Tag: insurance

Happy Teachers Day: Five financial planning lessons for the teachers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Having taught and mentored thousands of students, you very well know the value of timely guidance and tutoring in a student’s life. Teachers add value not only in academics but also help in developing one’s overall personality. The best achievers in sports, arts, business and all walks of life tend to have coaches who guide them. Taking good advice and having a coach is greatly beneficial for your financial life as well. And to make this happen, one should always try to learn things during the journey of life.

Often teachers are so busy with their students that they can neglect their own needs, such as their financial security, their needs and wants, etc. This can spell disaster for the future. To overcome such situations, they should understand the necessity of giving time to themselves so as to plan out their own finances well on time.

Here are some financial planning learnings which you may consider and follow to have a healthy and wealthy life:

Have adequate risk cover  

Health insurance, life insurance and contingency planning are three important ways to take protection from risk – the risk of financial distress. You and your family need a health insurance cover, regardless of the level of your wealth. With skyrocketing cost of medical care, a single hospitalization can leave a gaping hole in your savings kitty. Since you probably have dependents, having a life cover is mandatory.

Amar Pandit, Founder of HappynessFactory.in said that the cover should be enough to take care of your dependents’ needs (and your liabilities, if any) until the dependents can provide for themselves. Buy a pure term policy; skip traditional plans and ULIPs initially. “One should always create a contingency fund for the rainy days. Make a detailed cash flow statement listing down all your monthly expenses. Multiply that by 6. Contribute towards this corpus gradually by investing in a liquid mutual fund and don’t dip into it for anything other than emergencies,” he said.

Have clarity about your financial goals

You are most likely to be satisfied and successful with investments when they are planned and aligned to your goals. However, most people have a random approach to investment. They contribute to ad hoc policies, funds or schemes based on recommendations from friends and family or other unsolicited advice. This approach results in a lack of clarity on how to deal with situations when the products don’t perform as expected, and a lack of confidence in meeting goals. So, think about your family’s goals, create a financial plan to reach these goals and make investments that will help achieve them. Once the plan is made, stick to it and don’t let anything make you deviate.

Plan your taxes with investments

Taxes are an important part of financial planning. Planning your investments right can help you maximise your tax savings. For instance, we all know that life insurance premium, mutual funds & PPF can help you save under Section 80 of the Income Tax Act.

“What is less known is that people with children can also avail of benefits on tuition fee paid under Section 80C. Similarly, the principal component of a housing loan is also eligible for tax deductions under the same section. Thus, you need to know all such options to utilise them in the best way of availing maximum benefits,” said Adhil Shetty, CEO, Bankbazaar.com

Get professional advice

A professional financial advisor is a subject matter expert; s/he is someone who is qualified and equipped to advise you on personal finance. Pandit feels that a lot of people today take financial advice from their CAs, Relationship Managers or insurance agents. Just like a student wouldn’t go to a Hindi teacher to learn Biology, you need to consult a qualified planner for your financial needs. “A financial planner will help you take a holistic view of finances, plan for goals and align your savings and investments to meet those goals without stress,” he said.

Organise all your financial documents

As a teacher, you know the value of keeping notebooks safe and in place so that whenever you are in need, you can easily have an access to get them from the desired place. Similarly, when it comes to your own financial planning, you should ask few questions to yourself, for example, would your family members know where to look for the insurance, investments, bank and real estate documents in the event they need to access them? Would they know the points of contacts for each? These things may sound no great deal but, in an eventuality, having all these in place can save a great deal of hassle.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India allows state refiners to use Iran tankers, insurance for oil imports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is allowing state refiners to import Iranian oil with Tehran arranging tankers and insurance after firms including the country’s top shipper Shipping Corp of India (SCI) halted voyages to Iran due to US sanctions, sources said.

New Delhi’s attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC).

The moves by the two top buyers of Iranian crude indicate that the Islamic Republic may not be fully cut off from global oil markets from November, when US sanctions against Tehran’s petroleum sector are due to start.

President Donald Trump ordered the reimposition of economic curbs after withdrawing the United States from a 2015 nuclear deal between Iran and six world powers. No one trading with Iran will do business with America, he said.

“We have the same situation (as most Western shippers) because there is no cover, so we cannot go (to Iran),” an SCI official told Reuters.

New Delhi turned to the NITC fleet after most insurers and reinsurers had begun winding down services for Iran, wanting to avoid falling foul of the sanctions given their large exposure to the United States.

SCI had a contract until August to import Iranian oil for Mangalore Refinery and Petrochemicals Ltd (MRPL), two sources familiar with the matter said.

Eurotankers, which had a deal with MRPL to import two Iranian oil cargoes every month, has also said it cannot undertake Iranian voyages from September, the sources said.

The sources spoke on condition of anonymity as they were not allowed to talk to the media about commercial deals.

“The shipping ministry has given refiners permission to buy Iranian oil on a CIF (cost, insurance and freight) basis,” a government source said.

Under a CIF arrangement, Iran would provide shipping and insurance, enabling Indian refiners to continue purchases of the country’s oil despite the non-availability of cover from Western insurers due to the restrictions imposed by Washington.

The move would benefit Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and MRPL, which plan to lift Iranian cargoes during the rest of the fiscal year ending on March 31.

India wants to continue buying oil from OPEC member Iran as Tehran is offering almost free shipping and an extended credit period.

State refiners, which drove India’s July imports of Iranian oil to a record 768,000 barrels per day, had planned to nearly double oil imports from Iran in 2018/19.

Unlike their private peers, India’s state-run refiners need government permission to import oil on a delivered, or CIF, basis. Federal policy requires them to favour Indian insurers and shippers by buying only on a free on board (FOB) basis.

The permission for CIF purchases applies only to existing annual contracts with Iran, the government source said.

India, Iran’s top oil client after China, will finalise its strategy on crude purchases from Tehran after a meeting with top U.S. officials this week, a senior government official told Reuters last week.

SCI, Eurotankers, the shipping ministry, MRPL, IOC and BPCL did not respond to Reuters emails seeking comment.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IDBI Bank approves issuance preference shares to LIC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IDBI Bank on Friday approved LIC’s proposal to pick up additional 7 percent stake in the bank, a move that will eventually lead to acquisition of 51 percent shareholding by the insurance behemoth in the debt-ridden lender.

The board of directors have approved the proposal for seeking shareholders’ approval through postal ballot for the preferential issue of equity capital to Life Insurance Corporation of India (LIC) aggregating up to 14.90 percent of the bank’s post issue paid up capital, IDBI Bank said in a filing to stock exchanges.

At present, insurance behemoth LIC holds 7.98 percent stake in the public sector bank.

Earlier this month, the union cabinet had approved LIC’s proposed acquisition of up to 51 percent stake in debt-ridden IDBI Bank.

This first round of stake sale, sources said, will take care of the immediate need of IDBI Bank and help it meet capital adequacy norms at the end of second quarter.

The bank, in which the government holds 85.96 percent stake, had posted a net loss of Rs 2,409.89 in the quarter ending June 2018. It had a gross non-performing asset (NPA) of about Rs 57,807 crore.

The board of Insurance Regulatory and Development Authority of India (Irdai), at its meeting held in Hyderabad in June, had permitted LIC to increase its stake from 10.82 percent to 51 percent in IDBI Bank.

As per current regulations, an insurance company cannot own more than 15 percent in any listed financial firm.

LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender’s stressed balance sheet.

With culmination of the deal, LIC will get about 2,000 branches by which it can sell its products, while the bank would get massive funds of LIC.

The bank would also get accounts of about 22 crore policy holders and subsequent flow of fund.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Car sales may slip as new insurance rules to be applied from Sept 1, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Car sales may slowdown in the short-term as the new motor insurance regulations will come into effect from Saturday, hurting both car dealers and buyers, Business Standard reported.

The new insurance regulation mandates buyers of cars and two wheelers to buy the insurance cover for at least three years and five years respectively as vehicle owners skip renewing the policies after they lapse, said the report. A longer tenure and an upfront payment of insurance premium will save the owners the hassle of renewing their insurance, it added.

However, a measure like this will raise the initial outgo on new vehicles, pushing up the on-road prices, which in turn will disrupt sales, according to the report.

“Depending on the engine size, the premium will vary. For instance, the initial cover for a three-year period of a new private car exceeding 1,500 cc will be about Rs 20,000, up from Rs 7,900 now for a one-year period,” an automobile dealer was quoted by BS.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Five points to know when transferring your car’s insurance policy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The second hand or used automobiles market is developing in a steep upward curve in India encouraging dealers and buyers alike to opt for used vehicles. Purchasing a used vehicle stands as a very clever choice, bearing in mind the wide price differentiation factor between an old and a new car. Given the possibility of effortlessly narrowing down on a used vehicle due to the various businesses and companies specifically catering to the same, consumers are comfortable in buying used cars. The biggest aspect in consideration being the price factor usually pushes one towards buying a used car, therefore bolstering the used car market to become more organised and transparent. However, for both sellers and buyers the entire process could stand intimidating.

It is no undisclosed fact that buying a used vehicle instead of a brand new one can save one money, whether it is a new driver shopping for their first car or been driving for years. In the decision of buying a used car, there is involved an important facet of insurance, which protects the vehicle against unforeseen or unfortunate circumstances and incidents. Contrary to the common belief, buying a used car doesn’t really stand as an assurance of paying less for insurance. There are various factors that influence the cost of a car insurance including the type of car purchased, the kind of coverage opted for the vehicle, the driving experience and more. Also, there arises a question that does buying a used car affect one’s car insurance coverage and the cost of insurance? Here it is important to know that after purchasing a used vehicle, getting the insurance transferred in the buyers name becomes very crucial otherwise unwanted problems will arise while making a claim. If the insurance policy is not transferred to the buyer, it will sit invalid.

The kind of insurance for a used car

One may likely require the equivalent coverage for a used car as that of a brand new one. Conditional to the age and value of the car, a decision has to be made to go for various coverage like third-party or comprehensive coverage saving on premium to cover the cost of repairs to the vehicle when damage arises. It is advised to go through a licensed broker to help compare car insurance costs and scout the precise coverage for the situation.

Owing to low awareness, cases of insurance grievances post-loss are quite widespread about car coverage among the general public in India. Hence, it is imperative for individuals to know that transfer of insurance is a crucial aspect in the process of buying a used vehicle and ignoring or procrastination of the same will result as a liability to the owner. To avoid any legal hassles that may arise in the future, individuals selling the vehicle have an equal accountability of ensuring the transfer process of the insurance in the new owners’ name.

Highlighted below are five points that will help understand the procedure of insurance policy transfer that will encourage a smooth transaction taking place:

1. The buyer must make certain that the insurance policy is transferred in the name of the new owner immediately after purchasing a used car within 14 days.
2. To make sure that the entire procedure is accomplished with ease and to assist policy transfer, the buyer has to fill a fresh insurance proposal along with submitting the evidence of sale. The transfer of the registration certificate, Forms 29 and 30 duly signed by the previous owner along with the previous policy copy and the transfer fee has to be submitted to the insurance company. The insurance company will thereafter license the endorsement of transfer.
3. The documents as listed above are adequate enough to initiate of policy transfer in the name of the new owner. The submission of a copy of new registration certificate will support evading any hitches at the time of making a claim after it is issued by the regional transport office, as the change of possession in the registration certificate may take some time at the Regional Transport Office.
4. On the occasion of a claim, in case the insurance policy has been transferred but the transfer in the registration certificate copy is not completed or the proof of same is not made available to the insurance company, the new owner will have to provide the proof of transfer of registration certificate to the insurance company to make certain that the claim is settled.
5. The claim will not be renounced if the transfer of insurance is still in process. However, it will be compensated after the proof of transfer in registration certificate has been given to the insurance service provider.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exit of potential buyers put IDBI Federal Life Insurance stake sale on backburner, says CEO Vighnesh Shahane

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The exit of potential buyers, Max Life Insurance and Aditya Birla Sun Life has left IDBI Federal Life Insurance’s stake sale process on backburner, said Vighnesh Shahane, whole-time director and CEO of the company, adding that LIC picking up a majority stake in parent IDBI bank also added to the delay.

In an interview with CNBC-TV18, Shahane said that the uncertainty over the stake sale process created a lot of anxiety which reflected on the company’s financial performance.

However, Shahane sounded optimistic on the outlook and said that he was confident of seeing a bounce back in company’s financial performance.

Further, clarifying on the relation between LIC and IDBI Federal Life Insurance, Shahane stated that there were no discussions on the table to merge the latter into the former.

While he said that the shareholders of IDBI Federal Life Insurance should consider listing the company on exchanges at an appropriate time.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kerala floods: Four mistakes to avoid when filing an insurance claim

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The recent floods in Kerala have been a catastrophe – over 400 lives have been lost, property close to Rs. 20,000 crore has been damaged and insurance policyholders are looking to file claims that can go in excess of Rs. 1,000 crore as the wrath of nature still continues to plunder the residents of Kerala.

This is just one side of the story unfolding. Once the chaos that has ensued due to the floods subside, the story of filing claims will unfold and if you are among those who have been at the receiving end of nature’s fury and are looking to make a claim, you might just realise that the traditional process of filing claims may not pass the muster because many among you may not have the documentation to back your claim.

Even though Insurance Regulatory Development Authority of India and all insurers are going the extra length to ensure that genuine claims are not rejected in this time of national calamity by simplifying the process of filing claims, you also have to ensure that you play your part by avoiding these 4 simple mistakes, which will ensure that your claim is not rejected or delayed owing to procedural red-tape.

You can’t turn back the clock – file a claim as early as possible

Filing your claim at the earliest and in a time bound manner will save you a lot of grief. The government has directed every insurance company to set-up toll-free numbers, which shall enable you to establish contact with them at the earliest.

Additionally, you may also connect with them via email or social media platforms, as companies use their digital presence to engage with their consumers to provide assistance as well. The claim should ideally be made within 7 days but in such a difficult scenario, insurance companies usually extend the deadlines.

A good beginning makes a good ending – Don’t submit false information
If you are in the process of filing an insurance claim against the property damage, which includes your car or home, caused due to the on-going natural calamity in Kerala, or happen to be a beneficiary of a life insurance plan, it is possible that you may not have the supporting documents to satisfy the insurers about the authenticity of your claim even with current rules relaxation in play.

However, there is nothing to fret about because your insurer will have all the details relating to your policy with them and will help you in all possible ways to make a successful claim. On your part, all you have to do is be careful while filling the form and furnish the same details as originally shared with your insurance.

To sum it up, avoid filling false information and avoid any discrepancy, which may lead to claim rejection or contribute to delay in processing your rightful claim.

A picture is worth a thousand words: Don’t Forget to Gather Photographic/Documentary Evidence

If you have a property, which is in ruins due to the aftermath of the floods or a vehicle that is damaged, if possible gather photographic evidence and include them with your claim form as supplementary evidence. Insurers are willing to concede to the fact that documentation to support your claim may not be available, thus using photos as the basis to determine the extent of claim will be a reliable instrument to ensure that your claims are not rejected or challenged by the insurer.

Similarly, if you end up in a non-network hospital for your treatment, request the hospital to share all the relevant receipts to you so that you can file for reimbursement of your bills.

Beware! Photographic evidence will be an effective tool to make a successful claim through the need for a physical survey may not be done away with by the insurer totally. Strengthen your case – If online is your way, then don’t forget to furnish a bank statement.

Furnishing a bank statement may not be mandatory, but why not support your claim with as much relevant information as possible in the absence of proper documentation at the time of filing your claim. How does it harm you? Therefore, if you have been using online services to pay your insurance premium, you will be surprised how useful it can be in these scenarios. All you have to do is submit your bank statement highlighting the payments made to the insurer. Your regular payment history will go a long way in proving your credentials to them and also assist them in digging out your record for verification.

Way Forward

Beginning with Uttarakhand in 2013, India has experienced a string of natural disasters over the past 5 years and it’s getting worse. The Kerala floods have not even begun to subside and the India Meteorological Department has predicted heavy to very heavy rains across states such as Bihar, Assam, Sikkim, Meghalaya etc. are predicted. It is strongly recommended to digitize all your critical documents because once the moment of truth comes, i.e. – making a claim, having your documentation in order will be a saviour and with so many wallet options available, there is no reason for us not to do it.

Tarun Mathur is the chief business officer at Policybazaar.com.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow