Daily News

How to choose the right travel insurance during covid-19

The covid-19 epidemic had the greatest impact on the tourism and hotel industries. Domestic and international travel have been in decline since 2020, and the sector is still striving for a comeback. In addition to travel, covid has an impact on the travel insurance business.

choose right travel

Because most countries have not opened their borders to international travel, the market is still slow. Some nations compel travelers to get travel insurance, and many others follow. As a result, you may need to include travel insurance in all of your trip arrangements.

The travel and hospitality industries have a close inter-relation with a negative impact on one having an unintentionally negative impact on the other. The Insurance industry saw a severe impact from the COVID-19 related restrictions. However, that will change in the coming months. We can anticipate a gradual movement of travel.

COVID-19 risks are still not elevated completely and many countries are expecting travel insurance for your trip. Hence, you should always prioritize travel insurance policies that cover covid-19-related expenses.

How to choose the right travel Insurance?

TATA AIG, HDFC ERGO, Bajaj Allianz, Go-digit, Care Insurance, and BhartiAXA, according to insurance experts, are insurance providers that can assist consumers to have a hassle-free and easy journey. You must choose carefully while purchasing travel insurance to cover the fees incurred for covid-19.

travel insurance policy

When acquiring travel insurance, one must look for every potential incurring cost. Including basic medical charges, lost/stolen/delayed baggage costs, cancellation/delay costs, and lost belongings costs.

When buyers have so many options on the market, they must assess the product’s qualities. In addition, the insurance payment ratio of insurance firms, partnerships with international network hospitals, solvency ratio, and market performance must all be considered.

People must choose insurance that includes health protection and agency assistance to cover medical bills. As well as a variety of other medical services including ambulances, daily hospital cash allowances, and accidental compensation.

Daily News

Recast loans at non-bank lenders may double by this fiscal end: Report

Recast loans at non-bank lenders may double by the end of this fiscal year. The restructuring of assets of non-bank lenders is likely to double up, to 3.3 percent by March 2022. The main reason for this trend is the impact of the second wave of the pandemic.

recast loans

The same ratio was previously at 1.6 percent as of March 2021, after the first wave of the pandemic. The pandemic helm the Reserve Bank of India (RBI) to make an exception by launching a loan recast facility. This scheme is envisaged for the borrowers impacted by Covid-19.

The Credit rating agency, ICRA said the restructured book for NBFCs is expected to be 4.1-4.3 percent as of March 2022 in contrast to 2.2 percent in March 2021. Meanwhile, the same rate of 2.0-2.2 percent is expected for housing finance companies against the earlier rate of 1.0 percent in March 2021.

recast loan

Why the Second wave could be a reason?

The second wave of coronavirus infections is responsible for imputing the budding recovery in non-bank collections. The predictions for the respective collections in Q3 FY2021 and Q4 FY2021 do not bring that sunlight anymore. The second wave is severely impacting the cash flow of the underlying borrowers. Therefore, further prolonging the recovery process.

The Vice-President of ICRA, A M Karthik, said the nature of the underlying security governs the higher incidence of recasts for NBFCs, against the Housing finance companies (HFCs) with home mortgages.

Vehicle, SME (small and medium enterprises) and personal loans are the bulk of the NBFC’s credit accounts. Such customers were facing asset quality-related pressures during the last fiscal. Entities with a sizeable share of new and heavy and medium commercial vehicles witnessed higher restructuring. While, the same was modest for other segments like cars, two-wheelers, and tractors.

According to Crisil, liquidity cover rating at NBFCs has improved from a year ago. This puts NBFCs in a better position to service debt in the near term, which will cushion the impact of the pandemic. This trend is changing from the respective scenario of last year when asset-quality and liquidity fears multiplied. This observation came after the announcements for a moratorium on repayments and stringent lockdowns. Now, once again the second wave is affecting the collections in the current fiscal, and the decline has been more pronounced in May. As the containment measures in most parts of the country only started in the latter part of April.

For more such updates, keep watching this space!

Advices Budgeting Business COVID-19 Daily News

GST Rates Cut Down For COVID-19 essentials?

”It is expected that in line with the fitment committee’s suggestions, the GoM empowered to look into the GST relief on COVID-19 related drugs and other items have opted for a blanket rate of five percent even for other items (drugs already attract five percent). The complete exemption is likely to be counter-productive. Anyway, GST reduction will not directly benefit people who are getting the COVID-19 vaccines for free (which today comprises the majority),” said Mr. Saket Patawari, Executive Director–Indirect Tax, Nexdigm.

essential vaccines and medicine

A list of the category-wise essentials and services is presented by the council is mentioned below:

Category Item Present GST Rate Recommended GST Rate
COVID vaccines All vaccines 5% 5%
Medicines Tocilizumab 5% Nil
Amphotericin B 5% Nil  
Anti-Coagulants like Heparin 12% 5%  
Remdesivir 12% 5%  
Any other drug recommended by the Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment Applicable Rate 5%  
Oxygen, Oxygen generation equipment and related medical devices Medical Grade Oxygen 12% 5%
Oxygen Concentrator/ Generator, including personal imports thereof 12% 5%  
Ventilators 12% 5%  
Ventilator masks / canula / helmet 12% 5%  
BiPAP Machine 12% 5%  
High flow nasal cannula (HFNC) device 12% 5%  
Testing Kits and Machines Covid Testing Kits 12% 5%
Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin, and LDH 12% 5%  
COVID-19 related relief material Pulse Oximeters, incl personal imports thereof 12% 5%
Hand Sanitizer 18% 5%  
Temperature check equipment 18% 5%  
Gas/Electric/other furnaces for the crematorium, including their installation, etc. 18% 5%  
Ambulances 28% 12%  

GST on Vaccine

Previously on 28th May also GST council referred to the decision over tax rates on the COVID-19  vaccine to a group of ministers. The Goods and Services Tax Council is chaired by Finance Minister Smt. Nirmala Sitharaman. She approved all the recommendations of the group of ministers which was set up to deliberate tax relief on covid-19 essentials.

She explained that the center will buy the 75% vaccines and will pay its ST too. 5% of tax will stay on the vaccine. These rates will be valid till this September.

For more such updates, keep watching this space!