The Rights That Go With Real Property

The rights that go with real property can be summed up by the term appurtenances. When real property is sold, appurtenant rights are ordinarily sold along with it. They can, however, be sold separately, and may be limited by past transactions. In addition to knowing the boundaries of the land and which items are considered part of the real property (fixtures vs. personal property), homeowners and lenders also need to understand which rights are being transferred along with that parcel of real estate.

Fee simple ownership includes such other appurtenances as access rights, surface rights, subsurface rights, mineral rights, some water rights, and limited air rights. One way to understand the rights that accompany real property is to imagine the property as an inverted pyramid, with its tip at the center of the earth and its base extending out into the sky. An owner has rights to the surface of the land within the property’s boundaries, plus everything under or over the surface within the pyramid. This includes oil and mineral rights below the surface, and certain water and air rights. Air rights are sometime regulated by each state allowing for air traffic and water rights can differ from state to state.

It is possible, though, for the owner to transfer only some of the rights of ownership to another person. For example, a property owner may sell the mineral rights to a piece of property, but keep ownership of the farm. Later, when the land is sold, the mineral rights will most likely stay with the mining company (depending upon the wording of the contract involved) even though the rest of the bundle of rights in the land is transferred to the new owner. The new owner is limited by the past transaction of the previous owner, and may not sell these mineral rights to another party, nor transfer them in a future sale of the land.

A lender must know if the entire bundle of rights is being transferred (fee simple) or if there are restrictions or past transactions that may limit the current transfer of ownership in any way. This is important because it may have a great effect on the value of the real property. Transfer of access rights for a sidewalk to be placed across the front of a subdivision lot generally would not have a significant impact on the value of a piece of land. Transfer of mineral rights to a mining company, as in the previous example, likely would impact the value.

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Rental Property – The Responsibilities of the Renter and the Owner

When you rent someone’s property, it’s good to know how what your responsibilities are in order not to have inconvenient situations. When some people rent someone else’s property they think that they are responsible only for a few little things and the rest of responsibilities should be taken care by a leasing agent. But usually it is vice versa. When someone rents a house or apartment, they are usually obligated to sign a contract where all the responsibilities of leasing agent and renter are fully described. In case if something happens both parties understand what they are responsible for.

Responsibilities Of Renters

Normally, renters bear responsibility for the area that is around their apartment and for the apartment itself. Usually, these are areas inside the apartment as well as their backyard. So this includes common sense responsibilities and rules of maintenance and cleanliness of the area. Such things such as repairing certain parts of the interior or the exterior or painting the walls are the responsibilities of the renter.

But still, this is not it. Renter is responsible for some other things in leasing agent’s house. If something happens with the bathrooms, the renter is also responsible for fixing it if it’s possible. But if such things happen and that renter doesn’t feel comfortable to accomplish this job she might contact the maintenance contractor for proper help.

Renters must know their responsibilities and always show respect to other renters in their area and not cause damage intentionally. Not picking up trash after yourself if you left it somewhere is the same as intentional littering. Renters that don’t follow these rules are fully responsible for their actions and might be forced to pay fines.

Responsibilities Of Leasing Agents

If something happens with that exterior of the building or the equipment is not working properly then it is the responsibility of the leasing agent. Leasing agent is always supposed to take care of his renters and make sure that they are always provided with all the necessary utilities and that everything is working properly in his apartment. For instance, if problems with water occur in the apartment then the leasing agent he supposed to contact maintenance staff.

And also, one more of responsibilities of a leasing agent taking care of public areas. This is usually that surround that area of the apartment, such as grassy parts of the land.

So basically, the leasing agent is always has to take care of his renters and make sure they don’t have any complaints or concerns. If the leasing agent doesn’t pay attention to any complaints that he’s renters might have, this may lead to having problems with clients or with the local housing authority. Again, if the client or the renter is not provided with what he expected and paid for, he will be very disappointed about the maintenance service. In these cases renter might call a maintenance company to resolve the situation and bill the expense to the owner.

So before you rent an apartment to a renter as a leasing agent make sure that both of the above are working fine. A renter faced with this kind of problems, can contact the department of housing and ask them to provide advice what to do in this situation.

In some cases, leasing agents may break their rules of that agreement and disobey points of the contract. The department of housing is usually responsible for enforcement in this kind of situation and if the renters still have complaints, they have the authority to force the owner to provide a remedy.

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The Advantages and Disadvantages of Travelling Alone

One of the main purposes of travel is to gain experiences that allow us to grow and develop as individuals and it is important that people travel the way that bests suits them at a particular time. For example, I like to go on adventure holidays and this invariably includes a small group and expert guide, and I frequently participate in writing retreats around the world with like-minded people. However for me, the real joy of travelling has always been to take off on my own and just ‘see’ what comes along the way. Of course this can sometimes be fraught with frustrations, difficulties and even dangers.

Advantages of travelling alone

  • Freedom
    Most people who travel alone generally cite freedom as the great motivating factor: freedom to please themselves, go where and when they want, change their plans on a whim when they hear about something that is a ‘must’ to see, and to accept spontaneous invitations by locals.
  • No compromises
    This is associated with the previous point. Even if travelling with one other person, be it friend, colleague, lover or spouse, there will always be some compromises required. Not everyone has the same interests or the same energy levels, some people need to be emotionally supported all the time, others are apathetic, some have different attitudes to time. With solo travel, there is no peer pressure over finances, the unspoken need to divide up restaurant bills equally, or guilt trips when you want to go off on your own for a while.
  • Meeting people
    Travelling solo does not mean that you will always be alone. In fact, it allows you to meet more people because other tourists and locals find an individual traveller more approachable than those in a tightly-knit group. Also, people in groups have very little need to reach out to others for communication. I have met more people, had more interesting conversations and invitations and made more long-term friends while eating alone in foreign restaurants or sitting alone at bars. But then I am gregarious. Travelling alone allows you to choose the people you wish to spend time with rather than having to face the day-after-day annoyances of the inevitable clowns and whingers found in any large group.
  • Discoveries
    There is a real sense of discovery involved in travelling on your own, and that includes self-discovery. You don’t have to rely on an often ill-informed guide to lead you around on a leash, and there’s the surprise and thrill when you find something you weren’t expecting, like the time I became lost and ended up in a small Bavarian village with a monastery that contained a library with tens of thousands of Medieval manuscripts. Travelling alone allows you to discover more about yourself as you overcome simple challenges such as missing a bus or boat and realizing there is no other for a day or a week. Then there is the sense of achievement when solving much more challenging problems like finding yourself lost in a strange town at midnight or running out of money on a holiday weekend with no ATM in sight and the banks closed.

Disadvantages of travelling alone

  • The single supplement
    For those who like to stay in decent hotels, there is the unfair single supplement that can add thousands to the cost of your trip.
  • Lack of help
    There is no one to watch your luggage while you go to the restrooms at airports or train stations, no one to help with persistent touts, no one to be there for you if you get sick or if you are being stalked or harassed by a determined male in the street.
  • Photos
    There are times when I would like to have had more taken of myself in certain places, but there again, there are always people willing to snap one or two for you.

I know there will be times in the future when I will travel as part of a group out of choice because I want to visit areas where it is just not possible or sensible for a woman alone, or because I wish to be with family or like-minded people. However, due to my particular personality traits, my preference is to travel alone. I guess it really doesn’t matter how people travel, but that they travel.

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Understanding the Extrajudicial Settlement of Estate in the Philippines

Not a lot of people know what an extrajudicial settlement of the estate is. Well, not unless they have experienced losing a member of the family and dividing his remaining properties.

Extrajudicial settlement of the estate simply means drafting a contract where the properties are divided among the heirs, as the latter may see fit. Enumerated in the contract are the properties left by the deceased, collectively called the “estate”. The properties may range from real properties such as parcels of land, buildings, or personal properties such as money left in the bank, cars, jewelry, furniture and even shares in a corporation.

It should be well-noted that an extrajudicial settlement by agreement is only possible if there is no will left by the deceased. Even if there is a will but the will does not include all of the decedent’s estate, then those not covered can by extrajudicially partitioned by agreement.

Moreover, extrajudicial settlement is not possible if the heirs cannot agree on how the properties will be divided. In that case, they can file and ordinary action for partition.

Publication requirement

After the settlement agreement is signed, the heirs should cause the publication of the agreement in a newspaper of general circulation to ensure that interested parties, if there are any, such as creditors and unknown heirs, will be given due notice.

Payment of Estate tax

After the publication, transfer of title may follow. Upon the transfer of the estate, the Estate Tax must be paid in accordance with Section 84 of the National Internal Revenue Code of the Philippines.

Estate tax is defined as a tax on the right of the deceased person to transmit his estate to his lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is a form of transfer tax, not a property tax. More particularly, it is a tax on the privilege of transferring the property of the decedent to the heirs.

The Estate Tax Return must be filed within six (6) months from the decedent’s death. The deadline may be extended by the Commissioner of the BIR, in meritorious cases, not exceeding thirty (30) days.

It is interesting to note that the estate itself will have its own Tax Identification Number (TIN). The BIR treats the estate as a juridical person.

The Estate Tax Return is filed with Revenue District Office (RDO) having jurisdiction over the place of residence of the decedent at the time of his death.

If the decedent has no legal residence in the Philippines, then the return can be filed with:

1. The Office of the Revenue District Officer, Revenue District Office No. 39, South Quezon City; or

2. The Philippine Embassy or Consulate in the country where decedent is residing at the time of his death.

For estate taxes, the BIR imposes the pay-to-file system which means that you have to pay the estate tax at the same time the return is filed.

In cases involving a huge estate where the tax imposed can get too high, or in cases where the decedent left properties which are difficult to liquidate and they do not have the cash to pay the taxes, the BIR Commissioner can extend the time of payment but the extension cannot be over two (2) years if the estate is settled extrajudicially. If an extension is granted, the BIR Commissioner may require a bond in such amount, not exceeding double the amount of tax, as it deems necessary.

The estate tax is based on the value of the net estate as follows:

1. If not over P200,000, it is exempt

2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P200,000

3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of the excess over P500,000

4. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% of the excess over P2,000,000

5. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% of the excess over P5,000,000

6. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,000,000

In computing the net estate, allowable deductions shall always be considered. These deductions include funeral expenses, share of the surviving spouse, medical expenses incurred by the decedent within one (1) year prior to his death, family home deduction of not more than P1,000,000.00, standard deduction of P1,000,000.00, among others. It is best to consult a lawyer or an accountant to determine to ensure that the heirs can properly indicate the deductions and exemptions and thereby determine the accurate net estate of the decedent.

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Geode Crystals & Astral Travel

Astral travel can be enhanced by working with crystals and their vibrational field levels during your session. But where do you start and how to help? There are many different suggestions for this, as well as different ones will resonate within different people and their energy fields.

A good place to start is by working with the crystals you enjoy the most. If you are not sure where to start, go with your intuition and follow your gut instincts as they will not steer you wrong.

A wonderful way to work with them in astral travel and meditation sessions are in geode form. The best ones I have come across that have the highest energy vibrational level are clear quartz, amethyst, citrine and calcite. It is best to work with just one type of crystal within the geode, but you can combine them in your circles if you wish. The energy field will be a combination of the different types and will have them make a weaving type of pattern within the energy field. This is a very unique type of field to work within, but may not always be the best, as opposed to a single type of stronger vibrational field you would receive with just one type of geode.

During your astral travel session, surround yourself with as many geodes as possible, in a circle, or alternating the type of crystal found within. The more the better, and even if they are small, the geodes still put out a lot of vibrational fields for you to work within!

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How to Inventory and Assign Value to Estate Personal Property

There is an old saying that goes: What is the best way to eat an elephant? One bite at a time!

Personal property is the elephant of an estate. It is the responsibility that can take up most of your time, and it provides the estate with the least amount of money for the effort involved. But, dealing with the personal property cannot be avoided. The property must be inventoried, valued, distributed, or sold. Let us start our analysis by looking at what property we have (inventory); then we will determine what it is worth (valuation). In a future post, we will determine what to do with it (distribution/sale).

When you go to the courthouse, the clerk will provide you with the form you will need to fill out for the inventory. The form will ask you to provide general categories and a value for each category you have listed. For example, you would list: furniture, $1500; office equipment, $300, etc.. You will not have to list the items separately, such as sofa, $100; chair, $5; typewriter, $25. I suggest that you do keep a list of the individual items, though. Although you will not have to go into a lot of detail for the court, you will likely want a more detailed inventory for yourself. You will want this for two reasons: to track the sale of estate property, and to protect yourself against claims of heirs and/or creditors.

You do not have to get real fancy with with the inventory; pencil and paper will do. If you are so inclined, there are home inventory record books available at office supply stores, or you can purchase software online. There are also companies that specialize in taking home inventories.

You will need a helper. One person sorts and counts while the other writes. Start inside the house, and work your way from the top of the house to the bottom. Go room to room with a consistent pattern so that you do not miss anything: always clockwise or counter-clockwise around the room. Write down what is on the walls as well, not just what is on the floor. For small goods, write down identifiable groups of items such as 200 hardcover books, 100 paperback books, 42 nick-knacks, etc.. On your list, put a star next to any item that you think may be valuable. If the nick-knacks are porcelain and the books are first editions, they are valuable items. When you are finished, follow the same procedure for the outbuildings: the garage, shed, workshop, or whatever. If there is a rented self-storage unit, vacation home, recreational vehicle or boat, they will need to be inventoried as well.

When you file the inventory at the courthouse, you will need to state a value for the personal property. For run-of-the-mill household items, a good resource for determining the value is the software program It’s Deductible that comes bundled with the income tax program Turbo Tax. It’s Deductible can also be purchased separately. The software lists the thrift shop value for most household items, and it is easy to use.

For the items that you have identified as being valuable, It’s Deductible will not work. There are several ways to determine the value of single items or collections. A good place to start is eBay ( http://www.ebay.com ). To use eBay to help set your values, you will need to be a registered user. Registering for eBay is free; just follow the instructions when you get to the website. Once registered, type in the item you are researching, and eBay will search for the item. When the search results come up, scroll down and look on the left side of the page to where it says Search Options, click on completed listings, then scroll down further and click on Show Items. The search results displayed will be for completed auctions, not for auctions in progress. The prices listed in green are items that actually sold; the prices in red are for items that did not sell. If you find your item listed, and the price is green, you have a good value. Compare the details of the item you found on eBay with the details of the item you have. Use the closest match as your value.

If you are unable to find your item listed on eBay, it is time to go to the library or bookstore. There you will find an assortment of price guides for every sort of antique or collectible. You will also find blue books for automobiles and equipment.

If you have lots of items and no time to research, then it is time to call in an expert. In your local phone book you will find jewelers, antique dealers, auctioneers, appraisers, and other professionals who will tell you what the property is worth. What they will offer you is an opinion of value, not an appraisal. An appraisal is based on actual sales data, not an opinion. I will cover appraisals below; for now, just be aware that there is a difference. For probate valuation purposes, the value placed must be the fair market value at the time of the decedents death. This is the value you should ask your expert to provide.

In my home state of Virginia, individual items or collections that are valued over $500 must have an appraisal. Personal property appraisers are not licensed like real estate appraisers, but the content of their reports is regulated. For a personal property appraisal to be valid and accepted for tax purposes, it must be performed by a qualified expert and follow the federal guidelines of the Uniform Standards of Professional Appraisal Practice. Most real estate appraisers do not appraise personal property. You can find a personal property appraiser online by checking the websites of the Certified Appraisers Guild of America, the National Association of Auctioneers, or the American Society of Appraisers.

Estate Executors will find that the inventory and valuation of estate personal property is their most time-consuming task, but there are resources available to help.

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Best Loans For Single Mothers – Learn How to Get Approved Fast

If you are a single mother, you may be among the many single parents who struggle to make ends meet each and every month. Many single mothers have no credit, slow credit, or even bad credit. Many single mothers are young and have not yet had a chance to establish positive credit history. There are different types of loans that you can qualify for as a single mother regardless of you past credit performance and bad credit history.

Personal Loans For Single Mothers

A bad credit personal loan is a loan that allows you to meet any needs that you might have. Perhaps you need money for major purchases like furniture or a computer. Or maybe you want to take a trip, pay for a class, or even buy a car. You can barrow amounts from $ 5oo up to as much as $ 15, ooo when you are applying for this kind of loan. Your personal loan can be ether secured or unsecured. A secured personal loan requires you to pledge collateral.

An unsecured personal loan does not require you to pledge collateral. However most single mothers do not have adequate collateral to pledge, and their only option is the unsecured version of the personal loan. To improve your chances for getting approved in the amount that you need, you can always ask a creditworthy cosigner to apply alongside you. This person can be a parent or other relative, friend, or anyone who will agree to pay your loan payments should you become unable to do so. Many lenders will allow you cosigner to be released from liability of payment once you have paid a certain number of payments on your loan.

Car Loans For Single Mothers

Single mothers who are in need of a new or used vehicle can qualify in most cases for a car loan. Because a car loan is secured by the car itself (or other vehicle), lenders are more lenient when approving car loan applications. A car loan of this type is usually funded for a period of four to seven years, depending upon the purchase price of the vehicle and whether or not you have a down payment. Having a down payment is the best way to purchase a car because it will make your monthly payments lower and easier to manage. Car loans are usually for $ 20,000 or less.

Cash Advance Loans For Single Mothers

Another option is the cash advance loan. This type of loan requires no credit check, making it the easiest to get loan not only for single mothers but for anyone with insufficient credit history. This loan is made for a short period of time, usually a month or less, and typically around the time of your next pay date. The only requirements to receive a cash advance loan is that you have a checking or savings account and a job that allows you to bring home a weekly, bi-weekly or monthly paycheck. Single mothers who receive benefits from Social Security, SSI, or other programs can also qualify for the cash advance loan. Cash advance loan amounts are available in amounts from $ 350 to $ 1,500, and the amount you can borrow will be based on your income.

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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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Tips On How To Clean Your Dirty And Smellygage

Your luggage travels in different conditions. The rain, the muddy pathways and the dirty pavements can all make your luggage dirty and smelly. If you do not take good care of it, your precious travel bag can wear out faster.

Cleaning your dirty and smelly luggage should not be too daunting. Let me tell you some tried and tested cleaning tips:

1. Vacuum your luggage. Try to get rid of as much dirt and dust from your travel bag as you can. Also vacuum the casters and the interior of the bag. You might want to use a vacuum machine with a good filter to effect suck minute dirt and dust particles.

2. If you are using a canvas luggage, try cleaning it with a mild dish washing liquid. Mix two drops of the dish washing liquid in two cups of warm water. Soak a sponge or a clean towel in the mixture. Wring out the excess. Use this to wipe the interior and the exterior of the machine.

Make sure you remove dirt particles. Also wipe away dirt and crusty mud on the wheels of the luggage.

3. For your leather luggage, try to get rid of the mud using a leather polisher. Apply leather polisher on a clean rag. Wipe it all over the bag.

4. Get a soft bristled brush and use this to remove dirt particles in the zippers, wheels and the handles of the bag. You can try soaking the brush in the dish washing liquid solution first. This will loosen up the crusty mud or dirt.

5. Sprinkle baking soda on the interior and exterior of the luggage. Leave it on for an hour. Baking soda can effectively diffuse unwanted luggage odor. This will also help get rid of lingering stains and dirt.

6. After an hour, vacuum the travel bag again to get rid of the baking soda residues.

7. To deodorize the luggage bag once again, try spraying it with lemon juice solution. Just mix one cup of lemon juice with one cup of water. Place it in a spray bottle. Spray it all over the luggage. This should work in diffusing unwanted bag odor.

8. Let it dry completely. Place the bag in an area not directly exposed to the sun.

If you are traveling during rainy seasons, make sure you use a luggage cover for your bag. These can be purchased from travel bag stores. They can protect your bag from further damage.

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Benefits of International Travel

International travel can be a great experience; it allows you to witness many new cultures and lifestyles. International travel has many benefits which make it better than your traditional domestic vacation. Depending on your destination, traveling abroad can also save you money because of the current exchange rate. These rates change and may not be available in the future. A good exchange rate or activity that you would like to see may not be available if you put off planning the vacation. Another benefit of planning an international trip today is the current technology, which makes booking a trip easy. Technology can help eliminate the hassle of finding the best prices and locations based on your budget.

Traveling, whether for a long weekend away to a nearby country, or clear across the globe, is invigorating, refreshing and expands so much in one’s life that it is something that more people should do. Traveling abroad can greatly change your life for the better because there are many cultures and lifestyles to experience. These cultures can provide you with an entirely new perspective on life. Once you begin experiencing the beauty of the world, you may even begin planning yearly international vacations.

Currency rates fluctuate regularly and, as stated before, this may be a good reason to plan an international vacation today. Money is necessary if you are planning to travel and see the sights the country has to offer. If your currency can be exchanged at a reasonable rate, this can greatly improve your vacation experience. This is an important reason for traveling internationally now since you can get the most out of your trip. If you put the trip off the exchange rate may change for the worse and you can lose money after arriving at your destination.

Practical reasons

However, let us get down to the more practical reasons for traveling internationally. Frankly, it is understandable why most people would be hesitant to travel now. The economy appears to be in bad shape and many people are trying to save money. However, in some instances, this can be beneficial for travel, the airlines may lower their prices in order to get your business and this can save you money. Airline prices also fluctuate between airlines and by looking around you may find a special promotional vacation package that may not be available in the future.

Vacations are meant to be fun and enjoyable and this is another reason for traveling abroad today. There are many locations to visit from the beaches of the Caribbean to the beautiful and exquisite city of Paris, France. Experiencing something new is always the best way to live and an international vacation provides just that. This can spice up your life by allowing you to find things that you would not normally consider trying.

In fact, these days traveling is so much easier, more efficient and less time consuming than it used to be. We can travel across the globe faster and it requires much less energy than was required years ago. It is also possible watch TV, movies or listening to music while traveling. On some airlines, you can even follow the path of your airplane via satellite!

Technology and travel

Due to the technology available, planning a vacation can be stress-free as well. By using the internet to purchase your international flight tickets, you can plan your trip, get travel advice, and shop around for great deals. Technology has come a long way especially for finding the best travel packages. You can book your hotel, car, flight, and even your entertainment all on one website. If you are unsure of your destination, you can browse through the millions of videos and pictures of different locations to find which location best suits you. Planning an international trip can be an enjoyable experience when compared to the hassle involved years ago.

It is highly recommended to travel abroad at least once in your life and there are many benefits to planning your trip now. Saving money is the main reason for planning your trip today. When traveling abroad, you may have to exchange your money for the local currency. Currency exchange rates change frequently and this can have a large impact on your vacation. Since you do not know what the rates are going to be in the future, it is best to plan your trip while a good rate is available. You should also consider planning a trip because of the cultural value. Experiencing new cultures and lifestyles can help provide much value to your life. It may even change your life completely because you may find something new that you like. If you are planning an international trip, you should consider these suggestions because they can help you get the most out of your trip.

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