Skip to main content

New Changes in Insurance Domain

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

Policy holders can hope to benefit from a number of changes expected in 2012


   Unlike your investment plans, you don't have to look for predictions or make alterations to your insurance covers in the New Year. Most of the fundamentals remain the same: you must have a life cover (preferably term cover) if you have financial dependents; you also must have a health cover for yourself and your family. Sure, there are many other covers you can add to your protection plan: accident cover, critical illness cover and so on.


However, you may have to watch out for regulatory changes that could impact your decisions. Like 2011, even the New Year is likely to be eventful for insurance customers.


The year promises to ring in many developments and record the impact of several regulatory changes in 2011. Here is a small list of what you can expect in 2012:

LIFE INSURANCE

Wider Access In The Offing

It's the key regulatory change the industry is talking about, with the draft guidelines released just a few weeks ago. Banks are likely to be allowed to tie up with multiple insurers. This will give the customer more choice.


The proposed regulations will allow banks to join hands with more than one insurer, but it is subject to the area-wise segmentation laid out in the draft guidelines.


While the final regulations could take a very different shape, the fact remains that the flexibility to banks will certainly improve, resulting in more choices for the customers.

Pension Ulips Set For A Comeback

The revised guidelines on pension Ulips have come into effect from December 31. While products are yet to be filed under the new regime, life insurers seem to be fine with the new rules. Agents were pushing pension Ulips aggressively before September 2010. In 2011 though, very few companies launched these products under the new regime. Now, however, insurance-seekers keen on buying pension Ulips can look forward to the revival of such products this year.

Online On A Roll

The trend of selling term polices online took root in 2010 and branched out to many more companies in 2011. The unique selling point of these products is that they are much cheaper than their offline counterparts. We expect that internet sales as a channel will gain further momentum and will help increase the protection penetration as well as branching into health and savings products being introduced through that channel. Also, with Irda bringing out guidelines to regulate web aggregators customers can hope for better services.

Policies To Go Demat

In 2011, Irda gave a go-ahead to converting physical policies into the electronic form. By April 2012, this initiative could take concrete shape for life insurance policies. The key benefit, of course, will be convenience — both in terms of maintaining the documents and making changes when required. Also, the policyholders will not have to furnish details every time they buy a policy.

DTC Impact

For years, many a life policy has been sold on the basis of its tax saving ability — premium paid of up to . 1 lakh is allowed as deduction under Section 80C of the Income Tax Act. Come April 2012, however, things could change with the proposed implementation of the Direct Tax Code (DTC). Here, life and health insurance premium, along with children's tuition fees, are clubbed together, and the combined tax benefits amount to a maximum of . 50,000. This apart, you will not be eligible for the deduction if the annual life premium exceeds 5% of the sum assured in any year. While this spells bad news for insurance cum-investment policies, those opting for pure protection term covers need not worry. Besides being the cheapest life policies, most, subject to your age and health, are also likely to adhere to premium-to-SA ratio.

HEALTH INSURANCE


Portability To Take Off

The much-awaited health insurance portability became effective from October 1, last year, but by all accounts, it has been a slow starter so far. However, insurers expect it to pick up speed between January and March, when salaried individuals are on a tax-saver-instrument buying spree. The framework could also spawn newer varieties of products and services. With increasing awareness on health insurance portability, more proposals on portability can be expected in the year 2012, value-added services will be launched in terms of second medical opinion, vaccinations, and discounts on health care facilities like on diagnostics and preventive health care facilities, like gyms.

Distribution To Spread Wings

After the Ulip charge ceilings that were placed in September 2010, many agents saw their business dwindle and eventually dropped out. The year 2012 could see the fructification of the agent-mentoring model that the Irda has mooted. The initiatives around creation of a senior, mentoring agents framework, new bancassurance norms and regulatory push towards shifting focus from metros to semi-urban and rural areas will widen access to products.

Expansion In Coverage

The list of health insurers offering OPD products that extend coverage to maternity expenses and dental treatment could grow longer this year, with Irda itself backing it. The Irda chief has asked insurance companies to target a larger healthcare cover, over and above hospitalisation policies, by creating such OPD products. With the entry of more international players, we expect cost-effective OPD — comprehensive health insurance policies in 2012. At present, most basic health policies kick in only if the insured is hospitalised for at least 24 hours or is undergoing treatment through day-care procedures.

MOTOR INSURANCE



Innovative Products On Their Way

Ever since detarrification of prices came into the picture in 2008, insurers have been promising add-ons to what was, until then, a standard product. While some headway has been made, customers are yet to see substantial innovation in motor policies. In 2012, though, you could finally get access to more options. Add on products like Road Side Assistance would be introduced for a wider coverage and better customer service experience. Such assistance services would help consumers through a traumatic experience in case of an accident or breakdown.

Rewards For Model Behaviour On Cards

Again, a long-pending promise that is yet to come good, the practice of linking to premiums to factors other than the standard ones pertaining to the vehicle is quite prevalent abroad. The year 2012 could be the year it's introduced in India, too, given that many insurers have been collecting the data required to enable this mechanism. There will be use of more factors for pricing, particularly details of the insured such as age, marital status, driving record etc will be introduced in pricing of motor insurance. This would lead to better risk-based pricing. Thus, consumers with better driving habits and vehicle maintenance can expect relatively better premium pricing than others.

 

 

Aegon Religare New plan for higher studies - Aegon Religare Educare Plan

 

AEGON Religare Life Insur ance is rolling out Aegon Religare Educare Plan.

The cost of higher education is increasing almost everyday. To ensure that the parents of tomorrow are well-equipped to meet the needs and aspirations of their children, it is important to plan to save in a disciplined manner from today.

Also, higher education costs are not a one-time thing, but a recurring payment, which is why we have designed the new plan with lump sum pay outs over four years.

The Aegon Religare Educare Plan comes with a number of additional benefits, including providing guaranteed payouts during Pinaki Paul the last four years of the pol icy, and offers two benefits to choose from -the first option offers a sum assured and accrued bonus on death and guaranteed payouts during the last four policy years and the second option offers the sum assured and accrued bonus on the death of the policyholder, guaranteed payouts during the last four years of the policy and 10 per cent of the sum assured every year, till the end of the premium payment term.

On maturity of the policy, it provides 20 per cent of the sum assured, which is the last instalment of the guaranteed payout, along with the accrued bonus. It also offers a high discount on sum assured of Rs 5,00,000 and above and an optional additional cover through an ADDD rider (accident, death, disability and dismemberment).

The truly unique part of this plan is the annual lump sum pay out geared to meet the annual expenses of higher education.

 

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

Popular posts from this blog

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...

TDS Rate and Personal Account Number(PAN)

    The TDS rate doubles to 20% from 10% if you fail to mention your Personal Account Number   IF you run a glance through your pay slip, you will come across something called TDS, which is tax deduction at source. In most cases, the employer deducts this amount at the time of payment of salary itself and pays the total tax amount to the government on behalf of all the employees. If you are a self- employed or practicing professional s, you have to pay this amount yourself.    Tax deducted at source is one of the modes of income tax collection by the government. Under the income-tax laws, income tax at specified rates is required to be deducted while making certain payments.    The rate of deduction of tax at source on interest and rent payment is 10%. For salary payments, the employers deduct income tax at source on a monthly basis after computing income tax liability on estimated annual taxable income of the employee. Tax benefits on housing loan, investments, etc are consid...

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...

Banks tweak ATM strategies

Unrestricted usage of third-party ATMs ends on Thursday The era of free ATM usage will come to an end on Thursday, October 15. Every transaction carried out on another bank’s ATM could cost an account holder as much as Rs 20 and withdrawals will face a limit of Rs 10,000, the Indian Bank’s Association has said in its guidelines. According to the guidelines, banks can offer savings-account holders five free thirdparty withdrawals every month —they can be charged from the sixth transaction onwards. Current account holders can be charged the fees, which ranges from Rs 18 to Rs 20, from the very first transaction. Most banks are convinced that charging current account and no-frill account customers from the word go is a good idea. It suggests that the usage of ATMs by current-account holders is price-insensitive. For others, banks have decided to frame their charges depending on the profile of the customer. For instance, HDFC Bank is allowing its salary account and premium customers an unl...

Women need to plan for Retirement

Plan for Retirement Online       Higher life expectancy, lower pay and fewer work years necessitate thorough planning.   Women have raced ahead of men in various fields but, when it comes to retirement planning, they tend to lag behind. Despite saving a higher proportion of their salary, compared to men, women generally do not take retirement planning seriously. Below are some of the reasons why they should: According to the United Nations Department of Economic and Social Affairs, in India, the life expectancy of women is 69 years and, of men, it's 66 years. Due to this, a woman will need an additional `55 lakh to manage her living expenses (see table).Besides, usually, women work fewer years compared to men to take care of children and family.Further, a recent study by Korn Ferry Hay Group shows that women in India earn 18.8% less than men. Not to mention, a higher life expectancy can also mean higher medical expenses as the likelihood of health ailments such as diabetes, high...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now