Daily News

Rs 5 Lakh Deposit Guarantee: Now Mandatory for Banks to Return Money Within 3 Months, says PM

Over one lakh depositors received their money in the last few days; this money was stuck in banks for years. On December 12, 2021, at an event in New Delhi, Prime Minister Narendra Modi revealed the total amount is more than Rs 1300 crore.

Rs 5 Lakh Deposit Guarantee

PM Modi, speaking at a program titled “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh,” said that today is a historic day for the banking sector and the country’s millions of bank account holders since it marks the end of a decades-long problem.

He further said that India’s bank deposit insurance mechanism was established in the 1960s. However, previously the insurance used to cover only the first Rs 50,000 of the cash deposit in banks; which later increased to the cover of Rs 1 lakh. Depositors would only receive a maximum of Rs 1 lakh in protected money if the bank failed. Furthermore, there was no time limit on when this money had to be paid.

“We enhanced this sum to Rs 5 lakh because we understand the concerns of the poor and the middle class,” PM Modi stated.

He added, “Previously, there was no time restriction for refunds. But now our government has made it essential to receive a return within 90 days or three months.” That is, even if a bank collapses, depositors will receive their funds within 90 days”.

deposit insurance

The Prime Minister further said, “Banks play a critical role in the country’s growth. Safety of depositors’ funds is critical to the banks’ success. Therefore, if we want to save the bank, we need to protect its depositors”.

Which type of accounts comes under the bank deposit insurance mechanism?

Deposit insurance covers all deposits in all commercial banks in India, including savings, fixed, current, and recurring accounts.

According to a PMO statement, with deposit insurance coverage of Rs. 5 lakh per depositor per bank, fully covered accounts accounted for 98.1 percent of total accounts at the end of the previous financial year; compared to a worldwide benchmark of 80 percent.

Daily News

Your car insurance claims can be rejected! Here’s when.

We all expect our car insurance carrier to cover any claims we make during the policy’s term. The majority of us, however, do not read the policy paper and are uninformed of the policy’s scope and exclusions. Due to this tiny print, a claim may be denied, resulting in disappointment and financial loss. Here are some of the reasons why a claim might be denied or not completely paid:

car insurance claims can be Rejected

IDV (Insured Declared Worth)

IDV is the value of your car at the time of purchase. It is the amount you will receive if your vehicle is stolen or completely destroyed. You must obtain the right IDV, which is closest to the cost of the market value of your car; any undervaluation or overvaluation may have an influence on your claim in the future.

No Claim Bonus (NCB)

This is a reward (discount) offered to the insured by the insurance company at the time of policy renewal for not filing any claim requests during the policy year. It is critical to declare the correct claim status in order to receive accurate NCB within the range (typically between 20 and 50 percent), as incorrect declaration can result in a claimed conflict. A false NCB declaration could jeopardize the settlement of a claim.

Delay in notifying the insurance company after an accident

There is a deadline by which you must notify the insurance company. Any inordinate delay in notifying the insurance company can result in the claim being denied. The policy contract instructs the policyholder to notify the insurer as soon as the incident occurs (accident). It should be alright after a few days from the accident.

Driving without a licence or with an expired licence

The driver of the vehicle must have a current and valid driver’s license. For example, if he possesses a two-wheeler license but undergoes an accident while driving a car, his claims may receive a rejection. Moreover, the driver’s license shall not expire and should be valid at the time of the accident.

Your car insurance claims can be rejected

Lack of insurable interest

This indicates that the owner has not transferred the registration and insurance to his name. If your car is involved in an accident in this situation. The claim will be denied by the insurer because there is no legal transfer of ownership through the RTO. In simple words, the policyholder must be the registered owner of the vehicle.

Modifications to the vehicle

Any modification to the vehicle, such as installing a CNG kit, installing a music system, or installing an amplifier, should be reported to the insurer. Moreover, the policyholder should pay an additional premium to have the alteration insured. If you do not declare these modifications, it is possible that the insurer may reject your claim.

Misrepresentation of Facts

When purchasing your policy, you must be honest about the state of your vehicle, your previous insurance history, and so on. Fraudulent declarations can lead your policy to become invalid. Thus, canceled by the insurance company.

Failure to renew your car insurance policy on time

If you do not renew your car insurance policy on time, your coverage will lapse. If your car meets an accident in this situation, the insurance company will not evaluate the claim and will reject it. You will be responsible for any costs out of your own pocket.

Daily News

BNPL Vs Credit Cards Vs Personal Loans: Which is right for you?

Personal loans, BNPLs, and credit cards come in the same category of loans which benefits the lender for some time but it costs the interest for sure. All of these comes with high interests and specific durations. In this article, we will talk about these three aspects of loans and we will also see how they can be helpful sometimes.

Great Southern Bank (Formerly CUA) | Personal loans vs. buy now, pay later  – which should you choose?

What is BNPL

BNPL is stated as buy now pay later. They convert your payment into installments on any e-commerce website. They provide all the facilities to pay it online. Some charge the interest for the facility but some do it without any charges. Its business model is very simple, They integrate certain companies with it. BNPLs can currently be enjoyed many number of e-commerce, food-ordering, ride-sharing, travel booking, online groceries and services websites, and even on Edu-tech portals among hundreds of other merchant platforms. The transactions can be made seamlessly during checkouts in a safe and secure one-tap manner without having to enter card details or OTPs.

bnpl vs credit ardsTo assure secure payments and verified accounts, KYC is done before the BNPL service. For merchants- they can take payments through cash on delivery modes, credit/debit card, or pay later like BNPL services.

Microcredit solutions are preferred now to better manage recurring and occasional payments and purchases. In the last few years, BNPL has hugely taken a turn in the Indian market. Many e-commerce giants, leading banks, and startups are using BNPL as a good source of transaction and management. And no doubt it is making great progress.

How does BNPL compare with personal loans and credit cards?

Credit card is acceptable all around the globe and has vast facilities to provide. Credit cards come with much-assured amounts and provide certain facilities like Lower interest options, encash Contactless payment, Insurance, Utility Bills, Easy access channels. There are other additional benefits also. But if we talk about BNPL, it is limited to partnering merchants only. Though the service providers are regularly adding hundreds of partners.

Credit cards can come with major benefits but the interest rate of late payment can be difficult to manage. BNPL services are smaller but they are simpler. Credit facilities for consumer purchases from partnering merchants often result in EMIs involving no interest charges but only a one-time fee in most cases.



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.

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Home Insurance: All about Bharat Griha Rakshak policy

In this article, you will find all the basic information about the Bharat Griha Raksha insurance policy that you can purchase. The policy provides insurance cover for your home building and home contents. Insurance makes you free from worries of upcoming damages to your house.

Insurance Covers

  1. Home Building Cover- that covers any loss, damage, fire, calamities, or destruction of your home building.
  2. Home Contents Cover- that covers articles or things in your home.
  3. Optional covers-
    1. Cover for valuable contents on agreed value basis
    2. Personal Accident Cover
home loan policy

According to policy, what are the Dos and Dont's

  1. While filling up the proposal form-
    • Read the instructions in the proposal form carefully before filling up the details.
    • Understand the basis for arriving at the sum insured for both home building and home contents before filling up the details. It is also explained in the sum insured section.
    • Fill up the proposal form completely and answer all the questions carefully.
  2. Your obligations during the policy period-
    • Take care to prevent theft, loss, or damage to your home building and home contents.
    • Inform if there is any change in circumstances such as change of address, details of additions or alterations to Home Building, etc
    • Do not allow unauthorized persons to occupy Your home building.
  3. Your obligations when you have a claim-
    • Give notice of loss to the policy provider, as required
    • Inform the respective authorities, as required.
    • Make true and full disclosures in your claim form.
    • Give all documents supporting the claim.

Sum Insured

For Home Building

The maximum amount we pay under this insurance policy is the sum insured which is based on the prevailing cost of construction of your home building. at the commencement date of the policy. Premium is calculated with reference to the amount of sum insured.

If you have purchased a policy of more than one-year duration, the sum insured will automatically increase each year by 10% for home building cover. There will be no additional premium for this increase.

For Home Contents

The insurance policy has inbuilt cover for the General contents of your home equal to 20% of the sum insured for home building subject to a maximum of rupees 10 lakhs if you have opted for both some building and home contents cover. You can choose a higher sum insured by declaring it in the proposal form and paying an additional premium.

If you have purchased only home contents cover, you have to declare the sum insured for general contents. This policy covers general contents that are usual in any home i.e., furniture and fittings, television sets, telephones, electronic items, antennas, water storage equipment, air conditioners, kitchen equipment, and other household items.

Optional covers

You must apply for these insurance covers, and pay an additional premium. It covers Valuable contents of your home such as jewelry, silverware, paintings, works of art, etc. It provides the waived requirement of valuation certificate if the sum insured opted is up to rupees 5 lakh and individual item value does not exceed rupee one lakh.

For more such updates, keep watching this space!