Nov 05

Indemnity insurance is defined as policy that protects the interest of professional workers and businessmen when they are found guilty for a particular cause. Some common examples of indemnity insurance are malpractice insurance and errors and omissions insurance. These indemnify professionals against claims at workplace. An example of indemnity insurance is when a person uses health indemnity insurance when he opts for health plans. He will then cover only some expenses, not all of them.

A number of core points have to be noted in the indemnity insurance Agreement. Here’s the list:

  • What loss does the indemnity cover?
  • Are there express carve outs?
  • Do the limits of liability apply?
  • Is the indemnity a “sole remedy”?
  • Must the loss be mitigated?

It is essential for buyers to know about the indemnity insurance plans and their quotes. Before making the purchase decisions, you must know if the indemnity insurance quotes are accurate. Or is it safe to ask for indemnity insurance quotes online. This is a very important point before you invest in an indemnity insurance plan because you should weigh all the pros and cons of online quotes and then make a choice.

What kind of health insurance plan to go for can be a confusing task. Indemnity insurance the most talked about health insurance.  It is important to understand this plan in depth to be absolutely sure if it’s the right policy. The purpose it to choose the right healthcare provider and to be compensated with expenses with the healthcare provider of your choice.

Indemnity insurance make a provision for compensating for medical expenses, the amount of compensation may vary. This is a limitation of these plans. While the hospital you choose is not forbidden, what amount of coverage your insurance plan will give you, has certain restrictions.. Reimbursement amount may be limited under an indemnity plan; clearly stating that you might have to incur some other expenses too.

But the benefits of indemnity insurance plans are many. Compared to a PPO, where the medical care amount and deductible are your responsibility, Indemnity insurance is different. The primary benefit is that indemnity plans are flexible and reduce your unreasonable expenses.

Thus, indemnity insurance plans can prove to be extremely beneficial if you are aware about the quote and the risk involved. This will also help you make the right choice of indemnity insurance plan.

Nov 04

Indemnity, in very simple words, means protection or security against any damage, loss or injury in a legal way. For example: An indemnity would be an amount offered by X to Y (as reparation) for a specific damage or loss borne by the latter. Here, X may or may not be responsible for the loss borne by Y. Indemnity could be in the form of repair or cash or replacement.

Indemnity is interchangeably used with reparation. Both mean the same; that is to act on a sufferer’s behalf provided that the cause has been mentioned earlier in the contract. For e.g.: Car insurance is a good example. If the car insurance buyer meets with an accident and in this case the responsibility of the accident is of the car driver, then the insured buyer is obligated to indemnify the car driver. Thus, indemnity is a legal concept.

An indemnity waiver, however, is a legal document. This states that a person who takes part in an activity may sign to acknowledge the risks involved in his or her participation. The aim of doing this is to remove the legal liability from the person responsible for the activity. This waiver is signed mostly to waive liabilities for potential personal injuries. They are often signed for recreational activities such as skate parks, ski slopes or even amusement parks. In this, if someone gets injured, then as per the liability waiver, they cannot go ahead with pursuing charges against the facility.

Indemnity clauses

 Clauses related to indemnity are about a risk-transfer between two parties to prevent any loss or damage that takes place because of a cause mentioned. This is based on a contract. The most common idea is to look for an indemnity, for protection of a party to the maximum extent against liabilities because of actions of another party. The types of indemnity clauses are stated as under:

  • Bare indemnities
  • Proportionate or Limited Indemnities
  • Reverse or reflexive indemnities
  • Third party indemnities
  • Financing indemnities
  • Party/Party indemnities

 Indemnity clauses can go beyond risk transfer, some people use it for additional insurance coverage without premium or administrative costs involved.

It is important that before signing the contract, you consider to get the contract reviewed by your legal counsel for language that widens your exposure as well as by your insurer to identify exposures that fall outside of your coverage. Ultimately, government action is needed.

Nov 01

What is Subrogation?

Subrogation refers to the process that an insurer uses to pursue a third party that caused some type of insurance loss to the insured. This is done as a means to recover claim amount paid to the insured for the loss.

Subrogation Can Matter to you if:

  • You have some type of covered loss
  • There’s another party that is responsible for the damages or part of them. For example, another party may be responsible for causing a car accident you were in but you have already submitted a claim

The insurance company may pay out the claim to you but seek reimbursement from the party that caused the loss or damages to occur in the first place. The laws of your state the circumstances of the loss and the provisions in your insurance policy would all be factors that go into this process. If the instance company wants to pursue subrogation, then they will work to get damages from the other party. This may be damages paid by the insurance company or by you.    The cists to you is usually your deductible by may also include amounts that are over the policy limit and paid put by the insurance company.

This can work the other way around and if you’re at fault the other party and the insurance company may seek out damages against you. This is usually done with your insurance company and your company will review the facts of the investigation to see if you are liable for any damages. In some cases both parties may pay a share of the damages because the laws can be so different. It’s often difficult to determine who should pay in some cases. An example would be one party paying 60% of a claim and another 40%. In this case both insurance companies may take out subrogation claims against each other so both parties’ claims are paid for. You may be required to participate and cooperate in the claims processes this will make things run smoothly. You may be required to show facts or evidence which can help with the entire process.

The Insurance Company

During the subrogation process the insurance company may:

  • Work to produce valid subrogation claims so that money owed is given to the correct parties
  • Keep you informed about the entire process and let you know about significant developments in the claim
  • Try to produce quick reimbursements
  • Ask you questions to clarify things

There are many circumstances that come into play when subrogation is involved and it’s often not a simple process. It can become complicated and the amount of money can vary a great deal. The laws of various states can complicate the whole process even further. The amount of money claimed, the amount recovered and state laws can all come into play when it comes to the subrogation process. Your insurance company can help you understand more about subrogation and how it impacts you. The entire process may go smoothly or it may not it all depends upon the circumstances.

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