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Life insurance is part of household financial planning

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Life insurance is part of household financial planning

Indemnities in cases of disability or absence from work allow financial stability for policyholders

Planning is essential for an organized and prosperous financial life. Having projects to qualify, raise income, and look for opportunities in the market is as important as preventing budget breakdowns caused by unforeseen circumstances. For young people, 30 to 45 years old, with heritage in formation, small children, or who are preparing to have them, buying life insurance with wide coverage is even more relevant and should be part of the financial planning. It is an investment for the well-being of the family and it still protects the pocket.

Buying life insurance needs to be understood as a preventive measure and with benefits in the short, medium, and long term. There are life insurances that guarantee not only the indemnity in case of death of the holder, as well as an income in case of absence from work or even residential and automotive assistance, if necessary.

The range of services offered in the Personal Care Assistance package is broad. Practically all those surprises in the residence that appear at the worst time are covered. There are locksmith, plumber, electrician, glazier, and tile replacement services, always limited in times per year and a ceiling value. Other possibilities for using the insurance include pet custody, baby sitter or nursery, early return, and tow vehicle.

As taking care of health today to reap fruits in the future is also a necessity, the insured has access to nutritional support from specialists, with personalized programs, and discounts on medications ranging from 15% to 60% of the value.

In addition to the indemnity in case of death and the guarantee against unforeseen circumstances at the residence, the third line of coverage is added, which indemnifies in case of disease diagnosis. Leave from work due to total or partial disability, permanent or temporary, is covered by life insurance.

In the case of serious illnesses such as cancer, stroke, Alzheimer’s, and heart attack – which are increasingly common due to the aging of the population and inadequate living habits – the insured receives a cash value that can be used freely.

Many of the necessary care as complementary therapies and caregivers are not included in the list of mandatory procedures in health plans. The broader coverage of life insurance is, therefore, in addition to being an instrument to ensure peace of mind for the whole family, an investment that can save important resources and protect the budget.

Learn how to identify the best life insurance for your family

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identify the best life insurance for your family

Check out some tips that will help you identify the ideal life insurance for your family.

The best life insurance is one that meets your family’s real protection needs and offers payment terms that fit your budget. Therefore, to find the most suitable option, it is necessary to conduct market research.

In this sense, knowing the main plans offered by insurers and evaluating the coverage provided by them is the first step towards successful contracting. Here are some tips that will help you identify the ideal life insurance for your family.

Why is life insurance so important to your family?

Life insurance is one of the most important ways to guarantee security for your family. Especially because nothing compares to the tranquility of knowing that your loved ones will be supported in cases of an unexpected absence.

In addition, insurance also provides solutions that can be used in life by the contractor. In all plans, an indemnity is allocated to beneficiaries whose value is defined in the contract.

Among the coverage possibilities, we highlight:

  • death from natural causes;
  • accidental death;
  • partial disability due to accident;
  • total disability due to accident;
  • permanent disability due to increased accident;
  • serious diseases ;
  • daily due to temporary disability;
  • funeral assistance.

How to choose the best life insurance for your family?

Before taking out insurance, several factors must be considered. Check out some of them below.

Evaluate the coverage offered

As seen above, there are several coverage possibilities that can be included in life insurance. To define them, take into account your demands and risk factors – such as age, predisposition to disease, exposure to dangerous environments, etc.

Then, search for a plan that includes all defined coverages. Then, research the insurers that make these policies available and identify which one offers the best value for the money.

Choose the monthly fee that best fits your budget

Life insurance is a protection that is contracted with the intention of continuing. Thus, it is necessary to choose a value of installment that fits the family’s monthly budget.

The idea is that the decision falls on the product that will meet everything you need, but with an investment that can be maintained over the long term. For this reason, it is important to do simulations.

Do simulations to find the best option

Being able to have the facility to do virtual simulations is essential for choosing the most suitable life insurance for you. The main advantage of a simulation tool is the speed with which results can be obtained based on the data provided.

See how simple it is? With these tips, you are ready to move on in search of the best life insurance to protect those you love.

And now that you understand the factors that you should be aware of when defining the plan, how about simulating life insurance to keep you and your family safe?

The importance of life insurance in the fight against breast cancer

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The importance of life insurance in the fight against breast cancer

Life insurance brings specific coverages that help people in life.

After skin cancer, breast cancer is the most common. There are 60 cases per 100,000, according to the National Cancer Institute, and most women are diagnosed at an early stage. But, even when starting treatment as soon as the disease is discovered, only 30% of patients do not develop metastasis – when cancer cells spread throughout the body -, according to a survey conducted by the pharmaceutical company Pfizer.

In the fight against cancer, such as breast cancer, life insurance can play an essential role. Currently, there are individual insurances that offer policies specifically aimed at serious illnesses, in which the insured receives the benefit while still alive and can use the money in any way he wishes.

It is important to remember that the diagnosis of a serious illness can impact the financial life of the insured and their family members – especially considering that many women are responsible for supporting the home.

Studies show that cancer tends to increase from now on. The Ministry of Health estimates that about 600 thousand new cases of the disease will be registered later this year. Per year, 87 thousand of the total deaths (225 thousand) caused by the disease are of economically active people (between 15 and 65 years old), points out the movement All Together Against Cancer.

For example, cancer is the main reason for claiming benefits. From January 2014 to June this year, more than 1,300 claims related to the disease were recorded, which represents 36.7% of the total. Second, infarction appears in 4.9% of cases, followed by an accident at work, with 4.6% of cases.

“Women are increasingly looking for life insurance options and the insurance market has been following this trend, establishing important benefits for this public”, explains Alessandra Bussab.

According to her, life insurance is related to the protection of women and their families. “Any adversity that happens in this path of building wealth can cause the person to consume the money he saved”, he says.

How to cancel insurance: Guide to do it efficiently

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cancel insurance

This article is intended to be a guide on how to cancel insurance efficiently. There are some factors that may go unnoticed and that justify that …

A good part of the inquiries I receive are related to the claim by the insurer for unpaid premiums.

This post could be very brief if I just tell you: meeting the deadlines set in the law will not have problems.

If you notice the title of the article, it talks about how to cancel the insurance and not when to do it.

There are some factors that may go unnoticed and that justify reading this little help guide.

The Insurance Contract Law, since last January 1, establishes that the cancellation of the insurance contract by the policyholder must be notified to the insurer at least one month before its expiration.

You are already clear that you must communicate your desire to cancel the contract within the legal term: at least one month before expiration.

How to cancel insurance efficiently

You should not forget that insurance is a contract in which both parties are bound by a series of commitments regulated by the contract itself and by the law that supports it.

Learning how to cancel the insurance contract and do it efficiently will save you trouble.

Opposition to the extension of the need to communicate in writing so convincing that there are no doubts of your desire. To do this I advise you:

  1. Certified letter or email addressed to the address that you will have from the insurer in the policy.
  2. Notify the insurance broker or policy agent. If you do it to the latter, it will have the same effects as if you communicate it directly to the company.

I never recommend using the contact form available on the insurer’s website, because it will most likely end up in the spam tray.

If you are registered as a user on the company’s website, you can use the form provided for this purpose, but make sure that you provide proof of the operation. Print it out on paper or keep the digital file in case you need to use it later.

Using email is not a good idea either unless you keep a digital record of the communication, its content, delivery, and reading. In many cases, it is the same as with the contact form on the web.

What is the expiration date of the receipt?

The duration of the insurance contract will be determined in the policy, it may not set a term exceeding 10 years and the extension may be established for one or more times as long as it does not exceed one year.

The insurance payment must be made in advance of the established duration, therefore the expiration date is the first day of each insurance annuity.

There are certain branches in which the insurance annuity equals the calendar year. In these cases, the expiration date will be on January 1, whatever the date you purchased the insurance.

This is the formula used by insurers in death and especially health insurance. They are also contracts that usually have installment payments. These two circumstances often induce you to think that you can cancel the contract at a different date to maturity.

Request cancellation before December 1, it will only give the company time to confirm that the cancellation is on December 31.

My payment is divided, when can I cancel the insurance?

The payment of the insurance premium is conditional on the duration of the contract. If the duration is for a specified period without the possibility of renewal, the premium will be paid in a single payment.

If, on the other hand, the duration is annual, renewable, the premium earned will be for the same period of time: one year.

To facilitate the payment of the annual premium, companies can assume to charge it in a fractional manner: monthly, quarterly, or semi-annually. This division does not modify the duration of the contract, therefore the expiration date will be the first day of each new extension of the insurance.

Is there a reason to cancel the policy after the deadline?

The latest modification of article 22 of the Insurance Contract Law introduces a new paragraph that improves the rights of the policyholder.

The insurer must notify the policyholder, at least two months before the end of the current period, of any modification of the insurance contract.

This provision is a lifeboat if we want to cancel the contract without having communicated it in a timely manner.

Your insurance premium has been raised, your medical benefits modified or your travel assistance benefits modified, as these are reasons for you to oppose renewing your insurance. These are some of the changes that the insurer must communicate to you two months in advance, so that you can decide in time to extend the insurance.

Hey, watch out! that this does not operate automatically.

The company will try to collect the receipt if you did not communicate the cancellation in time. In your defense, you can argue the failure of the insurer for not communicating the modification according to the law.

conclusion

How to cancel insurance efficiently has become a longer article than originally intended. The subject required it. You should not take the insurance contract lightly because you could be harmed.

Insurers are not an NGO, their potential is greater than yours. Your best guarantee is to do things according to the law and the contract.

Communicating your desire to the insurer to cancel the insurance using reliable means, will be useful if you have to defend yourself from a non- payment judgment claiming the debt.

Checking the expiration date of the insurance will make your communication more efficient.

But above all, doing it within the legally established period will guarantee its effectiveness.

And if any of this fails, look for the error of the company to cancel the contract.

Further down in the comments you can leave us your answer to these questions.

Has it happened to you that you wanted to cancel the policy and you were out of time?

Can you tell us what you did?

The consequences of lying when filling out the health insurance questionnaire

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health insurance questionnaire

The health questionnaire is for insurers an essential tool to know the risk and for the insured a source of conflict if their answers lack the required veracity and it occurs …

The health questionnaire in life or health insurance has become a fundamental tool for insurers.

While to contract car insurance, the insurer looks, among other things, in your history as a driver, in life, or health insurance they are interested in knowing your lifestyle or physical condition. Based on this information, they will delimit the risk and establish the conditions that will govern the contract.

The policyholder has the duty, before the conclusion of the contract, to declare to the insurer, in accordance with the questionnaire that he submits, all the circumstances known to him that may influence the risk assessment.

So all the insurers in the market require that the insured answer a questionnaire as a prerequisite for contracting the insurance.

And it is the insured who has the duty of the declaration, so it must be he and not another, who truthfully answers the questions to which the insurer submits.

What do insurers want to know from the health questionnaire?

A few years ago, the health questionnaire was not so decisive for the insurer to accept the insurance application. Today things have changed and the insurer gives the health questionnaire capital importance, without it, it will not be possible to take out the insurance. In many cases, acceptance is conditional on the approval of the insurer’s medical office.

It should be emphasized that the health questionnaire to which the insurer submits you must meet certain requirements. It must contain questions relating to the health of the insured, be reasonably detailed, and cannot be subject to interpretation. It may not contain questions related to private life, such as the candidate’s sexual orientation.

But the insured is only obliged to answer what is asked, nothing more. Therefore, if the insurer has not asked about it, later it will not be able to claim that the information has been withheld.

Normally the health questionnaire is made up of these three sections:

Life habits

These are issues related to daily exercise, tobacco use, alcoholic beverages, or drugs.

Medical history

It lists all the issues related to illnesses you have had, surgical operations, chronic pathologies or accidents, and sick leave. In addition to detailing the above, the insurer is also interested in knowing when it occurred or was diagnosed, so it will ask the date.

Actual state

This section is intended for you to report if you are in treatment for any ailment, the drugs you take, or, for example if you suffer from any type of allergy.

Depending on the content of your answers, the insurer may request medical information on a certain condition or carry out additional medical tests. In this case, don’t worry about the expenses, the medical check-up is on your own.

Why be honest when answering the health questionnaire?

The health questionnaire is the condition imposed by the insurer to access life or health insurance.

And many times we are not entirely sincere in our responses. If we cheated our mother with the number of drinks or cigarettes, why not do it with the insurance. We also assume the role of a physician for a while, assessing how relevant the question is, and if it has been many years since our tonsils or meniscus were removed, we don’t count it. And unless we are taking pills, cholesterol, glucose, or transaminases, they will always be fine.

But it is that article 10 of the LCS includes another paragraph that says verbatim:

The insurer may terminate the contract by means of a statement addressed to the policyholder within one month, from the knowledge of the reservation or inaccuracy of the policyholder. Unless there is intent or gross negligence on their part, the premiums relating to the current period at the time of making this declaration will correspond to the insurer .

Omitting relevant information, about which the insurer has asked in its health questionnaire, is the reason for terminating the policy. But, if you also prove that it has been omitted on purpose, you will lose the right to a refund of the premium.

If on the occasion of a claim, the insurer became aware of the inaccuracy in the declaration, it could:

  • Reject the consequences of the accident,
  • Reduce the compensation in proportion to the difference between the premium paid and the one that would have been received if the true entity of the risk was known.
  • Include an exclusion in the policy, regarding that ailment.

The inaccuracy in the health declaration is the first argument that the insurer will use to reject the claim. Later, in case of litigation, you may find that you have supplemented it with that the policyholder acted in bad faith (fraud) or gross negligence. Later you will discover how to counteract this situation if you see yourself fully involved.

Do I have to fill out the questionnaire myself or can the bank or the insurance company do it?

It happens many times that in the confidence of the person who makes us the insurance, we fill out the health questionnaire, without the necessary attention. Whoever asks takes it for granted that he knows us well enough not to make a mistake by answering on our behalf and for whom he must answer, it is less compromising than giving explanations. So, without further ado, we stamp the signature on the questionnaire accepting its content.

This situation is frequent when the person filling in the form is the bank manager, the broker, or the insurer’s agent. In both cases, the desire to sell a policy or sign the loan turns such an important event into a mere procedure. And as we have seen, the repercussions of not being honest with the insurance can lead you or your beneficiaries not to charge a dollar.

When this happens and the insurer rejects the claim, the conflict arises. Some of these claims have reached the Supreme Court, which has spoken according to each case. These are some issues on which it has already spoken and in a positive way for the interests of the insured.

On certain occasions, it has been considered irrelevant that the form has not been filled in by the insured, taking into account the amount of personal data provided to the insurer and that he would not have known otherwise.

Absence of intent or gross negligence

One of the reasons argued by the insurer for denying insurance benefits is the existence of bad faith (intent) or gross negligence of the insured, for not answering truthfully or with the intention of deception, to the questions of the health questionnaire.

It has been ruled out by the TS that there is fraud when it is the bank employee or the insurer’s agent who fills out the health questionnaire and the client is limited to signing it. It has been considered that this fact is equivalent to the failure to submit the form by the insurer and therefore its consequences cannot fall on the insured.

The same reasons have been argued to reject the position of the insurer when the questionnaire is not filled out, nor signed by the insured.

conclusion

If for insurers the health questionnaire is a fundamental tool to assess risk, for the insured it is the key to access to life or health insurance.

But if the key is not correct, you may enter a maze, in which the insurance company has an advantage. To try to be on an equal footing, you must be sincere in your answers when you go to answer the questionnaire that the insurance company puts in front of you. If the company does not want to insure you, it is better that they tell you before and not after paying the insurance for a few years.

Lying on the health questionnaire is one of the most common reasons why insurers reject the insured’s claims. The normal thing, when it happens, is that they deny the medical benefit or reject the payment of the insured capital.

And if they consider that there has been intent or gross negligence in the declaration, they could cancel the contract.

Have you been entirely sincere in responding to the health statement? Has it brought you consequences?

Leave us the answer in the comments, we will be happy to read you!

5 Things to keep in mind before canceling health insurance

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canceling health insurance

Are you thinking of changing your insurance company but you don’t know how to cancel your health insurance, or what the consequences are?

Your birthday and the insurance premium skyrocket in the price?

Have they made you an offer for better and cheaper insurance?

In this article, you will find an answer to how to cancel health insurance, if you prefer to live without it or decide to change your insurance company.

We take out insurance with the intention that it lasts over time. Sometimes for one reason or another, we think that the time has come to change. They have raised the price, the service has not been what we expected or they have offered us better coverage. In short, we want to cancel health insurance and do it well so as not to have problems.

Like any other contract, its cancellation is subject to the stipulations established by law or by one of the parties. Therefore, to cancel it, you must do it correctly, acting according to the established procedure.

But also, if you plan to take out other insurance, you must take into account a series of circumstances so as not to have unpleasant surprises.

Are you starting to have doubts about how to do it? To solve them, I will tell you the 5 things that I would do before canceling health insurance.

How to cancel health insurance to avoid problems.

The first thing you should know is that health insurers establish that, in a generalized way, the contract ends on December 31. The duration of the insurance contract is usually 12 months, in the case of health, it is from its signing until the end of the calendar year. On this date, the insurance is automatically extended for one year and so on until its conclusion.

Once we know the date on which the insurance contract expires, these are the 5 things you should take into account before canceling it.

1. The contract cannot be terminated after it has been extended.

Once the insurance has been renewed for one more year, it cannot be terminated. You have to wait until the next expiration to be able to cancel it.

Only in certain cases is it possible to do so in advance: when the insurer, during the current period, modifies the conditions of the contract.

An unjustified increase in the price of insurance, modification of benefits, or a change in healthcare services are grounds for early termination.

If your company has you insured in a group health policy, terminate the employment relationship.

After informing the insurer of a decrease in risk and it does not lower the renewal premium.

2. The insurer has two months to report the new conditions.

Health insurers review the insurance premium every year. This review is carried out taking into account 3 factors: the age of the insured, the profitability of the policy, and the increase in the cost of services.

The health insurance premium is established by age group. Therefore, it should only increase when you go from one age group to another. Serving years in insurance usually means having to pay more.

The more medical care you need, the lower the profitability of the insurance. And the companies are not an NGO, so they try to correct losses immediately by raising the insurance premium. If your contract is also part of a group, you are subject to the accident rate that the group has, with which premiums can skyrocket from one year to the next.

Finally, there is an increase in the CPI (health), the increase in the cost of medical assistance. In recent years this has been around 2%, while insurance companies increased premiums by 4.6%.

The insurer is obliged to notify the policyholder two months in advance of any change in the conditions of the contract. Non-compliance does not exempt you from complying with the rule, but it does give you the possibility of canceling the insurance when it expires.

3. Notify the cancellation at least one month before the renewal.

We have seen how the insurer is obliged to communicate any variation of the contract two months in advance of expiration. You also have two months if you want to rescind it.

And the policyholder or the insured?

Article 22.2 establishes that you must communicate at least one month in advance of the conclusion of the current insurance period, your desire to cancel the contract. And you must do it in writing.

A special mention deserves online recruitment. If this is your case and after purchase to change your mind, you have 14 calendar days to withdraw.

When your relationship with the insurer is through group insurance, where the policyholder anticipates the payment of the premium, you should only communicate your desire to cancel the contract.

Communicate the cancellation through a means of which you have a record. Try to avoid doing it through the customer service phone or the contact form on the web.

4. The beginning of a grace period.

One of the conditions that health insurance has is the establishment of deficiencies when it is contracted. The grace period is the period of time between contracting and the entry into force of certain insurance coverage. I recommend reading How to choose good health insurance: 15 tips to do it right.

When you change your insurance company, it can include new grace periods in your policy that you have already passed. It is very important that you take this into account before making the decision to cancel the insurance.

5. What happens with preexistence or if I am in treatment?

Surely when you first purchased health insurance, you had to fill out health questions. In it, you informed the insurer of your medical history. Now, when you change companies, you will be subjected to a new evaluation with which diagnosed pathologies or illnesses can be excluded from coverage. It is also possible that you will be excluded from the assistance that may be related to pathologies that have already been cured.

Currently, insurers, when it comes to group insurance or in certain commercial promotions, do not include deficiencies or preexistence in their proposals. But be careful, don’t trust the large print on commercial brochures.

Conclusions

If you want to change your insurance policy or do without it, you just have to follow a few simple steps to cancel health insurance.

Inform you of the new conditions that they offer you. Analyze the coverage, the limitations, if you have grace periods or how many years the price is guaranteed.

After the decision is made, the next step is to inform the company that you are canceling the contract. I remind you that you must do it at least one month before the expiration date of the policy, that is, before November 30.

And finally, leave us your answer in the comments to the question:

Are you happy with your health insurer or have you thought about switching to another?

VAT in the insurance contract

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Every time you buy something, you are paying VAT. There are activities that are exempt from the tax

Every time you buy something, from the moment you get up until you go to bed, you are paying VAT. We pay VAT on almost everything we buy. You pay for the purchase of a chicken, for the refrigerator where to keep it, or for the electricity it needs to operate. Also for the services of the electrician who has put the plug you need to connect to the light.

Of the few activities that are free, in part, from the Value Added Tax (VAT) is insurance. Despite the fact that it is a tax that has lived among us for years, there are still many doubts about VAT in the insurance contract.

To clarify all these doubts is this article in which you will find all the information about VAT in the insurance contract.

Does insurance have VAT?

Well, according to article 20 of Law 37/1992 on Value Added Tax, insurance, reinsurance, and capitalization operations are considered “exempt”. Therefore, the answer to the question of whether insurance has VAT is no. By subscribing to an insurance policy you will not pay VAT, nor will you have to do mediation services.

The fact that insurance is not subject to VAT does not mean that it does not have other associated taxes and fees.

What taxes does the insurance contract have?

If you take a look at any of your insurance receipts, no matter one mode or another, you will see that in the breakdown of the price there is a chapter referring to taxes. And when I refer to taxes it is because there are several. Depending on the modality in question, the insurance will have two or more taxes or fees. Let’s see it.

The Insurance Premium Tax (IPS)

It is an indirect tax, established in 1997, and applied to certain types of insurance. The IPS taxes the net insurance premium at 6%, that is, the price of the insurance without taxes or surcharges of any kind.

It is a tax that affects most of the contracted insurance, but it has its exceptions. What insurance do IPS not pay? As the list is not very long, these are the exempt modalities.

  • Health and sickness insurance.
  • Operations relating to compulsory social insurance and group insurance that implement alternative systems to pension plans and funds.
  • The life insurance pure
  • Export credit or surety insurance contracts.
  • Agricultural insurance.
  • Insurance contracts related to international passenger and freight transport operations.
  • Insurance-related to ships or aircraft destined for international transport.

The Surcharge of the Insurance Compensation Consortium

The CCS is the public body that covers certain exceptional risks not assumed by the private insurance sector.

The assets of the Consortium are exclusive, being financed with the premiums and surcharges that it collects through the insurance operations carried out by the insurers themselves.

Three types of surcharges apply depending on the different types of insurance.

Surcharge for Extraordinary Risk Insurance, damage to property, people (life and accidents), and loss of benefits.

For example, it deals with the damage caused by earthquakes, floods, and other natural catastrophes. In order to meet the indemnities derived from these risks, the CCS is financed through a surcharge applies to each insurance operation, whether it is life or non-life insurance.

Thus, for example, you will pay the surcharge on the car, home, community, or industry insurance that you hire. You will also do it when contracting personal insurance, both in the life branch in individual and group policies that exclusively or mainly guarantee the risk of death, including those that include guarantees for permanent disability.

In non-life insurance, the surcharge is mandatory in accident policies or those that guarantee compensation in the event of death or permanent disability.

Surcharge in Obligatory Subscription Civil Liability Insurance derived from the Use and Circulation of Motor Vehicles

Another coverage provided by the CCS is damage caused by uninsured or stolen vehicles. For this purpose, the surcharge is set at 1.5% of the net premium corresponding to the compulsory civil liability insurance of your car insurance policy.

Surcharge for the liquidation of insurance companies.

This is a surcharge that is levied at 0.15% on the net insurance premiums made on risks. The objective is to guarantee all policyholders their insurance coverage in the event that the insurer has financial problems. If this happens, the body in charge of the liquidation of the company. It will be in charge of meeting the commitments with the insured, injured parties, employees, or suppliers.

Surcharge for fractioning payment of the insurance price.

Whether or not to pay this surcharge is up to you and the chosen insurer.

There are many insurers that, to facilitate the payment of the insurance, admit its fractionation by months, quarters or semesters. Some have even established other 90-day payment formulas. This form of financing is not free, although the cost depends on each company.

The CCS surcharge is normally paid in the case of split insurance, in the first fraction. But you can pay it in installments like the main receipt. If you do, the CCS will charge you interest for it, which ranges from 2% of the semi-annual payment to 3.5% in case of splitting it by months.

How does VAT affect me in the insurance contract?

We have seen that insurance is not taxed by VAT, but that does not mean that it is not affected by it. In fact, any variation in the tax can affect what you pay for your insurance policy. If the VAT goes up, the repairs or services provided by the insurer also do so, so the insurance costs will increase.

But in addition to this increase in the price of insurance, in the event of a claim, you may also be forced to pay the tax. Do you want to know when?

What impact does VAT have on car insurance?

The car insurance is no exception and its price does not include VAT, but after an accident repairs itself carrying IVA.

The normal thing is that it is the insurer who takes charge of the payment of the tax when paying the repair of the damages. But this is not always the case, as happens when a policyholder is a legal person or the vehicle is involved in business activity.

When the vehicle belongs to a company, insurers avoid paying VAT by being able to deduct it on their tax returns. In these cases, the insurer will pay the workshop or supplier the taxable amount of the invoice, while the amount of the tax will be on your account.

If your policy is fully comprehensive with excess, you are an individual and the use of the car is private, the amount of the excess must be deducted from the total amount of the invoice. But if you are a company, in addition to paying the full amount of VAT, you will also have to pay the amount corresponding to the franchise.

There are some insurers on the market that take charge of VAT on repairs by paying an extra premium on the price of insurance.

It is convenient that before accepting the insurance contract, you review the conditions because each insurer has its own criteria.

What about VAT on damage insurance?

In damage insurance (home, business, communities, business, etc …) something similar happens in car insurance. You do not have to pay VAT on the price of the insurance and neither in the repairs of the goods for private use.

Different is when the goods are related to a commercial or business activity. Thus, for example, you could pay VAT on repairs in homes for rent made by home insurance.

As you can see in this case, not only the insurer can take into account, when paying VAT for the repair, the condition of the policyholder but also the activity of the goods affected in the loss.

When assessing the extent of the damage, some insurers include the amount of VAT in the compensation, knowing that the policyholder cannot deduct it. In contrast, there are still many who delay their payment until the policyholder presents the repair invoice.

How does VAT affect people’s insurance?

Fundamentally, within the insurance for people are health, life, or death insurance. For none of them, you will have to pay VAT, in the price of the insurance and not in the benefits you receive from them.

Medical services and acts are exempt from VAT tax, certain pharmaceutical products are not, but if they are covered by your insurance policy, it will be the insurer who will take care of it.

In the case of funeral insurance, you will not have to pay anything for the VAT with which funeral services are taxed and which varies between 10 and 21% depending on which service it is.

conclusion

Insurance operations are exempt from paying for Value Added Tax, VAT. So are mediation services.

But the same does not happen with the deliveries of goods and services made under the coverage of the policy. In summary:

  • You do not pay VAT in the insurance contract, whatever the modality. You will pay for other taxes and surcharges but not for VAT.
  • You will not pay VAT on repairs when you are a natural person and the property is not intended for commercial activity. 
  • You will pay VAT when the policyholder is a legal entity and can deduct it in their tax returns.
  • You will not pay VAT when you have agreed with your insurer in the insurance contract. 

As you have seen, no insurance has VAT in Spain, however, what you pay for it is directly affected by the VAT incurred by the repairs or services provided at your expense.

Have you ever had to pay VAT on the repair because the insurance company did not pay it?

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Do I need to buy insurance if I have a potentially dangerous dog

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If it is a dog and it is classified as potentially dangerous, you need a license to have it.

Having a pet means that at some point it can cause harm to third parties. If it is a dog and it is classified as potentially dangerous, you need a license to have it. Do you want to know what requirements you must meet to obtain it?

The last week showed me some videos of a new friend who has missed one of my nephews. It is a puppy dog, of which I do not remember the breed but it does have a pedigree, and of which they tell me that it does not need PPP (Potentially Dangerous Dog) dog insurance.

At first, I was reassured to know that his breed is not classified as a potentially dangerous dog. But I must admit that I was disturbed to learn that when he grows up, he could be considered dangerous due to his characteristics.

A couple of days ago I was reading this headline in the newspaper 20 minutes: A loose pit bull without a muzzle bites a 19-month-old boy and the owner of the animal flees the place. We often see news related to attacks on people whose protagonists are potentially dangerous dogs.

In one of the last published posts, I spoke to you about the coverage of family civil responsibility for the possession of pets and its limitations. One of them is that certain breeds need to have their own PPP dog insurance.

I imagine that you have already discovered what this article is about. Exact of potentially dangerous dogs and the obligations of their owner.

What are potentially dangerous dogs?

Potentially dangerous dogs are those corresponding to these breeds and their possible crosses:

  • Pitbull terrier
  • Staffordshire Bull Terrier
  • American Staffordshire Terrier
  • Rottweiler
  • Argentine Dogo
  • Fila Brasileiro
  • Tosa Inu
  • Akita Inu

But in addition, the law considers potentially dangerous those dogs that have been a trainer for the attack. Also, those that have a marked aggressive character, who has been the object of a complaint for a said circumstance or for having carried out attacks on people or attacks on other animals.

Any dog ​​can become dangerous. Like any pet, dogs must be trained and educated to avoid possible behavioral and aggressive problems.

Other traits of the animal such as a powerful and robust appearance, agility, vigor or resistance, a voluminous head, with large and strong jaws or reaching a height of between 50 and 70 cm or a thoracic perimeter of between 60 and 80 cm or weight greater than the 20 kg, can include your dog among the PPP.

In addition to these details, each autonomous community has included its own races. Thus, for example, the Doberman is considered a PPP in the communities of Andalusia, Cantabria, Catalonia, Galicia, or Extremadura. These last four also share other breeds such as the Bullmastiff, Dogo de Bordeaux, or Presa Canario.

What requirements do you need to adopt a potentially dangerous dog?

To be able to adopt a potentially dangerous dog you need to have an administrative license that you have to obtain from your Town Hall. But for it to be issued you must meet a series of requirements:

  • Be of age.
  • Not having been convicted of crimes of homicide, injury, torture, against freedom or against moral integrity, sexual freedom, and public health. Nor may you have been associated with an armed gang or drug trafficking, or deprived by judicial resolution of the right to keep potentially dangerous animals.
  • Not having been penalized for serious or very serious infractions
  • Obtain a certificate of psychological and physical fitness.
  • Have an official veterinary certificate of the dog that confirms that it does not have any contagious disease, that it is correctly vaccinated and dewormed. And most importantly, it shows no signs of aggression.
  • Show that they have entered into an insurance liability for damage to third parties. The coverage may not be less than 120,000 dollars.

This license is valid for 5 years after which you have to renew it, having to comply with all the previous points.

What rules must a potentially dangerous dog meet?

A PPP dog, unlike those that are not considered dangerous, must comply with a series of rules. These are some of the security measures established by law:

Identify the pet and register it in the Register of Potentially Dangerous Animals of the municipality of residence of the owner. You are obliged to communicate the personal data and place of residence of the person who cares for and is responsible for the animal. If you change your residence for a period of more than 3 months, you must register it again in the corresponding autonomous community.

The abduction or theft of the animal must be reported within 48 hours after it is known. It must also be done when it is transmitted or dies, an act with which the registration sheet is closed.

When the PPP dog is in public spaces you must have the license and the inscription in the special registry at hand. In addition, you must adopt a series of measures, such as:

  • The use of an approved muzzle and appropriate to their morphology.
  • Always be tied with a strap or chain, it cannot be extendable and have a length greater than 2 meters. In Andalusia, for example, the length is limited to one meter and minors are prohibited from passing through places of leisure and recreation.
  • You will not be able to walk two or more potentially dangerous dogs at the same time.
  • It is prohibited for an animal considered potentially dangerous to be unleashed or outside a closed area, although it is private property.

Failure to comply with these rules can lead to penalties that can range from 150 dollars for a minor infraction, up to 15,000 dollars for those considered very serious. Among the latter is abandoning it, selling or transmitting without a license, not having a license, or training it to activate its aggressiveness.

PPP dog insurance, when is it necessary and why?

Having a pet, be it a dog or another animal means that it may cause harm to third parties. Therefore, it is advisable to have civil liability insurance that covers these damages. The normal thing is to have this coverage included within the family civil responsibility of the home insurance. Sometimes it is insufficient or simply the law requires you to take out specific insurance.

Before I told you that to obtain the license to have a PPP it is necessary to prove that you have subscribed to a civil liability insurance to cover material and personal damage caused to third parties. Therefore, PPP dog insurance becomes compulsory insurance. And as with other mandatory insurance, it must meet a series of requirements, including guaranteeing a minimum capital.

In addition to civil liability and legal defense, PPP dog insurance has other coverage that you can purchase additionally. These include specialized telephone assistance or veterinary assistance. You can also contract the collection of compensation if the animal is accidentally killed or stolen. In case of loss or misplacement, advertising or reward expenses for its location.

conclusion

Having a pet comes at a cost. And if it is a PPP dog, the budget increases considerably. To be granted the license you have to go through the cash register to obtain the certificate of psychological and physical fitness. You will also have to pay for the veterinary certificate that proves that the animal is not sick. And finally, you will have to pay around 60 dollars for basic PPP dog insurance. If you want more coverage, you can pay double this amount.

It is proven that the most decisive factor for a dog to be emotionally stable is good learning and not the breed. But you may have noticed that the demands between one place of residence and another may vary. This leads to some questions that, once again, demonstrate the inequality suffered by the citizen according to the community he belongs to.

How can it be that a dog can be considered potentially dangerous in one area, with the detriment that it entails for him and his owner and the neighboring area is not?

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