Dear All,
Taking a moment here for all those who were killed in the recent terrorist attacks and praying for peace to their souls.
It’s ironic how the world has not recognized the threat to terrorism our markets just flickered to that event.
"The tragedy in Mumbai is certainly a devastating blow to the exceptional characteristic of the Indian economy, but I am hopeful that it will not derail the improved macro performance." These are the words of Stephen Roach, the Chairman of Morgan Stanley’s Asian operations spoken in an interview with DNA Money.
It’s unfortunate though that most of us feel “It Can Never Happen to Me” we see it in all walks of life whether profit booking in Stock markets or it is crossing the road somehow we manage to convince ourselves “It Can Never Happen to Me”
Now, I am sure if we look around us some one’s cousin just escaped the ordeal, some one’s brother was in that area and condolences for those who have lost their dear ones. “This too shall pass” and soon RED FM will play regular songs, Candle marches will stop, people will move along.
As citizens of a country we should show our power by voting, as individuals for our dear ones it’s our duty to see that our risks are covered and our responsibilities are completed by us when we are alive. There is a learning from the corporate world we can take TATA’s have not only insured the Taj but they have also insured against losses. So if there is a loss to TAJ it will be borne by the insurance company.
“Some good news for the Taj Mahal Hotel (IHCL) and Oberoi Hotel (EIH) in Mumbai after the recent terror attacks. Insurers have finally decided to cover all the losses, irrespective of whether they were caused by the attackers or by the security agencies that battled them. Under terrorism insurance rules, insurers do not have to pay for the material damage caused by security forces, but only for that caused by terrorists. However in this case, the insurance companies have decided to pay all the losses because it was not easy to separate damage caused by the terrorists and the security forces. While Tata AIG is the main insurer for Taj, Trident is insured by New India Assurance Company. Cover against terrorism is typically offered as an add-on with property insurance that, along with material loss, also covers loss of business till the property is restored. For terrorism cover, Indian companies pay a premium of 22 paise per annum for every Rs 1,000 insured up to Rs 5 bn, 17 paise for every Rs 1,000 insured up to Rs 2 bn and 13 paise for every Rs 1,000 insured above Rs 2 bn. This insurance cover would aid IHCL and EIH in redeveloping their prime property, without further leveraging their balance sheet. It may be noted that the Insurance Regulatory Development Authority (IRDA), the industry regulator, has mandated that all general insurance companies collect premiums from terrorism covers in a common pool. Terrorism-related insurance claims are settled using funds from this common pool, created after the World Trade Center attacks in the US in 2001”
- Get Insurance for all assets:
- Start With life, heath and then wealth [property,car etc.]
- All assets have a nominee. [From Fixed Deposits to Dmat accounts]
- If possible make a will: Legally a nominee is only entitled to collect the money on behalf of the legal heir. So a will removed any ambiguity on which assets should go to whom
We should take efforts and pray that “it “never happens to us, but we should plan as if it will
Also See:
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