An Aberdeen construction worker caught up in a Home Office probe into illegal workers and organised crime has been jailed.
Rebani Kupa was part of the workforce on the new Aberdeen Exhibition and Conference Centre but has now been sentenced to 12 months behind bars.
The Albanian national spent more than 14 years working in Scotland using faked documents and under an assumed name and nationality.
His illegal status escaped notice until the UK Government launched an investigation into an Albanian organised crime syndicate.
That involved officials looking at staff working with a number of firms, including Kupa Steelfixing Ltd, which is one of the sub-contractors on the giant AECC project.
As many as seven Albanians – including Kupa – were subsequently detained following Home Office visits to the city.
Kupa Steelfixing Ltd has denied any involvement with organised crime, while the accused has denied any involvement in the running of the firm, despite his surname.
The 35-year-old, described as a prisoner at Edinburgh, admitted being in possession of a faked UK resident permit in the name of Rebani Mehaj on the AECC construction site on May 16, 2017.
He also admitted using a false identity and false name in order to work when he would otherwise have been disqualified from doing so by way of his immigration status.
Kupa claimed to be a Kosovan national and gained false paperwork in order to move to Scotland for the first time in 2000.
He remained in the country for around eight years and then returned in 2012, using the same assumed identity, and continuing to work until Home Office officials swooped on the Bucksburn construction site.
Kupa told Aberdeen Sheriff Court he had worked throughout his time in Scotland and had always paid national insurance and tax.
That work ethic was not, however, enough to persuade Sheriff William Summers to stay his hand.
He told Kupa: “These are serious offences.
“They offend against the integrity of the Home Office immigration system and there is no alternative to custody.”
The court was told the accused’s immigration status remained “unclear”.
The Robertson construction group, which is leading the AECC project, has pledged to assist with any further Home Office investigations.
A FORMER Leeds Indian restaurant boss who "chose to ignore the law" has been fined for not paying a security bond after missing tax payments.
Rabnawaz Khan Akbar, 46, who previously ran Mumtaz Leeds Ltd, on Chadwick Street, continued trading in 2017 after failing to pay security bonds totalling £73,448 to HM
Revenue and Customs (HMRC) to safeguard payment of VAT, income tax and National Insurance contributions.
Akbar, of Greycourt Close, Bradford, was ordered to pay the bond after he regularly failed to pay VAT, Income Tax and National Insurance Contributions on time.
He was warned by HMRC if he did not pay, the business could no longer supply taxable goods or services.
HMRC served Akbar with notices of requirement to provide a VAT security of £62,197.43 and a PAYE security of £11,251.
He failed to pay the money but continued to trade. Akbar admitted trading while the bonds remained unpaid at Leeds Magistrates’ Court and was fined £1,962.
Mumtaz Leeds Ltd also received a fine of £6,000. The fine is a compensation payment to HMRC.
HMRC can ask for a cash deposit or bond when there is a risk tax will not be paid on time. The security can be kept if the tax is not paid. An HMRC spokesperson said: “Akbar chose to ignore the law even though he was given numerous opportunities to continue to trade legitimately and now he is paying the price.
“HMRC can require businesses with a history of ignoring their tax obligations to pay a bond to protect future tax revenue. It is only right that we tackle those businesses who fail to play by the rules by taking such action.”
You may have wondered why we need a National Insurance number in the UK and why it is so important. Our National Insurance numbers are extremely important for many things and you should always keep yours safe; you could be the victim of identity fraud if you do not keep it safe. Here are three reasons why having a National Insurance number really is essential.
Students
Even if you haven’t worked yet and you are going straight from sixth form or college to university you still need a National Insurance number. When going to university, you will more than likely need to apply for your student loan to pay your university fees and to manage with rent etc whilst you are living at university or even if you are living at home.
Without a National Insurance number, you cannot apply for a student loan with the Student Loan Company therefore it is essential as a university student unless you can afford to pay your tuition loans and living costs too. Life financially as a student can be hard, therefore you should take every opportunity to get money help. You do not have to pay your student loan back until you are employed and you are earning a certain amount of money. For more information check out this BBC article.
Working
Without a National Insurance number, you cannot work in the UK, unless you are being paid cash in hand which is illegal and could get your employer and you in a lot of trouble. An employer needs a National Insurance number before you can start working for them, this is to ensure you are who you are saying you are. This also makes sure that you are only working where you are saying so. This is to prevent tax fraud which is unfair on those who pay taxes and work hard for their money.
The Department for State and Pensions also need this information to pay into your pension when you are working. Due to how essential this number is, especially if you are wanting to work, visiting the Lost National Insurance Number website is really important if you’ve misplaced your number.
To Vote
If you want a say about who runs your local council and your government, you need a National Insurance number. This is to ensure you can vote and be part of the Electoral Register. When you apply to vote, you need to show your National Insurance number so that your identity can be checked. Being able to vote and have a say in who runs your country and expressing your views is extremely important. Not enough young people are voting, and having your say in things like Brexit is a must, as you are the future of the UK and you should have a say in what happens.
Having a National Insurance number is a form of identification, just as a Passport or Driving License. It should never be given to anyone else. You need your National Insurance number for many things including the ones listed above. Therefore, keep it safe.
As of April 2018, amendments will be introduced to Part 6, Chapter 3 of the Income Tax (Earnings and Pensions) Act 2003 ('ITEPA'), which deals with the taxation of termination payments in employment. A key change is to be made to the taxation of payments in lieu of notice (PILONs). Helen Wyatt looks as the new legislation in this KeyNote.
What is the problem with taxation of PILONs?
At present, the tax treatment of PILONs is somewhat complicated and arguably unfair. The tax position differs depending on whether the PILON is considered to be contractual or non-contractual.
If the employer's ability to make a PILON is a contractual right and it exercises that right in accordance with the contract, then the PILON is taxable as earnings and subject to deduction of PAYE income tax and NICs at source.
If the contract of employment does not give the employer the right to make a PILON, then the making of a PILON is technically a breach of contract and the payment should be classified as damages for breach of contract and the first £30,000 of the payment will not be taxable unless the employer habitually makes PILONs as an automatic response to termination.
If the contract of employment contains a discretionary PILON clause, meaning that the employer can choose to make such a payment or not, then whether such a payment is taxable or not depends on the facts of the case and whether, in the circumstances, the contractual right has been exercised or whether the parties have agreed an alternative position which equates to a damages payment for breach of contract.
Clearly the fact that some PILONs are fully taxable, some are not and there is some uncertainty from case to case as to which are and which are not, is an oddity. Historically, employers may have consciously chosen not to include a PILON clause in their contracts of employment in order to be able to use a tax-free PILON as a bargaining tool as part of an exit negotiation.
As from April, this option will no longer be available.
So what is the solution?
All PILONs whether contractual or not will be taxable earnings.
According to the Government's policy paper entitled "Income Tax and National Insurance contributions: treatment of termination payments", a termination payment will be capable of having two elements: a part that benefits from the £30,000 tax-free exemption and a part that does not. Employers will need to identify any portion that should be treated as employment income and deduct tax accordingly. A part that equates to a PILON or a partial PILON will fall into the taxable category, whether it is a contractual payment or not and regardless of the labelling or categorisation that the employer may attempt to apply to it.
While the policy paper makes it sound very simple, the amendments to ITEPA appearing at sections 402A to 402E to give effect to the policy are not. The legislation is necessarily complicated in order to give certainty as to what portion of a termination payment, if any, is referable to a "post-employment notice period". If there is such a payment, the legislation also defines a calculation for the amount of "basic pay" that is referable to that period. It goes into detail as to what kinds of payments would not constitute basic pay for these purposes and are therefore not "post-employment notice pay" and consequently not taxable under section 402 of ITEPA (although such payments may be taxable under other provisions of the Act).
While the legislation is complicated, the concept is sensible, and one would expect the calculation to be easier to grasp in practice, if not on paper.
New Research: IoT Insurance Market - Know About Influencing Factors By Type, Application, Top Companies (IBM, SAP SE , Oracle, Cisco Systems , Accenture, Verisk Analytics, Lexisnexis, Zonoff, Google, Microsoft) – Forecast to 2022
This press release was orginally distributed by SBWire
Houston, TX -- (SBWIRE) -- 02/28/2018 -- IoT has a huge impact on auto insurance industries. The growing adoption of IoT-enabled devices in Global Positioning Systems (GPS), in-built sensors, and other detectors would increase the need for new IoT-based technologies in the insurance industry to gather data such as speed, braking pattern, and other driving behavior. Also, the IoT platforms offer quick access to the underwriting process and claim management for the insurer. These benefits contribute to the growth of the market for automobile and transportation in the IoT insurance market.
Global IoT Insurance Market Estimated to Grow at a CAGR of +65% During Forecast Period
IoT has a huge impact on auto insurance industries. The growing adoption of IoT-enabled devices in Global Positioning Systems (GPS), in-built sensors, and other detectors would increase the need for new IoT-based technologies in the insurance industry to gather data such as speed, braking pattern, and other driving behavior. These benefits contribute to the growth of the market for automobile and transportation in the IoT insurance market.
Top Players Profiled in this report includes, International Business Machines Corporation , SAP SE , Oracle Corporation , Google, Microsoft Corporation , Cisco Systems , Accenture PLC , Verisk Analytics , Concirrus , Lexisnexis , Zonoff
IoT Insurance market research is an intelligence report with meticulous efforts undertaken to study the right and valuable information. The data which has been looked upon is done considering both, the existing top players and the upcoming competitors. Business strategies of the key players and the new entering market industries are studied in detail. Well explained SWOT analysis, revenue share and contact information are shared in this report analysis.
The main goal for the dissemination of this information is to give a descriptive analysis of how the trends could potentially affect the upcoming future of IoT Insurance market during the forecast period. This markets competitive manufactures and the upcoming manufactures are studied with their detailed research. It presents a comparative detailed analysis of the all regional and player segments, offering readers a better knowledge of where areas in which they can place their existing resources and gauging the priority of a particular region in order to boost their standing in the global market.
Reasons to Access IoT Insurance Market Research Report:
IoT Insurance market is segmented on the basis of various parameters. The factors which are impacting the market's growth are studied in detail. The report also presents a overall weaknesses which companies operating in the market must avoid in order to enjoy sustainable growth through the course of the forecast period. Besides this, profiles of some of the leading players operating and encouraging in the growth of the global market are included in the study. Additionally, using SWOT analysis, markets weaknesses and strengths are analyzed. It also helps the report provide insights into the opportunities and threats that these companies may face during the forecast period.
Hurricane Harvey resulted in nearly 670,000 in combined personal and commercial property insurance claims to private insurers, the Texas Windstorm Insurance Association (TWIA) and the Texas Fair Access to Insurance Requirements Plan (FAIR Plan), insurance regulators said in a presentation to state lawmakers in late January.
The Texas Department of Insurance said that number includes about 354,000 residential property claims — including homeowners, residential and mobile homeowners — and about 203,000 automobile claims. Around 37,000 commercial property claims, 66,000 flood claims and 12,000 “other” insurance claims also have been filed as a result of damage from Harvey.
The numbers are derived from data collected by TDI through a data call to insurers issued on Sept. 21, 2017, and reflect information received through late October.
All property insurers in Texas, including admitted and surplus lines companies, TWIA, and the FAIR Plan were required to report on claims resulting from Hurricane Harvey, which made landfall on the Texas coast several times beginning on Aug. 25 of last year.
TDI said insurers reported $4.5 billion in paid losses as of the data call reporting date. While the numbers are expected to change as more claims are reported, settled, and closed, insurers estimate that Harvey’s paid claims would total $15.7 billion.
As opposed to 2008’s Hurricane Ike, which was largely a wind event, the bulk of Harvey’s damage was caused by flooding. The majority of Harvey claims and paid losses — about 90 percent — generated from Houston and Southeast Texas (collectively Houston Area), and the Coastal Bend.
Some 850 companies, or about 98 percent of the total property and automobile insurance market in Texas, responded to the data call, with 545 companies submitting data at the end of September. The rest of the companies submitted data in mid- to late October.
While the percentages differ by line of insurance, TDI noted that as of the reporting date, about 27 percent of claims for all types of insurance had been paid, or closed with a loss payment, 28 percent were closed without a loss payment, 44 percent were still open, and 7 percent had been reopened.
The agency said a high percentage of homeowners insurance claims were closed without payment because, especially in Houston and Southeast Texas, much of the damage to residential property was caused by flooding and homeowners policies typically do not cover flooding. Homeowners may have filed claims under their homeowners policy “to get a denial to apply for FEMA assistance,” TDI said.
The average claim amount for damage resulting from Hurricane Harvey to residential properties, excluding flood, is about $7,600. For flood insurance the average claims amount is around $80,000. For commercial property claims the average is about $95,000 and the average for automobile claims is about $16,000, according to TDI.
Auto Losses
About 65 percent of automobile claims involved total losses, particularly in the Houston area. As of the reporting date 47 percent of automobile claims had been paid — closed with a loss payment. Around 5 percent of the auto claims had been reopened. On average, it has taken 13 days for insurers to close an automobile claim.
More than 90 percent of the automobile losses generated in the Houston area region, which also saw the highest average loss per policy, according to TDI.
For all regions in Texas, the average paid auto loss from Harvey is $19,943. The average paid auto loss in the Houston area is $20,544 while the average paid auto loss in the Coastal Bend area is $10,251.
TDI presented the results of its Hurricane Harvey data call to the Senate Business and Commerce Committee on Jan. 23.
Copyright from TDI’s website at: http://www.tdi.texas.gov/reports/documents/Harvey-20180123.pdf.
The City of Houston employees' healthcare and Social Security data might have been compromised by a run-of-the-mill car burglary earlier this month, the city announced Friday.
A laptop computer was stolen from a human resource employee's personal vehicle on Feb. 2, the city said. The computer contained sensitive personal information for an unknown number of city employees, including names, addresses, birthdays, Social Security numbers and medical information otherwise protected by the Health Insurance Portability and Accountability Act.
City officials said the employee failed to follow training about keeping sensitive information private. City employees are discouraged from bringing their work laptops out of the office unless the sensitive information found on the laptop is secured by an encryption.
Detectives with the Houston Police Department and Office of Inspector General are working to determine how much, if any, information has been compromised. In the meantime, the city is sending out official notices to employees who might be affected.
The city is also offering free credit monitoring and other identity restoration services to those employees.
Thinking about shopping your auto insurance? A huge percent of people never shop their insurance needs — and that’s a bad idea considering that modern American business punishes loyalty, rather than rewarding it.
Car insurance ads on TV promise accident forgiveness, vanishing deductibles and other selling points. But those features are just a side show to the main act, which is a company’s reputation with satisfying customers after a claim is made.
Best and worst auto insurers
Consumer Reports took a look at the auto insurance industry by surveying more than 64,000 readers about their satisfaction on the claims process, the cost of premiums and the overall customer experience.
Here are the winners and losers, according to the magazine:
10 top-rated insurers
(#1 is best)
1.Amica Insurance
2.New Jersey Manufacturers Insurance Company
3.USAA Property & Casualty
4.Auto Club Group
5.Erie Insurance Group
6.PEMCO Mutual Insurance Company
7.The Cincinnati Insurance Company
8.Auto-Owners Insurance Group of Companies
9.Auto Club Enterprises Insurance Group
10. Travelers Group
10 lowest-rated insurers
(#1 is worst)
1.MAPFRE North America Group
2.MetLife Auto & Home Group
3.Mercury General Group
4.Progressive Insurance Group
5.Liberty Mutual Insurance Companies
6.Nationwide Group
7.Allstate
8.Farmers Insurance
9.Berkshire Hathaway Insurance Group (Geico)
10.State Farm
When it comes to car insurance, be sure the deductible you have isn’t too low. Having a low deductible pushes premiums higher. It could also tempt you to make a claim for a small incident that will leave you in trouble with insurers going forward.
You never want to make a claim on auto insurance for something small — like a cracked windshield or a broken side-view mirror — because the consequences are so ugly.
The insurer can surcharge you for a number of years; eliminate the discounts you would otherwise qualify for; or put a black mark on your C.L.U.E. report, a little-known industry database of claims. The latter effectively limits your ability to shop with the competition for 36 months.
The hidden dark side of roadside assistance
Auto insurers are great about offering add-ons to your policy that seem in theory like great conveniences at a great price. But using these seemingly benign “benefits” could marginalize you in the insurance marketplace and result in jacked-up rates!
Some auto insurers that offer roadside assistance treat your use of it as an at-fault claim and put that through on your C.L.U.E. report — even though you only needed a tow or the fix or a flat tire!
“It’s the Wild West with no rules on what insurers can decide to report on your C.L.U.E. report,” money expert Clark Howard says. “And you have no right of appeal either.”
So here’s the # 1 rule about roadside assistance: Never get it from your own insurer. Get it from AAA or elsewhere.
Shopping around is the best way to get a lower rate
If your auto insurance is costing you too much, you’ve got to look around at other insurers. Here’s how to start the process…
Begin by identifying solid companies
Clark has long talked about the merits of Amica Mutual and USAA. But those aren’t the only two companies you should look at. Consider buying a one-time subscription to Consumer Reports and checking their latest list of the best auto insurance companies to find others that should make it onto your shortlist.
Get your quotes
Once you have a list of candidates, you’ll want to start getting quotes. This typically takes around 15 minutes on the phone per insurer. Have your most recent policy in front of you in case any questions come up about the make and model of your vehicle(s).
Working with an insurance broker is another option. He or she will get multiple quotes for you and you’ll have access to all the insurers they do business with. It’s an easy one-stop shop that lets you still have the flexibility of comparison pricing.
Compare quotes
Once you get the quotes back, it’s time to compare them. Each quote should be based on the same amount of coverage so you can do an apples-to-apples comparison. What if a poorly ranked company offers you a great quote? Clark says to avoid them! While the premium might be tempting, you want to be sure your insurer is there for you when the chips are down.
Know when to drop comprehensive and collision
The general rule is when the cost of comp and collision exceeds 10% of your old vehicle’s value, that’s the time to dump it and just have liability coverage. You can determine your vehicle’s value at Edmunds.com, KBB.com or NADA.com.
So let’s take a simple example. Say your vehicle is worth $4,000. If you’re paying anything more than $400 annually (that’s 10% of $4,000) for comp and collision, it no longer makes any financial sense. One notable exception to this rule: If there’s no way you could financially cover the loss of your vehicle, forget the math and keep paying for comp and collision.
Be prepared to take a higher deductible
You should always opt for a $1,000 deductible for the best savings on your policy. At that level, you’ll pay a lower premium and won’t be tempted to file any small piddling claims.
Auto insurance premiums in Colorado rose at the third-fastest rate of any state in the country and at more than three times the pace of inflation over the past six years, according to a new rate survey.“Colorado has seen a pretty significant increase in overall premiums,” said Neil Richardson, a registered insurance agent with The Zebra, an insurance search engine behind the Zebra State of Auto Insurance 2018.Colorado’s 54.2 percent increase in the average premium between 2011 and 2017 lagged only Montana at 64 percent and Mississippi at 60.3 percent and outstripped the 20 percent gain measured nationally. Those hikes don’t account for costs from the May 2017 hailstorm that hit the metro area, which caused a record-setting $1.4 billion in damages, but that event can only drive costs higher in the future.Individual premiums can vary widely based on the car, miles driven, a driver’s record and the types of coverage sought. To account for that, the study looked at what a single male, age 30, with a good driving record insuring a 2013 Honda Accord EX would pay. The same policy was priced across the country, down to ZIP codes.When Colorado abandoned the no-fault insurance system in 2003, premiums fell from eighth- highest in the country to the middle of the pack, said Carole Walker, executive director with the Rocky Mountain Insurance Information Association. No-fault required insurers to pay their customers’ medical costs regardless of who was at fault in an accident, but now the insurer covering the driver found at fault must pay. Premiums typically are higher in no-fault states.“We were in this grace period after no-fault, which took away mandatory coverages,” Walker said. “Colorado is now on this collision course. There are some factors we can control and some we can’t.”Colorado’s premiums, although rising rapidly, have a ways to go to get back into the top 10 again, according to the study. The state ranked 18th with an average premium of $1,435 under the scenario studied, Richardson said.But back in 2011, that premium was $944 a year. And the hikes are piling on rising living costs, especially for housing.Denver resident Jordan Smith saw her six-month premium go up from $384 in 2016 to $420 in 2017. Given all the accidents she was seeing on her commute to Boulder, the increase wasn’t a complete surprise, she said.But then in 2018, her premium shot up 28 percent, even after she had replaced her leased 2014 Mazda 6 with a much less expensive 2005 Subaru Legacy, a move she thought would help bring her premium down.“My most recent renewal notice of $538 was a bit of a shock. Instead of adjusting my budget, I decided to shop around and got something closer to what I was paying before,” said Smith, who got her premium back down to $440.Experts offer several reasons to explain the big increases. A streak of bad weather, primarily heavy hailstorms, have required large payouts. Colorado has ranked second only to Texas for hail-damage claims in recent years.Lower gasoline prices have resulted in more people on the road, and the northern Front Range has seen an influx of newcomers. More traffic means more accidents and more claims and higher premiums.Distracted driving remains a big problem, despite repeated campaigns to get people to stop using their mobile devices while driving. And there’s some evidence that legalized marijuana is having an effect on premiums, Richardson said.“In every state where recreational marijuana has been legalized, with the exception of Massachusetts, car insurance rates have increased,” he said.Between 2016 and 2017, premiums rose an average of 3.2 percent in states where recreational marijuana was legal, but only 1.6 percent on average in states with a full ban still in place.Vehicle repair costs are a big factor. Newer vehicles come with more expensive cameras and sensors in their bumpers and windshields designed to reduce severe accidents. The trade-off is that minor repairs that used to cost hundreds of dollars, such as a bumper replacement, can now run thousands of dollars.As premiums rise, more people lower coverage levels or drop policies entirely, despite the penalties they face if caught. Some of the steepest increases are coming in coverage for uninsured motorists.About 16 percent of drivers in Colorado are driving without insurance, Walker said, adding that for some people, the choice comes down to making the rent or paying for groceries.Insurers also point to more litigation and larger awards, due in part to changes trial attorneys sought and the legislature approved after the no-fault system was disbanded.“We started seeing the attorneys attack the honey pot,” Walker said. “We need some major reform if we are going to make a difference.”Insurers sought and failed last year to change the ability of claimants to file against multiple uninsured motorist policies within a household, known as stacking. Insurers also want juries to see not only the initial charges for medical care, but also the actual amount paid, which can come in much lower.Sommer Luther, president-elect of the Colorado Trial Lawyers Association, said the medical insurers have negotiated those lower rates and if the injured party didn’t have an outside policy, they would have paid the higher rates.Luther said few auto accident cases go to a jury trial. Most are settled and when a case goes to a jury, pain and suffering damages in Colorado are capped at $500,000.“There really haven’t been any studies that have shown that litigation or lawsuits increase premiums to the insured,” Luther said.Colorado’s auto insurance market remains highly competitive, with more than 150 companies underwriting auto policies in the state in 2016, according to the Colorado Division of Insurance.About 25 of the largest 150 insurers active in the state paid out more in claims than what they collected in premiums in 2016, including two of the 10 most active policy underwriters.“Some companies are paying out more in claims than they’re taking in with premiums, but that is why they are increasing premiums,” said Vincent Plymell, a spokesman for the Colorado Division of Insurance.Based on their claims, Plymell said some insurers could have requested even bigger premium increases, but didn’t.Along just the Front Range, the Zebra study found variations in auto premiums for its hypothetical policy from Loveland at an average premium of $1,215 a year to Conifer at $1,624.
As internet adoption continues to rise in the world, it has become vital for insurers to embrace technology and provide enhanced services in the auto insurance industry.
The rapid advancement of technology continues to significantly impact all industries and sectors, and auto insurance is no exception. Starting with the ease of accessing, evaluating and purchasing the right insurance policy from a number of options available, to ongoing support and help during the tenure of the policy, the experience for the insured can be greatly improved. Similarly, for the insurer, the internet and social media have transformed the way they reach, fulfill and engage with their target segments.
As internet adoption continues to rise in the country, it has become vital for insurers to embrace technology and provide enhanced services in the auto insurance industry. It is now possible for an insurer to provide faster, better, cheaper services, with multiple policy options, in a fully digital environment. Not only is it available to the customer at the time of their choosing, it increases choice and economic benefit by reducing the cost of service.
For the insured, the entire experience of looking up options, evaluating need fit for their purpose, and finally buying a policy is now possible with just a few clicks, from the comfort of their own screens, whether at home or on the move. The limitations of time and space have significantly reduced, if not fully overcome.
With technological advancements highly customized insurance policies, tailored to unique profiles, are on the anvil. They help predict risks more accurately and offer the true risk price to customers. Here are some technologies that will further improve user experience and enhance on road safety:
Telematics enables the capture of data related to individual driving habits and patterns, and draw up a risk profile of the driver, this is a critical input for designing a custom auto insurance policy with it’s unique premium. Auto owners only pay the premium aligned to their driving profile, and can avoid paying for coverage based on one-size-fits-all system. By monitoring the vitals of the vehicle, technology can also prompt the owner to take specific actions, such as when a vehicle is due for service, or change of tyres.
Real time notifications and nudges could be provided when customer is speeding or is approaching an accident prone zone. Besides having the potential to reward good behaviour, this also enables prevention of accidents and enables collection of data to identify risk zones for traffic policy related changes (e.g. changing speed limit of certain zones). Other applications such as navigation, availing roadside assistance, calling emergency services, using infotainment systems and others are add-ons.
Advanced anti-theft devices can vastly enhance the protection of a car against theft. A customer installing any of the various types of these devices such as Electronic Immobilizer, Alarms, Steering Wheel Lock, Keyless Lock Device, and others, assures the insurer that the customer has taken adequate preventive measures against theft of their car. Installing this kind of device in a car could help in decreasing the amount of premium that the customer pays for purchasing an auto insurance policy.
Similarly, features such as Electronic Stability Control (ESC) help in reducing accidents mainly due to tipping or rolling over of vehicles. ESC system is connected to the brakes of a vehicle, and detects abrupt pressure on the brake pads, over or understeering, and loss of necessary traction. The installation of such control and safety devices can bring down the cost of premium for the auto insurance policy to a great extent.
Technological progress will continue to pave the way for insurance products to be designed smartly, offered seamlessly, and serviced efficiently – bringing economies for both the insurer and the insured. The engagement model of the insurer will move beyond just purchase and claims. The insurers would also play a role in prevention of accidents both by prompting and rewarding good behavior. Many countries are already on this path and this is genuinely good for all stakeholders - customers, insurers and regulators / government.
Also, not mentioning the opportunities provided by Social Media platforms would be unfair. The fantastic tools for customer engagement, which increase product awareness and brand advocacy, are a potent communication platform to provide seamless customer support for queries and complaints. Because of the significant public impact of social media, it has made insurers more accountable and responsible to deliver on their promise of providing an insurance cover.
