Conventional And 3-T Insurance
Congratulations!! If you have keys in your hand, whether it is of a brand-new car, a new house or a new office! Finally, you get to enjoy your hard-earned money. Unfortunately, nothing in this world is sheltered from risks or disasters.
Buying your own luxuries or starting a business is a smart risk itself but running it without the right insurance is not. Throughout the world it is observed that, INSURANCE CONTRACT is a dynamic tool available for us, because of its ability to ease the effects of a catastrophe to our life and property. So the next question arises…
What Is Conventional Insurance?
Conventional insurance gives you protection from disastrous events that results in your loss, in exchange of an amount which is called PREMIUM. This contract absorbs the risk of this loss and pays a claim when the event against which you are insured, occurs.
Conventional insurance deals in diversified products for motor, health, life, home, education and travel insurance.
Conventional insurance transfers risk away from you and onto the insurance company from which you buy a policy. This transference reduces the chance for you to deal with loss due to an unexpected event. For example, Health insurance decreases the risk that, in future if you get ill than, you’ll need to pay for the medical treatment from your own pocket.
Paying premiums for conventional insurance has a disadvantage as well. Premium of conventional insurance may increase from time to time and you must to pay them whether you file a claim or not.
- We learned that conventional insurance is a smart choice to minimize financial loss when calamities happen.
What Is 3t Insurance?
3T insurance policy is designed by Vehicle insurance companies to provide maximum financial protection to their insurance policy buyers. 3T insurance includes:
- Theft insurance.
- Third-party insurance.
- Total loss insurance.
This policy protects your vehicle against loss if stolen or damages as the result of attempted theft. For example: replacing your car if stolen or broken door locks.
In addition, such policy protects other people, vehicles and property in case the damage was caused by your vehicle. For example: you accidently drive into the car in front of you and damaging that vehicle or hurting the driver, your third-party insurance would cover the loss of the other person’s car and medical costs.
This policy provides a replacement of your vehicle but on several factors. Car is declared “total loss” by insurance companies when the cost of repairs exceeds then its market value.
In the case there is an accident where you are at fault, you will be on the safer side as the total cost of vehicle damage or injuries to the drivers, passengers or pedestrians would be covered by the insurance company. It also includes insurance for your own car if it is stolen or damaged.
3T insurance is not a fully comp cover. Third-party and theft policies insure damage to others in an accident that was your fault but, any damage to your own car or yourself is your own problem. If you are not at fault, the insurance of the responsible party will cover your costs.
- To protect your comforts and families against risk or loss in future, insurance policy is by far the best contract.