If you are using a two-wheeler, it is of utmost importance that you avail two-wheeler insurance to stay on the right side of law. When you choose an extensive two-wheeler insurance policy akin to the ones offered by Bajaj Allianz General Insurance, it will also cover you financially against a variety of mishaps. Such mishaps could include anything from a theft of the two-wheeler to an accident or even calamities.

There are two types of insurance policies that you can choose for your two-wheeler. Let us learn more about them.

Understand the Difference

The first is the third party insurance for bike which is a mandatory policy according to the Motor Vehicles Act of 1988. It will cover for the financial losses suffered for injuries of another person, vehicle or property. The second type is the comprehensive insurance for Two-wheeler which is an amalgamation of third party and own liability. This means that it will not only financially cover you for the damages sustained on the third party but also for your own losses.

This policy extends financial support for all damages caused to your vehicle and third party vehicle. It is important that you are made aware of the inclusions and exclusions that both entail and also the benefits attached to each.

Table of Inclusion

Table of Exclusion

Identify the Benefits

The benefits of third party insurance are as follows

• Covers third party damages to property and life
• Covers driver disability or death
• Comparatively lower premium than other policies
• Easy procedure for documentation

Benefits of comprehensive two wheeler insurance are

• Restoration and maintenance of vehicle after mishap
• Protection against rider disability or death
• Protection against third party damages to property
• Medical expenses of injured rider covered

Two-Wheeler Insurance Calculator

You must know that it is now easier than ever before to calculate your two wheeler insurance premium using the bike insurance calculator at Bajaj Allianz General Insurance. All you have to do is enter your bike’s registration number and request quotes on the various insurance policies that are available at your disposal. You can read all about the privacy policies that we have and rest assured that your private information will never be shared with a third party.

Most people buy car insurance with the prime objective of protecting their vehicle against losses incurred during any kind of accident or mishap and also to be financially better equipped to tackle such unforeseen challenges. The procedure of availing car insurance has become easier owing to convenient facilities like cashless car insurance. Policyholders can now make a cashless claim during an emergency and settle the claim without worrying about the cost of repairs.

Car insurance companies extend immediate help and take charge of the condition through the assistance of their network of cashless garages, on receiving prompt plea of a cashless insurance claim.

Let’s find out how one should claim cashless car insurance in the face of an emergency.

Steps to Claim the Cashless Car insurance

Here are the steps that you must follow in order to be able to claim cashless car insurance:

• Firstly, you must inform your car insurance provider about the theft, damage or accident immediately
• If there has been any injuries or/and death, you must immediately file an FIR at the nearest police station
• If your car has been severely damaged in the accident, you should refrain from moving your car from the spot and contact your insurance company for a surveyor
• Your vehicle will be towed to a designated garage listed under their network (you can find this by calling the insurance company and getting the list of their approved garages) and then inspected
• After a quick analysis, the garage will provide an estimate of the repairing cost
• On availing an approval from the insurance company the garage will make the necessary repairs

Documents required for availing a Cashless Claim

The following is a list of documents that are deemed necessary for availing a cashless claim

• A copy of FIR
• A copy of the car insurance policy
• A copy of Registration Certificate of the vehicle in question
• A copy of driving license
• Submission of claim form

How do Cashless Garages work?

Most trusted car insurance companies now extend the benefit of getting damaged cars repaired with the help of cashless garages. These garages are typically a wide network of garages that are affiliated with a specific insurance company, where your own or a third-party insurance provider can deal with the garage directly without requiring the policyholder to spend anything from their pocket.

Once a policyholder of the specific car insurance company brings in their vehicle that has met damages due to factors including accident, natural or man-made disaster

• The cashless garage on receiving the directions from the surveyor, make an estimate of the cost of repair of the car damages
• After estimating the cost, they forward the report to the car insurance company
• On receiving an approval to proceed with the repair of the said vehicle, the cashless garage begin to repair it
• On the completion of repair, they forward the necessary bills of repair and other cash receipts to the car insurance company
• The company then settles the car insurance claim directly with them without involving the policyholder

To avail the full benefit of the cashless facility, you can buy car insurance form a trusted insurance company like Bajaj Allianz General Insurance and opt for their comprehensive cashless plan to be able to protect your vehicles better against accidents, theft, natural or man-made calamities.

In the world of finance, credit plays an important role. After all, your credit score is the reflection of how responsible you are towards your finances. Of course, there are numerous factors that affect your credit score adversely.  But, most people are unaware of the fact that their credit Utilization Ratio is also another factor that can affect credit score.

Low credit Utilization ratio shows that you are responsible with credits whereas High Utilization ratio represents your irresponsible behavior. High ratio means you would have difficulty in paying the utility bills on time.

Wondering what credit Utilization Ratio means? Actually, it can be evaluated by how frequently you use a credit card. Generally, it is considered best to have low credit Utilization Ratio. And, your credit Utilization Ratio has direct impact on your credit score. That’s the reason why you should maintain low credit Utilization Ratio.

How Low Credit Utilization Ratio Helps ?

Nowadays, it is easy to calculate your credit card Utilization Ratio. Low credit Utilization Ratio is best to boost your credit. It can also help you improve your credit score in a short span of time. That is the reason why you should always maintain a low credit Utilization Ratio.

In fact, there are ways to keep your credit Utilization Ratio low. Let’s take a look at some quick ways to lower your credit Utilization rate:

1. Make Repayments Early

To add positive information in your credit profile, you should pay all your bills on time. Clear your debts and lower your credit Utilization Ratio without a doubt.

2. Reduce Your Spending

More you spend, the high your credit Utilization Ratio will be.  Keeping your spending in control is the only way to make your credit Utilization rate low. You should also stop using credit card if you can’t afford to make full payment early. You can also switch to debit card for regular purchase.

3. Apply for another Credit Card

Open up another credit card and increase your available credit limit. This is a great trick to increase your credit limit and avoid hard credit inquiries which is good for your credit health.

4. Go for High Credit Card Limit

Another amazing way to lower your credit Utilization Ratio is to increase your credit card limit. By raising your credit card limit, you can increase chances of hard credit check. This way inquiry will not dig your credit deeply as a result you will improve your credit score and credit Utilization rate also.

The Bottom Line

Credit matters a lot whether it is about borrowing record or Utilization rates. Since it could affect each and every aspect of your life, ensure maintaining a healthy credit Utilization Ratio. Once you reduce your credit Utilization Ratio, you will open up a new avenue for improving your finances.

Needless to say that low credit Utilization Ratio is good for your credit score. In short, a good credit score will help you get approved for credit cards and loans in future. That’s the reason why you are recommended to maintain low credit Utilization Ratio.

If you want to take a home loan but worried about high interest rates you are not alone? One of the reasons why so many avoid availing any kind of loan is the ‘rising’ interest rates. This is true for home loans as well. Fret not, home loan interest rates are falling, and now is possibly the best time to buy a house.

Why just buy a house, you can even use a housing loan to renovate your old house? Oh, so you thought home loans can only be taken to buy a new house? Not at all, they can be availed for a variety of things, apart from buying a new house. You can take a home loan to construct a new house in a plot of land, to buy a plot of land or property and construct a house on it, to renovate your home, carry out repair work in your house or even to add a new built-up area in an existing house. You can do all of this with a home loan.

Now comes the real deal? Do home loan interest rates worry you? You think you will have to shell out a lot over EMIs to repay your home loan? Well, the deal with EMIs is that it will also depend upon the tenure that you choose. The longer the tenure, the more interest you pay on your home loan, the lesser the tenure, the less interest you pay. Of course, the overall EMI will also depend upon the total amount of loan that you take.

Currently, banks and financial institutions such as Tata Capital offer a minimum of Rs 2 lakh as a home loan, and a maximum of Rs 10 crore, subject to 80% of the market value of the property. You will only take that much amount as a home loan that you need to make up after making the initial down payment.

Home loan interest rates in institutions such as Tata Capital are pretty competitive, and the process and documentation are quite customer-friendly. Unlike yesteryears, these days it doesn’t tear up your shoe soles to run behind banks for them to approve your home loan. All you need is to be between 24 to 65 years old and be in possession of some important documents that are needed for processing your home loan application. The documentation for home loans is slightly different between salaried employees and self-employed individuals. Similarly, the home loan interest rates are also different for different classes of borrowers. Take a look at the current home loan interest rates for different types of borrowers:

If you are a salaried or self-employed professional, the lowest home loan interest rate for you would be 9.05% for a loan amount up to Rs 30 lakh. If you have eyed at a bigger house, or if your home renovation costs call for a home loan amount higher than Rs 30 lakh, then you will be charged 9.20% interest.

If you are a self-employed non-professional, looking at a home loan of Rs 30 lakh or less, the lowest interest rate that is applicable to you is 9.20%. The rate will slightly move up to 9.45%, in case you are eying for a home loan amount higher than Rs 30 lakh.

Interestingly, financial institutions such as Tata Capital also have government schemes such as the Pradhan Mantri Awas Yojana 2017 under its hood. Under this scheme, lower-income borrowers are also encouraged to take home loans to fulfill their dreams of owning a house. The government has, in fact, said that borrowers whose income is less than Rs 6 lakh per year would be given home loans at an extremely concessional rate of just 4% under this scheme. Tata Capital extends these loans under their sub-brand Prapti Home Loans, which is a part of their key focus area of providing affordable housing finance. So, if you thought that your yearly CTC is not beyond Rs 6 lakh so you cannot afford to buy a house by taking a home loan, you fear just got allayed. You will not only get a loan, but you will get it at much lesser home loan interest rates compared to many others.

So are home loan interest rates still bothering you? It shouldn’t after we just cleared all your doubts and fears about the same. Just log on to the website of trusted banks and financial institutions such as Tata Capital, compare the different home loan interest rates, and go for the best choice as per your affordability. Apply for the home loan online, and you will soon have a representative knocking at your door to take matters forward.

In today’s time, job vulnerability has become quite common. With the passing time, expenses are touching the sky. And, running a home with one income source is not easy. Earning money from multiple sources is the best way to ensure financial security if you face a sudden job loss. After all, increasing your passive wealth is the only way to reduce financial vulnerability. Fortunately, earning more money is now possible in the veil of high yield savings account. Of course, it is the best way to let your idle money earn for you. With many options available in the marketplace, you might get confused how to pick the right account for you.

No worries, you can now choose the high yield account without any hassle. Here are some factors that you should consider while choosing the right bank account for your money

1. Choose account with no fees

Losing your return to high fees is quite painful. While looking for a great interest rate, do the research and look for a bank account that you can own for free.

2. Check out the bank reviews

To know about the quality of customer service, technology, products and features, check what our customers have to say about the bank you use.

3. Look at minimum maintenance balance

Penalties and charges are always a great factor that you should learn about. Look for minimum maintenance balance that you have to keep in account to avoid penalties. Nowadays, banks also features great rates and lucrative benefits like no maintenance balance.

4. Check if initial deposit is required

When you go for high yield bank account, make sure to check if initial deposit is required. Bank account with low initial deposit is always better.

5. Look for the interest rates

To know how much money you will earn in the name interest rates. If the fees and minimums are better, sometimes it is better to choose lower rates. Make sure you check how much you can earn if deposit money in the bank.

6. Monthly transactions

Some banks restrict the number of transactions that you can made while other don’t. Be ready to learn how much deposits and withdrawals you can perform with a bank you choose.

7. Confirm if you can access digital banking

Convenience and promptness are what that everyone wants. If you don’t want to get stuck with tedious formalities and queuing, you should check for online banking access. Nowadays, it is not possible to find one without digital banking.

Conclusion

When you are preparing yourself for savings account with good interest rate, you should never skip any of the factors mentioned above. No doubt that a high yield bank account can help you grow your savings easily.

If you use above-mentioned tips and keep these factors in mind, you will not face any hurdle in finding the appropriate one. Plus, you can take help from financial experts and advisors to make the process of finding the best high yield bank account easy.

What are you waiting for? Let your idle money earn for you!

In 2018 alone, investors opened more than 4 million Demat accounts across India. This mammoth shift towards the stock market from years of investing in traditional assets is indicative of a positive trend. As more and more investors are gaining access to online knowledge platforms and new forms of investments, they are increasingly becoming aware of better investment opportunities. Here, it can help to know that the Government of India has been mostly responsible for promoting the shift through its demonetization initiative introduced in 2016.

Let’s look into the reasons why the Government Of India is encouraging investors to move to dematerialized or Demat accounts.

In 1996, the enacted Depositories Act ordained the development and regulation of authorized institutions known as depositories. These institutions would be responsible for holding dematerialized accounts of traders. At first, one could trade in the stock market by transferring physical share certificates of a company issuing the share. However, this system was rife with various hazards such as theft, fraud, certificate damage, or misplacing share certificates. With the development of online trading, all these hazards have now been put behind.

Reputed broking firms such as Kotak Securities offer Demat account opening services for all kinds of investors. Retail customers can engage broking forms to open a Demat account by registering online and filling of your application forms. To begin the process of trading in the stock market, the investor must also complete the KYC requirements.

An investor can obtain a seamless trading experience through a Demat account as all transactions are settled and enabled online. The Government of India has primarily been responsible for backing the move to Demat accounts due to the numerous benefits offered by online trading.

In June 2018, the regulations concerning dematerialized were further modified by the Securities and Exchange Board of India [SEBI]. According to the Listing Obligations and Disclosure Requirements [LODR], transferring, transmitting and sale request of shares can only be done if the shares are held in a dematerialized form with a depository.

Let’s consider the various benefits of opening an online Demat account.

• Ease of use – Retail investors can conveniently invest in shares to a Demat account. The user interface is easy to use, convenient and straightforward even for a beginner. One can register for a Demat account opening online through a broking services firm.
• Instantaneous transfer – Since trading takes place electronically, immediate transfer is possible. A speedy transfer is convenient for buyers and sellers of shares. Through this, buyers can receive their shares instantly while sellers obtain the price immediately.
• Real-time clearance – Through a Demat account, all parties receive an instant and real-time settlement of trading transactions. The entire procedure is transparent, seamless and systematic with certified intermediaries that conduct all manners of trade.
• Minimal documentation and paperwork – Formerly, physical trading of shares would involve a great deal of documentation for all parties involved. To conduct any form of transfer or sale, physical share certificates and ancillary paperwork were imperative. Through a Demat account opening, investors no longer need to maintain physical papers or files to trade in shares.
• Eliminating the ‘lot’ system – Earlier, there was a mandate to go through a ‘lot’ system to transfer shares. For instance, shares of a particular company could be sold in a lot size of 100 units only. Today, an investor can sell or purchase a single share thanks to his or her Demat account.

Conclusion

In addition to the points mentioned above, the Government of India has encouraged the switch to Demat accounts by eradicating stamp duty, boosting safety and facilitating ease of use for traders to operate from anywhere. Given the initiative of financial inclusion, investors across towns and cities can now invest in the share markets through Internet and mobile penetration.

Gone are those days when theft meant loss of physical property. The world-spread popularity of digital transactions and storage is exposing people against data theft. The theft of online data has become a very serious situation. You must be aware about the possibility of hacking traps that you might unknowingly download to your smartphones or computer.

A cyber security insurance guards you against that by offering multiple insurance covers against different kinds of cyber security breaches.

Claim process

If you notice any sign of cyber-crime against you then you need to notify the insurance provider within a week. You also need to lodge a First Information Report [FIR] and submit a copy of it to the insurer. The insurer will then ask for other required information and consult an expert.

The cyber insurance claims are only accepted if the claim meets the insurance policy conditions.

Cyber insurance exclusions

The cyber insurance comes with multiple exclusions. Here are some that you must know about.

• Copyright, software and patent breach
• Damages caused by invasion and war
• Policyholder failing at taking proper security measures
• Physical injury of the policyholder
• Loss of gadgets and devices
• Data loss caused by network error

Five covers offered by the cyber insurance policy

The cyber security insurance covers are offered against various different kinds of protections. Here are the five most common ones.

1. Online Banking

Online banking transactions have become very common all over the globe. Most urban people these days use their smartphones and computers to send money or shop online. This exposes the users to personal information theft, which ultimately leads to loss of funds.

A complete cyber insurance cover provides protection against online banking frauds. Because online banking fraud is the most common form of cyber-crime, this cover surely is the most important one for you.

2. Phishing Mailers

From all the tools that the data thieves use, this is the most common one. Phishing is a process where the scammer tries to lead you to an online portal that looks like trustworthy websites.

This way, the targets find it safer to provide their person and banking information. They often use mailing services to send you the false links, which lead you to their authentic looking platforms. This crime is covered under the cyber insurance policies.

3. Information Technology [IT] Theft

IT theft is a very serious issue. Viruses like ransomware or even an apparently less threatening malware can run havoc on the IT industry. From the general public to the government, nobody is safe against an attack like that.

The ‘WannaCry’ ransomware has already shown that India is among one of the most vulnerable countries against cyber-crime. Hence, an insurance cover against that is a necessity.

4. Malware Attacks

Malware attacks are considered less harmful compared to other kinds of cyber attacks. However, it can do a lot of damage if the malware is strong enough. It can restrict you from accessing your computer and can cause loss of data.

The cyber security insurance covers the cost of restoring your data and digital programs. If a third-party files a law suit against you for loss of data, the policy provider will cover your legal charges too.

5. Cyber Extortion

Sometimes, the cyber attackers do not breach your data directly but threaten you with the same and make monetary or other demands. This also includes data and privacy breach. A comprehensive cyber insurance will cover your expenses for a cyber-extortion counseling and also any transportation cost for travelling to court to attend cases related to cyber-extortion.

The Internet is a double-edged sword. While on one hand it has made life simpler, it also brings many risks associated. Hence, you should be secure at all times with cyber security insurance. Protect yourself as well as your valuables with general insurance from Bajaj Allianz.

Mutual funds have become the toast of the market not only for benefits of diversification, professional management and extensive choice, but also for their systematic features such as Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP). While SIP and STP deal in investing and transferring money among various schemes, respectively, investors get the money back in SWP – they can decide the amount and frequency of cash flows subject to the underlying corpus.

The attractiveness of SWPs has increased after the introduction of 10% Dividend Distribution Tax [DDT] on dividends from equity-oriented funds [another popular choice for regular cash flows] in the Union Budget 2018.

Illustration

Let’s start with a hypothetical case study.

Rahul holds 10,000 units in a mutual fund scheme valued at Rs 2 lakh with Net Asset Value [NAV] of Rs 20. He wants a fixed amount of Rs 8,000 every month from his investment, which he can get via SWP in the following manner

As seen in the table, Rahul has systematically withdrawn a fixed amount every month for day-to-day expenses. Apart from meeting the financial commitments, SWP can be used to book profits, especially in a bull market. One can prudently withdraw only the appreciation amount from investments based on the amount of appreciation, while the principal is intact. In this case, Rahul withdraws units only when the NAV appreciates 5%. But this will rely on the market movement. Appreciation withdrawal may not yield a favorable outcome in a bear market.

How does SWP work?

SWP allows investors to withdraw/redeem money from a mutual fund scheme at pre-determined intervals. Investors can opt for monthly, quarterly, half-yearly or yearly withdrawals to meet their cash flow requirement. Based on investors’ instructions, an equivalent amount of money is deducted by the fund house. Investors can start the SWP by giving instructions to the asset management company and providing relevant details such as folio number, scheme name, withdrawal amount, timing, and bank account details in which the amount is to be credited.

Tax on each withdrawal will be the same as in the case of full redemption of equity and debt funds. For debt funds, Short-Term Capital Gains Tax [STCG] is levied as per the tax bracket if units are held for less than 36 months, and Long-Term Capital Gains Tax [LTCG] at 20% with indexation for a holding period of more than 36 months. In case of equity funds, STCG is 15% for a holding period of less than one year, while LTCG is 10% for a holding period of more than one year.

Advantages of SWP

1. Inculcates discipline – A disciplined approach is one of the key requirements for long-term financial success. Investors who receive lump sum money at retirement may end up spending or mismanaging their funds. SWP ensures one receives the amount in parts rather than the whole, to effectively channelize spending.
2. Customize outflows – Through SWP, investors can customize cash flows by deciding the timing and the amount at pre-determined levels. This cash can be useful for investors who want a pre-defined regular income, like the retirees, or those keen on booking profits at regular intervals.
3. Favorable tax treatment – The dividend option lost its allure after the government introduced 10% DDT on dividends from equity-oriented funds in the Union Budget 2018. Hence, SWP emerges as a better option.

Disclaimer – CRISIL Research, a division of CRISIL Limited [CRISIL] has taken due care and caution in preparing this Report based on the information obtained by CRISIL from sources which it considers reliable (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data/Report and is not responsible for any errors or omissions or for the results obtained from the use of Data/Report. This Report is not a recommendation to invest/ dis-invest in any entity covered in the Report and no part of this report should be construed as an investment advice. CRISIL especially states that it has no financial liability whatsoever to the subscribers/users/transmitters/distributors of this Report.

CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s Ratings Division/CRISIL Risk and Infrastructure Solutions Limited (CRIS), which may, in their regular operations, obtain information of a confidential nature. The views expressed in this Report are that of CRISIL Research and not of CRISIL’s Ratings Division/CRIS. No part of this Report may be published/reproduced in any form without CRISIL’s prior written approval.