Importance of Financial Stability Ratios

Common ratios to judge the financial stability of a business concern are gearing ratio, current ratio and liquid ratio. Gearing ratio shows the extent of a firm's reliance on debt to fund its activities. As the proportion of debt climbs (especially if it exceeds 65 percent of total funds for most businesses), the greater the risk of financial distress. This is the downside of financial leverage – It increases the financial risk.

Current ratio measures the number of times the current assets of a firm cover its current liabilities. This is a measure of solvency: the capacity of a firm to pay its debts through the normal cash cycle, selling inventory on credit, collecting debts and paying creditors. This ratio must normally exceed 1: 1 and should be closer to 2: 1. It should also be noted that an excess of current assets will result in poor asset utilization.

Liquid or quick ratio is a more tighter measure of short term financial stability. It measures the firms ability to pay its current liabilities from its liquid assets. Liquid assets are cash or near cash resources. In practice liquid assets include cash, bank, short term securities and accounts receivable, the assets that be readily converted into cash to meet immediate calls for payment from lenders and suppliers.

Accounts receivables are normally included in liquid assets, as they may be sold to a finance company at a discount for later collection from debtors. This is called debt factoring. Debt factoring is not common in all the countries. Debt factoring is used as a means of managing the cash flow from operations, rather than trying entity's funds up in accounts receivable. In arriving at liquid assets, the principle exclusion from current assets is inventory. As this may take some months to sell – and then often to credit customers – it can be many months before cash is collected from inventory. Among the current liabilities may be some debts that may not be due for many months. These may be excluded in calculating the liquid ratio. Examples include tax payable and a current portion of long term debt, both of which may not be due for some months. However, such adjustments should only be made if the repayment dates are known and are over six months later than balance sheet date.

One common (but risky) adjustment in calculating the liquid ratio is to exclude bank overdraft from current liabilities. This is not recommended. When a liquid ratio declines towards (or below) the 1: 1 level (including overdraft), this is most likely time that the bank will require repayment – on demand. Hence, an overdraft should only be left out of this calculation when the firm is perfectly liquid – When it does not matter anyway!

As these ratios are based on the statement of financial position, they represent only a 'snapshot' of the financial stability of the business, taken at one point in time. These ratios can be manipulated by referring payments or delaying purchases until the following period, or by invoicing customers in advance of delivery. Known as 'window dressing', such techniques show an improved solvency position at balance sheet date.

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Merits and Demerits of Equity Finance

Equity finance means the owner, own funds and finance. Usually small scale business such as partnerships and sole proprietorships are operated by their owner trough their own finance. Joint stock companies operate on the basis of equity shares, but their management is different from share holders and investors.

Merits of Equity Finance:

Following are the merits of equity finance:

(i) Permanent in Nature: Equity finance is permanent in nature. There is no need to repay it unless liquidation occur. Shares once sold remain in the market. If any share holder wants to sell those shares he can do so in the stock exchange where company is listed. However, this will not pose any liquidity problem for the company.

(ii) Solvency: Equity finance increases the solvency of the business. It also helps in increasing the financial standing. In times of need the share capital can be increased by inviting offers from the general public to subscribe for new shares. This will enable the company to successfully face the financial crisis.

(iii) Credit Worthiness: High equity finance increases credit worthiness. A business in which equity finance has high proportion can easily take loan from banks. In contrast to those companies which are under serious debt burden, no longer remain attractive for investors. Higher proportion of equity finance means that less money will be needed for payment of interest on loans and financial expenses, so much of the profit will be distributed among share holders.

(iv) No Interest: No interest is paid to any outsider in case of equity finance. This increases the net income of the business which can be used to expand the scale of operations.

(v) Motivation: As in equity finance all the profit remain with the owner, so it gives him motivation to work more hard. The sense of inspiration and care is greater in a business which is financed by owner's own money. This keeps the businessman conscious and active to seek opportunities and earn profit.

(vi) No Danger of Insolvency: As there is no borrowed capital so no repayment have to be made in any strict lime schedule. This makes the entrepreneur free from financial worries and there is no danger of insolvency.

(vii) Liquidation: In case of winding up or liquidation there is no outsiders charge on the assets of the business. All the assets remain with the owner.

(viii) Increasing Capital: Joint Stock companies can increases both the issued and authorized capital after fulfilling certain legal requirements. So in times of need finance can be raised by selling extra shares.

(ix) Macro Level Advantages: Equity finance produces many social and macro level advantages. First it reduces the elements of interest in the economy. This makes people Tree of financial worries and panic. Secondly the growth of joint stock companies allows a great number of people to share in its profit without taking active part in its management. Thus people can use their savings to earn monetary rewards over a long time.

Demerits of Equity Finance:

Following are the demerits of equity finance:

(i) Decrease in Working Capital: If majority of funds of business are invested in fixed assets then business may feel shortage of working capital. This problem is common in small scale businesses. The owner has a fixed amount of capital to start with and major proportion of it is consumed by fixed assets. So less is left to meet current expenses of the business. In large scale business, financial mismanagement can also lead to similar problems.

(ii) Difficulties in Making Regular Payments : In case of equity finance the businessman may feel problems in making payments of regular and recurring nature. Sales revenues sometimes may fall due to seasonal factors. If sufficient funds are not available then there would be difficulties in meeting short term liabilities.

(iii) Higher Taxes: As no interest has to be paid to any outsider so taxable income of the business is greater. This results in higher incidence of taxes. Further there is double taxation in certain cases. In case of joint stock company the whole income is taxed prior to any appropriation. When dividends are paid then they are again taxed from the income of recipients.

(iv) Limited Expansion: Due to equity finance the businessman is not able to increase the scale of operations. Expansion of the business needs huge finance for establishing new plant and capturing more markets. Small scales businesses also do not have any professional guidance available to them to extend their market. There is a general tendency that owners try to keep their business in such a limit so that they can keep affective control over it. As business is financed by the owner himself so he is very much obsessed with chances of fraud and embezzlement. These factors hinder the expansion of business.

(v) Lack of Research and Development : In a business which is run solely on equity finance, there is lack of research and development. Research activities take a long time and huge finance is needed to reach a new product or design. These research activities are no doubt costly but eventually when their outcome is launched in market, huge revenues are gained. But problem arises that if owner uses his own capital to finance such long term research projects then he will be facing problem in meeting short term liabilities. This factor discourages investment in research projects in a business financed by equity.

(vi) Delay in Replacement: Businesses that run on equity finance, face problems at the time of modernization or replacement of the capital equipments when it wears out. The owner tries to use the current equipments as long as possible. Sometimes he may even ignore the deteriorating quality of the production and keeps on running old equipment.

Tax Now, Tax Later and Tax Never

Do you know what type of investment vehicles do you own? Tax Now, Tax Later, and Tax Never? Wow, Tax Never? I will come back to this Tax Never later. Like me, I never learned how to invest and becoming wealthy in school. However, I always wanted to know why people are so well off, and some people are not? I finally found my answer after two years of working in a Prestige Financial Firm. The answer is, "knowing how to save, manage, calculate, use the Tax Law as in your favor, and to take action to plan ahead to build the passive income makes the difference." There are many great vehicles to generate passive income, and today I am going to focus on investment vehicles that you can sign up from traditional banks, and investment companies. So, what is Tax Now? Tax Now means that all the earning you make from investment vehicles need to be taxed every year. Everybody has to report his earning to the IRS on their Tax Return. These vehicles include both checking, saving and CDs accounts that generate interest for you. All the capital gains and dividends generate from Stocks and Mutual Funds; moreover, earnings from Bonds and Treasuries.

What's Tax Later? All the money people put in this vehicle is Pre-Tax. Which means this money is never taxed by IRS. Sounds pretty good huh! Yes, the downside of this vehicle is that people have to wait until there are 591/2 years old to take it out. There's 10% Tax penalty + Income Tax Penalty for taking money out before 591/2, unless you are taking money out for your first property purchase you still have 10% Tax penalty. Also, people have to take money out before they turn 701/2, because IRS can not wait that long for your money. All the money you take out after 591/2 is subject to "income Tax" depending on how much you take out. So, what are the investment vehicles in his category? These are 401K or other Qualified Plans, IRA, SEP-IRA (for self-employee), Annuities, and Savings Bonds. The only factor left to think about is "Is Tax going to be higher or lower in the future comparing to Today's Tax Rate?"

Last, what's Tax Never? Tax Never means people will never get taxed from all the gains when they take money out from this vehicle. Well technically speaking, money in there is after Taxed. Just like the money in the Bank is after Taxed. I have seen many people use this vehicle to build their wealth, and depending on the investment vehicles some do not need to wait for 591/2 to take out the money, no tax to pay on all the capital gains.

Sounds very delicious to me, these vehicles are ………….. are you ready? Ok, there are only three vehicles in this Tax Never Category. One is Roth IRA Roth 401K, and the other one is Cash Value Life Insurance (if you are interested, check out Variable or Equity Index Life Insurance). Both Roth IRA and Roth 401K have 591/2 rule, and contribution limitation depending on your Annual Income. For Roth 401K check with your company, the law just passed in 2006 so do not be surprised your company is with traditional 401K.

Remember, no one size fits all! Not everybody is suitable for all the vehicles. It takes understanding of how the Tax Law works for all the investment vehicles, how much time you have, what is your objective, what your risk tolerance is, and what your financial goals are, and many more. Every single detail counts and makes a big difference in your financial life. Please do not purchase bunch of cash value life insurance, or put more money in 401K after reading this article. It is very important for you to consult with a financial planner or advisor who has license with the governments. Please, do not consult your financial plan with whose financial condition is worse than yours. Now, I wish you all the success in building your massive passive income journey. Welcome to any questions and feedback.

Machine Learning: Value For Business

Machine learning (ML) algorithms allows computers to define and apply rules which were not described explicitly by the developer.

There are quite a lot of articles devoted to machine learning algorithms. Here is an attempt to make a "helicopter view" description of how these algorithms are applied in different business areas. This list is not an exhaustive list of course.

The first point is that ML algorithms can assist people by helping them to find patterns or dependencies, which are not visible by a human.

Numeric forecasting seems to be the most well known area here. For a long time computers were actively used for predicting the behavior of financial markets. Most models were developed before the 1980s, when financial markets got access to sufficient computational power. Later these technologies spread to other industries. Since computing power is cheap now, it can be used by even small companies for all kinds of forecasting, such as traffic (people, cars, users), sales forecasting and more.

Anomaly detection algorithms help people scan lots of data and identify which cases should be checked as anomalies. In finance they can identify fraudulent transactions. In infrastructure monitoring they make it possible to identify problems before they affect business. It is used in manufacturing quality control.

The main idea here is that you should not describe each type of anomaly. You give a big list of different known cases (a learning set) to the system and system use it for anomaly identifying.

Object clustering algorithms allows to group big amount of data using wide range of meaningful criteria. A man can not operate efficiently with more than few hundreds of object with many parameters. Machine can do clustering more efficient, for example, for customers / leads qualification, product lists segmentation, customer support cases classification etc.

Recommendations / preferences / behavior prediction algorithms gives us opportunity to be more efficient interacting with customers or users by offering them exactly what they need, even if they have not thought about it before. Recommendation systems works really bad in most of services now, but this sector will be improved rapidly very soon.

The second point is that machine learning algorithms can replace people. System makes analysis of people's actions, build rules basing on this information (ie learn from people) and apply this rules acting instead of people.

First of all this is about all types of standard decisions making. There are a lot of activities which require for standard actions in standard situations. People make some "standard decisions" and escalate cases which are not standard. There are no reasons, why machines can not do that: documents processing, cold calls, bookkeeping, first line customer support etc.

And again, the main feature here is that ML does not require for explicit rules definition. It "learns" from cases, which are already resolved by people during their work, and it makes the learning process cheaper. Such systems will save a lot of money for business owners, but many people will lose their job.

Another fruitful area is all kinds of data harvesting / web scraping. Google knows a lot. But when you need to get some aggregated structured information from the web, you still need to attract a human to do that (and there is a big chance that result will not be really good). Information aggregation, structuring and cross-validation, based on your preferences and requirements, will be automated thanks to ML. Qualitative analysis of information will still be made by people.

Finally, all this approaches can be used in almost any industry. We should take it into account, when predict the future of some markets and of our society in general.

Tax Strategies to Consider Before Year-End

This may be the most important time of year when it comes to managing your tax liability. Most financial decisions designed to reduce your tax bill next April have to occur by December 31. Here are six strategies to consider that might help you keep more of your money:

1. Avoid bracket creep

If you have the ability to manage your income, you may want to check to see if your income level this year could move you into a higher tax bracket. If your income is approaching a threshold, it may make sense to collect some of your income in 2017, rather than before year-end.

For example, a married couple filing a joint return in 2016 with taxable income above $ 75,300 (after deductions and personal exemptions) would be in the 25 percent federal tax bracket. That does not mean all income is subject to a 25 percent tax rate, as income is taxed in steps (everything under $ 75,300 would be taxed at a 15 percent federal tax rate or less). But by reaching the 25 percent tax bracket, any net long-term capital gains would be subject to a 15 percent tax at the federal level. By keeping income (including any capital gains) below $ 75,300, a married couple remains in the 15 percent tax bracket, qualifying them for a zero percent long-term capital gains tax rate.

2. Remember your favorite charities

Not surprisingly, this is the season when charitable contributions reach their peak. Your donations to qualified charities (properly documented with receipts or confirmations from the charity) could potentially be deducted on your tax return if you itemize deductions. Making certain that contributions occur in 2016 may help limit your tax liability this year.

Along with gifts of cash or tangible items to a charity, another way to reduce taxable income is to give stock to charity. This is especially effective with appreciated stock that would otherwise incur a long-term capital gain when it is sold. Gifting not only negates the tax consequences of the gain, but you are allowed to deduct the full market value of the stock on the day the gift is made. One important note – do not wait until the final days of the year to begin this process as the transaction may take time. Make sure it can be completed before the year is out to claim a deduction in 2016.

3. Accelerate itemized deductions if it makes sense

Take a look at what you plan to file this year for taxes. Are you leaving any opportunities – or deductions – on the table? One way to check is to review the total amount of deductions you could take and compare it to the standard deduction ($ 6,300 for a single person, $ 12,600 for married couples in 2016). If your deduction total is near the threshold of the standard amount, you may want to claim additional deductions so you can potentially lower your tax bill.

However, be sure you know how various tax moves may impact your financial situation before making each decision. Consider meeting with a tax professional who can help you sort out what makes sense for you.

4. Boost retirement plan savings

Reduce taxable income by making contributions to retirement savings plans. Pre-tax contributions to your workplace plan are deferred from current income. You can set aside up to $ 18,000 of income into a workplace plan if you are under age 50, or up to $ 24,000 if you are 50 or older. If you are covered by an employer-sponsored plan, you can make fully deductible contributions if you meet certain income requirements.

Those not covered by a retirement plan at work can make tax-deductible contributions to an individual retirement account (IRA). The IRA contribution limit for 2016 is 100 percent of compensation up to $ 5,500 for those under age 50 and $ 6,500 for those age 50 and older.

5. Lock in losses on disappointing investments

You may be able to salvage something positive from an investment that has performed poorly if you sell it at a loss. Consider selling investments that have lost ground in a taxable account by year end. Those capital losses first wipe out other capital gains, and then up to $ 3,000 of other forms of income. If your 2016 capital losses exceed what you can use to offset gains and then other income, they can be carried forward to help reduce your tax liability in future years.

Before selling assets, make sure the move is consistent with your long-term investment strategy. Remember that one of the biggest tax benefits is maintaining unrealized capital gains – growth in an investment that you continue to hold. Gains are taxable when you sell an investment.

Keep in mind that the ideas included in this article are for general information and are not intended to be the primary basis for investment decisions. This information should not be construed as advice designed to meet the needs of an individual investor. Please seek the advice of a financial advisor regarding financial matters and consult your tax advisor or attorney regarding specific tax issues and strategies.

Vocabulary Development Powered By Film Credits For ESL Learners

"When all think alike, then no one is thinking." – Walter Lippman

The development of technology plays a highly vibrant part in media evolution from outmoded to contemporary technology presentations for its messages to reach every individual consumers. As a result, the media does changes which are evidently observed among its genre such as films that manifest complex structures to impress audience. Furthermore, it can be perceived that from films' posters to their end credits, are unseen factors which tend to be highly pedagogical for English language acquisition when imaginatively and seriously handled by language educators. This inventive awareness anchors with the theory of audio- visual literacy which supports the said material for the enhancement of learners' linguistic and communicative competence. This concept fetches us to a solid idea that every film's features do not only function as purely entertainment but are possibly noteworthy in language achievement. In other words, every element it possesses may interrelate or unfold instructional strategies. One of its significant components is the end credits known as a list not limited to the cast and crew of a motion picture found at its ending. To be able to explicate its pedagogical value, an example of it is lifted from a movie, Edge of Darkness. The motion picture's final credits were dissected as inputs for innovative vocabulary teaching through series of constructed tasks' interplaying with single words, collocations, phrases, clauses, and sentences.

The Springboard

The material is an edited end credits of the film Edge of Darkness produced in 2010 by the film outfit, Warner Bros.

Edited Cast

Mel Gibson – Mr. Tom Craven Bojana Novakovic – Emma Craven, Mr. Craven's daughter Damian Young – Senator Jim Pine Caterina Scorsone – Melissa Wayne Duvall – Chief of Police Gbenga Akinnagbe – Detective Darcy Jones Paul Sparks – Northampton Police Detective Christy Scott Cashman – Detective Vicki Hurd
Gordon Peterson – interviewer
Timothy Sawyer -Dr. Sawyer
Molly Schreiber – reporter
Charles Harrington – neighbor
Lisa Hughes – news anchor
Charlie Alejandro – Boston Police officer
Cindi Alex – driver
Terry Conforti -wife of Senator Pine
Nicholas Grava -basketball player
Dan Marshall – hospital visitor
Robert Masiello -businessman
Gary Roscoe -newsroom editor
Edward Stanley -Radio Reporter
Vyvian Stevens -Tom Craven's friend
Darryl Wooten -TV News reporter
Adam Zalt -business traveler

Edited Crew

Film Director – Martin Campbell
TV and Movie Screenplays writers -William Monahan, Andrew Bovell
and Troy Kennedy-Martin
Producer – Tim Headington and Graham King
Co-executive producers- Jamie Laurenson, Gail Lyon, Lucienne Papon, and Kwame Parker
Musical scorer – Howard Shore
Cinematography – Phil Meheux
Film editor – Stuart Baird
Casting manager- Pam Dixon and Carolyn Pickman
Production Designer -Thomas Sanders
Art Director – Greg berry Greg Berry, Mark Satterlee, and Suzan Wexler
Set Decorator – Jay hart
Costume Designer -Lindy Hemming
Makeup Artist-Marleen Alter
Props man- Gary Alioto (carpenter)
Sound mixer -James Ashwill
Special effects technician -John baker
Visual effects artists -Stella Ampatzi, Suzette Barnett
Stunt performers -Charlie Alejandro, Rick Avery, Dean Bailey Peter Bucossi, and Jared Burke
Film location Manager – Gregory Alpert
Location scout -Gregory Chiodo
Transportation coordinator -Mike Davis

Some suggestions

Some recommendations about this teaching process may include but not limited to these enumerated ideas. Primarily, review your institutions' curricula if they establish a close significance to the materials and the lessons you are planning to conduct. Your intended material should relate dominantly with the projected outcomes of your organizations' programs and if they do, examine the end credits thoroughly if they embody the vocabularies to be prioritized. Rip the credits from the whole film which may run for a maximum of three (3) minutes or less to suit the timeframe of your specific lesson. Play and pause the video of it during the discussion. You can simplify the credits according to students' needs before you deliberate. It is suggested that you construct a diagram or a schema to relate covered words. Teach vocabularies anchored with the strategies being introduced in Cambridge English teachers' courses such as illustration, pictures, word structures, mime, word association, word classification, context, synonyms / antonyms / hyponyms, definition, translation, realia, among others. In the event that you decide to modify the activities, it is proposed that you base your instructions from the taxonomy of objectives under the (6) six order thinking skills where they fall. By doing this, each activity's direction will function as your future upshots. Be aware that vocabulary learning deals with words, phrases, collocations and sentences. Produce a copy of the instructional input to be distributed or as an alternative, display a model onscreen while activities are being performed. To add, note that while activities are being completed, varied expressions will emerge to form the entirety of learned languages. When time constraint hampers activity engagement, some tasks may not be covered. It is suggested that you choose the necessary task / s that you can administer under a prescribed teaching session.

The Vocabulary Exercises

These are recommended designed tasks that one can employ, modify or pattern in vocabulary instructions out of a film's end credits. Additionally, some implications of each activity are practically discussed in relation to how leaners attain vocabularies while the rests of the exercises exude important rudiments of language acquisition as they are completed.

1. Construct two rows and classify female and male actors from the credits. Others were done for you.

Female Actors
1. Bojana Novakovic
2. Lisa Hughes
3. Molly Schreiber

Male Actors
1. Damian Young
2. Wayne Duvall
3. Mel Gibson

This activity implies a simple stage of learning wherein students are made to write, list, tell, point out, repeat or cite details. In relation to vocabulary development, students will be able to realize that words are composed of details, belong to a group, and are either general or specific. In accomplishing this, students are being exposed to the terms that they will soon be involved with.

2. Match Column A and Column B to relate individual cast's role in the film production.

Column A
1. Mel Gibson
2. Robert Masiello
3. Bojana Novakovic
4. Caterina Scorsone
5. Lisa Hughes
6. Molly Schreiber
7. Wayne Duvall
8. Gbenga Akinnagbe
9. Paul Sparks
10. Charles Harrington

Column B
a. detective Darcy Jones
b. reporter
c. Emma Craven
d. chief of police
e. a news anchor
f. businessman
g. Melissa
h. neighbor
i. Northampton Police Detective
j. Mr. Tom Craven

This has the same level with activity number (1) one. Additionally, it provides the thought that each word corresponds to another even if they are represented by persons' names, similar to the common understanding that each word has corresponding function / s. While they relate each word, there are expressions that will surface to be manipulated in connecting ideas. For example, "Mel Gibson acts as Mr. Craven," "Mel Gibson's role is Mr. Craven," "Mr. Gibson's role in the film is Mr. Craven." The words such as, acts, role, in, film emerged due to how ideas are going to be connected adding to the targeted expressions. At this point, we are made to understand that even a single word adds as an acquired vocabulary due to the functions it demonstrates under linguistically framed statements.

3. Fill-in the two columns to relate crew member's specific role in the film production. Five has been done for you.

Column A
Film Production Roles

1. Film Director
2. Screenplay writer
3. Film editor
4. Casting managers
5. Special effects technician

Column B
Film Crew Members

1. Martin Campbell
2. William Monahan, Andrew Bovell, and
Troy Kennedy-Martin
3. Stuart Baird
4. Pam Dixon and Carolyn Pickman
5. John Baker

This exercise exposes the students to vocabularies regarding the crew's roles and that relating the positions with the names will activate the utilization of additional languages. Furthermore, while they create relationships, learners are motivated to find out what these positions are all about by teachers' facilitation. To demonstrate, students connect the film director to Martin Campbell by the notion that both words-the name and the position refer to only one person. As a consequence, the students formulate a statement by the intervention of other expressions. Thus, in the first attempt, "Film director is Martin Campbell." In the second try, they invert by saying "Martin Campbell is director." The statements have missing words as noticed. With teachers' guidance, new expressions may arise leading to the formulation of linguistically correct responses. "The director is Martin Campbell," or "Martin Campbell is the Director." In a higher level, they would say, "The director of the film is Martin Campbell," or "The film's director is Martin Campbell," or "The film director of the Edge of Darkness is Martin Campbell." This activity illustrates an orderly increase of vocabularies through activated words to operate the target lexes.

4. Correct the words used to express the actors and their roles by placing appropriate articles- a, an, or the.

1. Molly Schreiber as an reporter
2. Charles Harrington as an neighbor
3. Lisa Hughes as an news anchor
4. Charlie Alejandro as Boston police officer
5. Cindi Alex as an driver
6. Terry Conforti as wife of senator Pine
7. Nicholas Grava as an basketball player
8. Dan Marshall as an hospital visitor
9. Robert Masiello as businessman
10. Gary Roscoe as an newsroom editor
11. Christy Scott Cashman as a Detective Vicki Hurd
12. Gordon Peterson as a interviewer
13. Timothy Sawyer as the Dr. Sawyer

5. Circle the appropriate word / s or phrases under the enclosed series to complete the sentences.

a. Film is similar to (script, movie, camera, shoot).
b. Cast composes (performance, performers, performing, perform) in the film.
c. Crew delivers (technical supports, acting, transportation, cinematography) generally.
d. Cinematographer is a (cameraman, gripper, scout, writer) who takes shots.
e. Screenplay writer is also a (scriptwriter, film editor, director, producer).
f. End credits are found (between, in the end, in the beginning, in the middle) of a film.
g. Producers (finances, finance, performs, fiancé) film productions.
h. Director mainly does (directing, stunts, producing, acting) assignments.
i. Actors are (performers, actresses, viewers, set decorators) in movies.
j. Opening credits are (found in between the first and the last, found at the end, found in the beginning, found after the middle) of the film.
k. Filming is (making films, done films, planned films, editing films).
l. Makeup artists beautify (directors ', producers', cameramen's, cast's) faces.
m. Film script is the (story, title, credits, loglines) of the movie.
n. Stars are the (main actors, stunts, extras, locations) performing in films.
o. Film outfit is a (company, costumes, costume, musical score) of movies.
p. Musical scorer provides (background music, story, shots, posters) for the film.

6. Classify the words according to names of jobs, skills, and film materials or equipment and write statements using them according to their given forms.

(1) cinematography (2) cinematographer (3) decorating (4) acting (5) casting (6) scouting (7) scripts (8) director (9) directing (10) Editing (11) animating (12) special effects director (13) movie camera (14) coordinating (15) film editor

7. Complete the sentences using the given end credits- related words.

directed -directs- direct- directing- films- filmed- filming- film editing-
film edition- direction – see a film- who's in- stars- starred-producers-
script- film location- makeup artist- musical scorer- casting director- set decorator

1. Motion pictures are also known as ________.
2. The film______________ academy award-wining actors a year ago.
3. Did Martin Campbell________ that acclaimed movie?
4. A director _________ how actors will perform.
5. He is ________ the current film.
6. He ________ the famous movie Edge of Darkness in 2010.
7. ___________support film making financially. producer
8. The cast and crew are now ___________ the movie in Australia.
9. That was________ in Italy.
10. After he carefully did _______________, the motion picture was shown.
11. He showed an outstanding ____________. Critics praised his film.
12. Actors have to memorize the dialogues found in the __________.
13. My brother wanted to ________ about the space.
14. Charlize Theron ________ as an underdog friend in her current film.
15. Please see the _____________. Something is wrong with your hair.
16. The ___________should match the music with the film's theme.
17. The ___________found performers that can justify the given roles.
18. __________ this movie? Could it be Kevin Costner?
19. He studied__________in London.
20. Location managers search for _________.
21. ________ do not have serious flaws.

8. Read the position- job connected words. Mark √ when you agree and × if you disagree.

(1) director-directs film (2) producer-producing film (3) actor-acting roles (4) screenplay writer-writing film script (5) makeup artist- decorating sets (6) film editor- writing script (7) cinematographer -taking shots (8) casting manager-editing films (9) producer-editing screenplays (10) art director- managing film setting (12) set decorator-transporting crew (13) costume designer-designing outfits (14) sound mixer- combining sounds (15) special effects technician -creating effects (16) stunt performers -doing film tricks (17) film location manager- deciding actors to play roles (18) musical scorer- finding places to film (19) location scout-searching for places to shoot (20) transportation coordinator -moving crews from one location to another to shoot.

9. Correct the factual mistakes if there are any in the sentences below.

a. The producers are the performers in the film's story.
b. The director writes the screenplay.
c. The makeup artist takes shots in film making.
d. The film editor looks for talents to perform roles.
e. A movie outfit is a company where products are made.
f. Props men do film directing jobs.
g. Set decorators furnish shooting settings to look like they are real.
h. Costume designers belong to the cast.
i. Sound mixers combine needed music during the editing of films.
j. Visual effects technician scout for places to shoot movies.
k. Stunt performers provide visual effects in the film.
l. Scriptwriters create film stories.
m. Warner Bros. It is a film outfit.

10. Transform the given verbs into nouns.

(1) directing (2) cinematographic (3) scripting (4) producing (5) edited (6) decorated (7) scored (8) starring (9) filmed (10) write (11) designed (12) transported (13 ) mixed (14) scouted (15) shoot (16) visualizing (17) performer (18) performed (19) located (20) manages

11. Transform the given nouns into verbs.

(1) producer (2) director (3) score (4) script (5) decorator (6) edition (7) script (8) editor (9) film (10) location (11) star (12) direction (13 ) animator (14) decorator (15) location (16) costume (17) manager (18) mixer (19) coordinator (20) actor

12. Create a brief definition by using the given words. Use present simple tenses and be able to supply some missing prepositions.

1. A scriptwriter / write / script / films.
2. A director / direct / actors / films.
3. A cameraman / take / shots / make / films.
4. Set decorators / enhances / beginning / end / settings.
5. Producers / finances / the making / films.

13. Find the words that best complete the phrases from the list. Be guided by the enclosed word / s in each number and the prepositions that signal the correct missing expressions.

Princess Latifah – a biographical film- film making-a raging dragon- urban Australia -Meryl Streep- Winter- the Oscars- daybreak- 20th Century Fox- 1977- a burning building-Martin Scorsese- a witch-films

1. Filming in (season)
2. Filming at (unspecified time)
3. Produced by (outfit or production)
4. Directed in (specified time)
5. Performed a stunt in (film scene)
6. Decorated a set for (director's name)
7. Was cast as (role)
8. Starred in (film title)
9. Scripted the story of (type of film)
10. A degree in (a specialization)
11. Special effects of (animated character)
12. Shot the film in (specific place)
13. Designed costume of (an actress)
14. A film that was nominated at (award-giving body)
15. Acted in (media genre)

14. Complete the missing words in the dialogue. Be guided by the end credits' contents.
Ali: What's on at the cinema today?
Fahad: There's a film on called _____________.
Ali: What kind of _______is it?
Fahad: It's a suspense thriller.
Ali: Who are in it?
Fahad: ____________ and__________ among other
popular stars.
Ali: What film outfit is it?
Fahad: It's from _________________.
Ali: Tell me more about the movie.
Fahad: It has a good___________for it features outstanding camera
works from _________________.
Ali: He's really a talented _____________.
Fahad: Indeed!
Ali: Who wrote the _______________ of it?
Fahad: They're _________. ________, And_________.
These three are skilled screenplay writers.
Ali: Okay, let's see that film tomorrow.
Fahad: See you there.

15. Underline the correct meaning of each given statement.

1. 4 years ago, he did a BA in Film Directing degree successfully at Texas State University.

a. He studied film directing for three years at TSU.
b. He had a seminar in film directing at TSU.
c. He's studying at Texas State University.
d. He studied and attained BA degree in Film Directing at TSU.

2. The scriptwriter wrote a script revolving around the theme of war.

a. The film's story is about war.
b. The film's story will be about war.
c. The film's subject is on war.
d. Both a and c

3. He starred as a patriot in an award-winning motion picture in 2014.

a. He was with a patriot in a 2014 film.
b. His role was a patriot in an acclaimed film in 2014.
c. His performance was too much of a patriot in 2014.
d. Both a and b.

4. Cinematographic works result to audiovisuals.

a. Cinematographic works cater to the hearing and sights of audience.
b. Cinematographic works create photographs only.
c. Cinematographic works are understood using the eyes and ears.
d. Both a and c.

5. Film crew composes mainly technical support in film making.

a. Film crew performs basically supporting roles film making.
b. Film crew performs major and supporting roles in film making
c. Film crew does mainly mechanical backup in film making.
d. Both a and c

6. The stuntman covered-up a stunt for the actor.

a. The stuntman and the actor did a stunt together.
b. The stuntman substituted the stunt of the actor.
c. The actor did a stunt for the stuntman who failed to perform.
d. The actor was given a covered gift by the stuntman.

16. Complete the paragraph by placing the appropriate words in the blanks. Read the film credits before deciding responses from the provided list.

-film editor-story-credit-crew-casting managers- special effects-directed-producers- screenplays- film- performers-stars-cast- location manager- cinematography- Suzette Barnett

This _________ (1) is entitled Edge of Darkness shot in 2010. Its_______ (2) are composed of cast and __________ (3). The cast composes the __________ (4) of the film while the crew is responsible for the different production's technical part. The ________ (5) includes Mel Gibson and Bojana Novakovic as father and daughter. It was __________ (6) by Martin Campbell in cooperation with Tim Headington and Graham King as _______. The film had TV and movie ________ (7) which were written by William Monahan, Andrew Bovell and Troy Kennedy-Martin. Also, this movie contained outstanding camera works of Phil Meheux which showcased his skill in ____________ (8). Being the ________ (9), Stuart Baird made it a point that the film runs sequentially for audience to understand the __________ (10) during the final editing. It was also made successfully through Pam Dixon and Carolyn Pickman as ____________ (11) who cast fine________ (12) that can truly justify given roles. In terms of ___________ (13), the featured scenes were so real due to the artistic craft of Stella Ampatzi and___________ (14). Finally, Gregory Alpert as a ____________ (15) added impact to the movie through great locations that established the story's theme and real-life settings.

17. Create hyponyms of the given words then deliver a talk about any of these.

(1) Film (2) actors (3) cast (4) crew (5) film outfits

18. Construct a movie poster by writing the cast and crew then deliver a talk regarding their positions and roles.

While it is observed that these several activities expose students to varied terms in film making manifesting content-based language learning approach, the intrusion of other expressions in the employment of this type of material aids to broaden the linguistic scope by allowing more words, phrases, collocations and sentences that are not limited to this field. Consider the fact that while vocabularies are learned, many essential language points for the completion of the given tasks interfere. The teachers 'strategic measures of incorporating these surfacing expressions could yield students' varied languages ​​in which they can further extend to garner additional lexes supported by other naturally developing terminologies that are communicatively probable. These prevailing situations should not be ignored due to their content and functional rudiments in coining words and statements linguistically. Likewise, repetitions of words that recur in the exercises were created primarily for learners' language exposures to give way for comprehension.

Edited film of Source credit: http: // www. imdb. com / title / tt1226273 / fullcredits? ref_ = tt_ql_1

Five Power Closing Techniques for Insurance and Financial Advisors

So, you have made it through the prospecting game. You made your cold calls, sent out your mass mortgage mailers, invited people to your coffee-sponsored seminars, you qualified responders as being serious prospects and have set the appointment.

Now what? You have done all this work, are you sure you are going to get their business? In this article are 5 closing techniques to help you solidify the deal and make the sale.

1. Quality Demonstration – If you are going to take the time to give a demonstration, be sure that you listen to your potential client's needs and interpretations of what they expect to get out of your appointment. There is nothing worse than explaining variable life insurance and all the different cash options and disability waivers … to find out they only have a budget of $ 50 per month. So, listen and then tailor your demonstration to focus on their needs and to solve whatever void they need filled. Do not get too wordy. The best demonstrations have few words, but are very poignant.

2. Small-closes – Throughout the demonstration , try to get periodic "buy ins" and acknowledgments that you are on track with solving their needs. Ask for their opinions, ask open ended questions; be sure to engage the potential client. If you can make many small closes throughout the sales process, then when it comes time to pull out the application, they will not be shocked or caught off guard. When they ask a question, re-state their question. This does two things: it lets the potential client know that you are listening to their concerns, but it also restates to them what they have just said is their need. So, when the time comes for you to discuss possible solutions, such as term insurance to cover the mortgage, or a wrap-around disability income policy to substitute the rest of their income, then they can not back out and say that it is not a concern.

3. Between 1 and 10 – This has got to be one of the greatest closing lines ever. It is easy to do, and it forces the potential client to sell themselves. When you have finished your demonstration, you simply turn to your client and ask them, "Between 1 and 10 … 10 being 'I am ready to fill out the application and never worry about how my family will financially survive if something should happen to me '… or 1 being' I wish you would leave my house right now '…. where do you fall? And no matter what they tell you, you ALWAYS answer, "Really, a" # "? Why so high? "Even if they tell you a" 4 "…. you answer," Really, a 4? I thought you would be a 3, you had your arms crossed and did not seem interested in anything I was saying. Why are you so high? What made you choose a 4? "

And then let them answer. Even with a low number, they will point out the features that they liked. They will point out the solutions that worked best. They will also tell you what they did not like … and then you can move forward from there. If they were turned off by the price …. them give them other options. If they were turned off by the fee structure of A-share mutual funds, then tell them about B or C shares.

4. Suggest / Recommend – This is not so much a closing technique as it is a phrase that sets you apart from others by presenting you as the expert. Think about the times you have heard people use this phrase with you. Typically most large oil changing stations will say at the end of their "12 point inspection", "I recommend you flush out your steering fluid or use a fuel injector cleaner". What happens is that, they are recommending this to you, which gets you thinking, "hmm … they are the experts, perhaps I should listen to them". Versus someone saying, "you NEED to do this." That phrase turns us off. "I do not NEED to do anything!" When you are sitting with a prospective client and you have finished your demonstration and they have agreed that they need to begin a college savings plan, or invest in a sound life insurance policy, the next phrase out of your mouth should be, "As your Financial Representative, I suggest we get started with ….. "or" I recommend that we ….. ". It sets you up as the professional that they will trust.

5. Take the sale away -This phrase sounds like the opposite of what you want to do, but rather than chasing someone for the sale, make them ask you for it. Statements like, "I do not even know if you will qualify for this …. why do not we fill out some of the medical questions to see if we should even move forward with underwriting." Or if they balk at the initial deposit to open a college plan or annuity, try saying, "You know what? Maybe you are right. This college plan does not seem like the right fit to help you cover the cost of your children to go to any school they want to …. why do not you check out state savings plans through the bank … I believe that enrollment period starts in 6 more months ". This gets the person thinking, "Well what is wrong with me? I want to fit in, I want to belong." When you push something, it moves away from you …. when you pull the same item, it comes towards you. Another move you can make … if someone says that the premium is more than they want to spend, you can always say, "you know what, maybe you are right, but why do not we go ahead and get you underwritten, see if you even qualify for this low of a premium, as you could come back rated. then once you are approved, then we can determine which policy will work best for you. "

It takes a little time to change your thinking, especially when you are just starting out. But give it some time, and practice these steps. You will see clients becoming more attracted to you as a professional.

Buying a Car From a New Car Dealer If You Have Bad Credit

It may seem like an intimidating prospect, but if you have a little knowledge about your situation, buying your next car is not as daunting a task as it may seem.

When searching for a dealer for your next vehicle purchase it is important to realize that not all dealers are created equal. Sure every Chevy dealer sells the same cars, however, different dealers have different finance sources and this makes all the difference to the credit challenged customer.

I advise choosing a dealer who often advertises its ability to help customers with credit issues. This dealer likely has a large number of finance sources for these customers.

When you go to the dealership do not hide the fact that you have credit issues. You will be asked to fill out a credit application so the finance department can submit your information to its finance companies to see who will offer you the most favorable terms. Do not be afraid to ask which finance companies your dealer is submitting your information to. Write these down, you may want them later.

It may be anywhere from a few minutes to a few hours or more before the finance manager knows if he will be able to get you approved for financing. If they send you home, use the time to research some of the finance companies that you have applied with. You may find negative reports about a finance company and decide that you would not want your car financed with them.

When a finance company is considering your application they look at several items including your credit score, time on the job, income, time at residence, debt to income ratio, and cash downpayment. All finance companies have different formulas on determining credit risk.

Once the dealer receives a credit approval you will be invited in to view cars that will fit within the lenders guidelines. If the dealer only shows you three or four cars and you are not satisfied with your options, do not be afraid to ask for more vehicles to choose from. Usually the dealers will have a few other vehicles that may also work.

If you decide to purchase a car, the finance manager will present you with loan closing documents. Pay attention and read these documents carefully. Ask questions as they arise. Do not hesitate to stop the finance manager and ask him to repeat or explain something. Pay particular attention to the Truth in Lending disclosures on your retail contract. Here you will see the interest rate and the total amount of interest charges expressed as a dollar amount.

If you decide not to do business with the dealer, do not leave the dealership without finding out which finance companies approved your application. Armed with this knowledge you can go to other dealers who deal with the same finance company and already know that you are approved.

With these simple guidelines purchasing a car form a New Car Dealer with bad credit can be less intimidating. If you need more information or have questions check out your local dealer, or consult an auto finance expert.

How to Evaluate Your Finance Department

Nobody knows your business better than you do. After all, you are the CEO. You know what the engineers do; you know what the production managers do; and nobody understands the sales process better than you. You know who is carrying their weight and who is not. That is, unless we're talking about the finance and accounting managers.

Most CEO's, especially in small and mid-size enterprises, come from operational or sales backgrounds. They have often gained some knowledge of finance and accounting through their careers, but only to the extent necessary. But as the CEO, they must make judgments about the performance and competence of the accountants as well as the operations and sales managers.

So, how does the diligent CEO evaluate the finance and accounting functions in his company? All too often, the CEO assigns a qualitative value based on the quantitative message. In other words, if the Controller delivers a positive, upbeat financial report, the CEO will have positive feelings toward the Controller. And if the Controller delivers a bleak message, the CEO will have a negative reaction to the person. Unfortunately, "shooting the messenger" is not at all uncommon.

The dangers inherent in this approach should be obvious. The Controller (or CFO, bookkeeper, whoever) may realize that in order to protect their career, they need to make the numbers look better than they really are, or they need to draw attention away from negative matters and focus on positive matters. This raises the probability that important issues will not get the attention they deserve. It also raises the probability that good people will be lost for the wrong reasons.

The CEO's of large public companies have a big advantage when it comes to evaluating the performance of the finance department. They have the audit committee of the board of directors, the auditors, the SEC, Wall Street analyst and public shareholders giving them feedback. In smaller businesses, however, CEO's need to develop their own methods and processes for evaluating the performance of their financial managers.

Here are a few suggestions for the small business CEO:

Timely and Accurate Financial Reports

Chances are that at some point in your career, you have been advised that you should insist on "timely and accurate" financial reports from your accounting group. Unfortunately, you are probably a very good judge of what is timely, but you may not be nearly as good a judge of what is accurate. Certainly, you do not have the time to test the recording of transactions and to verify the accuracy of reports, but there are some things that you can and should do.

  • Insist that financial reports include comparisons over a number of periods. This will allow you to judge the consistency of recording and reporting transactions.
  • Make sure that all anomalies are explained.
  • Recurring expenses such as rents and utilities should be reported in the appropriate period. An explanation that – "there are two rents in April because we paid May early" – is unacceptable. The May rent should be reported as a May expense.
  • Occasionally, ask to be reminded about the company's policies for recording revenues, capitalizing costs, etc.

Beyond Monthly Financial Reports

You should expect to get information from your accounting and finance groups on a daily basis, not just when monthly financial reports are due. Some good examples are:

  • Daily cash balance reports.
  • Accounts receivable collection updates.
  • Cash flow forecasts (cash requirements)
  • Significant or unusual transactions.

Consistent Work Habits

We've all known people who took it easy for weeks, then pulled an all-nighter to meet a deadline. Such inconsistent work habits are strong indicators that the individual is not attentive to processes. It also sharply raises the probability of errors in the frantic last-minute activities.

Willingness to Be Controversial

As the CEO, you need to make it very clear to the finance / accounting managers that you expect frank and honest information and that they will not be victims of "shoot the messenger" thinking. Once that assurance is given, your financial managers should be an integral part of your company's management team. They should not be reluctant to express their opinions and concerns to you or to other department leaders.

Insurance In Tort Laws

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.

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.

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.

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 can not be decided in time bound proceedings under the consumer protection act.

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 RCBook. 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, can not 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.

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.

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.


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.

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.

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.

In BVNagarjuna 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.

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 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 can not 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 can not blame or fault the corporation.


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. "

– LIC 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 can not 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 can not 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, can not 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 can not 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 can not 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. "

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.