Insurance In Tort Laws

INTRODUCTION

This project has been an eye opener for me. It is extremely relevant to the modern times and as the future of India we should understand that it is the common mass that runs the country. Consumer protection rights are an important issue in modern days. The law can be effectively used to stop any abuse of the common people especially illiterate masses who do not understand the rules and regulations which is to be followed while buying particular item. It is law, the controller of the entire society which can stop this abuse from taking place. It can place effective standards guiding a product’s genuinity and the proper verification of its price. No extra taxes should be issued according to the seller’s wish. I have proceeded by referring to the books written by Avtar Singh, Venkat Rao and others. It has been a wonderful and educational delight in going about this topic and making a project which is of greatest importance in the present day scenario.

DEFINITION OF CONSUMER

The words “consumer”, “consumed”, “consumption” is all cognate, and when one is defined, the contents of the definition go into all of them wherever they occur in the same act.

Section 2 of the act wherein ‘consumer’ is defined. According to him, the definition of the consumer will not take a client who engaged the advocate for professional services.

Consumer means any person who-

– Buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system or deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly promised or under any system of deferred payment when such use is made with the approval of the person, but does not include a person who obtains such goods for resale or for any commercial purpose

– Hires or avails of any services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for the consideration paid or promised or partly paid or partly promised or under any system of deferred payment when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial support

In Black’s Law Dictionary it is to mean:

One who consumes. Individuals who purchase, use, maintain or dispose of products and services. A member of that broad class of people who are influenced by pricing policies, financing practices, quality of goods and services, credit reporting debt collection and other trade practices for which the state and federal consumer laws are enacted.

OBJECTVES OF THE ACT

The act is dedicated, as its preamble shows, to provide for better protection of rights of consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for settlement of consumer disputes and for other connected matters. In the statement of objects, reasons it is said that and the act seeks to provide speedy and simple redressal to consumer disputes. Quasi judicial body machinery has been set up at the district, state and central levels. These quasi judicial bodies have to observe the principle of natural justice and have been empowered to give relief to a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for non compliance of orders given by quasi judicial bodies have also been provided.

The object and purpose of rendering the act is to render simple, inexpensive and speedy remedy to consumers with complaints against defective goods and deficient services and for that quasi judicial machinery has been sought to be set up at the district, state and national levels. These quasi judicial bodies are required to apply the principle of natural justice and have been empowered to give relief of specific nature and appoint wherever necessary, compensation to consumers.

INSURANCE

An operational definition of insurance is that it is

– the benefit provided by a particular kind of indemnity contract, called an insurance policy;

– that is issued by one of several kinds of legal entities (stock company, mutual company, reciprocal, or Lloyd’s syndicate, for example), any of which may be called an insurer;

– in which the insurer promises to pay on behalf of or to indemnify another party, called a policyholder or insured;

– That protects the insured against loss caused by those perils subject to the indemnity in exchange for consideration known as an insurance premium.

The influence of insurance on the law of torts has been significant, both on theoretical level and on practice. Insurance has undermined one of the two main functions of awarding of damages, and it has in cast doubt on the value judgements made by the courts in determining which particular test of liability is appropriate in the given circumstances.

Regardless of whether in the particular circumstances the appropriate principle of liability is intention is malice, fault or strict liability, the purpose of common law damages remains the same. The primary purpose of an award of damages is to compensate the victim for his loss, with view to restoring him as near as possible to the position he would have been in but for the tort of the wrongdoer. But damages have another: by making the wrongdoer responsible for meeting an award of damages, the courts are trying to deter others from committing similar tortuous wrongs.

Insurance vitiates the secondary purpose of damages, at the same time incidentally ensuring that the primary purpose is more often achieved.

It can scarcely be realistically asserted that insured defendants are deterred by the prospect of losing no-claims bonus or by increasing of premium on renewal of their policies. Once it is conceded that insurance renders compensation for the sole purpose of damages but then the tort action itself becomes vulnerable to attack, for there are many ways-some perhaps fairer and administratively cheaper than tort- of compensating a victim for a loss he has suffered.

Prima facie, where a person suffers loss of recognized kind as the result of another’s act, then the latter should have to make good that loss. But for valid reasons, the courts have held that, in certain circumstances, the actor will have to compensate his victim only if he is at fault. The victim’s right to compensation is, therefore curtailed in an attempt to be fair to both the parties. The courts have made a policy decision that, in the circumstances, it is right to reward a defendant who has been careful by protecting him from liability for the consequences of his actions and that, as a corollary the plaintiff must forego his compensation. The policy decision is made on the supposition that the wrongdoer would himself have to pay for the damages but for this protection; it by no means follows that the same decision would be made if there were no risk of the wrongdoer having to provide the compensation.

It is difficult to judge the victim’s right to compensation should be curtailed when that curtailment is not justified by a corresponding benefit to the wrongdoer. The requirement of fault ceases to play its role as the leveler between the victim’s legitimate expectations and the wrongdoer’s legitimate expectations, and becomes simply a hurdle to the victim’s progress to compensation. If it is accepted that no one can insure against liability for harm caused by intentionally to another , then similar arguments can be made by the inappropriateness of the victim’s having, in certain circumstances to prove an intention to do him wrong or harm, when it is irrelevant to the wrongdoer whether he had such an intention or not.

Again the victim’s right to compensation is being curtailed without any corresponding benefit to the wrongdoer.

However, insurance has influenced the law of tort on a much more practical level as well. While the fact of insurance is not of itself a reason for imposing liability , there can be no doubt that it does add “a little extra tensile strength” to the chain which a wrongdoer to his responsibilities.

As well it has given new horizon to damages ; it is true that traditionally it was considered to inform the court that a defendant was insured , but “those days are long past” and now it is frequently openly recognized that the defendant would be insured.

The policy of insurance constitutes a contract of insurance between Life Insurance Corporation or a subsidiary of General Insurance Company of India, as the case may be, such services such has been undertaken to render under the contract of insurance. However as a rule, occasion to render services arise only when insured surrenders his policy, or the policy matures for payment or the insured dies or any other contingency which gives rise to render service occurs.

Breach of contract of insurance may give rise to a cause of action to file a civil suit, but such breach of contract may itself constitute deficiency in service, so as to give a cause of action to file a complaint under the consumer protection act for one such more relieves awardable hereunder.

Section 13(4) of the act vests in a redressal agency powers of the Civil Court, while trying a suit in respect of such matters as examination of witnesses on oath and production of documents. Declining to exercise jurisdiction in a case before it only because it involves examination and cross examination of facts, witnesses and production and consideration of documents would amount to abdication of its jurisdiction.

Such discretion can be exercised only when the gives rise to several issues and necessities taking of voluminous oral and documentary evidence, or otherwise involve complex questions of fact and law which cannot be decided in time bound proceedings under the consumer protection act.

MOTOR VEHICLE INSURANCE

Where the sale of a vehicle is complete, the title therein passes to the purchaser notwithstanding that his name has not been recorded in the R.C.Book. Such owner is entitled to get his vehicle insured and also to maintain a claim on the basis of such insurance. The earlier owner, who has lost insurable insurance on the sold vehicle, cannot advance a claim on the basis of policy of the said vehicle, earlier taken by him, on the ground that he is still the recorded owner of the said vehicle.

Section 157 of the motor vehicles act is only in respect of third party risks and provides that the certificate of insurance described therein shall be deemed to have been transferred in favour of the person to whom the motor vehicle is being transferred. It does not apply to other risks, if any, covered by the policy. If the transferee wants to avail the benefits of other risks covered by it, he has to enter into an agreement thereof with the investor.

FRAUD BY INSURER

If it is established that the discharge voucher was obtained by fraud, misrepresentation, undue influence or coercive bargaining or compelled by circumstances, the authority of the consumer forum may be justified in granting relief. Mere execution of the discharge voucher would not deprive the consumer of his claim in deficiency of service.

DELAY IN SETTLEMENT OF CLAIM

In Sarveshwar Rao v. National Insurance Company Ltd. , it was held that the delay of two or more years in settling the insurance claim would result in inadequacy in the quality, nature and manner of the service which the insurance company has undertaken to render, and amounts to deficiency in service.

In Delkon India Pvt. Ltd. V. The Oriental Insurance Company Ltd. . The National Commission has held that it was a deficiency of service to have delayed the claim by two years on the ground that the final police report was not coming.

INTERPRETATION OF TERMS

In Skandia Insurance Company v. Kokilaben Chandravadan , the honorable Supreme Court ruled that the exclusion terms of the insurance must be read with so as to serve the main purpose of the policy, which is to indemnify the damages caused to the vehicle.

CONDUCT OF THE INSURER

In Oriental Insurance Co. Ltd. V. Mayur Restaurant and bar , the conduct of the insurer was under question. The commission held that deficiency of the service was established on the part of the opposite party on two counts i)delay in settlement of claims and ii) unreasonable and un maintainable reasons for repudiating the claim of the complainant, and the compensation with the interest and cost was awarded.

SUICIDE BY THE ASSURED

In Life Insurance Corporation v Dharma Vir Anand, the national commission refused to hold the insurance commission liable as the insured committed suicide before the expiry of three years from the date of the policy.

BREACH OF TERMS

In B.V.Nagarjuna v Oriental Insurance Company Ltd., the terms of insurance contract permitted the insured vehicle to carry six passengers at a time but the driver allowed two more persons to get in. It was held that merely adding two more persons without the knowledge of the driver did not amount to indemnification by the insurance company.

NOMINEE’S RIGHTS

In Jagdish Prakash Dagar v. Life Insurance Corporation , it was held that a nominee under a policy of life insurance will be a consumer within the meaning of section 2(1) (d) of the Consumer Protection Act. The commission held that the nominee could legislatively maintain an action against deficiency raised in service by the arbitrary decision of the insurer.

REPUDIATION

Repudiation is defined as the renunciation of a contract (which holds a repudiator liable to be sued for breach of contract, and entitles the repudiatee on accepting the repudiation to treat the contract as at an end

This concept of repudiation is needed in the concept of insurance. The concept of repudiation will be dealt hereto a number of times and to provide beneficiary evidence, the definition has been given.

Unilateral repudiation of its liability, under the contact of by the life insurance corporation or an insurance company does not, by itself oust the jurisdiction of a redressal agency, to go into the sustainability of such repudiation, on facts and in law and to decide and to adjudicate if, in the facts of the case, it amounts to deficiency in service or unfair trade practice, and if so, to award to the aggrieved person, such relief or reliefs under Section 14(1) of the said Act as he or she is entitled to. The fact that before such repudiation it obtained a report from a surveyor or surveyors also does not oust the jurisdiction of a redressal agents to into the merits of such repudiation, for otherwise in each case the corporation or such company, and deprived the aggrieved person of the cheap and expeditious remedy under the consumer protection act.

Where, however the corporation or the company conducts thorough investigations into the facts which have given rise to claim and other associated facts, and repudiates the claims in good faith after exercise with due care and proper application of mind, the redressal agency should decline to go into the merits of such repudiation and leave the aggrieved person to resort to the regular remedy of a suit in a civil court.

The law does not require the life insurance corporation or an insurance company to accept every claim good or bad, true or false, but it does require the corporation or the company to make a thorough investigation into such claim and to take decisions on it, in good faith, after exercise of due care and proper application of mind and where it does so it renders the service required by it and cannot be charged with deficiencies in service, even if, in the ultimate analysis, such decisions is wrong on the facts and in law and the redressal agency would be disinclined to substitute its own judgement in the place of the judgement of the corporation or insurance company.

The question as to whether repudiation of its liability does or does not amount to deficiency in service would depend upon the facts of each case.

Where a cheque sent towards a premium is dishonoured by the drawee bank and consequently the policy is cancelled or it lapses or the injured dies before the proposal is accepted and contract of insurance results, no claim can be founded in such a policy, which was cancelled or has since lapsed, or a contract of insurance, which did not materialize at all. Repudiation of such claim can never amount to deficiency in service.

Insurance agent is not entitled to collect premium on behalf of the corporation. Where an insured issues a bearer cheque towards premium and hands it over the insurance agent who encashes it, but does not deposit the premium with the corporation event till the expiry of the grace period and consequently the policy lapses and meanwhile the insured also dies, his nominee has to blame himself or herself for the indiscretion of the insured and cannot blame or fault the corporation.

BASIC PRINCIPLES OF INSURANCE

There are some basic principles concerning the topic of Consumer Protection Law and Insurance.

– Settlement of insurance claim is service, default or negligence therein is deficiency of that service

In the case of Shri Umedilal Agarwal v. United India Assurance Co. Ltd, the National Commission observed as under:

“We find no merit in the contention put forward by the insurance company that a complaint relating to the failure on the part of the insurer to the settle the claim of the insured within a reasonable time and the prayer for the grant of compensation in respect of such delay will not within the jurisdiction of the redressal forums constituted under the consumer protection act.

The provision of facilities in connection with insurance has been specifically included within the scope of the expression “service” by the definition of the said word contained in section 2(i) (o) of the act. Our attention was invited by Mr. Malhotra, learned counsel for the insurance company to the decision of the Queen’s Bench in national transit co. ltd. V. customs and central excise commissioners . The observations contained in the said judgement relating to the scope of the expression insurance occurring in the schedule of the enactment referred to therein are of no assistance to all of us in this case because the context in which that expression is used in the English enactment considered in that case is completely different. Having regard to the philosophy of the consumer protection act and its avowed object of providing cheap and speedy redressal to customers affected by the failure on the part of persons providing service for a consideration, we do not find it possible to hold that the settlement of insurance claims will not be covered by the expression insurance occurring in section 2(1)(d).Whenever there is a fault of negligence that will constitute a deficiency in the service on the part of the insurance company and it will perfectly open to the concerned aggrieved customer to approach the Redressal Forums under the act seeking appropriate relief.”

– L.I.C. Agent has no authority in collecting the premium

The supreme court held that under regulation 8(4) of life insurance corporation of India (agents) regulation, 1972 which had acquired the status of life insurance corporation agents rules with effect from January 31, 1981, which were also published in the gazette, LIC agents were specifically prohibited from collecting premium on behalf of LIC and that in view thereof an inference of implied authority cannot also be raised.

– Rejection of claim as false after full investigation

The national commission held as follows:

” from the facts disclosed by the record and particularly averments contained in the consumer affidavit filed by the first respondent it is seen that the insurance company had fully investigated into the claims put forward by the complainant that his claim was rejected. Thus it is not a case where the insurance company did not take a prompt and immediate option for deciding the claims against the insurance company. Having regards to the facts and circumstances of this case and the nature of the controversy between the parties we consider that this is a matter that should be adjudicated before a civil court where the complainant as well as the respondent will have ample opportunities to examine witnesses at length, take out the commission for local inspections etc. and have an elaborate trial of the case.”

– Unilateral reduction in the insurance amount.

The national commission held that the insurance company is not entitled to make a unilateral reduction of Rs. 4, 29,771 from Rs. 30, 12,549 at which its own surveyor assessed the loss.

– Mere repudiation does not render the complaint not maintainable.

The national commission overruled the objection of the insurance company that merely because the insurer had totally repudiated its liability in respect of the claim, no proceedings could validly be initiated by the insured under the consumer protection act.

– Mere unilateral repudiation does not oust the jurisdiction.

The national commission held that merely because the insurer has repudiated the insurance claim under the policy unilaterally, it is difficult to hold that the various redressal forums constituted under the consumer protection act, 1986 will have no jurisdiction to deal with the matter that if such a contention of the insurance company can get a report from the surveyors, repudiate the claim and oust the jurisdiction of the redressal forums, that the redressal forums are, therefore, bound to see whether or not the repudiation was made in good faith on valid and justifiable grounds that if the surveyor or surveyors choose to submit the wrong report and the insurance company repudiates the claims without applying its mind then the repudiation cannot be said to be justified that the report of the surveyor will show that the investigations have been proper, fair and thorough and that it has to be remembered that the surveyors bread comes from the employer.

– Mere unilateral repudiation no ground to oust jurisdiction.

The national commission repelled the objection and observed as under:

“Ordinarily a remedy is available to a consumer in Civil Court but mere repudiation of claim arising out of policy of insurance under section 45 of the insurance act, 1938, cannot take away the jurisdiction of the redressal forum constituted under the act. The avowed object of the act is to provide cheap, speedy and efficacious remedy to the consumers and it is with this object that section 3 of the act lies down as follows:

3. Act not in derogation of the provisions of any other law: – the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.”

The national commission overruled the objection in the view of repudiation of contract of insurance by the corporation; the redressal agencies under the act cannot entertain the claim of the insured and reiterated the law laid down by it in the Divisional Manager, Life insurance Corporation of India, Andhra Pradesh v. Shri Bhavnam Srinivas Reddy.

– Removal of insured goods on attachment no theft.

It was ruled in the stated case that attachment of certain items of insured Machinery and goods by the bailiff of a civil court, though later found to be illegal and consequent removal did not amount to theft and or house breaking by force so as to entitle the insured to prefer a claim under the policy.

– When repudiation amounts to deficiency and when it does not?

The national has held:

In M/s Rajdeep Leasing and Finance and others v. New India Assurance Company Limited and others –

That rejection of the claim by the insurance company after examining and considering the two separate survey reports from qualified surveyors and three legal opinions from different oriental counsels could not be said to constitute a deficiency in service so as to give a rise in the cause of action for a complaint under the consumer protection act.

In Oriental Insurance Co. Ltd. V Modern Industries Ltd. , the national commission has held that where the cover note inter alia mentions that the risk is subject to the usual terms and conditions of the standard policy, it is equally the responsibility of the complainant to call for these terms and conditions even if they are not sent by the insurance company, as alleged, to understand the extent of risk covered under the policy and associated aspects.

In Life Insurance Corporation of India v. Dr. Sampooran Singh

The complainant had taken out an insurance policy of 40,000 rupees in 1982, for the purpose of payment of estate duty on his only residential house in chandigarh in the event of his death and paid 5 premia, but with the abolition of estate duty on one residential house owner in 1985, the policy became inoperative due to the act of the state and not due to any deficiency on the part of the corporation any dispute between the parties as to the amount payable there under cannot be construed as deficiency in service on part of the corporation.

In LIC of India v M/s Kanchan Murlidhar Akkalwar

The complainant applied to the opposite party for housing loan, and on the advice of the latter, she took two LIC policies, one for Rs. 90000 and the other for Rs. 20000 entered into an agreement for the purchase of the house with the house with the owner on the advice of the opposite party obtained a fire policy for Rs. 2 lakhs. The opposite party advised the complainant to obtain a release deed from the zilla parishad co operative society in respect of the she proposed to purchase with a certificate that the said plot is not mortgaged therein. The complainant got a certificate from the Maharashtra government that the vendor had re paid the housing loan and interest thereon due to Zilla Parishad Krishi Karmachari Sehakari Gribe Narman Sanstha and that there was nothing outstanding from him towards loan amount or interest. Still the opposite party did not release the loan. On these facts the national commission by its majority judgement observed that:

“We have carefully gone through the records and heard the counsel. Clause 1 (c) of the loan offer letter clearly states that the advance of the loan is subject to the property being free from encumbrances to the satisfaction of the insurance company and a good and marketable title. At the same time it appears that the respondent-complainant had to go through a number of steps, although necessary, having financial implications and causing mental and physical stress to her and at the end of all of which she was told that no dues certificate given by the maharashtra government in respect of the prospective seller of the property in question, was not “release of mortgage” certificate that was obtained. The respondent complainant perhaps also had in her mind the case of Mr. Vaishempayam who got the loan under similar circumstances. Thus the evasion petition is disposed of as above.”

CONCLUSION

This project topic is increasingly beneficial in the modern times with the consumer protection rights being redressed with due care. It is being advertised in the mass media in our country. The slogan which our consumer is using is: “JAGO GRAHAK JAGO”. The time has come to realize the ideal market situation in which the buyers are not persuaded or coerced falsely into buying items which are of no use to them at all. Besides the relationship between buyer and seller should not be damaged at any cost. The relationship between the buyer and seller is said to be a fiduciary relationship and the trust between them should remain intact. A time has come in which the customer should get his proper position in the market conditions. He has to have proper knowledge about what is going on in the market and the concerned prices and the supply and the different other practices referred to.

Insurance is a very sensitive issue in the modern times. People are being hoodwinked into signing up in companies which are turning out to be frauds in the true sense of the term. This project has been an eye opener to me and I have come to realize the importance of the consumer protection act and insurance.

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5 Fundamental Principles of Insurance

Insurance is a contract, a risk transfer mechanism whereby a company (Underwriter) promised to compensate or indemnify another party (Policyholder) upon the payment of reasonable premium to the insurance company to cover the subject-matter of insurance. If you are well conversant with these principles, you will be in a better position in negotiating you insurance needs.

1. Insurable interest. This is the financial or monetary interest that the owner or possessor of property has in the subject-matter of insurance. The mere fact that it might be detrimental to him should a loss occurred because of his financial stake in that assets gives him the ability to insure the property. Castellin Vs Preston 1886.

2. Umberima fadei. It means utmost good faith, this principle stated that the parties to insurance contract must disclose accurately and fully all the facts material to the risk being proposed. That is to say that the insured must make known to the insurer all facts regarding the risk to be insured (Looker Vs Law Union and Rock 1928). Likewise, the underwriter must highlight and explain the terms, conditions and exceptions of the insurance policy. And the policy must be void of ‘small prints’.

3. Indemnity. It stated that following a loss, the insurer should ensure that they placed the insured in the exact financial position he enjoyed prior to the loss (Leppard Vs Excess 1930).

4. Contribution. In a situation where two or more insurers is covering a particular risk, if a loss occurred, the insurers must contribute towards the settlement of the claim in accordance with their rateable proportion.

5. Subrogation. It has often been said that contribution and subrogation are corollary of indemnity, which means that these two principles operates so that indemnity does not fail. Subrogation operates mainly on motor insurance. When an accident occurred involving two or more vehicles, there must be tortfeasor(s) who is responsible for accident. On this basis, the insurer covering the policyholder who was not at fault can recover their outlay from the underwriter of the policyholder who is responsible for the incidence.

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Understand the Pros and Cons of Saving Money in Piggy Banks

It is always a great idea to put some money away for a rainy day or for a future purchase. But where you put it is a personal choice depending on what your considerations are. Do you have security in mind? Or is it convenience? Whatever they may be, you might have thought of getting a piggy bank in which to store some extra money. It may help you if you understand what using one of these entries. There are obvious advantages as well as disadvantages that come with piggy banks.

Advantages

We all have spare change left over from grocery shopping and other small purchases, and sometimes we just put it all over the house because we do not have a central place to deposit it. A coin bank will enable you to keep track of the small amounts of money that might otherwise simply lie around or get lost. It can also be a great way to actually save toward a small purchase such as something you saw on sale at the shop down the road. Small, regular deposits into the piggy bank will accumulate enough to reach the desired amount. There are some large piggy banks that are convenient for growing a decent saving, so that might be of interest to you.

Most piggy or coin banks by their very design are pleasing to look at. That means that besides using them to put away some money, you can also use them as decorative pieces in the house. The piggy bank may not needlessly come in the design of a pig, but some are modeled after other animals or objects. So you could choose to become a collector of them and make them serve the double duty of storing your money and brightening up your house.

Disadvantages

When you are saving money, it is usually for a particular reason. Therefore, it is in your interest to ensure that it accumulates enough to achieve your goal. For instance, if you are saving to treat yourself to a night out on the weekend, it is possible to get temped during the week to use the money for something else because it is readily available. It requires that you exercise self control and discipline to not raid the piggy bank at will just because it is convenient.

There are really no disadvantages of keeping money in a piggy bank except that you may get tempted to withdraw some amount when you need it. But it is really not such a bad idea to withdraw money when you need it. The piggy banks serve as your instant back-up plan. You have to go to a bank and withdrawal money and that involves time and energy. On the other hand withdrawal from a piggy bank home is very easy.

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How to Do a Sales Pitch in Commercial Real Estate

In commercial real estate, you will undertake a variety of presentations, in a variety of circumstances. Most of them are business-like in nature, focusing on the needs of the tenant, the property buyer, or the property seller.

Get to the core issues

Each of these groups has unique property requirements and points of focus. It is their needs which must be identified and clearly addressed in the sales pitch or presentation. Many successful commercial real estate agents will have a preliminary meeting with the client or customer so that they can identify key issues and concerns. This allows the commercial agent to return to the client or customer in a few days with a well structured proposal that addresses the needs of the customer or client.

It’s all about THEM, not YOU!

When you design an investment or commercial property proposal for presentation, the document should be 90% regards the property and the client. Frequently you see this rule disregarded or broken with the proposal document being largely regards the agency and the personnel.

Rarely is the property transaction a simple matter of the property rental, the property price, or the physical elements of the property. In most situations, it is the combination of these things which must satisfy a fundamental equation of need that the customer or client has. In getting them to this fundamental need, you will identify an element of pain that the customer or client is experiencing. This is what you focus on.

They are Experienced

It is interesting to note that many clients and customers in commercial real estate are reasonably comfortable in circumstances of business negotiation. This means they may not tell you the total big picture or all the elements of a transaction until they are ready. Conversation and connection in the presentation process should be biased towards the client or customer using well selected questions which allow the agent to interpret the body language coming from the client’s response.

When you believe you have identified the element of clients pain related to the property transaction, you start to magnify the problem in terms of today’s market, then offering stable and logical solutions that your real estate agency business can provide to the client or customer. Invariably, the commercial real estate transaction in today’s market centres on financial matters such as:

  • High vacancy factors
  • Other property choices and chances are available
  • Underperforming leases
  • Unstable cash flow
  • Unstable tenancy mix
  • Tenanted conflict
  • Escalating building operating costs
  • A shift in demographics which exposes the property to a unstable future
  • Mortgage payment pressures
  • Age of the asset
  • Needs for refurbishment or extension
  • Competition properties attracting tenants away from the subject property

This type of information and interpretation requires your intimate knowledge of the local region. This is by both property type and by location. This is the higher value that you bring to the customer or client. Being able to distinctly define local market awareness is a major advantage in any commercial real estate presentation or sales pitch. You must be seen as the best knowledgeable solution to the problem.

From Experience

After many years working exclusively in the commercial real estate industry, I found that my unique skill was in market knowledge and the display of that in any formal presentation to the client. Being able to talk about market trends and financial performance in a solid and sound way will help the client understand that they need your services. Coupling that with your extensive and relevant database of enquiry clearly shows the client that they need you.

A fantastic commercial real estate presentation is a function and balance of lots of things. Things like:

  1. A well established pre-planning process is a strategic advantage for every commercial real estate presentation. Strategy is everything in commercial real estate. Every property presentation requires planning.
  2. Making sure you are asking the right questions of the client or prospect. Plan your questions relative to the subject property so that you help the client think about opportunity and changes that are possible.
  3. Using your market knowledge and giving good answers. Have a variety of market facts and trends available to call on. Feed them into your presentation; facts are always useful. They can also be used as a channel to direct the discussion when the client is forcing you to justify your approach or your experience. Confidence and control must be the basic rule of your property presentation. When the client takes control of the presentation you have lost.
  4. Using your experience in the marketplace so that you are telling relevant stories of success in similar properties. Stories of other properties will always interest of the client.
  5. Making sure your personal presentation is optimised for the connection in the presentation. It can be that you are using a combination of the proposal document, the marketing document, and computer slide presentation, samples of your database, photographs of the subject property projected on to slides, and photographs of comparable properties projected on to slides.
  6. Choosing the placement of people at the table or strategically positioning them in the room is always important. Much has been written about where you should sit relative to the client. The basic rule is adjacent to the client rather than across an area of barrier such as a table. Being within arm’s reach allows you to pass documentation to the client at the appropriate time. Documentation should not be provided to the client until you are ready for them to review it; otherwise it is a distraction of their attention.
  7. Make sure that your proposal is simple and yet well directed with a clearly defined outcomes of sale or lease. Many proposal documents in commercial real estate are much too wordy so the main messages are lost and not clearly defined. The best proposals are less wordy and more illustrative. The best balance of a commercial real estate proposal is a mixture of 25% words, 25% pictures, 25% graphs, and 25% white space. This becomes a document which is clearly read and understood.
  8. Combine good illustrations and photographs of the subject property into the proposal or presentation so that any lengthy descriptions or paragraphs are broken up. This will keep interest of the client in your documentation.
  9. Make sure that your marketing package is value for money, and yet reaching the target market that the property serves or needs to attract. All too often, we see examples of generic marketing by the commercial real estate agent to the broader and less specific marketplace. Showing the client that you clearly know and will attract best the target market will always help your conversion to a potential listing. Be very specific about the target market and how you will reach it.
  10. Ensure that your commission costs are fair and reasonable for the location. In most circumstances, discounting your commission should not be an option as it will make you poor and remove or detract from your enthusiasm for the sale or lease. ‘Cheap’ means ‘cheap and without focus’ and the client needs to know this. The property deserves better. You are not cheap because you are the best and you do a great job. A fair commission is always paid for a positive property outcome.
  11. Always provide testimonials that are relevant to the property transaction. When you combine relevant history and details of happy customers into your presentation you will make the client feel more comfortable.
  12. Always display clear and sound market knowledge that impresses the client relative to their property. This will include extensive awareness of comparable properties that compete with the subject property. You should be able to talk solidly about property prices, comparable rents, rental growth, returns on investment, changes to the future demographics of the area, and properties in the immediate precinct of relevance. In many cases, it pays to walk around the local area just prior to any property presentation so that you bring immediate and clear pictures of the precinct to the discussion. Many times this has been of significant advantage in my presentation processes. Talking about neighbouring properties localises the client and their thought processes.
  13. Come up with a variety of ways to serve the client. Innovation and relevance will always impress. In today’s market, this is relatively easy considering the marketing opportunities and tools provided by the internet & technology. Be proactive in your property promotion processes so that the listing for sale or lease stands uniquely different in its marketing campaign from the others in the area. This does not have to be expensive to the client or to your office, given that the internet and electronic technology is historically cost effective. In today’s market, the traditional methods of publicising the property in the property pages of the local paper, is becoming much less important in the marketing campaign. Most commercial property buyers and tenants research the market from the Internet first and foremost.
  14. Almost every property agency will say that they have excellent communication and connection skills to support the property promotion process. From experience, this is largely incorrect and typically the average commercial salesperson or leasing person will exercise ordinary communication channels with the client. Put yourself in the shoes of the client. They expect and deserve frequent updates on the promotion of the property even when nothing is happening or when the adverts are producing little response. When a property campaign is not producing the results, it is important that you act or adjust with alternative recommendations and strategic changes to the promotional campaign for the client to consider. Rarely would you get to the property campaign correct in the first week. It is in this time that you must consider fine tuning the promotion process so that the target market is being reached in a timely and effective way. This means that every property enquiry generated from your promotions must be tabulated so that you understand what channels of marketing work most effectively with the property in question.
  15. When addressing the client or the client group in a formal property presentation, the answers and information you give must be delivered well and provide relevant solid property knowledge, in a practiced and professional delivery. Any sales or presentation tools relative to the property must be relevant and you should know how to use them with exceptional skill. Fumbling and faking information is not tolerated by the client.

So there you have it. These are some of the key skills to use in a commercial real estate presentation. Whilst many real estate agents think that they are the best alternative in the market to promote sell and rent commercial property, the reality is they do not get the message across when it matters most in front of the client.

To be the best commercial real estate agent in your area, you must show that you are just so, and you do this in the first 10 minutes of the time that your presentation takes. The client will have formed an opinion by then.

Be prepared to walk away from any demands for discounting that the client or customer demands. In this market they need a great commercial real estate agent providing a great job; discounting is not an option. Show pride in your services and walk away when the client demands discount in marketing or lower commissions.

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The Advantages of Traveling in a Campervan

One of the most exciting ways of traveling when on holiday is through a campervan. Hiring a motorhome is an easy thing to do and it is undoubtedly an affordable way to see the world, coupled with the freedom to pause where you like and stay as long as you wish at each stop. Comfortable and convenient, a campervan will take you to where you can experience exhilaration, adventure, sensuality, and breathtaking beauty without having to worry about the sun setting down.

Campervan travelers know that there are many models for them to choose from, depending on the number of people traveling with them, and their preference for home-on-the-road travel. Most motorhome vehicles come equipped with beds, tables, chairs, cooking facilities, toilet and shower cubicles, and even CD players, television, and DVD facilities. Meanwhile you can also hire extra items like outdoor chairs, tables, tents, and more.

The ease and accessibility of campervan travel is only one of the advantages to motorhome road trips. Affordability plays a great role, imagine not having to pay for hotel accommodations that would otherwise eat up a huge margin of a holiday-makers budget!

No vista or landscape is ever the same on this quest of discovery. The great outdoors makes for a more cheerful trip, and the freedom of choice to go off the beaten track is beyond compare – a freedom that isn’t available when taking the travel agency and run-of-the-mill tourist route.

Imagine pulling over and stopping by a grassy glade for a refreshing cup of coffee while enjoying the sunrise. Or lounging on a pristine beach while a romantic moon shines down upon the water. The next day can be lunch with the locals overlooking a ruggedly uplifting mountain canyon. No one day is ever the same.

More importantly, traveling by campervan creates experiences that are meant to last forever. The freedom of the road, and various adventures shared with family and friends will be mental keepsakes that can be taken out with reverence and joyful remembrance again and again.

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The Importance of a Balance Sheet

An individual has two primary tools for managing personal finances. The Personal Balance Sheet is ignored and the Budget is the darling of Financial Consultants and the media. The key to understanding personal finances is that you have to understand your Budget and Balance Sheet individually and also how they work in combination to give you a complete snapshot of your personal finances.

Your balance sheet is extremely important because it shows you where the gold is. It is your personal Fort Knox. It is also extremely important because you need to have a stash of gold in your personal financial picture. The gold in your Balance Sheet is not the Assets. They are the positive side of your Balance Sheet but the real picture of how much gold you have in your Fort Knox is your Net Worth. So just as important to your Balance sheet is your Liabilities. The total of your Liabilities is subtracted from the total of your Assets to give you your Net Worth.

You fill out your Balance Sheet and total up your Assets and Liabilities. You subtract the total of your Liabilities from your Assets. That number, your Net Worth will come out to either a negative amount, an amount of or near zero, or it will be substantially positive. These are the only 3 scenarios possible.

• If your net worth is a minus number, you are not managing your financial resources properly. Your Balance sheet is your report card and you are failing. It is that simple. If you are managing your money to deal with life's challenges and planning your personal finances with your retirement in mind, your Net Worth should be positive and growing. If your net Worth is positive, you can ride out financial storms like the current situation. At the time of your retirement, your Net Worth must be substantially positive so that you will be able to keep costs down and have investment income to replace your working income. During your working years, your Net Worth should be growing steadily because a retirement nest egg does not grow without years of nurturing.

• There are circumstances where where it is acceptable to have a Net Worth of Zero or near Zero. The first is when you are just starting out. It just makes sense that it would be zero. You may have student loans but that is offset by some form of education that will allow you to make more money in the course of your lifetime. The key is that this is the best time to start building your net worth. It allows the principal of compounding value to work its magic on your assets for decades. That saves you a lot of work later in life. However, most of us are not that wise and we find ourselves in our 30s and 40s with little or no Net Worth. This means you have less time for compounding to work. So you have to work harder and especially manage your money smarter to prepare for the financial challenges you face going forward. The nice thing is that you have probably made some mistakes that have made you much wiser. You should be able to recover much faster than you would have in your undisciplined youth.

• If you have a positive net worth that means that you are building assets. Just as important is that you are controlling your debt. This is the key that has probably gotten you to this situation. The key to a positive Balance Sheet is that debt offsets the value of your assets when you look at your personal finances as a complete picture so your debt / equity ratio should be less than one and get smaller and smaller. Debt servicing saps cash flow on your budget that could have been used to build assets that can be used to produce income in your retirement years. Clear title ownership of assets such as your home reduce cash draw and this is incredibly important as you approach retirement.

The financial crisis we are in now is described as a Balance Sheet crisis. We are in this crisis because nobody was paying attention to their Balance Sheets, not even at the rising heights of our financial infrastructure. The symptoms were everywhere. While researching I found that the top sites on the internet for Balance Sheet are those who want to sell you something so that they can gain access to any assets on your balance sheet that might be left after this disaster. Before the disaster, the only thing that had any importance was whether a potential buyer of anything could afford to make the payments on whatever he was buying assuming he made 120% of his declared income. The most outrageous symptom was that people would take appreciating home equity and borrow against it to buy depreciating assets and consumer goods. They overbooked their budgets and now they have gutted their balance sheet.

The resulting loss of home values ​​is the disaster we have now where people have either a zero or minus Net Worth. The other aspect is that we are now wiser. For the good of our society and our financial infrastructure we had better be. Going forward we must pay attention to our Balance Sheets and recognize that is where the gold is. You must save and protect your gold. Net Worth is where financial power is and that is the Importance of a Balance Sheet.

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Important Issues For Green Card Holders to Remember and Consider When Traveling

Clients who are Green Card holders (ie permanent residents) frequently ask me about issues that need to be aware of when traveling internationally, outside of the United States.

Here are some things to consider to minimize the potential for problems at the border. After a long intercontinental flight, nobody wants to find themselves in a position of being subjected to lengthy questioning by CBP officers at the airport. Particularly in situations where the Green Card holder has spent significant time (more than 6 months, typically) outside the US, there are potential pitfalls one needs to be aware of – or risk risk losing the highly-prized Green Card. CBP, interestingly enough, in its operations manual, has some good guidance on what immigration inspectors are to consider when inspecting Green Card residents seeking re-admission into the US

Admission, generally The CBP officer shall admit a resident alien returning to an unrelinquished domicile, if not otherwise inadmissible, upon presentation of an unexpired Green Card (I-551), a reentry permit, refugee travel document (indicating lawful permanent residence), or Temporary evidence of LPR status such as an Travel Statmp (or ADIT stamp).

A returning resident alien is not required to present a valid passport for reentry into the US, although most will have one, since a passport is often required for entry into a foreign country. When presented, the passport is normally annotated with "ARC", and the alien's "A" number should be written on the page with the admission stamp.

Admission after prolonged absences A Green Card holder, who has been outside the United States for more than one year (two, if presenting a reentry permit), may be seen by CBP to possibly have abandoned residence. Other indicators of possible abandonment of residence are:

(1) employment abroad,

(2) having immediate family members who are not permanent residents,

(3) arrival on a charter flight where most passengers are non-residents with return passage,

(4) lack of a fixed address in the US, Egypt

(5) frequent prolonged absences from the United States.

In questionable cases, it is appropriate for CBP to ask for other documentation to substantiate residence, such as driver's licenses and employer identification cards.

Green Card holder without Green Card? Lawful permanent residents (LPR) lacking evidence of alien registration because it has been left at home or in a safety deposit box, may obtain from CBP a visa waiver, with fee, or defer the inspection to another CBP office local to the Resident's home in The US

If the LPR claims the card has been lost or stolen, the POE may accept a Form I-90, Application to Replace Permanent Resident Card, with fee. These actions may be considered once the identity of the LPR has been confirmed, preferably by checking against the data contained in the CBP computer systems.

A LPR requesting a visa waiver must complete a Form I-193, Application for Waiver of Visa or Passport, if otherwise admissible. The applicant requesting the waiver is to review the information recorded on the printed form for accuracy and sign where indicated. If the waiver is approved, the LPR is to be given a copy of the Form I-193 and be acknowledged as a returning resident. If a waiver is denied, the applicant may be placed in removal proceedings before an immigration judge.

CBP officers can also use something called "deferred inspection". This is usually limited to a Green Card or Visa holder who:

O will be able to produce the requisite document within a few days; Egypt,

O claims to have lost or had the Form I-551 stolen, is unable to pay the Form I-90 fee at the time of initial inspection and has not been previously deferred for presentation of the Form I-551 document.

The LPR will be required to file a Form I-90 with US Citizenship and Immigration Services (USCIS) within the next 30 days.

Conditional Residents A conditional resident is generally admissible to the US if applying before the second anniversary of admission for conditional residence. The conditional resident may also be admissible if he or she has a lettering letter (or "transport letter") from a US Consulate, has been stationed abroad under government orders, or is the spouse or child of a person stationed abroad under government orders. Otherwise, the applicant for admission as a conditional resident must have filed a joint petition or an application for waiver, Form I-751 (marriage-based cases) or Form I-829 (investment-based cases), in the US within the 90 Days before the second anniversary but not more than 6 months prior to the application for entry.

Once I-751 has been filed, the applicant will receive a receipt notice (I-797 Notice of Action) from USCIS, extending the conditional residency status for another year, allowing travel.

If none of those conditions exist, the inspector may defer the applicant to file Form I-751 or I-829 if there is a reason to believe the service will approve a petition or waiver. If the applicant is not admissible, CBP has authority to place him or her in removal proceedings.

Question of "Meaningful Departure" When examining a Green Card holder who has spent significant time abroad (usually more than six months), when there is a question as to whether the LPR may have abandoned his / her US residence, the CBP inspector has to Evaluate the situation and make a determination as to the LPR's intent and the nature and reason for the prolonged absence from the United States. Prior to 1997, if a lawful permanent resident was believed to be inadmissible, immigration inspectors had to first make a determination which his / her absence was "meaningfully interruptive" of permanent residence. Later revisions to immigration laws have formalized a 'test' for immigration inspectors to apply in this situation. Under this test, a lawful permanent resident is NOT considered to be seeking admission, unless the alien:

O has abandoned or relinquished that status;

O has been absent continuously for more than 180 days;

O has engaged in illegal activity after departing the US;

O has departed under legal process seeking removal;

O has committed certain criminal offsets;

O is attempting entry without inspection; Egypt

O has entered the US without authorization by an immigration officer.

If CBP believes an LPR may be inadmissible or no longer entailed to lawful permanent resident status, CBP should refer the alien for removal proceedings if a deferred inspection is not appropriate.

Special Rules for Dependents of US Service Members Spouses and children of US Armed Forces servicemembers, or civil employees of the US Government, are exempt from many normal requirements for returning residents. If a dependent is a temporary resident, and the period of conditional residence has expired, CBP should admit the person and advise to file Form I-751 within 90 days.

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The 10 Most Common Mistakes Insurance Agents Make

Problem #1

Prospects have more sales resistance training than agents usually have in sales presentation skill.

Prospect response to insurance agents is designed to get as much information as possible and be in control of the situation. Prospects often mislead insurance agents about their intentions, how much they’ll spend, who makes decisions, etc.

The prospect intent is designed to turn agents into unpaid consultants, lead them on until they have all of the information they need, and often use their quotes to compare with their current agent or a competitor.

When prospects have what they need, they stop returning the agent’s phone calls.

Does this make prospects bad people?

Of course not.

We all use this system for dealing with salespeople…it’s almost second nature.

Why do prospects do this?

It’s simple.

It works.

The stereotype of an agent is not a good image for most of us, and prospects are afraid of being sold something they don’t want. In order to protect themselves, prospects feel they need a way to deal with agents. It is an instinctive reaction to the negative stereotype of agents that causes prospects to put up a defensive wall.

So how do most agents deal with the prospects system of defense? Most play right into it. Many don’t use a systematic approach to selling. They allow the prospect to take total control of the sales process. The agent eagerly:

o gives their knowledge

o makes commitments without getting any in return

o wastes resources on pursuing deals that will never close

o gives quotes to non-prospects who never buy

o misinterpret the ubiquitous “I’ll think it over and get back to you” as a future sale

How do most sales organizations contribute to the problem? Frequently they focus on product knowledge and overlook teaching what circumstances or concepts products fit best with.

The solution: Train agents on a systematic approach to making presentations so they have “a track to run on.” The training should balance both the prospect and agent’s best interest.

Problem #2

Spending too much time with prospects that will never buy.

A manager recently evaluated two of his agents like this: “Gary spends too much time with non-buyers, and gets too involved in non-productive activities. One root cause of this behavior is that he doesn’t ask the tough questions. Amy is strong with prospects, but both she and Gary have lost deals because the competition asks for the business while they give quotes to the prospect.” Why is this true?

Agents don’t ask the hard questions up-front for fear of making their prospects angry, they are afraid they will lose something they don’t have. Most agents think their job is to close everybody.

Over the years sales training has emphasized, “Don’t take NO for an answer.” Insurance agents are taught to be persistent…handle stalls and objections…trial closes…always be closing…and yes, even be manipulative. No wonder prospects need sales resistance to shield themselves!

Prospects realize agents don’t want to hear “NO” and that when they do, they’ll “hang in there” and try to turn “NO” into “YES.” When the poor prospect really means “NO,” s/he has found the easiest way to get rid of a agent is to tell them, “I’ll think it over, and I’ll get back to you.” How many “think it over’s” really turn into business?

The solution: Agents need tools to separate tire-kickers from buyers. They need an approach that obtains support early in the sales cycle. They need to learn the fine art of tactfully qualifying prospects in, not qualifying them out. The top agents learn to ask the hard questions up-front, saving precious resources for real opportunities. “NO” is an acceptable response from a buyer. “Going for the NO” requires a tremendous paradigm shift for most agents, but it can take all the pressure off the agent and increase productivity. This approach allows prospects to feel in control, this then relaxes them, and lets them buy instead of feeling like they are being “sold.”

Problem #3

Agents talk too much.

A manager recently said, “My agents’ listening skills aren’t where they need to be; someone says something and they don’t find out the real reason or intent behind the question, which leaves the prospect feeling like my agents don’t understand them or their issues.

Of course, when we sent them to the College of Product Knowledge, filling them with technical knowledge and then sent them out to make their quotas, we should have expected this result.”

So what’s the problem telling our story? First, people buy for their reason, not the agents reasons, not even their company’s reasons. Second, most companies’ presentations sound the same to the prospect, and when they sound the same, the agent just becomes another agent to the prospect, and then to the prospect, low price becomes the determining factor in getting the business.

The solution: Asking questions is the answer. Teach insurance agents to stop regurgitating to the prospect and start asking questions. Prospects should do at least 70% of the talking on the sales call. The only way this will happen is for the sales rep to ask a lot of questions.

Questions gather information. Ask questions to find out what the prospect’s “pain” is. This is the same thing your family doctor does during an office visit. They ask – they don’t tell you anything until they have made the proper diagnosis.

Problem #4

Weak Agents focus on price.

Price is never the real issue! Agents focus on price because it’s often the first thing the prospect asks about. Yet study after study confirms that quality and services are almost always more important than price. Price is never the main reason for getting and keeping business. People buy our products to either solve a problem they have, or improve something about their current situation or protect against future occurrences.

The solution: Teach agents to be more effective in asking questions and getting to real issues. Once they learn to do this, price will not be the determining factor in making sales.

Problem #5

Product knowledge is over-emphasized and misused. As a result, selling often becomes nothing more than “pitching and presenting.”

Most sales training focuses on product knowledge. studies show that 80% of training dollars spent annually are spent on product knowledge training. Agents, once filled with this product knowledge, are eager to share this information and become a Professional, Unpaid Educator. The focus then becomes totally on product, and not on the prospects problem, which is where it belongs.

The solution: Provide training in the strategy and tactics our agents need to help prospects clearly define their problems and co-build solutions that fit their needs. Product knowledge is important, but how it’s used at each phase of the buying process is the key.

Problem #6

Agents fail to get prospects to reveal budgets up-front. Many insurance agents are uncomfortable talking about money. Discussing money is seen as intrusive, and unpleasant. Many agents avoid talking about money, until the prospect forces the issue. This is one of the five most common weaknesses that agents have.

The solution: Knowing whether there is money upfront will help the insurance agent distinguish between a prospects who is ready to solve a problem from one who is not committed. Comfortably talking about money is a key to management, where resources are evaluated based on bottom line impact. Teach your agents to find out two things about money:

o How much the problem is costing the prospect; in other words the amount at risk.

o How much they’d be willing to invest to solve the problem.

Without a candid discussion about money, the agent is left to make certain assumptions. And we all know what happens when we make assumptions!

Problem #7

Agents fail to get firm commitments from prospects.

Insurance agents are often very willing to jump at the opportunity to do a quote, presentation, etc. This approach is incredibly time-consuming and resource intensive.

How many quotes has your team/distribution sent out over the last twelve months that resulted in nothing? How much does it cost your team/distribution on an annual basis to do quotes that go nowhere?

The solution: Agents must learn what motivates people to buy. They must master the skills required to help prospects become comfortable sharing problems, and they must learn to determine the prospects’ level of commitment to solve these problems before they begin to offer their solutions.

Problem #8

Lack of sufficient prospecting.

A quote from a manager: “They don’t do enough prospecting, even ‘when I use a long stick.'” All professional agents will eventually be faced with a bout of call reluctance. You know the story – they have so much paperwork on their desk they can’t possibly find the time to prospect for new business OR they’re so busy calling on existing customers (who incidentally aren’t buying anything) there’s no way they could add any new appointments. Getting ready to get ready. The BT club (bout to) Sound familiar?

o Over 40% of all veteran sales professionals have experienced bouts of call reluctance severe enough to threaten their career in sales

o And 80% of all new agents who fail within their first year do so because of insufficient prospecting activity.

The Solution: Insurance agents need to develop a realistic activity plan. Monitor the plan weekly and implement effective accountability.

Problem #9

The insurance agent has a strong need for approval.

It’s an easy and common mistake. “I love people, so I’ll be an insurance agent.” You end up with an insurance agent that would rather make “friends” with their prospects than conduct business. While developing relationships are an important part of the selling process, selling is not a place for people to get their emotional needs met. In fact, it’s the opposite: a tough and demanding profession, full of rejection. People who internalize the rejection end up getting out of the profession. Truth is, they should never have gotten in the business. Sales interactions are fundamentally different than social interactions. Successful professionals understand and accept that the bottom line of professionally selling is: MAKING MONEY.

The Solution: Evaluate yourself to determine if you have this need for approval. Managers need to ask pre-hire screening questions that helps to hire stronger people and teach them a system that helps strike the appropriate balance between developing relationships and getting commitments.

Problem #10

Insurance agents don’t treat sales as a profession.

Professionals like doctors, lawyers, engineers, teachers, and CPAs’ all have one thing in common – they attend continuing education to maintain and increase their proficiency. Yet how many insurance agents are continually seeking new ways to increase their skills? Many have the attitude, “I’ve been selling for years, what more can I learn?”

The solution: Top performers in every profession are always looking for ways to sharpen their skills and gain the fine edge that leads to consistent success. Managers need to invest in top performers and help them grow their skills. Ego stunts your growth so managers have to be willing to set their ego aside and be willing to grow, modeling behavior that demonstrates it is more important to the manager to be effective than to be right. We can all learn from each other.

In Summary:

Hiring: Distributions, supervisors and managers must complete, step-by-step, a formal process for profiling, attracting, recruiting, interviewing and hiring top performers. Look to hire goal achievers not goal setters. Most managers hire goal setters and are surprised when agents never achieve their goals. The truth is the agent only had a wish list. Ask the agent when interviewing or coaching to describe goals they set and “how” they achieved the goal. If they didn’t achieve then it was it a goal or only a wish list?

Effective recruiting and hiring is the most important job of any manager. No amount of training, coaching or mentoring will make up for a poor hiring decision. Do it right the first time.

Managing: Implement a sales management process that emphasizes more effective recruiting, hiring, coaching, growing, and developing agents. Most of all quit accepting excuses for poor performance from yourself and your agent, raise your expectations and implement a rigorous accountability process. This starts with your team production-if you are not meeting standards. how can you expect to hold your agents accountable?. In management, you don’t get what you want – you only get what you expect and inspect. Remember, you manage things – you lead people.

Training: Tapes, books and one -day seminars are fine for intellectual learning or external motivation, but if you want to be a better golfer, pianist – or a better sales person, you must practice and develop new skills. Selling is a skill that can be taught, learned, and mastered over time.

Phone scripts and rebuttals are intended to assist in moving your management and sales career forward or allowing you to increase you current volume of business.

Remember these are only meant to be sales tools, they do not work, you have to work them.

The key is to do enough of the right things, enough of the time.

Give success time to happen-and do something today to make it happen!

The clock starts NOW!

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Different Types of Life Insurance Policies Available in India

Life insurance is one of the fastest growing financial service sector in India. Currently, there are 24 life insurance companies in India offering various kinds of life insurance policies with many benefits and riders. The main purpose of taking life insurance is to provide financial protection for the dependents of a person in case of his death.

There are some life insurance policies which have inbuilt wealth creation or investment plans along with insurance. Also, these products are offered as specific tailor-made products for different life stages like, child plans, retirement plans, pension plans etc. A few products offer loan facility along with the life insurance plan. Also, all life insurance premiums offer tax benefits to the insured, as per the Indian Income Tax Act.

Here under are different types of life insurance policies that are being offered in India.

Term insurance policy:
Term insurance offers financial protection for the family of the insured in case of his sudden demise. It is the cheapest life insurance policy that offers high sum assured at low cost. This policy provides insurance cover for a period of time. In India, almost all life insurance companies offer term insurance with different product names. The term policy will be usually available for 5, 10, 15, 20 or 30 years. The policyholder does not get life cover after the completion of the term policy. Further, in India premium paid on term insurance is eligible for tax exemption under section 80C of Income Tax Act in India.

Money-back policy:
Under this policy, certain portion or percentage of the sum assured is returned back to the insured, in case of survival of policy holder. In the event of death during the period of the policy, the nominee of the policy gets death benefits equal to the sum secured and accumulated cash benefits. The premiums of money-back policy are very high compared to term insurance policy.

The money-back policies are offered for a fixed period of time, usually up to 25 years and the policyholder pays a fixed premium periodically (monthly, quarterly, annually) during the policy period. The premiums paid on money-back insurance policies are eligible for tax exemption under section 80C of Income Tax Act in India.

Whole life insurance policy:
As the name suggests, the policy covers risk for an entire life of the policyholder. This policy continues as long as the policy holder is alive. The policy offers only death benefits to the beneficiary or nominee in case of the death of the insured. This policy does not offer any survival benefits. So, the whole life insurance policy is primarily taken to create wealth for the heirs of the policyholders, as this policy offers payment of the sum assured plus bonus in the event of the death of the policyholder. The premiums of whole life insurance are costlier than term plans.

The policyholder pays premium for whole life or till some age (say 80 years) or for some period of 35-40 years based on the terms and conditions of the policy. The premium paid on whole-life insurance policies is eligible for tax exemption under section 80C of Income Tax Act in India.

Endowment insurance policy:
It is a savings linked insurance policy that provides cover for a specified period of time. The policy holder receives sum assured along with bonus or profits at the end of the policy in case of its survival. This policy is best for those people who do not have a savings or investing habit on a regular basis. In case of the death of the policy holder before the maturity of the policy, the beneficiary of the policy receives only the sum assured amount.

The premiums of the endowment policies in India are costlier than term life and whole life insurance premiums. Also, the premiums paid on endowment insurance policies are eligible for tax exemption under section 80C of Indian Income Tax Act.

Unit linked insurance policy (ULIP):
It is a special kind of investment tool combined with life insurance and serves as investment-linked insurance policy. In this policy, some part of the premiums goes into life cover and some part of the premium goes into investment.

The policy consists of investment mix where some percentage of the premium can go into 100% equity funds or 100% debt funds or a mixture of both. Here, the policyholder has an option of choosing funds or he can select the strategy of investing. The policyholder can also have the choice of switching from one fund to other fund. The returns from ULIPS are based only on the performance of the funds. The main drawback of ULIPs is that, it contains high charges (responsibilities) for managing funds.

In India, ULIPs allow you to claim tax benefits against the premium payment by two ways – deduction and exemption. You can deduct up to Rs.1 lakh of your taxable income by investing in ULIPs under section 80C of Indian Income Tax Act. You can exempt from gross income under section 10 (10) D for any sum received from insurance.

Insurance policies have a great role to play in assuring tax savings. As per the policy in India, all regular-premium life insurance policies (except pension plans) in India issued after April 2012, should offer protection cover of at least 10 times the annual income to be eligible for tax benefits under section 80C and 10 ( 10) D.

Choose and get a best life insurance policy to protect your family's financial condition in your absence.

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Your Homeowners Insurance May Not Cover Woodpecker Damage

Meet Amy, City Girl that became a small town resident upon her marriage to George. The stark difference between living in the very center of urbanized civilization and township dwelling was somewhat of an adjustment for Amy. Sure she loved the sights and sounds of nature exposed: the lake, the trees, grass, flowers and the vibrant color of winged birds. Nonetheless, how she missed the hustle and bustle and – yes – even the noise of what she had always recognized as the center of commercial shopping, auto and bus traffic – honking included – and life as she had been bred to appreciate!

Though noise has always been the core of her existence, the incessant pecking on the side of her roof in small town America where she currently had set up residence did absolutely no good for her nerves. Five o’clock in the morning, you see was far too early for a woman of the world such as she to be rudely awoken from her slumbering state. And the fact that the pecking was coming from a fine feathered ‘friend’ known most commonly as the woodpecker did little to placate her uneasiness.

Then came the crunch that really threw Amy off. It appeared as the bothersome woodpecker had begun to incur damage on her lovely home! But nothing could appease Amy when she discovered that her standard homeowners insurance policy did not even cover the damages and losses she now suffered!

“You see, Ma’am,” explained the nice insurance agent, “insurance companies simply do not cover general home liability that has been wrought through negligence. In fact, they view woodpecker damage as something that could have been avoided through proper home maintenance.”

If only Amy had known! She most certainly would have confronted the little peril with a vengeance. Now it appeared that it was too late and she and her husband would have to bear the losses through out of the pocket expenditures.

They say life is a great teacher. Amy knows better than most.

“Learn from me,” says Amy, former city dweller. “Don’t let pests get the better of you or your home risks will!”

How does one tackle a woodpecker problem? There are a number of hands-on methods:

• Go out and purchase a tool that’s on the market in regard to woodpecker deterrence.

• Surround outside home spots that connect to the roof with wired fencing.

• Attach colorful tape below roof and around the roof’s gutters.

• Seal attic holes and house siding with caulk or other materials.

• Hire a pest eliminating firm to take care of the problem.

• Explore your own creative to tackle the nasty wood-pecking problem.

Ask Amy. She’ll tell you forearmed is indeed forewarned: speak to an independent insurance agent about your homeowners insurance policy to make sure it is tailored to your needs.

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