GENERAL INSURANCE BLOG

The Government of India presented the union budget on 1st February 2023. It has provided incentives for the people to move from the old tax regime consisting of deductions and rebates to the new tax regime. This, in turn, will affect the insurance sector as well.

While there were a few surprises here and there, it has proposed a significant change by taxing maturity proceeds of insurance policies commanding an aggregate premium of over Rs.5 lakhs in a financial year. Such high premiums usually occur in the case of money-back insurance plans that require one-time premium payments or endowment plans.

Here are some of the key recommendations that would impact life insurance sector.

1. No change in Section 80C and 80D:
Insurance premium amounts paid for insuring the life of self, spouse, or child are presently eligible for deduction under Section 80C of the Income Tax Act up to Rs.1.5 lakhs per annum. This is irrespective of whether our child is minor or major, dependent or independent. Also, individuals, as well as Hindu Undivided Family (HUF), are both eligible for claiming this deduction.
Similarly, Section 80D allows a person to claim a deduction for health insurance premiums and expenses incurred towards preventive health check-ups for self, spouse, children, and even parents up to Rs.65000/- per annum, subject to certain conditions.
The budget of 2023 could have been better for the insurance sector of the limits under Sections 80C and 80D. The industry expected a raise in the limits under these sections to boost consumer savings and investment. However, these limits have been left untouched in the budget of 2023.

2. The choice between the old-tax regime and the new-tax regime:
Till now, there was an option to choose between the old-tax regime that allows for several deductions and rebates and the new tax regime that taxes your income at a flat rate. You could choose either of the two and enjoy the above deductions under Sections 80C and 80D by choosing the old-tax regime.
There has been a shift in policy in this regard in the budget of 2023. The new tax regime is the default setting for individuals, under which you cannot enjoy these rebates. If you still want to enjoy deductions under Sections 80C and 80D, you will have to choose the old-tax regime specifically.

3. Aggregate premium clause:
According to the budget of 2023, if the aggregate premium paid by an individual is over Rs.5 lakhs in a financial year starting 1st April 2023, he will have to pay tax on their maturity proceeds. However, if such a policyholder dies, the nominee's maturity proceeds will be tax-free.
Maturity proceeds or income from insurance policies having an aggregate premium of less than Rs.5 lakhs in a financial year will be exempted from taxation. However, the introduction of this clause may discourage consumers such as High-Net-worth individuals (HNIs) from buying big-ticket insurance products to save taxes. As a result, the revenues or top-line of the insurance companies are bound to suffer and go down.

The Insurance industry plays a vital role in the overall financial growth of the country, and as such, the sector is undoubtedly not very encouraged with the budget for 2023. There was a general expectation of an extension of the Rs.1.5 lakhs deductions allowed under Sections 80C and 80D, which still needs to be met. Moreover, taxing the maturity proceeds of policies commanding an aggregate premium of Rs.5 lakhs or more in a financial year will further dampen the sales of high-value insurance policies.

However, insurance buyers need not be worried as the prevalent deduction limit is still the same and has not gone down. Also, a very small percentage of Indians buy high-value insurance policies, and the changed clause is unlikely to affect most Indian residents. Online general insurance policies continue to offer the same ease, protection, and security, and individuals can continue to enjoy its benefits.

Click HERE to buy online general insurance plan to safeguard your valuable assets.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Indian celebrities, cricket players, and business tycoons have all made headlines for driving fancy foreign cars that they brought into India. It takes time and is complicated to import a foreign car into India. But if someone is willing to put in the time and money, they can import their dream car by following the rules and going through the process.

In this article, we'll go through the steps involved in bringing a foreign car into India and some crucial rules you must abide by.

India has stricter regulations than other nations regarding the import of foreign cars. Foreign cars will be permitted to drive on Indian roads only if they meet all requirements.

Guidelines for importing a new car.
To import a new car, the following prerequisites must be satisfied:

● The car must be built or assembled outside of India.

● The car must be brand new in every way, and you can only import it from the nation where it was made. It cannot have been registered, leased, sold, or loaned before being imported into India.

● A right-hand driver's car is required.

● Kilometres, not miles, should be displayed on the speedometer.

● You can use only the naval docks in Mumbai, Chennai, and Kolkata to import cars. Therefore, you should use just one of these ports to transport the car to India.

Rules for importing a used car.
The procedures for importing a used car into India are complex and may take longer than expected. The rules are as follows:

● Imported used cars shouldn't have a manufacturing date older than three years.

● It must be a right-hand drive car.

● Kilometres, not miles, should be displayed on the speedometer.

● Again, only naval docks in Mumbai, Chennai, and Kolkata are allowed to transport the car to India.

● The car should be financed, leased, registered, or sold.

● It must have a roadworthiness certificate with a minimum 5-year validity.

Who is authorised to bring commercial cars into India?
You must meet additional requirements before you can import commercial cars into India. Because people can travel in passenger cars, SUVs, and jeeps that were imported, the rules for commercial cars are strict. The following are the profiles that can bring such cars into the country:

1. An NRI who last lived in India at least two years before the import and owned a car for at least a year.

2. Relatives, i.e., the legitimate heirs or successors of a person who passed away overseas and left a car in their care.

3. Individuals with physical disabilities.

4. Companies with foreign equity participation that are already operating in India.

5. International corporations with a presence in India.

6. Trusts that are legally established for religious, missionary, or charitable purposes in India and abide by the regulations established by the state or central government.

7. Any honorary consuls that the Indian government's Ministry of External Affairs recommends.

8. Any journalist who possesses an accreditation certificate issued by the Bureau of the Indian government's Ministry of Information and Broadcasting.

Things to take into account before bringing a car into India.
Before you start the time-consuming process of bringing a car into India, you need to think about a few essential things.

1. Import taxes on cars:
You might be required to pay an import duty of up to 116% of the car's CIF (cost, insurance, and freight) value.

2. Registration:
The closest RTO in India must register the car. The import tariff does not include the fees for registration and road tax. These fees vary based on the kind and price of the car.

Insurance is essential to drive your car in India legally. You can conveniently buy car insurance online to financially protect you from paying for damages caused by an accident or third-party liabilities. Your car insurance can offer financial security against collision, fire, or other unavoidable natural or man-made disasters.

Click HERE to buy car insurance online.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Health insurance is a policy that provides financial cover for your medical expenses. It includes both pre-emptive medical care such as routine medical checkups and tests and costs incurred after someone gets sick or in case of some medical emergency. Your health insurance provider reimburses these medical bills.

With the development of the internet, the entire buying, renewal, and maintenance of your insurance policy has shifted online and has become more streamlined and convenient. Further, the advent of technological development has also favored cashless modes of premium payment.

In this article, we will walk you through all the basics that you need to know about health insurance. This way, you can easily navigate through different policies and come across the best Health Insurance in India, to match your needs. Let’s get started…

Major Factors to Consider Before Buying a Health Insurance:

● The policy holder’s requirements (size of the family, members of the family, specific allergies, ailments, and diseases)

● Policy limits (possible advantages, disadvantages)

● Type of plan (Bronze, Silver, Gold, Platinum)

● Market credentials of the insurance provider

● Whether or not the insurance has a cashless network

Basics of Health Insurance

A health insurance doesn't cover all the costs, it only covers what it calls the ‘out-of-pocket’ expenses. These policies are formulated in such a way that it shares costs. After reaching the out-of-pocket limit, the insurance pays the entire cost.

Ways of Cost Sharing Between the Policy Holder and the Health Insurance

There are several ways in which an insurance company shares costs. Each way constitutes a different type of insurance policy. Here are some features of your policy that you should know about:

● The out of pocket limit

● The deductible

● The co-insurance

● The co-payment

Did you know that a cashless claim settlement brings in more money, when compared to other modes of payment? It is useful to keep these little tips in mind before buying and selecting a health insurance policy.

Other Things to Keep in Mind:

● Crucial benefits that are offered to each policyholder

● Should be affordable as per your income

● Certain government-mandated federal standards

● Consumer protection laws

Who Should Purchase Medical Insurance and Why?

Everyone should have health insurance. Medical emergencies and problems are often unforeseen and it is highly unlikely that an average person has a substantial amount of money saved up at all times. Moreover, medical costs are too high, and one usually cannot cover it by themselves. These bills are also directly linked to several financial problems.

Various groups that should invest in health insurance:

● Students: Students can avail their parents’ health insurance till the age of 26. Universities often offer the right health insurance plans. Students who go away to college in a different state should avail of this insurance since their parents’ insurance might not work in another state.

● People with families: Family plans usually have individual as well as family deductibles for each member. The insurance comes into force only after the deductibles have been met.

● People who fall in the lower income slab: Health insurance policies are the best way to cover your costs, without burning a hole in your pocket. People who fall in the lower income slab should consider using this tool to prevent financial losses.

● People who are pregnant: All health insurance policies cover pregnancy and certain prenatal as well as postnatal procedures. Childbirth and maternity care count as essential benefits, and everyone who is pregnant should get a chance to avail of it.

● Senior citizens: All senior citizens, i.e. people of the age 60 and above qualify for the government-mandated health insurance plans.

● People in the military: All active military officers get their health care and their family’s health care subsidized by the government.

● Married people without children: These couples could purchase individual insurance plans instead of a complete family plan. One could also depend on their spouse’s employer’s insurance plan if such a situation exists.

Conclusion

Having health insurance offers loads of benefits. From the above guide, we hope that your doubts about health insurance are solved. Secure yourself today by getting health insurance. Moreover, as you age, health insurance becomes even more important.

Health Cover, is it an option or luxury? Well, it’s a necessity! Having a financial tool that covers your medical bills & saves you from a hole in the pocket is a must.

To begin with, what's a health cover?

Insurance policies are oriented towards your fitness and give coverage to your medical bills and expenses on a payable premium. These health covers are the best ways of saving your big hospital bills, and with passing times, it's turned into more of a necessity.

If you haven't invested in a medical cover, it isn't too late to buy health insurance online. >And if you don't have enough reasons to reflect on why you need one, let's quickly run into some of the essential reasons:

1. Covers All Your Medical Bills:

Here's the top reason why health covers are looked up to by most individuals, it covers all of your unexpected hospital bills. Whether you're pregnant or are considering getting operated on, you no longer need to deal with sky-high hospital bills. It also helps plan your savings better, since you won't have to dig out large medical expenses.
Further, considering some of the best insurance policies that cover hospital bills and other additional expenses oriented with your checkups post-surgery, bills spent on medications, therapy sessions, and much more; it gives you an outstanding deal. It is also believed as the most profitable way of administering your health and fitness, and further keeping it under check.

2. Compare & Choose The Best:

With a wide array of insurance policies facilitated by different providers, you've got comprehensive plans to choose from. Every single policy offered by each provider varies so incredibly that you might want to take your time considering each segment or option that relates to your requirements. Another advantage is that you can also alter or modify a policy as per your needs. Likewise, the premium payable and coverage extended would differ depending on the categories of medical conditions, illnesses, etc., laid down by your health cover.

3. Best Form Of Investment:

If you haven't known this yet, a health cover is a form of medical investment that's sure to bear you excellent and reliable returns in the form of the coverage amount. The market for investments is so broad and prospering, yet medical insurance turns out to form such an inevitable part of it. If you're someone seeking to buy Health Insurance online, you will come across many distinct policies offered even by the same provider. The potential market that it has taken up, proves its ability to benefit you immensely.

4. Tax Benefits:

Talking about how a health cover can benefit you, it isn't just limited to the fulfillment of free medical bills but extends to more leveraged advantages. Have you thought about the amount of money you can save on compliances like tax obligations with your health covers?
Well, you can consider it now! With tax benefits, you can invest in health cover and enjoy the dual benefits of coverage over medical bills and savings made on tax payments. Under the legal compliances, you can get up to Rs. 25,000 as an insurance benefit. This implies if you apply for medal insurance for your entire family of 5, it can reduce your tax obligation by Rs. 1,25,000.

5. Other Benefits:

If you're under the impression that free medical treatment and tax waivers are the only benefits that health covers extend, you’re wrong. While there are numerous policies and providers, their claims, coverage, premium, and other features differ substantially. Some policies cover charges for the ambulance services, expenses post-medical treatment, lower or no limits on the bonus, or discounts implied on your coverage. All of these benefits brought together, make for the ideal health insurance plan.

Conclusion

One can't quite emphasize the need to take a health cover, without giving much attention to your fitness. After all, your well-being is the epicenter of all your day-to-day activities.

Quick Tips before you buy health cover:

● Check the limits and sub-limits.

● Have a look at the options available.

● See if you can get discounts.

● Compare the different quotes by different insurance companies.