When you are purchasing property, you are required to pay certain charges which are not covered in your home loan amount. Along with home loan fees and charges, stamp duty and registration charges are two of such charges that you need to pay in order to acquire the ownership of the property.

What is Stamp Duty?

Stamp Duty is a non-refundable charge levied by the state government to validate the registration of property in your name. By paying stamp duty charges, you legalize the ownership document of your property. If you refuse to pay stamp duty, then you are not considered as a legal owner of the property you purchased.

Stamp duty is not included in the home loan fees and charges lieved by banks or financial institutions. This is the over and above expense that you as a buyer need to pay in order to complete the purchase of the property.  Although stamp duty charges state to state, there are several factors that commonly influence the amount of it. These factors are as follows,

• Age of the property
• Owner’s Gender: Female owners get concession in some states
• Location of the property
• Type of property
• Owner’s age: Senior citizens get concessions in some states
• Usage of property i.e. commercial or residential

How Stamp Duty is calculated?

Generally, the stamp duty is 5% to 7% of the total market value of the property, whereas the registration charges are 1% of the property value. Here are the stamp duty charges in the main cities of India

You can use various online calculators to know the exact amount of stamp duty you are required to pay while purchasing a property.  Moreover, according to Section 80C of the Income Tax Act, you can claim a tax deduction up to Rs. 1,50,00 on stamp duty.

Why paying stamp duty is important?

As mentioned earlier, stamp duty legalizes the newly brought property on your name. It is crucial for your property insurance as well as any future disputes. You cannot acquire the coverage amount of property insurance if the property is not registered on your name.

Many people show undervalued property price in order to reduce their stamp duty. It is considered a legal offence. Any individual who does that get penalized for stamp duty evasion. The penalty can be 8% to 20% of actual stamp duty with imprisonment for certain time.

Planning a wedding can sometimes become a little overwhelming. It is a far more complicated task than imagined. Many couples would opt to hire a wedding planner to manage their wedding.

But if you have decided to plan the wedding by yourself, then you will be dealing with dozens of vendors, multiple things related to wedding preparations and managing your guests. There is a high possibility that you might miss out on something.

Hence you must follow the below list of essentials which you must not miss out while planning a wedding.

Prepare a budget

Preparing a budget is the most important step while planning your wedding. Once the budget is prepared, you will be able to decide on wedding expenditures and thus help you organize funds accordingly. You can take the help of a personal loan if you are facing the problem of a budget shortfall.

Search and book a wedding venue

You must start searching for a suitable wedding venue and book it at least 6 months in advance. Booking prior will help you save money plus you can choose and book a venue of your choice with ease.

Make a guest list

To ensure that you don’t forget any important people, prepare a guest list and stick to it. Avoid calling too many guest or last-minute additions to avoid problems such as insufficient food or seating.

Working on wedding invitations

Before sending wedding invitation cards to your friends and relatives, make some effort and prepare a well-designed card that has all the required information for your guests. You can also try out sending e-invites through WhatsApp.

Finalizing caterers and menu

During the wedding, food plays a key role hence no compromise should be done on the variety and quality of the food provided. So choose the caterer after checking their service record and decide on the cuisines in advance. Taste the food samples to be sure of the food which will be served to your guest.

Hiring photographers and videographers

Your wedding photos and videos will be your lifetime of memories, so select the best photographer and videographer. Before you finalize on them, check their work samples and explain what you expect from them.

Book musicians well in advance

Avoid booking musician during the peak wedding season. You may not find them, or if you get them, they will charge you a lot. So, ensure that you book your preferred band or DJ well in advance.

Book a beautician

During the wedding reception, you must hire a beautician. Make sure the beautician is aware of the wedding outfit you are planning to wear during the wedding so that they can groom you accordingly.

Buying wedding outfits

Selecting the right wedding outfit may take time as you need to find the right design, require multiple fittings and search for matching accessories. So start searching for it well in advance.

You can also go for a readymade wedding attire if you are not so much into preparing your own outfit. Whether it readymade or as per your specification, make sure you wear a wedding outfit that makes you feel comfortable and attractive.

All the above-listed points are necessary while planning a wedding. So plan it accordingly and back yourself with adequate funds with the help of a marriage loan.

With the increasing number of diseases, taking care of your health must be your topmost priority. Nothing could be better than purchasing a health insurance policy. Before you put your money in any other investment goals you might have, buy a health insurance plan.

Now that the government is in place, the health insurance industry has grown tremendously. Government of India is taking successive measures, but still, a significant population does not have a good healthcare plan.

The Insurance Regulatory and Development Authority of India [IRDAI] along with the Government of India has introduced a few changes in the health insurance sector of 2019, to provide better healthcare to the entire population.

Listed below are the changes

1. Waiting Periods have been made shorter

This is the time when you can’t claim a particular ailment. This applies to pre-existing diseases. The insurance providers won’t be able to prescribe waiting periods of one to four years for ailments like cardiac conditions, hypertension and diabetes (lifestyle diseases), according to the recent drafts. Unless the illnesses already exist, there is going to be a cap of 30 days during the waiting period.

2. Compulsory Coverage

Health-related diseases as well as ailments that are acquired after you’ve issued a health insurance policy, won’t be covered and can’t be excluded permanently. However, infertility and maternity are not included in this. Ailments such as Alzheimer’s disease, Parkinson’s disease, AIDS/HIV and morbid obesity are in the list of exclusions. Health insurance policies offer the provision of adding a rider called critical illness insurance to cover life threatening diseases.

3. Severe health conditions will be covered

Previously, people having physical disabilities, cancer survivors and epilepsy patients were not given health insurance cover for unrelated ailments. Now, the insurance providers must offer health insurance plans to such individuals, as per the IRDA. However, pre-existing diseases won’t be covered throughout the policy tenure.

For this same reason, the IRDA released a report that has a list of 17 conditions such as kidney diseases, chronic liver, valvular heart and congenital disease, HIV/AIDS.

4. Pre-existing diseases are redefined

The insurance companies are told to provide an even more straightforward definition of pre-existing diseases for preventing any disputes over interpretation between the insurer and you, by the IRDA. The definition that has been suggested is, ‘Any condition, ailment, injury or disease that is diagnosed before buying the first policy, for which medical advice or treatment was recommended by, or received from, a physician’.

5. Deductibles

Deductibles aren’t permitted under the base cover. As per IRDAI, “It is desired that the industry adopts a uniform approach while incorporating the ‘exclusions’ as part of product design as well as for the wording of the exclusions.

This is why IRDAI set up a team of ten members, for providing a detailed list of medical exclusions that are prevalent in current health policies. Specific exclusions will also be kept in check by the committee that won’t be allowed at all.

Delhi’s High Court accelerated this entire course of action. It was stated in February this year that genetic orders and congenital anomalies can’t be excluded by the insurers.

Compare the various types of health insurance policies such as family health insurance, health insurance for senior citizens and more to select the most appropriate plan for you.

IDV means Insured Declared Value, it is the maximum sum insured amount which a vehicle insurance provider will offer you when you file a claim. Also, it has a direct impact on the cost of your bike insurance premium. This amount is fixed by the insurance company and is similar to the market value of the vehicle. However, it changes during policy renewal. In simple words, it is the current market value of your vehicle.

No Claim Bonus [NCB] is the sum accumulated every year. Your concession depends on the number of claim-free years you’ve earned. If you have a good driving record, you can earn a certain percentage of no-claim concession, considering your demographics as well as a profession and some other factors.

Let us now go in detail about both IDV & NCB

NCB Transfer

The insured bike gets the No Claim Bonus and not the driver. You can switch it during the renewal of your two wheeler insurance policy. ‘No Claim Bonus’ will be provided to you by your previous company without any additional cost.

Importance of NCB

NCB is essential as it plays a crucial role in cutting down the insurance premium amount of your two-wheeler. NCB percentage will increase for the subsequent claim-free years. The upper limit to NCB is 50%.

Is higher IDV better for two-wheelers?

Your bike insurance premium will depend on the Insured Declared Value, especially when you’ve purchased a comprehensive two-wheeler insurance policy. Your IDV depends on the age of your two-wheeler. If the age of your bike is less, higher will be the IDV and vice versa.

Does IDV matter?

IDV is considered to be one of the most important factors when it comes to deciding the insurance premium of your bike. You need to pay this premium during the insurance renewal or while purchasing your two-wheeler policy. The Insured Declared Value of your motorcycle is indicative of the present market value of your bike. It is basically the maximum amount that the insurer will pay to you if there is constructive total loss or theft.

How can you know the IDV of your bike?

It is calculated based on the selling price of your two-wheeler and after the depreciation value has been deducted. The IDV of your bike will keep reducing as its age increases. Here’s the formula by which you can calculate the IDV of a two-wheeler:

Insured Declared Value = (Listed selling price of a company – Depreciation value) + (the cost of bike’s accessories that are excluded from the listed selling price – their depreciation value)

What should be your bike’s IDV?

If you wish to know the accurate IDV of your two-wheeler, it is possible to do it online as well by using a two wheeler insurance premium calculator. You can find this on the official websites of the vehicle insurance companies. By using this online tool, it becomes easy to calculate the policy premium. For calculating your premium online, all you need to do is, visit the official website of the insurer and provide the required details. You will then know your two-wheeler’s exact IDV.

In a nutshell, both NCB and IDV are very important for deciding the insurance premium of your bike. Always remember to give away the correct value and save yourself from paying any extra money. If you need any advice regarding the same, you can also seek help from your insurance provider.

Millennials are increasingly aspiring to have a good lifestyle, and they want to enjoy their life to the fullest. One way which millennials try to have a good time is by going on a travel holiday along with their friends. But traveling for a vacation requires a lot of funds, and this is where Millennials face a problem. Most millennials in India have either started their careers and might not have enough savings for planning a travel vacation.

That’s where a personal loan can come to their rescue, and it has become increasingly popular among millennials for financing their lifestyle. The reason why it is popular is that it is an unsecured loan which does not require collaterals. Basis of providing personal loans depends on the criteria of income, credit score, repayment capacity, etc. But the interest rates are higher when compared to other loans because of the greater risk involved.

A personal loan can be used for travel purposes and it provides multiple benefits to millennials like

Helping in reducing the budget gap

No matter how much they save, Millennials do not have enough funds to finance their travel trips. Lack of money is one of the major reasons why millennials are not able to plan for their travel trips.

In such a case, taking a personal loan can solve the problem of a lack of funds by bridging the gap.

Flexible use of loan amount

Once the loan amount is given by the bank or Non-banking financial institution (NBFC), the millennials can use it as per their preferences. They can use it for their travel expenses but if there is a certain portion of the amount still remaining it be used for other personal purposes by the loan taker.

No need for collaterals

One of the main reasons why millennials prefer a travel loan is that it does not require collaterals. Unlike gold loan or land against loan which requires securities in the form of gold or land, a travel loan is given after taking into consideration the loan takers income, credit score and repayment capacity.

Speedy approval and dispersal

Being an unsecured loan, the time taken for approval and dispersal of the loan amount is considerably less due to minimum paperwork. If the loan applicant fulfills the criteria and has a good credit score, the process can become even faster.

Fixed interest rate

A personal loan is generally available on a fixed rate of interest. So the equated monthly installments [EMI] will remain fixed for the entire loan tenure. Hence millennials have no need to worry about the interest rate changes.

When you purchase a health insurance policy, you must also keep in mind to review it, so that you make the most out of it. If you take some time out and review your policy every year, then you can also get a custom made policy. So many people are falling sick and suffering from diseases such as thyroid, migraine, and hypertension. Just like cold and cough, these diseases have become very common; blame it on your lifestyle.

In case you fall sick and get hospitalized, you might have to shell out your hard-earned money. Therefore, in situations like these, purchasing a health insurance policy is a great idea; here’s why:

Significance of health insurance

Most importantly, a health insurance policy will cover your hospital bills. Not just that, it is also possible for you to choose better medicare facilities for yourself or your loved ones. Last but not least, you can enjoy tax benefits.

What do you miss out on by skipping a review?

When you do not review your policy every year, here are the things you lose:

1. Pre-existing diseases [PED]

There could be an impact on your PED if you do not review your policy. For example, if we go to see the waiting period for cataract is two years. There is a possibility that you might save on your premiums by switching your insurance provider.

2. No Claim Bonus

Some insurance companies offer a good percentage of NCB for claim-free years. You do not want to miss out on the NCB or even receive a lower reduction in your premium during insurance renewal.

3. Coverage and premium

The coverage is being revised for more and more diseases by the insurers, because of the competitive market today. For instance, earlier cataract was not covered under this policy, but it is covered now under the daycare treatment.

Benefits of reviewing your policy

You might receive many benefits, but only when you review your policy. Listed below are a few:

1. Health condition

There are chances that your insurer does not issue a policy for the disease you require coverage for. Whereas, some other insurer might. In such cases, reviewing your policy before you renew it, helps. Like this, you can buy a plan that covers all the diseases you need coverage for.

2. More coverage less premium

There is a possibility that your current insurer is charging you a lot for very less coverage with no additional benefits. This will not happen if you review it. Also, you will be able to choose from various options.

Reviewing your health policy can change your mind and entire perception of buying policies. With the help of this, you get additional knowledge on health plans as well as benefit out of it when it comes to price, coverage, etc. There is a wide range of health insurance policies like family health insurance, health insurance for senior citizens and many more. You can select an appropriate plan as per your requirements.

Investment vehicle like Systematic Investment Plan [SIP] allows an investor to invest a fixed sum amount regularly in a mutual fund scheme like equity mutual funds.

Through SIP, you can achieve a financial disciple to your life, and it is quite flexible with regards to regular payments which can be on a daily, monthly or yearly basis.

This investment tool has made it possible for even a salaried person to invest in mutual funds in smaller amounts rather lump sum amount, which has a higher risk element. If regular investments are made irrespective of the market conditions, it will give you greater returns in the longer run.

Here is how you can open start a SIP investment online

Arrange for the necessary documents

Documents required for starting a SIP are rather basic. You would need arrange the following documents:

• Address proof [e.g. Aadhaar, passport, voter ID, utility bill, driving licence, etc.]
• Passport-size photograph
• Cheque book details
• PAN card

KYC process

After arranging the documents, visit the website of a bank or NBFC [Non-banking financial institution] that offers the eKYC [electronic KYC] facility and provide your basic information like your name, date of birth and contact details. Upload soft copies of your documents to support the details provided by you.

It is important to mention that using your Aadhaar card can simplify the process. You have to follow the list below:

• Enter your Aadhaar number.
• Enter the one-time password sent on your linked mobile number.
• Details will be filled in automatically.

After completing the KYC [Know Your Customer] process, you can invest in any mutual fund scheme from any bank or NBFC you like. There is no need to do the KYC process again if you approach a different bank.

Register for a SIP

Now concentrate on registering for a SIP in a mutual fund scheme of your choice. How should you go about this?

• Go to the website of the Bank or NBFC that offers the scheme.
• Look for a link to register a new account.
• Click on the link, and you will be taken to a simple application form. You must fill in your basic personal details and contact information in it.
• Give the details of the bank account from which the SIP payments will be debited.

Once the registration is complete at your end, and the bank or NBFC has sent a confirmation, you are ready to start investing.

A major concern for policyholders relates to claim management by general and life insurers. In the case of accident claims, there is no uniformity in how life and non-life insurers handle these. There have been instances when the insurance benefits were not paid by the life insurers wherein the insured died while crossing the railway track citing breach of the law as the reason for such rejection. On the other hand, non-life insurers will pay such claims confusing policyholders.

One reason for the aforementioned discrepancy is the manner in which personal accident coverage is structured. For a general insurance company, such plans are standalone policies. In comparison, life insurance companies include it as an additional rider along with the basic policy.

Personal accident policies comprise a huge business for general insurers

As personal accident policy is a huge business segment for general insurance companies, the manner in which claims are settled is different.

• Although traveling on the roof of a crowded bus is a breach of the law, if an insured die due to an accident, in this case, the claim is still paid by the general insurer
• If an individual driving on the wrong side of the road meets with an accident and dies, the claim is still paid because though not legal it is not a criminal offense
• If a person crosses the tracks dies in an accident; although this is not legal, general insurers are not very stringent in settling claims

However, the insurance claim in the aforementioned cases may be rejected if the deceased was drunk or under the influence of any addictive substance. Most insurance companies do not strictly adhere to the legality of the claim unless it is relevant to a particular case.

Crossing the road without a zebra crossing is also a breach of law. Similarly, traveling on the footboard of a train is not legal. However, insurance companies do not follow very stringent laws and often claims are paid in case of such accidents.

Life insurance claims and breach of law

The core objective behind keeping the breach of the law as one of the life insurance rejection reasons is only to ensure that individuals do not take the laws in their hands. General life insurers often are lenient to such breaches as personal accident covers are a huge business.

For life insurers, personal accident cover is an add-on rider and as per the regulatory guidelines, the sum assured under a rider cannot exceed the basic sum assured. Nonetheless, when a life insurance claim is rejected, the policyholder and his beneficiaries are the sufferers.

One way to avoid such disappointment is to thoroughly read all the terms and conditions at the time of purchasing the policy. Individuals must clearly understand the inclusions and exclusions, as the nature of every policy sold by different types of insurers varies. Therefore, individuals must compare different policies and understand the clauses before making their buying decision.