductible) included as it may be much higher on a cheap policy. (This is the amount you have to pay towards a claim). To keep the premium very low it is often the case that levels of cover have been cut or the amount of Excess increased.

When it comes to pre-existing medical conditions the cost may increase dramatically for serious pre-existing conditions, or the insurer may not offer cover at all. Most often though the average company will agree to cover a specific condition for an extra premium, or with the understanding that any claims related to the condition are excluded. This can be a bitter pill to swallow for those that are affected.

Unfortunately, it is a fact that travel insurance for seniors is usually more expensive because of the assumed increased risk of a medical problem arising – despite the fact that our seniors are probably healthier these days than they have ever been!

Winter sports (skiing / snowboarding) insurance can be added to a typical travel insurance policy for an additional fee. Other add-ons may include cover for activities such as:

  • Business Insurance – additional premium to cover many travel-related risks associated with traveling for business
  • Golf Insurance – additional cover for mishaps relating a golf holiday to cover lost or stolen equipment, golf equipment hire, and pre-paid green fees

When it comes to activities deemed by insurers as 'Hazardous' the cover may vary very between policies and companies. It is important to check and understand which activities are covered as standard. A typical policy will include activities in which you can participate on a casual, unplanned or 'incidental' basis. An additional premium may be required to provide cover for activities that are considered planned or 'non-incidental'. Confused? Do not worry, it is not as complicated as it sounds! Here are some examples to show the difference:

'Incidental' usually refer to activities such as a bungee jump, an elephant ride or sleigh ride that you may decide to participate in on the spur of the moment. 'Non-incidental' or planned activities refer to those that are participating in a regular or non-causal basis. For example: the activity is the main purpose of the trip, such as sailing holiday, scuba diving holiday, safari, white-water rafting trip, or cycle touring.

There is no question that insurance can be a difficult subject to forgive – most people would prefer to spend their precious spare time doing something much more interesting and fun!

The bottom line really is that if you do not have time to look into it in detail, make sure that the policy you choose contains, at a minimum , adequate cover for potentially cost travel problems involving: Medical Expenses, Medical Repatriation, Air Ambulance , Personal Liability, and Legal Expenses. A good basic policy and even a backpacker policy should contain these as standard. Pay a little more and you will get more features.

Beware of that cheap policy offered as an incentive – it may not always be a good buy. You get what you pay for – and peace of mind is priceless!

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Fire Insurance Under Indian Insurance Law

A contract of Insurance comes into being when a person seeking insurance protection enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire and or lightening, explosion, etc. This is primarily a contract and since as is governed by the general law of contract. However, it has certain special features as insurance transactions, such as utmost faith, insurable interest, indemnity, subrogation and contribution, etc. These principles are common in all insurance contracts and are governed by special principles of law.

FIRE INSURANCE:

According to S. 2 (6A), "fire insurance business" means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence, typically included among the risks Insured against in fire insurance business.

According to Halsbury, it is a contract of insurance by which the insurer agreements for consideration to indemnify the assured up to a certain amount and subject to certain terms and conditions against loss or damage by fire, which may happen to the property of the assured during A specific period.
Thus, fire insurance is a contract whereby the person, seeking insurance protection, enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire or lightning, explosion etc. This policy is designed to insure one's property and other items from loss occurring due to complete or partial damage by fire.

In its strict sense, a fire insurance contract is one:

1. Whose principle object is insurance against loss or damage occurred by fire.

2. The extent of insuurer's liability being limited by the sum assured and not necessarily by the amount of loss or damage sustained by the insured: and

3. The insurer having no interest in the safety or destruction of the insured property apart from the liability undertaken under the contract.

LAW GOVERNING FIRE INSURANCE

There is no statutory enactment governing fire insurance, as in the case of marine insurance which is regulated by the Indian Marine Insurance Act, 1963. The Indian Insurance Act, 1938 primarily dispute with regulation of insurance business as such and not with any general or special Principles of the law relating to fire of other insurance contracts. So also the General Insurance Business (Nationalization) Act, 1872. In the absence of any legislative enactment on the subject, the courts in India have in dealing with the topic of fire insurance have relied so far on judicial decisions of Courts and opinions of English Jurists.

In determining the value of property damaged or destroyed by fire for the purpose of indemnity under a policy of fire insurance, it was the value of the property to the insured, which was to be measured. Prima facie that value was measured by reference of the market value of the property before and after the loss. However such method of assessment was not applicable in cases where the market value did not represent the real value of the property to the insured, as where the property was used by the secured as a home or for carrying business. In such cases, the measure of indemnity was the cost of reinstatement. In the case of Lucas v. New Zealand Insurance Co. Ltd. [1] Where the assured property was purchased and held as an income-producing investment, and there before the court held that the proper measure of indemnity for damage to the property by fire was the cost of reinstatement.

INSURABLE INTEREST

A person who is so interested in a property as to have benefit from its existence and prejudice by its destruction is said to have insurable interest in that property. Such a person can insure the property against fire.

The interest in the property must exist both at theception as well as at the time of loss. If it does not exist at the momentment of the contract it can not be the subject-matter of the insurance and if it does not exist at the time of the loss, it suffers no loss and needs no indemnity. Thus, where he sells the insured property and it is damaged by fire thereafter, he suffers no loss.

RISKS COVERED UNDER FIRE INSURANCE POLICY

The date of conclusion of a contract of insurance is issuance of the policy is different from the acceptance or assumption of risk. Section 64-VB only lays down broadly that the insurer can not assume risk prior to the date of receipt of premium. Rule 58 of the Insurance Rules, 1939 speaks about advance payment of premiums in view of sub section (!) Of Section 64 VB which enables the insurer to assume the risk from the date onwards. If the proposer did not desire a particular date, it was possible for the proposer to negotiate with insurer about that term. Precisely, therefore the Apex Court has said that final acceptance is that of the assured or the insurer depends simply on the way in which negotiations for insurance have progressed. Although the following are risks which seem to have covered Fire Insurance Policy but are not entirely covered under the Policy. Some of contentious areas are as follows:

FIRE: Destruction or damage to the property insured by its own fermentation, natural heating or spontaneous combustion or its undergoing any heating or drying process can not be treated as damage due to fire. For eg, paints or chemicals in a factory undergoing heat treatment and consequently damaged by fire is not covered. Further, burning of property insured by order of any Public Authority is excluded from the scope of cover.

LIGHTNING: Lightning may result in fire damage or other types of damage, such as a roof broken by a falling chimney stuck by lightning or cracks in a building due to a lightning strike. Both fire and other types of damages caused by lighting are covered by the policy.

AIRCRAFT DAMAGE: The loss or damage to property (by fire or otherwise) directly caused by aircraft and other aerial devices and / or articles dropped there from is covered. However, destruction or damage resulting from pressure waves caused by aircraft traveling at supersonic speed is excluded from the scope of the policy.

RIOTS, STRIKES, MALICIOUS AND TERRORISM DAMAGES: The act of any person taking part along with others in any disturbance of public peace (other than war, invasion, mutiny, civil commotion etc.) is constrained to be a riot, strike or a terrorist Activity. Unlawful action would not be covered under the policy.

STORM, CYCLONE, TYPHOON, TEMPEST, HURRICANE, TORNADO, FLOOD and INUNDATION: Storm, Cyclone, Typhoon, Tempest, Tornado, and Hurricane are all different types of violent natural disasters that are accompanied by thunder or strong winds or heavy rainfall. Flood or Inundation occurs when the water rises to an abnormal level. Flood or inundation should not only be understood in the common sense of the terms, ie, flood in river or lakes, but also accumulation of water due to choked drains would be deemed to be flood.

IMPACT DAMAGE: Impact by any Rail / Road vehicle or animal by direct contact with the insured property is covered. However, such vehicles or animals should not belong to or owned by the insured or any occupier of the treaties or their employees while acting in the course of their employment.

SUBSIDENCE AND LANDSLIDE INCULUDING ROCKSIDE: Destruction or damage caused by Subsidence of part of the site on which the property stands or Landslide / Rockslide is covered. While Evidence means sinking of land or building to a lower level, Landslide means sliding down land normally on a hill.

However, normal cracking, settlement or bedding down of new structures; Settlement or movement of made up ground; Coastal or river erosion; Defective design or workmanship or use of defective substances; And demolition, construction, structural alterations or repair of any property or ground-works or excavations, are not covered.

BURSTING AND / OR OVERFLOWING OF WATER TANKS, APPARATUS AND PIPES: Loss or damage to property by water or otherwise on account of bursting or accidental overflowing of water tanks, apparatus and pipes is covered.

MISSILE TESTING OPERATIONS: Destruction or damage, due to impact or other from trajectory / projectiles in connection with missile testing operations by the Insured or anyone else, is covered.

LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATIONS: Damage, caused by water accidentally discharged or leaked out from automatic sprinkler installations in the insured's promises, is covered. However, such destruction or damage caused by repairs or alterations to the buildings or concessions; Repairs removal or extension of the sprinkler installation; And defects in construction known to the insured, are not covered.

BUSH FIRE: This covers damage caused by burning, whether incidental or otherwise, of bush and jungles and the clearing of lands by fire, but excluding destruction or damage, caused by Forest Fire.

RISKS NOT COVERED BY FIRE INSURANCE POLICY

Claims not maintained / covered under this policy are as follows:

O Theft during or after the occurrence of any insured risks

O War or nuclear perils

O Electrical breakdowns

O Ordered burning by a public authority

O Subterranean fire

O Loss or damage to bullion, precious stones, curios (value more than Rs.10000), plans, drawings, money, securities, cheque books, computer records except if they are categorically included.

O Loss or damage to property moved to a different location (except machinery and equipment for cleaning, repairs or renovation for more than 60 days).

CHARACTERICTICS OF FIRE INSURANCE CONTRACT

A fire insurance contract has the following characteristics namely:

(A) Fire insurance is a personal contract

A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see that the insured does not suffer loss by reason of his interest in the insured property. His, if his connection with the assured property ceases by being transferred to another person, the contract of insurance also comes to an end. It is not so connected with the subject matter of the insurance as to pass automatically to the new owner to what the subject is transferred. The contract of fire insurance is so a mere a personal contract between the insured and the insurer for the payment of money. It can be validly assigned to another only with the consent of the insurer.

(B) It is an and indivisible contract.

Where the insurance is of a binding and its contents of stock and machinery, the contract is expressly agreed to be divisible. Thus, where the insured is guilty of breach of duty towards the insurer in respect of one subject matters covered by the policy, the insurer can avoid the contract as a whole and not only in respect of that particular subject mater, unless the right is restricted By the terms of the policy.

(C) Cause of fire is immaterial

In insuring against fire, the insured wishes to protect him from any loss or detriment which he may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus, whether it was because the fire was lighted improperly or was lighted properly but negligently attended to thereafter or wherever the fire was caused on account of the negligence of the insured or his servants or strangers is immaterial and the insurer is liable to indemnify the insured . In the absence of fraud, the proximate cause of the loss only is to be looked to.

The cause of the fire however becomes material to be investigated

(1). Where the fire is occurred not by the negligence of, but by the willful

(2) Where the fire is due is to cause falling with the exception in the contract.

LIMITATION OF TIME

Indemnity insurance was an agreement by the insurer to confer on the insured a contractual right, which prima facie, came into existence immediately when the loss was suffered by the happening of an event insured against, to be put by the insurer into the same position in Which the accused would have had the event not occurred but in no better position. There was a primary liability, ie to indemnify, and a secondary liability ie to put the insured in his pre-loss position, either by paying him a specified amount or it might be in some other manner. But the fact that the insurer had an option as to the way in which he would put the insured into pre-loss position did not mean that he was not liable to indemnify him in one way or another, immediately the loss occurred. The primary liability arises on the occurrence of the event insured against. So, the time ran from the date of the loss and not from the date on which the policy was avoided and any suit filed after that time limit would be barred by limitation. [2]

WHO MAY INSURE AGAINST FIRE?

Only those who have insurable interest in a property can take fire insurance thereon. The following are among the class of persons who have been held to possess insurable interest in, property and can insure such property:

1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It is not necessary that they should possession also. Thus a lesser and a lessee can both insure it jointly or severely.

2. The vender and purchaser have both rights to insure. The vendor's interest continues until the conveyance is completed and even thereafter, if he has an unpaid vendor's lien over it.

3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can insure, per Lord Esher MR "The mortgagee does not claim his interest through the mortgagor, but by virtue of the mortgage which has given him an interest distinct from that of The mortgagor "[3]

4. Trustees are legal owners and beneficaries the beneficial owners of trust property and each can insure it.

5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the property entrusted to them and so can insure it.

PERSON NOT ENTITLED TO INSURE

One who has no insurable interest in a property can not insure it. For example:

1. An unsecured creditor can not insure his debtor's property, because his right is only against the debtor personally. He can, however, insure the debtor's life.

2. A shareholder in a company can not insure the property of the company as he has no insurable interest in any asset of the company even if he is the sole shareholder. As was the case of Macaura v. Northen Assurance Co. [4] Macaura. Because neither as a simple creditor nor as a shareholder had he any insurable interest in it.

CONCEPT OF UTMOST FAITH

As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is also under a positive duty to make a full disclosure of all material facts and not to make any misrepresentations or misdescreptions during during the negotiations for obtaining the policy. This duty of utmost good faith applies equally to the insurer and the insured. There must be complete good faith on the part of the assured. This duty to observe utmost good faith is ensured b requiring the proposer to declare that the statements in the proposal form are true, that they shall be the basis of the contract and that any incorrect or false statement therein shall avoid the policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and accept the risk or decline it.

The questions in the proposal form for a fire policy are so framed as to get all information which is material to the insurer to know in order to assess the risk and fix the premium, that is, all material facts. Thus the proposer is required too give information relating to:

O The proposer's name and address and occupation

O The description of the subject matter to be assured sufficient for the purpose of identifying it including,

O A description of the locality where it is situated

O How the property is being used, whether for any manufacturing purpose or hazardousous trade.etc

O Whether it has already been insured

O And also ant personal insurance history including the claims if any made buy the proposer, etc.

Apart from questions in the proposal form, the proposer should disclose whether questioned or not-

1. Any information which would indicate the risk of fire to be above normal;

2. Any fact which would indicate that the insurer's liability may be more than normal can be expected such as existence of valuable manuscripts or documents, etc, and

3. Any information bearing upon the more; Hazard involved.

The proposer is not obligatory to declare-

1. Information which the insurer may be presumed to know in the ordinary course of his business as an insurer;

2. Facts which tend to show that the risk is less than otherwise;

3. Facts as to which information is waived by the insurer; And

4. Facts which need not disclosed in view of a policy condition.

Thus, assured is under a solemn obligation to make full disclosure of material facts which may be relevant for the insurer to take into account while deciding whether the proposal should be accepted or not. While making a disclosure of the relevant facts, the

DOCTRINE OF PROXIMATE CAUSE

Where more perils than one act simultanously or successively, it will be difficult to assess the relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases, the doctrine of proximate cause helps to determine the actual cause of the loss.
Proximate cause was defined in Pawsey v. Scottish Union and National Ins. [5] as "the active, effective cause that sets in motion a train of events which brings about a result without the intervention of any force started and working actively from a new and independent source." It is dominant and effective cause even though it is not the nearest in time. It is therefore necessary when a loss occurs to investigate and ascertain what is the proximate cause of the loss in order to determine whether the insurer is liable for the loss.

PROXIMATE CAUSE OF DAMAGE

A fire policy covers risks where damage is caused by way of fire. The fire may be caused by lightening, by explosion or implosion. It may be result of riot, strike or on account of any, malicious act. However these factors must absolutely lead to a fire and the fire must be the proximate cause of damage. Therefore, a loss caused by theft property by militants would not be covered by the fire policy. The view that the loss was covered under the malicious act clause and therefore. The insurer was liable to meet the claim is untenable, because unless and until fire is the proximate cause f damage, no claim under a fire policy would be maintained. [6 ]

PROCEDURE FOR TAKING A FIRE INSURANCE POLICY

The steps involved for taking a fire insurance policy are stated below:

1. Selection of the Insurance Company:

There are many companies that offer fire insurance against unforeseen events. The individual or the company must take care in the selection of an insurance company. The judgment should rest on factors like goodwill, and long term standing in the market. The insurance companies can either be approached directly or through agents, some of them who are appointed by the company itself.

2. Submission of the Proposal Form:

The individual or the business owner must submit a completed prescribed proposal form with the necessary details to the insurance company for proper consideration and subsequent approval. The information in the Proposal Form should be given in good faith and must be accompanied by documents that verify the actual value of the property or goods that are to be insured. Most of the companies have their own personal Proposal Forms wherein the exact information has to be provided.

3. Survey of the Property / Consideration:

Once the duly filled Proposal Form is submitted to the insurance company, it makes an "on the spot" survey of the property or the goods that are the subject matter of the insurance. This is usually done by the investigators, or the surveyors, who are indicated by the company and they need to report back to them after a thorough research and survey. This is imperative to assess the risk involved and calculate the rate of premium.

4. Acceptance of the Proposal:

Once the detailed and comprehensive report is submitted to the insurance company by the surveyors and related officers, the former makes a thorough perusal of the Proposal form and the report. If the company is satisfied that their is no lacuna or foul play or fraud involved, it typically "accepts" the Proposal Form and routes the insured to pay the first premium to the company. It is to be noted that the insurance policy commences after the payment and the acceptance of the premium by the insured and the company, respectively. The Insurance Company issues a Cover Note after the acceptance of the first premium.

PROCEDURE ON RECEIPT OF NOTICE OF LOSS

On receipt of the notice of loss, the insurer requires the insured to furnish details relating to the loss in a claim from relating to the following information-

1. Circumstances and cause of the fire;

2. Occupancy and situation of the premises in which the fire occurred;

3. Insured's interest in the insured property; That is capacity in which the insured claims and if any others are interested in the property;

4. Other insurances on the property;

5. Value of each item of the property at the time of loss together with proofs thereof, and value of the salvage, if any; And

6. Amount claimed

Furnishing such information relating to the claim is also a condition precedent to the liability of the insurer. The above information will enable the insurer to verify whether-

(1) The policy is in force;

(2) The peril causing the loss is an insured peril;

(3) The property damaged or lost is the insured property.

Rules for calculation of value of property

The value of the insured property is-

1) Its value at the time of loss, and

2) At the place of loss, and

3) Its real or intrinsic value without any regard for its sentimental vale. Loss of prospective profit or other consequential loss is not to be taken into account.

FILING OF CLAIMS

How a claim arises?

After a contract of fire insurance has come into existence, a claim may arise by the operation of one or more insured perils on an unsecured property. There may in addition one or more uninsured perils also operating simultaniously or in succession of the property. In order that the claim should be valid the following conditions must be fulfilled:

1. The occurrence should take place due to the operation of an insured peril or where both insured and other perils operated, the dominant or efficient cause of the loss must have been insured peril;

2. The operation of the peril must not come within the scope of the policy exceptions;

3. The event must have caused loss or damage of the insured property;

4. The occurrence must be during the currency of the policy;

5. The insured must have fulfilled all the policy conditions and should also comply with requirements to be fulfilled after the claim had arisen.

MATERIAL FACTS IN FIRE INSURANCE: PREVIOUS CONVICTION OF THE ACCUSED

The criminal record of an assured could affect the moral hazard, which insurers had to assess, and the non-disclosure of a serious criminal offense like robbery by the plaintiffiff would have a material non-disclosure.

INSURED'S DUTY ON OUTBREAK OF FIRE, IMPLIED DUTY

On the outbreak of a fire the insured is under an obligation duty to observe good faith towards the insurers and the in pursuit of it the insured must do his best to avert or minimize the loss. For this purpose he must (1) take all reasonable measures to put out the fire or prevent its spread, and (2) assist the fire brigade and others in their attempts to do so at any rate not come in their way.
With this object the assured property may be removed to a place of safety. Any loss or damage the assured property may sustain in the course of attempts to combat the fire or during its removal to a place of safety etc., will be deemed to be loss proximately caused by the fire.

If the insured failures in his duty willfully and thenby increases the burden of the insurer, the insured will be deprived of his right to revive any indemnity under the policy. [7]

INSURER'S RIGHTS ON THE OUTBREAK OF FIRE

(A) Implied Rights

Corresponding to the insured's obligations the insurers have rights by the law, in view of the liability that they have undertaken to indemnify the insured. Thus the insurers have a right to-

O Take reasonable measures to extinguish the fire and to minimize the loss to property, and

O For that purpose, to enter upon and take possession of the property.

The insurers will be liable to make good all the damage the property may sustain during the steps taken to put out the fire and as long as it in their possession, because all that is considered the natural and direct consequence of the fire; It has therefore been held in the case of Ahmedbhoy Habibhoy v. Bombay Fire Marine Ins. Co [8] that the extent of the damage flowing from the insured peril must be assessed when the insurer gives back and not as at the time when the peril ceased.

(B) Loss caused by steps taken to avert the risk

Damage sustained due to action taken to avoid an insured risk was not a consequence of that risk and was not recoverable unless the insured risk had begun to operate. In the case of Liverpool and London and Globe Insurance Co. Ltd v. Canadian General Electric Co. Ltd., [9] the Canadian Supreme Court held that "the loss was caused by the fire fighters' mistaken belief that their action was necessary to avert an explosion, and the loss was not recoverable under the insurance policy, which covered only damage caused By fire explosion., And the loss was not recoverable under the insurance policy, which covered only damage caused by fire or explosion. "

(C) Express rights

Condition 5 in order to protect their rights well insurers have prescribed for better rights in this condition according to which on the occurrence of any destruction or damage the insurer and every person authorized by the insurer may enter, take or keep possession of the building Or promises where the damage has happened or require it to be delivered to them and deal with it for all reasonable purposes like examining, arranging, removing or sell or dispose off the same for the account of which it may concern.

When and how a claim is made?

In the event of a fire loss covered under the fire insurance policy, the Insured shall immediately give notice thereof to the insurance company. Within 15 days of the occurrence of such loss, the Insured should submit a claim in writing, giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.

The Insured should procure and produce, at his own expense, any document like plans, account books, investigation reports etc. On demand by the insurance company.

HOW INSURANCE MAY CEASE?

Insurance under a fire policy may cease in any of the following circumstances, namely:

(1) Insurer avoiding the policy by reason of the insured making misrepresentation, misdescription or non-disclosure of any material particular;

(2) If there is a fall or displacement of any insured building range or structure or part thereof, then on the expiration of seven days wherefrom, except where the fall or displacement was due to the action of any insured peril; Notwithstanding this, the insurance may be revived on revised terms if express notice is given to the company as soon as the occurrence takes place;

(3) The insurance may be terminated at any tie at the request of the insured and at the option of the company on 15 days notice to the insured

CONCLUSION

Tangible property is exposed to numerous risks like fire, floods, explosions, earthquake, riot and war, etc. And insurance protection can be had against most of these risks frequently or in combination. The form in which the cover is expressed is numerous and varied. Fire insurance in its strict sense is concerned with giving protection against fire and fire only. So while granting a fire insurance policy all the requisites need to be fulfilled. The insured are under a moral and legal obligation to be at utmost good faith and should be telling true facts and not just fake grounds only with the greed to recover money. Further all insurance policies help in the development of a Developing nation. Hence insurance companies have a hidden to help the insured when the insured are in trouble.

REFERENCE:

1. (1983) VR 698 (Supreme Court of Vienna)

2. Callaghan v. Dominion Insurance Co. Ltd. (1997) 2 Lloyd's Rep. 541 (QBD)

3. Small v. UK Marine Insurance Association (1897) 2 QB 311
4. (1925) AC 619

5. (1907) Case.

6. National Insurance Company v. Ashok Kumar Barariio

7. Devlin v. Queen Insurance Co, (1882) 46 UCR 611.

8. (1912) 40 IA 10 PC

9. (1981) 123 DLR (3d) 513 (Supreme Court of Canada)

Books Referred:

1. The Economics of Fire Protection by Ganapathy Ramachandran

2. Modern Insurance Law, by John Birds

3. The Handbook of Insurance Regulatory and Development Authority Act and Regulations with Allied Laws, by Nagar

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