February 25, 2018

Understanding Compulsory Third Party Insurance (CTP)

Life can bring unexpected surprises. No matter what your age or background is, there are numerous circumstances that we cannot control. And for these instances, it is essential to have something that will give us the protection that we need to avoid further inconvenience and shelling out a lot of money.

This is where the insurance comes in. It comes in many types and forms, but the main purpose of the insurance is to provide protection in case something happens – to your health, life, and/or property. Most Australians have car insurance. It comes in many types, one of which is Compulsory Third Party insurance (CTP).

In this article, let’s delve into what CTP means and what it is for:

  • Compulsory third party insurance comes with the registration of your car or vehicle. It covers compensation for the victim if you are at fault in an accident and injure another person. The other person could be the driver of the other vehicle, the passengers, or a pedestrian.
  • If the accident results in people being unable to go to work, or if those who are injured need medical treatment, your CTP insurance provider will pay an amount to cover the medical expenses and/or the loss of income because of the accident.
  • As a car owner, it is mandatory to get CTP insurance. It offers protection not only for those who are injured but also for the at-fault driver or the one who caused the accident since he/she will not have to personally pay any compensation.
  • Keep in mind that different states have different processes when it comes to CTP insurance. For instance, in Queensland, it comes with your rego, following the same period as your rego. In other words, you’ll have coverage whenever you renew. Make sure to check the process related to CTP insurance with your state or territory department of transport.
  • Don’t be confused – CTP is different from comprehensive car insurance. While CTP insurance provides protection for those who are injured as a result of the accident, it doesn’t cover damage to property. If there are dents or scratches to your car, CTP will not pay any compensation for these.

Do you have other ideas when it comes to compulsory third party insurance or in general, car insurance in Australia? You can share your insights in the comments section.

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What is Business Insurance?

Managing a business is very challenging. It always puts your own finances at risky situations. It is wise and necessary to have knowledge on risk management to protect your business. The only way to do this is to have business insurance.

We use business insurance to protect our business from unexpected loss or damage just as we use health or life insurance for better medical care, or to prepare for future expenses like education, or funeral. It is a form of risk management that can dramatically lessen, or avoid, loss and expenses from damages.

Business insurance focuses on assets and revenues, liabilities, and employees. These are the following:     

  1. Professional indemnity. This protects you from legal action taken against you by an employee who suffered a loss due to management lapses, or by a client who is dissatisfied with your service.
  2. Business insurance covers damage to your building and its contents that is caused by certain events.
  3. Public liability. If you are liable for an injury or death, loss or damage to their property, or economic loss because of negligence, this covers your business for legal costs and compensation that you might be required to settle.
  4. Product liability. Businesses need cover against claims of goods or services that caused damage or loss, injury or death. Product liability cover protects you should your product or service failed your clients.
  5. Theft and burglary. This covers your business against loss or damage to your stock if burglary happens in your business premises, or if someone deceived you to gain access to your building. However, it does not cover cash losses as it is covered separately.
  6. This covers your money for theft at your premises and in transit.
  7. Your business can be interrupted by weather events, fire, flood, and other insured interruptions. This covers your loss when you can’t trade due to said events.
  8. Employee fraud or dishonesty covers loss of money, instruments or goods due to fraudulent or dishonest employees.
  9. Workers’ compensation. This is compulsory in all states with businesses with employees.
  10. Machinery/equipment breakdown. This covers machinery and equipment that you use in your business. This may also cover for damages to your products due to faulty or non-functional equipment.

Got other ideas on business insurance? Share your insights in the comments section.

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Understanding Different Types of Pet Insurance

Owning a pet can be very beneficial to our health. Being with our pets can improve our fitness and relieve stress. In other words, pets can keep us healthy. It is our obligation to make sure that they are being cared for, and that their health is in good shape. Pet insurance ensures the welfare of our beloved pets.

Pet insurance is more like car insurance than life insurance in Australia. It covers treatments for accidents and illnesses of your dog or cat, much like car insurance covers repairs after an accident, or injuries to passengers. Both insurance policies give coverage for anything that is unexpected. For example, if your dog breaks a bone or is diagnosed with cancer, the medical treatment is covered. If your car gets scratched or your passenger breaks an arm, you’re covered. In this article, let’s take a look at the different pet insurance policies in Australia:

Accident Only Policy

This is the cheapest type of policy, covering the levels depending on the budget. It covers physical injuries from certain accidents, and injuries that are caused by other animals. Keep in mind that not all injuries are included in the coverage. For example, flea bites and other injuries from pre-existing conditions are excluded.

Accident and Illness Policy

Any kinds of illnesses that is diagnosed by your vet like cancer, infections in the organs, hereditary conditions, diseases that develop through aging, as well as skin conditions are included in the coverage. But just like the accident only policy, this policy also has exclusions.

Some examples are pre-existing conditions, injuries from negligence, and deliberate injuries from the household. When the pet has fallen ill due to the owner’s failure to follow the vet’s recommendations, this policy will also not cover for the illness.

Comprehensive

This policy has a wide range of coverage. It covers not only accidents and illnesses, but also follow-up treatments as well as routine care such as vaccinations, worming treatments, dental treatments, de-sexing, micro chipping, and behavioral training. De-sexing and micro-chipping are done in the first year of your pet, and this will be covered by this policy.

According to The Animal Health Alliance, 78% of dogs and 91% of cats are now de-sexed, and 76% of dogs and 64% of cats have been micro-chipped.

Got other ideas on pet insurance? Share your insights in the comments section.

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Do You Need to Get Insurance for Your Pets?

There are many types of insurance for our protection in case of certain unfortunate events.  There’s car insurance for your vehicles and life and health insurance for our family. Home insurance in Australia is also available. Likewise, there’s insurance for your pets. It’s a relatively new market that is worth exploring especially with the rising costs at the vet for your pet’s welfare.

Do you need to get insurance for your pets? Consider this: dogs and cats will, at some point in their lives, encounter life-threatening conditions, whether due to illnesses or a road accident. You can end up with a huge bill from the vet. In fact, it is said that many dogs are put down just because their owners cannot pay for the medical treatment.

With pet insurance, you can save yourself from the hassle of being in this condition. It allows you to claim part, or the full amount in some cases, of the vet bill according to the annual limit.  There are types of insurance for your pets that vary in coverage. The policies can be accident-only cover, illness-only cover or accident-and-illness cover if you’re looking for something comprehensive.

To determine how much cover your pets need, consider the maximum annual benefit of the policy. This refers to the total amount that you will pay every year. You can also consider the different features. Some may offer public liability insurance, for example.

In terms of benefit levels, these can be from $1,500 up to $20,000. Bear in mind that the animal, breed, and your location play a role in treatment costs of certain conditions such as dental issues, ligament injury or tick paralysis. Make sure to consult the vet to understand which health risks may be encountered by your pets.

While many medical treatments are included in the policy, there are also treatments that are not usually covered. For instance, preventative care, which includes parasite control and vaccination, is normally excluded from the policy.

In most cases, pets are considered members of the family, so it is better to get insurance for your pets, not only to ensure that you don’t have to face huge vet bills when something unfortunate happens, but also to give you peace of mind, knowing that your pets will be taken care of, just like the rest of your family.

Does your pet have Australian insurance? Share your insights and insurance advice in the comments section.

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Why Is It Important to Have Home and Contents Insurance?

Everybody dreams of having their own home, and once you finally achieve your ultimate dream, surely, you’ll do anything to protect it. With all the important bills to pay, you might probably think that you don’t need a home and contents insurance. But have you thought about environmental factors, robbery, and vandalism? Do you want to spend your emergency funds for those scenarios?

Here are some reasons why having a home and contents insurance is important:

  • Home and contents insurance can cover some/most of the costs due to natural calamities, robbery, etc. That is why a lot of people insure their house and even almost all the things in it; they want to protect their property.
  • Did you know that home insurance can sometimes cover liability if an accident occurs within your property? Home insurance can cover you from liability of others injuring themselves on your property. 
  • If anything happens to your house or was totally wrecked, the bank will lose money so if you’re still paying your mortgage, it is usually compulsory to have a home insurance as a condition of your home loan.  

Homeowners, renters, and even people living in shared houses benefit from contents insurance. If you own a house, it is important to have the building covered by insurance. On the other hand, you don’t have to think about the coverage of the insurance if you are renting the place. Let the owner handle it.

Insured events offer to cover insurance for damages caused by unexpected or unforeseen events. Examples of unexpected events are severe storms, gas pipe leaks, earthquakes, lightning strikes, and landslides. On the other hand, accidental damages vary in types and are commonly caused with human intervention.

The insurance policy amount is presented by the sum of the total amount to repair or replace the building or house. Under the home and contents insurance coverage, the value of the house and its belongings are separated.

Other costs are applied on worst case rebuilding scenarios. If the house or building needs to be fixed from scratch, the costs to pay the architect, temporary accommodation, and demolition will be considered on top of the initial policy coverage.

Got other tips on home and contents insurance in Australia? Share your ideas in the comments section.

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