Insurance Essay Example | Topics and Well Written Essays - 1500 words - 2

Insurance - Essay Example The insurance schemes using telematics technology has several advantages while at the same time it ails from certain disadvantages. One of the main advantages of telematics insurance is that it can constantly remind the driver of how fast he or she is driving the vehicle. Thus, when a person drives the vehicle beyond the safe speed limit, it works as an automatic check on dangerous habits. Thus, the younger generations who tend to embark on dangerous driving habits will b encouraged to adopt safe driving practices through this system of insurance. Since the insurance company collects the premium based on the driving behaviour of student drivers, telematics will inculcate in them the habit of safe driving. It also offers a no claim-discount for the first five years and, therefore, it can reduce the risk of accidents in the case of young student drivers, who otherwise tend to drive recklessly. This in turn will also help the students to get a low insurance premium, which can be an attractive proposition for them. On the expiry of the insurance coverage reimbursement is made for the unused miles, and this enables t he students to save the amount from their first premium deposit. Telematics technology helps the insurer also to advise young student drivers when they meet with any road accident. Since the technology tracks driving behaviour, it allows them to claim damage from the insurer, provided there is no fault in their part. Some insurers such as â€Å"Insure the Box† provide a â€Å"bonus of 100 mile per month† to young student drivers if they drive safely (Avery, 2011). â€Å"As per ABI news release on 5th march 2013† a reduction in car insurance premium for young drivers of up to 20% is expected, if the government takes action for maintaining a complete risk free driving on roads by the young students (ABI News Release, 2013). The European Court of Justice (ECJ) has announced recently that it will prohibit insurance companies which tax more premiums

Understanding Property Markets. To what extent does property market Essay

Understanding Property Markets. To what extent does property market failure give a necessary and sufficient case for public intervention using planning controls - Essay Example current financial crisis clearly indicates that the nexus of the financial as well as property market can lead to the overall failure of the markets because the volatile nature of one market can readily impact another market if they are correlated with each other in any sense. In the past, it has been the practice of the financial institutions that they greatly offered easy money which allowed relatively higher volume of people to buy their own homes. This phenomenon, however, also gave rise to the speculative activity within the market which not only led to the price appreciation but also made the market more volatile and prone to economic shocks. This effect has been so much that it was estimated that more than 590 billion British Pounds were wiped out from the property market only during 2008. (Knapton, 2008). Such symptoms indicate that the property market is prone to failure and as such may require the government intervention in the market through planning controls. This essay will discuss whether the recent failure makes a case for government to intervene in the property market or not. It is argued that the free markets do not always provide the efficient allocation of resources. There are various causes of market failure and as such information imperfections, externalities as well as capital market imperfections are some of the causes which can be cited as the few major reasons behind the failure of the markets. (Keep,2006). Whether government shall intervene into markets to correct them or not is an issue of great debate which has been re-emerged again. During 1990s, it was argued that the extension of credit has a greater macroeconomic impact on the economy as credit has extensive linkages with different markets such as property markets as well as consumer durables.(Eichengreen & Mitchener, 2004). Property markets along with other markets, therefore, started to grow and reached to a level where it failed to accommodate the economic shocks and resulted