|In: Finance|Last Updated: | 0 Comments

Have you been thinking of buying car insurance online but have little idea on how to go about it? Even as you look for the best motor insurance to protect your existing or new vehicle from unpredictable mishaps, it is important to understand the nuances of the game.

What is Car Insurance?

The motor insurance coverage provided is in the form of a contract between you [the owner of the vehicle] and the insurance company. The car insurance policy selected by you will help in the minimization of costs in case your car meets with an accident. These costs will relate to all third-party damages, damages incurred to yourself and your vehicle, other damages, etc., in line with the type of plan chosen by you. These coverage benefits are provided to you in return for the car premium paid against your policy.

Types of Car Insurance Plans Available Online

You can opt for the following types of insurance for your car:

  1. Comprehensive Car Insurance – You may think of a comprehensive car insurance in terms of an all-inclusive cover that will protect you from the damages incurred due to your fault and even those that are out of your control. Comprehensive car insurance plans cover events such as theft, glass/windshield damage, vandalism, fire, weather/acts of nature, accidents with animals, etc. Though, it is not mandatory.
  2. Third Party Liability Insurance – Liability insurance offers protection against the claims made by another [or third] party. It covers the damages that have been inflicted on a third-party person, people or property because you [the insured] were at fault. Third party liability is mandatory for your vehicle.

How to Purchase Car Insurance Online?

  1. Fill in the details of your car to get quotes or the insurance plan that is best for you. The details needed for this purpose include the make and model of the car, year of purchase, place of registration, etc. Other specific car details in line with the requirements of the car insurance plan you choose to go with might also be asked.
  2. Once you have shortlisted the best plans to protect your car, it is essential to compare their features, sum assured, term coverage, add-ons, IDVs, etc., to select the most lucrative ones only. The car insurance premium calculator available online will help you assess the ensuing costs better.
  3. As there is no requirement for any third-party inspection when you opt to buy a car insurance coverage online, you may go about the process straight away. It is possible to choose your most preferred mode of payment – net banking, debit or credit card, etc., and pay through quick, secure channels. It’s that easy!

Choosing a car insurance policy online will help you spend less than what you would have to pay otherwise. The reason being that online channels save on paperwork, the commission provided to intermediaries, etc. They are happy to pass on these savings to you in the form of discounts and offers. Grab them at the earliest!

|In: Finance|Last Updated: | 0 Comments

A new business needs motivation, expertise, and determination. If done right, your start-up can turn your vision into reality. Here are some steps to help you build a new start-up business.

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Look for a business opportunity

The first step is to choose the type of business that you wish to start. There are numerous opportunities available. It is important that you identify your passion and how you can put your skills into the best use.

Create a business plan

In order to start any type of business, you need to have a well-thought business plan, which will give you an understanding of the industry structure, capital requirements, and the competitive landscape. Start-ups with a comprehensive business plan can generate significantly higher profit than businesses without a defined plan.

Look for capital

You need to invest money in the business and the path of finding funds is different for every individual. You will have to open a current account for the business and look for funds from different sources. Funds could come from some place you might have never considered in the past; hence, keep all the options open. In order to save time, you can open a current account online for your business.

Choose a suitable name for the business

The name of your start-up defines the company’s identity. You need to choose a name that is extraordinary in order to set yourself apart from the numerous competitors in the industry.

Decide on a structure

This is one decision you should not take lightly. The type of business structure that you choose will have an impact on business liability and taxes. It is possible to change the structure in the future as your business develops.

Apply for business permits and licenses

Starting any business will require paperwork and regulations. Based on the business structure you choose, you will have to register the business with the state authorities. You will be required to apply for licenses and permits in the state, and complete the necessary paperwork for the same.

Determine the business location

Running a business means setting up an office. You will have to take numerous steps for setting up the office. This includes finalizing on the office location, buying the required equipment, and purchasing supplies for the smooth functioning of the business.

Apply for business insurance

Since you are a new business owner, manage the risks associated with the business by purchasing a business insurance policy. You should avail of proper insurance for the business and reduce risks associated with it.

Build an accounting system

No business owner can avoid the accounting aspect of the business. When you set up a business, you will also have to set up an accounting system to help you stay away from failure.

Keep these steps in mind when you start your own business. If you are ambitious and grab the right opportunity, there is no turning back!

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An investment in Unit Linked Insurance Policy [ULIP] has its own set of pros and cons. While we are familiar with its perks due to its mass popularity, some of us are unaware of its cons. One of the major disadvantages of a ULIP Policy is seizing of all benefits at the time of a lapse of the policy. When a ULIP insurance lapses, you no longer hold the rights and benefits of the same. However, insurance companies allow the revival of these lapsed policies for the betterment of the investors and his family.

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If you are looking forward to reviving your lapsed policy, go through the following things mentioned below. Take a look:

How does a ULIP Policy lapse?

The premiums are the deciding factor at the time of the purchase of the policy as well as the lapse of a policy. Since the insurance companies allow the payment annually, monthly and quarterly, it is the duty of the policyholder to pay the premiums on time. If you are still unable to pay the premium, insurance companies offer a grace period of 60 days. Failure to make the payment even in the grace period further leads to lapsing of the policy.

When to revive a lapsed ULIP Policy?

The revival of the policy typically depends on the time of the lapse of a policy. If you have been actively holding the policy for a period of 3 years, then you have to revive it within 2 years. While reviving the policy within the first 6 months is easy, reviving the policy after 6 months comes with a price like paying hefty penalties.

The process of reviving the policy within 6 months

  • Contact the insurance company
  • Pay the outstanding amount of the premiums
  • Revive the policy

The process of reviving the policy after 6 months

  • Contact the insurance company
  • Pay the outstanding amount of the premiums
  • Pay the additional rate of interest
  • Pay the penalties and the new increased premiums
  • Provide the insurance company with a health certificate
  • Revive the policy

Benefits of renewal of policy

After the tenure of your policy expires, the insurance companies typically provide you with options of surrender or revival. In order to continue the policy, opt for revival within 6 months of the lapse. When you revive your policy, you will be able to get hold of all the benefits which were applicable previously. Reviving the policy simply means securing the entire family from unforeseen events.

Take a look at the benefits of the revival of the ULIP policy mentioned below in order to make informed decisions:

  1. According to the new rules, the biggest advantage is that the policyholder gets more time to revive the policy. Ideally, the policyholder can renew the policy within two years after the lapse.
  2. When a ULIP lapses, the insurance company moves your money to the discontinuance fund. Post the introduction of new rules by the Insurance Regulatory and Development Regulatory [IRDA], the money lying in the discontinuance will earn 3.5% for the policyholder.
  3. The insurance companies can levy fund management charges up to 0.5% in order to manage the policyholder’s funds.
  4. Introduction of new IRDA rules is a blessing for those investors with irregular or seasonal flow of incomes. These investors can easily skip the two annual payments of the premium.

Now that you know how to revive a lapsed ULIP Policy, what are you waiting for? Revive your policy to the earliest as it looks after all your financial needs for a longer duration. Long term investment ensures that you hold this policy long enough to allow you with more than just high ULIP plans returns. In the end, a ULIP investment is only worth it if it keeps you covered for a longer duration of time.

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Let’s face it- businesses, small or big, play a vital role in India’s economy. These industries and businesses constitute one of the best places for employment for teeming youngsters across the country. And it is a fact that you can find all sorts of businesses – large corporate houses, large manufacturing units, large trading houses, large service-based companies and large, medium and small industries and service organizations, and micro units serving smaller localities with myriad services.  Now, all these businesses and services do various things. However, one thing they all have in common is the need for capital resources to sustain in the long run.

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Capital resources now fall into two segments- investment capital for setting up a business and working capital to run a business.

Be it a start-up or a running business, there are two ways an entrepreneur can raise and invest in funds. This can be from his own pocket or he could always borrow. When we say borrow, we mean avail a business loan.

Now, business loan for setting up the businesses is a generally a long-term and is known to carry rather affordable business loan interest rates. Business loans for running a business, however, are working capital loans which you can say are almost like revolving credit and carry a rather higher business loan interest rates than term loans.

While a higher business loan interest rate may sound like an expense, you should know that working capital loans help with running of the business in a rather smooth manner. Before you jump to conclusions, it is always best to be prepared with the idea of what a working capital loan is:

Nature of working capital

The nature of working capital is purely short-term necessitated by the vagaries of the business. For instance, a production unit run by you would take time to set up and start production. During this time, the term loan that you have availed will meet the capital requirements.

Remember also that you need to sell products which form your revenues. However, you need to pay salaries for your production and sales team, pay for power charges, pay for raw materials, pay for overheads and pay for other expenses on a day-to-day basis to keep the business running smoothly. Where do you find funds for this? Here you can avail a business loan in the form of a working capital loan. Thus, working capital is a part of business loans that serve to keep operations of a business running smoothly.

Who gives working capital loans?

Most financial institutions including NBFCs such as Tata Capital offer working capital loans under their business loans umbrella based on the requirements and strengths of a business. Lenders like Tata Capital evaluate your business and ascertain that your business is sound and they can extend working capital loan without fear of you defaulting on them. Typically, these are short-term in nature and you can take these as often as you need them provided you pay back the earlier loans promptly. Lenders can extend better terms for working capital loans if you have a good relationship with them and you have a good past record.

Benefits of working capital loans

There are many advantages of availing working capital loans which include

  • Not using own funds to finance working capital. You can deploy your own funds for other more productive purposes
  • Availing whenever the need arises
  • Very useful when you have to meet an unexpectedly large order to pay for additional raw materials and perhaps overtime for employees or running an additional shift
  • Simple and easy to avail with minimal formalities. You can swing the loan in a matter of a few hours
  • Extremely useful when you have to make large payments such as an unpaid tax burden or rent arrears or such other expenses

Working capital loans are a great financial resource when you need immediate funds for your business needs. This is the right kind of business loan you can take when you do not wish to break your savings for running of your business.

Remember, business loans cost less in terms of business loan interest rates. It is imperative that you choose the right kind of business loan or a working capital loan for your fund requirements. After all, it would be foolish to pay higher business loan interest rates for working capital loan when you could avail the cheaper loan.

Thus, it is advisable to use business loans as working capital loans prudently and deploy it only for the purpose of running your business efficiently.

|In: Technology|Last Updated: | 0 Comments

Nutanix, Inc., a leader in enterprise cloud computing has revealed that the financial services Industry, FSI, outpacing other industries in the adoption of hybrid cloud, with the deployment of hybrid cloud reaching 21% penetration today, compared with the global average of 18.5%.  The findings were announced in the enterprise cloud leader’s Enterprise Cloud Index Report for the financial services sector, measuring financial firms’ plans for adopting private, public and hybrid clouds.

Financial services firms today are facing mounting competitive pressure to streamline operations while delivering a differentiated experience to their customers, including leveraging new technologies such as blockchain. This FinTech revolution, combined with the growing burdens of regulatory compliance, data privacy, and security issues are pushing CIOs to fundamentally transform the technological underpinnings of their institutions. The report reveals exactly how the financial services industry is embracing the capabilities of cloud computing to address these needs.

It is also abundantly clear from the survey results that many financial organizations are still struggling with modernizing their outdated legacy IT architectures and processes, resulting in inefficient operations and potential vulnerability in regard to data breaches. In fact, the report revealed financial services run more traditional data centres than other industries, with 46% penetration. Despite their progressiveness on the hybrid cloud front, financial organizations have lower usage levels of private clouds than any other industry, at 29% penetration compared to the average of 33%.

Like other industries, the financial services sector cites security and compliance as the top factor in deciding where to run its workloads. Nearly all respondents also indicated that performance, management, and TCO are critical factors in the decision. However, more than 25% cited these same factors as challenges with adopting public cloud. In other words, as is often the case with new IT solutions, the most important criteria are also the most difficult to achieve. This could account for part of the disparity between the high desire to adopt hybrid cloud, and today’s relatively low hybrid cloud penetration levels of just 21% in the financial services sector.

Sankarson Banerjee, CIO, RBL Bank, commented

Legacy systems and processes are significant impediments to the agility that today’s business demands. The BFSI segment in India has been a trailblazer in adoption of new tech such as HCI, Hybrid cloud, AI and ML. At RBL, Hybrid Cloud is at the forefront of our IT vision and strategy for driving agility in responding to business and customer needs across channels and products.

The bullish outlook for hybrid cloud adoption globally and across industries is reflective of an IT landscape growing increasingly automated and flexible enough that enterprises have the choice to buy, build, or rent their IT infrastructure resources based on fast transforming application requirements.

Other key findings of the report include

The financial sector values application mobility across clouds

Application mobility is the ability to move apps and workloads back and forth across private and public cloud infrastructures as workload type or economics warrant, while enjoying unified management and operations. Both financial companies and other industries chose application mobility between clouds second most often as the number one perk to hybrid cloud, and the financial sector chose it 3% more often than the average. 63% of financial industry respondents said they considered inter-cloud application mobility ‘essential’.

Financial services companies control cloud spend better

Another motivation for deploying hybrid clouds is likely enterprises’ need to gain control over their IT spend. Organizations that use public cloud spend 26% of their annual IT budget on public cloud, with this percentage set to increase to 35% in two years’ time. More than a third [36%] of organizations using public clouds said their public cloud spending exceeded budgets. In comparison, 33% of financial respondents reported being over budget, revealing that they are doing marginally better than others at managing public cloud expenses.

IT skills are a barrier to adopting hybrid cloud in the financial industry

While 88% of respondents said that they expect hybrid cloud to positively impact their businesses, hybrid cloud skills are scarce in today’s IT organizations. These skills ranked second in scarcity only to those in artificial intelligence and machine learning [AI/ML]. Financial services respondents generally reportedly slightly greater deficits in skillsets across all categories except for AI/ML.

91% of financial services organizations surveyed said that hybrid cloud was the ideal IT model. This belief in hybrid cloud, and the fact that the sector has higher than industry average adoption of hybrid cloud, is likely driven by the recognized need for digital transformation. Yet conversely, the data shows a lower adoption of private clouds than the global average across industries. This might be explained by the fact that portions of the financial services space have been change-averse and also an indication of the overall complexity of modernizing existing legacy infrastructures.

Neville Vincent, Vice President A/NZ, ASEAN and India, Nutanix, said

Increased competition combined with more stringent regulatory and compliance environments is forcing the entire industry to re-assess the capability and relevance of its current IT infrastructure. Today’s new normal is an environment where customers expect personalized and tailored services delivered where they want it, when they want and the way they want it.

The good news is the industry is already seeing the customer and company benefits of hybrid cloud infrastructure, the concern is that at just over 20%, there is still a long way to go to satisfy increasingly sophisticated and demanding customers and achieve the ultimate customer experience.

Nutanix commissioned Vanson Bourne to survey more than 2,300 IT decision makers, including 333 worldwide financial services organizations, about where they are running their business applications today, where they plan to run them in the future, what their cloud challenges are and how their cloud initiatives stack up against other IT projects and priorities. The survey included respondents from multiple industries, business sizes and geographies in the Americas; Europe, the Middle East, Africa [EMEA]; and Asia-Pacific and Japan [APJ]regions.

To learn more about the global report and findings, please download the ‘Nutanix Enterprise Cloud Index 2018’, here.

|In: Finance|Last Updated: | 0 Comments

As a new investor starting your journey in the world of mutual funds, you may have come across three broad types of mutual funds. These are equity funds, debt funds and hybrid funds. You can choose to invest in any of these categories depending on your risk appetite, investment horizon and financial goals.

In this article, we list the top benefits of investing in debt funds. But before we touch on it, let us understand what debt funds mean.

What are debt funds?

A debt fund is a mutual fund type that invests in fixed-interest generating securities. These include corporate bonds, government securities, treasury bills, commercial paper and other money-market instruments. You can invest in debt funds to earn interest on income and for capital appreciation.

Benefits of investing in debt mutual funds

Debts funds can be an excellent beginning point for conservative investors who adopt a low to moderate risk tolerance. Following are some benefits of investing in these funds:

Diversification and greater safety

Equity mutual funds tend to be more volatile compared to debt funds. On the other hand, debt funds are steady, and hence, can become a critical component of a well-diversified portfolio given their stable returns. They help manage risk by spreading it across different investments that form part of your portfolio. So, assuming the inflation rate is four to five per cent, and debt mutual funds offer a return of seven to eight per cent, it can be a worthy deal.

Investing your short-term surplus

Debt funds can be the right choice of investment if your investment horizon is short term. Equity funds generally demand investment for three to five years or longer for substantial returns. In the event you have a surplus of short-term cash, you can invest in short-term debt funds to fetch decent returns.

Regular income

Debt mutual funds help you earn a regular income in the form of dividends. Depending on the type of fund, you can choose to receive regular dividends on a daily, weekly, fortnightly, monthly, semi-annually or annually basis.

Liquidity

A debt fund is highly liquid. This means you can withdraw the money from your debt instruments in case of an emergency. The money gets deposited in your bank account within a few days. Some funds may have an exit load if the investment is redeemed within three to six months. Some debt mutual funds may also offer a systematic withdrawal plan which can allow you to withdraw a fixed sum regularly from your investment. This means you can make partial withdrawals without breaking the entire investment.

Great flexibility

Debt funds provide greater flexibility than other traditional platforms of investment such as fixed deposits. You can not only invest small amounts every month by starting SIPs [Systematic Investment Plans] but also shift the money from a debt fund to an equity fund from the same fund house. For example, if you have a lump sum amount to invest in a mutual fund scheme, you can invest it in debt funds and start a SIP to transfer the money to the selected equity scheme.

Higher returns

The returns from debt funds depend on the overall interest-rate movements. If you select the correct type of debt mutual funds based on your risk appetite and investment horizon, you can generate higher returns matching with the prevailing interest rates.

Conclusion

Debt funds are an essential investment instrument if you wish to grow your money. However, before you invest in mutual funds, you may want to carefully consider your risk tolerance, current asset allocation and the market environment.

|In: Finance|Last Updated: | 0 Comments

In recent years, there has been a significant increase in the number of two-wheeler users. The ease of navigating through city traffic and convenient parking options have made two-wheelers a popular choice for daily commute amongst the urban population. Additionally, many youngsters love bike riding as it provides them the desired adrenaline rush. However, before riding a two-wheeler it is essential to put on all the safety gears. The rider must also obey all the traffic rules to prevent the risk of an unfortunate accident.

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It’s a distressing fact that lakhs of people fall prey to road accidents every year in our country. This proves that safety on roads is a growing concern in India. Hence, it is advisable to take care of all the safety measures while riding the bike.

An Anti-lock Braking System [ABS] can be extremely handy in reducing the risk of an accident. Getting ABS on your two-wheeler can reduce the chances of a fatal crash by 31%. An anti-lock braking system [ABS] is a safety anti-skid braking system. It operates by preventing the wheels from locking up during braking, thereby helping them maintain a tractive contact with the road surface. Let us have a look at some of the major advantages of the Anti-lock Braking System [ABS].

Reduction in stopping distance

Using ABS in the right way can reduce the stopping distance significantly. This becomes possible owing to the fact that with ABS, the tyres of the vehicle are constantly getting traction. Thus, there is more effective reduction of speed in ABS fitted motorcycles. On the contrary, without ABS, the wheels can lock and lose traction when hard braking is applied. This, in turn, results in skidding of the motorcycle as the tyres are trying to grip the surface.

Better control

The Anti-lock Braking System [ABS] helps you have better control over your ride in emergency braking situations. The two-wheelers fitted with ABS are more likely to shed speed in a controllable manner and come to a halt without skidding.  On the other hand, two-wheelers not fitted with ABS might lose the grip in emergency braking situations. This increases the risk of an accident.

Prevent Stoppie

When the two-wheelers are fitted with ABS, the braking is more linear. Whereas, in bikes without ABS, braking is much more abrupt and can result in a stoppie, skidding or a fall.

Keeping all these factors in mind, if you are planning to buy a new motorcycle, choose the one with ABS. This will help you increase your safety on the roads and reduce the risk of an accident.

Lastly, it is advisable to have a comprehensive two wheeler insurance before hitting the roads. A bike insurance policy cushions you from the financial impact following an accident with your two-wheeler. Nowadays, with the help of prominent financial institutions, it is possible to avail two wheeler insurance online in a hassle-free manner. Lastly, you should always look for an insurance policy that offers a wide coverage at lower bike insurance premium. Do not forget to read the terms and conditions of the policy before purchasing it.

Finserv Markets, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!

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ACTICO, a global leader in providing software for intelligent automation, announced the launch of ACTICO Machine Learning in India, a first-of-its-kind of software platform that enables integration of the ‘predictive’ capability of Machine Learning models in the decision making process in a business. This platform enables companies to quickly generate machine learning models through automated data analysis, combine them with business rules and operationalize both for AI-powered automation.

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The predictive models generated can be used to optimize business outcomes in case of numerous
intelligent automation scenarios across business life-cycle, like product recommendations, fraud detection & risk management. A key benefit of the ACTICO Machine Learning platform is that it enables machine learning models to be automatically retrained and facilitates their rapid deployment.

There are two kinds of pricing options available, to cater to diverse customer requirements and ensure that the product is equally lucrative for both large as well as small. Companies can either license the technology or take an annual subscription. This flexibility in pricing makes the product equally lucrative to both large as well as small companies.

Speaking on the launch, Ajit Shah, Managing Director- APAC, Middle East and Africa, ACTICO, said

This integration or ‘operationalization’ of Machine Learning is a unique approach to the application of this cutting-edge technology. Our platform overhauls the conventional approach of using machine learning in standalone systems and integrates it to the business by combining expert knowledge and data knowledge. The ACTICO Machine Learning platform provides support throughout the entire process – from data preparation to using the trained machine learning models in production systems.

During our pilot projects, we have observed that using ACTICO Machine Learning can potentially help in reducing default rates by 30~40%, improve product recommendations by 50%+ and ensure 40% more efficient compliance case clarifications, across a wide range of customers. In the first phase, we will be targeting banks and financial institutions in India and are pleased to share that we are in the process of signing our first ACTICO Machine Learning customer in India. We also have plans of extending our offering to other industries, in the near future.

About ACTICO

ACTICO is a leading international provider of software for intelligent automation and digital decision making. It provides best-in-class software solutions and tools with applications from financial services to manufacturing and retail to healthcare, enhancing day-to-day decision-making and end-to-end automation. ACTICO operates through fully owned subsidiaries in North America, Europe and Asia Pacific. Its customers include companies across continents, ranging from small/mid-sized firms to Fortune 500 companies.