Rights With Insurance And Investment

Rights-With-Insurance-And-Investment
Every investment allows you some rights to exercise. Here below i am listing some rights to exercise when you go for insurance or investment. 



1) Right To Have Insurance Policy : - 
    As we know if any misshapen occurs then insurance help to get rid of financial crisis. In some cases it is bound to have insurance i.e if you have bike / car or any other automated vehicle you mus have general insurance. In same way every individual has right to be insure and to protect their family from financial problem, but unfortunately it is not compulsory.


2) Right to Return Insurance Policy : - 
    You don't have to retain a life insurance policy you don't want. You have the right to return it whit in 15 days of receiving policy documents. This is called Free Look Up Period. This free look up period applies to all life insurance policies and health insurance policies with a term of 3 year and more. To return a policy, you need to submit an application. Most insurance companies have a form that can be downloaded from their respective websites or get from their branch office. Submit it yourself.

3) Right to Know Commission Paid on Plans : - 
    If you buy/planning to buy an insurance plan then you have right to know how much commission will be earn by your insurance agent, fund distributor from this financial product. 

A Mutual Fund distributor's commission paid by the fund provider company and it may disclosed in your statement. 

For insurance products, the agent's commission depends on the premium, tenure and plans. You can ask your insurance agent to furnish this information before selling you a policy.

ULIP commission are displayed in the benefit illustration accompanying the proposal form. 

Get in touch with SEBI for Mutual Funds and IRDA for insurance updates if your agent not providing this information.

4) Right to Life Insurance Claim : - 
    An IRDA directives gives you the right to claim the proceeds of a life insurance policy that has completed full 3 years. There are no exceptions to this rule. The Insurance company has this 3- year window to verify the authenticity  of the policyholder, after which the claims have to be settled. This ruling also applies in case a policy holder  expires within 3 years, but the claim is made after 3 years.  

How to Fill NACH Form in LIC ?

What is NACH : The National Payment Corporation of India (NPCI) has implemented an electronic payment service termed as National Automated Clearing House (NACH) for banks, financial institutions, corporate and  Govt. Department. 
NACH is a funds clearing platform set up by NPCI similar to the existing ECS of RBI.

Important Points


NACH has both Debit and Credit Variants and it aims at facilitating inter bank high volume debit/credit transactions, which are bulk and repetitive in nature.
The Primary move of NACH is to handle low value, high-volume transactions based on electronic files
Ideally implementing this mandate will allow transactions to be cleared n real-time mode rather than batch mode.
The NACH platform will have national footprint wich will cover 82000+ bank branches
The centralized ACH or NACH is expected to consolidate the current multiple ECS Systems and provide a framework for removal of local barriers/inhibitors and harmonization of standards and practice.

What is Difference between NACH And ECS ?
The prevalent Electronic Clearing Services (ECS) in India is available at around 89 centers in the country while it is operated by the RBI at 15 Centers, it is operated by commercial banks at the remaining centers. The ECS model lacks a standardized operating model users manual processes and has other inherent challenges such as inconsistent timelines around post transnational query management and servicing.
ECS NACH
1 Mandate verification is done based on physical resulting in verification issues and delayed timelines. A robust mandate management system that will include a standardized mandate format and a defined workflow for mandate verification.
2 No such concept of a unique mandate registration reference number.
Unique mandate registration reference number will be available, which will allow for better tracking.
3 Higher number of rejection observed on account of mandate related issues Provision to capture destination banks unique mandate registration in the transaction file resulting in lesser rejections.
4 Presentation and settlement is spread over 3-4 day period. Same day presentation and settlement including returns processing.
5 Dispute management is left to the discretion of the Destination Bank Well defined Dispute Management System electronic platform to raise and resolve issues, Oversight by the NPCI.

How-to-Fill-NACH-Form-in-LIC

How to Fill NACH Form in LIC ?
There are some precautions require to fill NACH Form to save it from rejections.
There are some points which need to have attentions and act as per guidance given below :
* UMRN = Leave it blank.
* DATE = Write date of registration (Current Date)
* To Debit = Tick account type
* Bank Account Number = Write Complete Account Number from Left to end
* With Bank = Name of Customers Bank
* IFSC = IFSC Code
* Amount = is the maximum account printed in the mandate acknowledgement                   letter printed after the policy number is allotted.
* Amount in Words =Do not write "Only" after writing in words)
* Amount in Figure = In figure  don't put slash or dash.
* Frequency = Tick As and When presented
* Debit Type = Tick Maximum amount 
* Policy Number = Write Policy Number
* Mobile Number = Mobile number given in the bank.
* E-mail ID =  If given useful for future reference.
* Period
               From = Registration date (the date on which policy is keyed in and                                completed)
               To     = Need Not be entered
               TICK  Until Cancelled
* Signature
Single Account Holder = Only one Sign
Joint Account Holder =  Sign of all account holders.

Due to some reason some time it get cancel. To understand proper reason for cancellation are some here given below :

NACH Rejection codes & Reasons : -

MO03Drawer signature differs
MO 36Invalid payer account number
MO79Data mismatch & debit type & sign
MO38No such account
MO72Data mismatch with mandate
MO73Mandate incomplete
NOEXTurn around time expired
MO40Title account wrong , incomplete
MO42Account description does not tally
MO32Period of validity not mentioned
MO78Date mismatch, period & signature
MO57Payer name mismatch
MO43Nature of debit not allowed
MO07Alteration requires authentication. 


Suggestion:To know more visit here

Change Of Nomination in LIC Policy

Change-Of-Nomination-in-LIC-Policy
    The Insurance Act allows the holder of a life insurance policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.
    
    A policy holder can do nomination at the time of proposal by given the details of nominee in the proposal form. If nomination can not be done at the time of proposal, it can be done later also. If nomination is done later, it has to be effected by giving notice in a prescribed form of LIC and it has to be done on the back of the policy document. A nomination is not required to be stamped.
    
    Remember Cancellation or Change in Nomination in insurance policies now comes at a cost as regulator IRDA has allowed life insurance company to charge upto Rs.100/- for offline issued policies and Rs.50/- Online (Electronic form) issued policies.

PROCESS OF CHANGE THE NOMINATION IN LIC POLICY :-  A Policy holder can change his nomination during the policy term and it can be changed any number of times. To change the nomination in LIC Policy, the policyholder has to give a notice to LIC of India in a  Form 3750 and nomination has to be endorsed. Further, the policyholder can change nominee without prior inform them. Nomination can be done or changed number of times by paying nominal fee to the insurer.
To process of change of nomination following documents require :- 

  • Relation Proof of Life Assured and the person being nominated
  • Form No. 3750 *
  • Original Policy Bond.
* If you have Joint Life Policy use Form No.3237.
* If you have Minor Nominee use Form No. 3265.

How To Make Claim in Insurance ?

How-To-Make-Claim-in-LIC ?
What is Claim in Insurance?
Let’s talk about claim. Claim is the demand that the insurer (i.e. LIC of India) should redeem the promise made in the contract. Then the insurer settle the claim after satisfying himself that all the conditions and requirements for settlement of claim have been complied with.
Types of claims:-
An insured person can make claim according to condition complied to contract between Insurer & Policyholder. Claim can be made against Maturity; Death or by Surrendering a policy.
In Money Back Policy, LIC or other Insurance company also pays Survival Benefit Payment before the date of maturity.
How to Make Claims and what are the documents required for?
(A)Maturity Claims:-
When Life Insurance Policy is maturing, the insurance company will usually send intimation prior to due date at least two to three months in advance of the date of maturity with maturity amount payable details.
Policy holder should contact his servicing branch to know about claim procedures & sets of documents required. The Insurance Company asks for following documents:
(          1)Maturity Claim Form No. 3825
(          2)Original Policy Bond
(          3)Discharge Voucher with witness sign
(          4)NEFT Details with cancelled Cheques
(B)Death Claims :-
When a person with life insurance policy dies, claim intimation should be sent to the insurance company as early as possible. The Assignee or the Nominee under the policy can do this with the help of his agent or relative.
The claim intimation should contain information like Date, Place and Cause of Death. The Insurance Agent should help the Insured Person Family or Assignee to deal with the Insurance Company. The Insurance company will respond and ask for the following document :
(       1)Maturity Claim Form No. 3825
(       2)Certificate of Death
(       3)Original Policy Bond
(       4)Discharge Voucher with witness signature
(       5)NEFT Details with cancelled Cheques
*If the policy has been assigned in favour of any other person or entity like any Loan provider company – the claim amount will be paid to the assignee who will give discharge.

(C) Surrender of Policy : - Please visit post How to Surrender LIC Policy?


Insurance And Tax Savings

Insurance-And-Tax-Savings-Tips
Earlier we says for Insurance nowadays we also add Insurance with Tax Savings. Mostly people invest for tax saving purpose. And before taking any insurance plan peoples ask how much tax benefit they may get!

Here highlighting some LIC Plans with tax benefit as per Income Tax Act.

1) Deductions Under Section 80C  
   
    (i) Life insurance premium paid in order to effect or to keep in force an insurance policy on the life of the assessee or on the life of the spouse or any child of assesee and in the case of HUF, Premium paid on the life of any member thereof under an insurance policy, (Other than a contact for a deferred annuity) issued on or before the 31st day of March 2012 shall be eligible for "deduction only to the extent of 20% of the actual capital sum assured or actual  premium paid whichever is less." 
   And issued on or after the 1st day of April 2012 shall be eligible for "deduction only to the extent of 10% of the actual capital Sum Assured or Actual Premium paid  whichever is less".
     Where the policy, issued on or after the 1st day of April 2013, is for insurance on life of any person, who is - 
     (a)a person with disability or a person with sever disability (Section 80U)
     (b) Suffering from disease or ailment as specified in the rules under section              80DDB.

   (ii) Contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

  (iii) Contribution to Annuity Plans like - New Jeevan Dhara, New Jeevan Dhara -I and Jeevan Akshaya -VI.


Under Section 80CCC
 New Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan :- A deduction to an individual for any amount paid or deposited by him from his taxable income in the above annuity plans for receiving pension is allowed.

*The aggregate amount of deductions under U/S 80C, 80CCC & 80CCD (1) shall not in any case exceed Rs.1,50,000/- (Rupees One Lakh Fifty Thousand)*

2) Deductions Under Section 80D

a)    Deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of assessee or his family (i.e Spouse & Dependent children) or any contribution made to the central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or on account of Preventive health check-up of the assessee or his family.
b)    Additional deduction upto Rs.25,000/- if an amount is paid to deep in force an insurance on health of parents or on account of Preventive health checkup of the parent of the assessee, whether dependent or not.
(c) In case of HUF, deduction allowable upto Rs.25,000/- if an amount is paid to deep in force an insurance on health of any member of that HUF.
(d) If the sum specified in (a) or (b) or (c) is paid to effect or keep in force an insurance on the  any person specified therein who is a senior citizen, then the deduction available will be up to Rs.30,000/-. Here senior citizen means the person who is of sixty year or more during the previous year.
(e) In case the amount are paid in (a) or (b) or (c) on account of preventive health check up, the deduction for such amounts shall be allowed to the extent it does not exceed in aggregate Rs.5,000/-
(f) For the purpose of deduction, the payment shall be made by  - any mode, including cash, In respect of any sum paid on account of preventive health check up and Any mode other than cash in all other cases.
(g) the insurance as mentioned above shall be in accordance with the scheme framed by (i) the GIC of India or any other insurer approved by IRDA.


3) Deductions Under Section 80DD
Jeevan Aadhar Plan - Deduction from total income upto Rs.75,000/- allowable on amount deposited with LIC under Jeevan Aadhar Plan, Jeevan Vishwas for maintenance of an handicapped dependent (Rs.1,25,000/- where handicapped dependent is suffering from severe disability)

4) Exemption in respect of commutation of Pension under Jeevan Suraksha & Jeevan Nidhi Plans : 
Under Section  10(10A)(iii) of the Income Tax Act, any payment received by way of commutation of pension out of the Jeevan Suraksha & Jeevan Nidhi Annuity Plans is exempt from Tax.

5) Income Tax Exemption on Maturity / Death Claims proceeds under section 10(10D) :
As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy, Including the sum allocated by way of Bonus on such policy is exempt from tax where the sum s received as a death benefit. However, to get exemption under above section for sum received other than death benefit.
* Policy shall not be issued under Section 80DD(3)  Or
* Policy shall not be issued as Keyman Insurance Policy  Or
* Policy which has been issued on or after April 1, 2003 and the premium paid      in any of the years during the term of the policy not exceeding 20% of the          Actual Capital Sum Assured.
* Policy which has been issued on or after April 1, 2012 and the premium paid      in any of the years during the term of the policy not exceeding 10% of the          Actual Capital Sum Assured.

Where the policy issued on or after the 1st day of April 2013 is for insurance on life of any person, who is - 
(i) a person with disability or a person with severe disability as referred to in section 80U, or 
(ii) Suffering from disease or ailment as specified in the rules made under section 80DDB,


*Exemption under this section shall be available only if the premium payable in any of the years is not more than 15% of the actual Capital Sum Assured.*


Revised Rates of Interest under Various Financial Transaction in LIC

Revised Rates of Interest under Various Financial Transaction in LICLIC revised rate of interest chargeable under various financial transaction for the financial year 2016-17 vide circular ref no.ACTL/PS/2224/4 Dt.18th April 2016

Details are here as follows :


Sr. No.
Type of Transaction
Rate of Interest
1.
(i) Policy Loans [under all plans except Jeevan Aastha (Plan195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) And Jeevan Shikhar (837)

(ii) Policy Loan under Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) And Jeevan Shikhar (837)


      10.00



       10.50
2.
For Policies issued on or after 01/01/1957 –
(I)     Arrears of premiums within six months from the date of FUP.
(II)   For revivals
9.50
(Subject to a minimum int. of Rs.5/-)
3.
Arrears of premiums for alterations and age proving higher.
9.50
4.
Dating back the policies
9.50
5.
Discount factor for
(i)   Commutation of instalments under Educational Annuity Policies.
(ii)   Commutation of Income Benefits under Multi-Purpose,             Guaranteed Benefits under Annuity Settlement Options.
(iii)   Unpaid instalments under Settlement Options.



9.50
6
Settlement options for Maturity Claims
6.00
7.
Advance payment of premiums under
(i)    Jeevan Sneha (Plan 128)

(ii)  Jeevan Bharati (Plan 160) and Jeevan Bharati I (Plan 192)

10.00

  6.00
8.
Delayed payment of claims
9.00
9.
Discounted Value or Accumulated Value for Calculation of SSV under Jeevan Saral (Plan 165)
7.50
10.
Accumulation of S B under Jeevan bharati (Plan 160) and Jeevan Bharati –I (Plan 192)
4.00
11
Discounting of Claims during the last year of policy term
9.00
12
Reinstatement of Surrendered Policies
10.50


List of Alteration Allowed with LIC Policy

While taking life insurance we miss certain things by mistake like so we need to make some alteration in Insurance Bond after receiving it.

Here are the LIST OF ALTERATIONS, WHICH ARE PERMISSIBLE WITH LIC POLICY:-

LIST OF ALTERATIONS, WHICH ARE PERMISSIBLE WITH LIC POLICY
(1) In class (plan) or term.

(2) Reduction in sum assured.
      *Alteration in above case is allowed if basic risk cover is not increased &
        same time premium should not be decreased.

(3) Mode of Premium :
      During term, IN POLICY ANNIVERSARY MONTH Life Assured can change             premium paying mode.
      In case of higher mode to lower mode (not require for SSS or ECS) Rs. 
      50/- service charge to be paid.

(4) Splitting up of single policy into two or more policy.

(5) Merging of the policies in one policy if having same plan / term /             doc.

(6) Without profit to with profit plan.

(7) Grant of accident benefit.
         If any time of taking policy L.A. has not availed D.A.B., but after issue of 
         policy, request for granting D.A.B. if the L.A. is eligible for it, may be
         granted.
         Use form no. 3772 & if accident benefit is not asked from date of 
         commencement of policy then Rs. 50/- service charge be paid.
         In case of minor life assured on completion of their age 18 years, he or 
         she can avail double accident benefit.
        (Maximum up to 50 lakhs or equal to basic S.A. Whichever is less.)
        This benefit may be granted from the due date of policy anniversary 
        following immediately after the date of application.

(8) Grant of premium waiver benefit:
      (1) From no. 300 / 302 of proposer 
      (2) Standard age proof of proposer 
      (3) Medical requirement of proposer as per rules. 
      (4) An Application is required.


ALL Above 1 to 8 alterations will be allow only after 1 policy year complete.

(9) Alteration in Name :
      (1) If original name is required to be changed : GAZZET COPY & I.D. Proof
      (2) In case of female life after her marriage : Marriage certificate with                     application is required.

(10) Settlement option of Payment of Sum assured by installment. At time of           maturity payment.

Service Tax Effect As on 19th April & From 01st June 2016

Dear LIC Agent

Please note that from 1st June 2016 Service Tax Rate has been changed on life insurance premium of diffrent LIC product. Details are as follows :


                          Existing          Revised
New Business       3.625%          3.75%
Renewal.              1.8125%       1.875%
Term/Health.        14.50%         15.00%
Jeevan Akshay      1.45%           1.50%

So please take care of your customers.

Complete all booked business on or before 31st May 2016.

Contact customers and guide them to pay renewal on or before 31st May 2016 to save a little Service Tax. 

Saving is Saving, size of saving is not necessary but saving is necessary. 

Start from yourself and guide others.

All The Best.

How to Surrender an LIC Policy ??

Why we are thinking to surrender the policy while we take it to secure future from financial Problem or Unexpected other risk. Some time we take to save tax U/s.80C also.

REASON TO SURRENDER : 
How to Surrender an LIC Policy ??There may be so many reasons to get it surrender. Might be you are not satisfy with the term & conditions or having some financial problem.
But before going to surrender your policy bond,  you need to check that does your policy has surrender values.

All endowment or money back insurance plans accrue a surrender value after certain (lock-in) period.
Generally insurance policies acquire surrender value completions of three years of your policy. This may varies than the amount of premium paid.
Remember Term Insurance / Health Insurance policies are pure protection plans and do not accrue any surrender value.
Once you have decided to surrender your policy, here is how you go.

REQUIRED DOCUMENTS : -
I.   Original Policy Bond / Certificate
II.  Photocopy of last premium payment receipts
III. Photocopy of latest unit balance (in-case of market linked plan)
IV.  Application for surrender value or LIC SurrenderRequest Letter
VII. One Cancelled Cheques / Photocopy of Passbook (NEFT/RTGS Purposes)

All forms are self explanatory, fill all the forms accordingly and have some revenue stamps may require. With the above documents visit your home /servicing branch (office from where policy bond is issued). You can find it on your policy bond or on policy receipts. Only Policy holders can surrender the Policy Bond.
After verification all documents LIC officer will issue an Acknowledgement Receipts for the same. Surrendered process may take 15-20 days and the amount (Surrender Value) will be credited into your bank account directly.

POINTS TO REMEMBER : -
1. Surrender values are payable only after three full annual premium paid.
2. Surrender of policy is not recommended since the surrender value would always be proportionately low.
3. And When you decide again to go for an LIC Policy that would be with higher premium because of your    
    higher age .

Why Do You Need Health Insurance Policy !!!

Why Do You Need Health Insurance Policy !!!

Rising health care costs are punching a big hole in our pocket & savings. Just paying a small insurance premium are the best solution for the future (if any) financial losses. So, just avail health insurance policy to save from financial problem from worries of hospitalization.

BENEFIT OF HEALTH INSURANCE POLICY.
Do you believe that you never need health insurance policy because you are fit & fine ?
Do you believe that only benefit of health insurance policy is reimbursement of expenses in the event of hospitalization !!!
With health insurance policies you can avail benefit of CASHLESS HEALTH INSURANCE and also you can save tax U/s.80D under given limit.

With growing ages your health and income may come down and you can face problem with them. For every senior citizen health insurance policy with life time renewal facility is the best option. 

SOME OTHER BENEFIT:
Some health insurance plans offer a daily lumsum amount of compensation against your daily expenses for each of hospitalization apart from your medical bill i.e. DAILY CASH BENEFIT. No records or proof require for this. This amount amount is predefined with the policy term & condition.

The fixed pre-defined benefit type of medical insurance policies provides a fixed lump sum payment upon diagnosis and confirmation of certain critical illnesses like cancer, stroke, paralysis, kidney failure etc. Irrespective of the actual amount spent by the insured, he or she receives the lump sum amount which can be used to fund rehabilitation or on lifestyle adjustment, etc.


Health care system in India has evolved with preventive health check-ups and improved diagnostics. Certain progressive insurance companies offer benefits that are generally not associated with the health insurance policies. Some such benefits are :
**Free Consultation with the doctors
** Free health check-ups etc.

TAX BENEFIT FOR TAX PAYERS:
As per Budget 2015 tax benefit of Rs.25,000/- given U/s 80D for Medical Insurance Premium Paid.
An additional amount of Rs.30,000/- is available for premium paid for senior citizen.


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