The traffic police will issue an e-challan if you break any traffic rules. Let’s take a look at the process of paying the fine against an e-challan for your vehicle:

What is E-challan?

Traffic policy in India is the primary regulatory agency in the country that is responsible for preventing and controlling any acts violating The Motor Vehicles Act, 1988. They are responsible for the smooth movement of traffic in the country. To ensure this, the agency is trying to fully automate traffic enforcement.

A challan is a piece of paper which contains details related to the person it is issued to, along with a monetary amount that the person is supposed to pay. Usually, a challan is issued if a person violates traffic rules in India. Traditionally, a challan was issued to the violators which in turn used to pay cash to the corresponding police officer. However, soon the government observed flaws in this process as the chances of bribing an officer are more with the exchange of cash.

To seal such loopholes, e-challan was introduced. E-challan is the electronic form of challan issued to a traffic violator. For making the e-challan payment, one does not need to pay cash to the officer instead an online payment can be made through electronic transfer of money.

How to Check traffic e-challan of Your Vehicle?

Just like every Indian state has a dedicated online website for its RTO Office, it has a dedicated website for checking the status of e-challan as well. Here are the steps to check the e-challan status and make payment:

• Step 1 – Note the E-challan number.
• Step 2 – Visit your state’s E-challan payment website
• Step 3 – Enter the E challan/vehicle registration number in the box
• Step 4 – Enter the unique captcha code in the box and press enter
• Step 5 – Pay the fine amount using your bank details

What happens if you do not pay the E-challan?

Once issued, it is mandatory to pay the fine mentioned on the e-challan before the due date. The due date for paying an E-challan is 15 days. If you break any more rules and have pending e-challans your driving license will be confiscated and you will not be able to drive your vehicle anymore.

Nowadays it is very difficult to dodge the punishments or fines if you break the rules, especially if you drive in an Indian city. The authorities have installed a closed-circuit television camera [CCTV] on almost every major road in the cities. If you break any rule, it will be recorded in the camera.

Most common traffic violations for which you might be issued a challan

The Bottom Line

Following traffic rules ensures the safety and well being of yourself as well as the people around you. Failing to do so can result in fatal accidents and even loss of life. Thus, it is important to respect any challan you receive for breaking rules and pay them after you do a challan status enquiry.

It is also important that you secure your vehicle with insurance on a regular basis. Insurance will extend a financial cover in case you meet with an accident and damage your vehicle or get injured. You should not only buy a basic insurance cover but also customize your policy according to your needs.

Indians have adopted digitalization in the wake of the demonetization drive. This initiative has also made new investment options available for investors. Immediately after the demonetization, banks lowered the interest rates on fixed deposits [FDs], which are expected to further reduce.

Life insurance is gaining popularity while interest rates on FDs reduce. However, traditional insurance plans like money back and endowment plans do not deliver high returns on your investments.

Amongst the various types of insurance plans, Unit-Linked Insurance Plans [ULIPs] provide an excellent solution to build wealth over the long-term. The ULIP benefits include tax saving, life cover, and returns in a single financial product.

A unique feature of ULIPs is that you may choose to invest some portion of your premium in debt or equity instruments. Moreover, you may switch between one fund and another based on your changing needs. What makes ULIPs popular is that compared to most other market-related investment options the returns on such insurance plans are eligible for tax exemptions.

Financial planning and ULIPs

A robust financial plan not only includes smart ways to invest money but must also be tax efficient. Individual investors may invest in several tax-saving investments like Public Provident Fund [PPF], insurance plans, Equity-Linked Saving Schemes [ELSS], and ULIPs. To make the right investment decision, you need to consider appreciation, flexibility, wealth protection, and tax efficiency.

A regular life insurance plan offers tax benefits and life coverage but minimal returns. In comparison, mutual funds provide the opportunity to earn higher returns but with no life coverage and limited tax savings. Other options like PPF often deliver returns that are lower than the rate of inflation and do not help in wealth creation. ULIPs are an excellent option to overcome most of the limitations related to other investment products.

Tax savings on premiums

A portion of the premium paid on the ULIP is used towards offering the life coverage. The balance may be invested in debt, equity, or other money-market instruments. The amount paid as the premium is eligible for tax benefits under section 80C of the Income Tax Act. The maximum limit capped for such deduction is up to INR 1.5 lakh per annum.

The condition for the deduction

The section 80C deduction is available only if the total premium paid is less than 10% of the total sum assured under the ULIP. Here is an example to help you understand. Assume you have invested in a ULIP with a sum assured of INR 15 lakh with an annual premium of INR 1.5 lakh. This entire amount is eligible for tax deduction. However, if the premium exceeds INR 15 lakh, the deduction is capped at this maximum limit irrespective of the total annual premium amount.

Tax benefits on withdrawals

Another advantage of ULIPs that is not available if you invest in mutual funds is the benefits available on withdrawals. You may withdraw from a ULIP in three instances:

• Demise of the policyholder
• At the time of maturity
• Partial withdrawal at the end of the five-year holding period

Death benefits paid to your beneficiaries in case of your demise during the policy period are completely tax-free. The payout may be higher than the sum assured because your chosen investments may have performed well and delivered superior returns.

The maturity benefits are available at the end of the policy term. At the time of maturity, you receive the sum assured or the fund value based on the investments, whichever is higher. These maturity benefits are eligible for tax exemption under Section 10 [10D] of the Income Tax Act. In comparison, the maturity benefits on mutual funds are taxed as per your income tax slab.

In addition to the tax benefits, ULIPs provide other advantages as discussed below:

1. Financial goal planning

When you invest in a ULIP, you need to remain invested for at least five years. At the end of this lock-in period, you may make partial withdrawals. However, these cannot exceed 20% of the total fund value and are not taxable.

The partial withdrawal feature may be used to meet your various financial goals at different life stages. You may use ULIPs to meet the down payment for your home or to pay children’s higher education. You may combine different financial products such as debt and equity, based on your risk appetite, to meet your life goals.

2. Increased investments

If you have an investible surplus, you may easily increase your investment in the best ULIP plan. This allows you the opportunity to earn higher returns and accumulate a larger corpus over the long-term. Moreover, these increased investments are also eligible for tax exemptions under Section 80C and Section 10 [10D] provided they satisfy the condition where the total premium does not exceed 10% of the sum assured.

3. Choose investment options

When you invest in a ULIP, you may choose the financial instruments to invest your money. Based on your age, financial objectives, life stage, and risk appetite, you may invest in debt, equity, or any combination thereof. You may also switch between different instruments or modify the proportionate holding in these products. This allows you to benefit from market ups and prevent your losses in case of a downturn.

Investing in different types of financial instruments is recommended to earn returns and reduce the risk of investing. However, you may lack the financial expertise and the knowledge to make accurate investment decisions. To overcome this limitation, you may invest in a ULIP that combines several features of different investment instruments.

You may compare different ULIPs to analyze various parameters and make the right investment decision. Invest in one today if you do not already have an investment in ULIPs.

Road accidents are tragic. Even thinking of one paints a grim picture. A car accident can be damaging to the car, person driving, people seated inside, other vehicles, their passengers, people on the road, and someone else’s property. There can be loss of life as well. Due to such a devastating impact, it is advisable to purchase an extensive car insurance policy. It can secure you from facing financial losses in case of unfortunate events such as a car accident.

However, your car insurance policy coverage will determine whether you will be compensated for the financial loss or not. Read ahead to know details about policy coverage.

Third-party Car Insurance Policy Coverage

If you want to drive a vehicle legally in India, it is mandatory to purchase at least a Third-party Car Insurance Policy. This compulsion is mainly directed towards protecting financial interests of those affected by your car. This policy also covers damages to the car owner/driver up to an extent. However, this policy will not cover damages to your car.

Example – Your car is involved in an accident where you injure a person walking on the road, damage your car’s bumper and cause an injury to self. Under a Third-party Car Insurance policy, damages to the third person and injury to self shall be covered. But the damage to your car bumper will not be covered.

Comprehensive Car Insurance Policy Coverage

Going for a Comprehensive Car Insurance Policy is a good way to ensure that your financial interests are taken care of in case of a car accidents. Considering the above benefit, the damages to your car will also be covered if you have this cover. Comprehensive policy is meant to insure your vehicle from accidents, theft, and damage due to calamities. It includes the mandatory Third-party Liability cover and also covers injury to owner/driver.

Add-on Coverage

Another advantage with a Comprehensive Car Insurance Policy is that you can strengthen it by opting for suitable Add-on covers such as Zero Depreciation, Roadside Assistance, etc. Your coverage will be enhanced if you opt for Add-ons. For example, a Personal Accident Cover might come in handy if you have sustained several injuries due to the car’s accident.

Car Insurance Claim

Your insurance company will check your policy’s coverage when you apply for a car insurance claim. The policy’s insurance coverage will determine the extent of compensation you shall receive in case of unfortunate events such as an accident. The general process in case of car insurance is as follows:

• Apply for a claim
• The insurance company shall assign a surveyor
• The claim is either approved or rejected based on the surveyor’s report
• If approved, claim shall be cashless or reimbursed later

Choosing The Right Policy

If you only have a Third-party Liability policy, the insurance company will not be able to provide you any compensation for damages to your car. Choosing the right policy is important if you want adequate coverage for your car. Thus, consider your exposure to risk, your locality’s vulnerability to calamities and theft, the traffic in your area, your daily route, the people you travel with, the value of accessories in your car, etc. before purchasing car insurance. Research well and purchase a car insurance policy that meets your requirements.

Buying a car insurance policy is absolutely easy. You just have to visit your preferred insurance provider’s website and purchase it from there. The process doesn’t differ much from the one that is followed while purchasing items from popular E-commerce websites. Please check your policy’s inclusions and exclusions before purchasing a policy. Once you make the payment, your policy will be emailed in your inbox within minutes. Make sure to keep a hard copy of your insurance policy in your car and always drive safely.

Plastic money provides convenience but many financial experts warn you against misusing your card. When used responsibly, credit cards have several advantages.

Here are 10 reasons when using a card may be a good option.

1. Sign up bonus

If you have good credit, you may be eligible for a significant signing up bonus. Some card companies may offer reward points that may be redeemed for things.

2. Reward points

Most credit cards allow you to accumulate reward points for every rupee that you spend. Some companies may provide promotional periods where you accumulate higher reward points. These are redeemable for several items.

3. Cashback

Some cards offer cashback for certain kinds of purchases. It is recommended that you check the terms and conditions related to such cash-back offers.

4. Flying miles

If you opt for a frequent flyer card, you may accumulate miles when you use the card to buy an air ticket. These miles may later be redeemed against air tickets.

5. Security

If someone steals your credit card, you may intimate the card-issuing company in order to prevent fraudulent use.

6. Sellers’ honesty

When you use your card to pay vendors for certain projects like renovation or repairs, you have the option to resolve any disputes. In case of a dispute, the company withholds payment to ensure your problem is resolved before the money is paid to the vendor.

7. Grace period

Paying with a debit card means your bank account is immediately debited with the amount. However, when you use plastic money to pay for the purchase, you are able to enjoy a grace period until the next bill payment date.

8. Insurance

Several cards have several automatic inclusions such as warranties, insurance, and others. These inclusions provide you with safety against your purchases.

9. Universally accepted

When you travel abroad, making payments for a hotel or car rental is difficult with a debit card. In such instances, using your credit card makes it easier to pay for such purchases.

10. Building credit history

If you want to improve your credit score or build one, using a credit card is an excellent option. When you make timely payments of your card bills, it is beneficial in building credit. A higher credit score makes you eligible for additional benefits especially if you apply for a loan in the future.

Although there are several reasons to pay using your card, it is not always the best option. It is recommended you use the card responsibly and make timely payments to avoid late fees and finance costs.

Car insurance is not a normal product that you buy from the counter. It isn’t a regular service like banking as well where you transact often. Insurance is a unique product/service where the ‘transaction’ comes into the picture when there is a claim raised by the policyholder. This claim is scrutinized and either accepted or rejected by the insurance provider. This is an overview of how the claim process works in a normal scenario. Much of it is dependent upon the type of car insurance policy you hold and its coverage.

You need to follow a step-by-step process in order to successfully complete the claim settlement process. Read ahead to know the steps to follow while dealing with car insurance claim process under a Comprehensive Car Insurance policy.

Step 1 – Inform The Insurer

The claim process begins by informing your insurance company about your car accident. The same can be done via a phone call, mobile App or through email. You shall be allotted a claim number that you can use as a reference for further communication with the insurance company.

Step 2 – Collecting Evidence

You need to click photos and record videos of the accident area. Such photos and videos come in handy as they act as proof that the accident had taken place. It also records the damage caused to your vehicle. If there is another person involved in the accident, that person’s details also need to be noted down.

Step 3 – Towing The Car To Garage

If the car cannot be driven to the garage then it needs to be towed there. Most car insurance companies assist you while towing your car to the garage. The car can be taken to your preferred garage or a garage specified by the insurance company.

Step 4 – First Information Report

You need to register a First Information Report [FIR] in case of car theft. It is also better to visit the nearest police station and register an FIR in case of major accidents. The FIR lends credibility to your claim application.

Step 5 – Coordinating With The Surveyor

The insurance company will assign a surveyor to assess the damage to your car. The surveyor makes a report that determines whether your claim will be accepted or rejected by the insurance company. You need to coordinate well by honestly answering the questions asked. The surveyor can either come directly on the accident spot within minutes or visit the garage to inspect the damaged vehicle.

Step 6 – Documentation

You will have to send the necessary documents to the insurance company in order to proceed with your claim request. These documents include a copy of your car’s Insurance policy, Registration Certificate, FIR if applicable, and your bank details.

Step 7 – Settling The Claim

Upon successful inspection and approval, the insurance company shall move towards car insurance claim settlement. There are two ways of settling claims, cashless or reimbursement. If the garage where your car was repaired is a part of the insurance company’s network of garages, the claim will be settled between them. You just have to pay a nominal amount. If the car was repaired at a garage which is not a part of the insurance company’s network, you have to pay for the repairs and then get a major part of it reimbursed from the insurance company.

Staying Patient

It is important to stay patient throughout each step mentioned above. There is no point hurrying unnecessarily. You need to cooperate with various individuals to get your claim settled successfully and staying patient will help you to do that in an effective manner.

In a few weeks, the festive season will commence with Raksha Bandhan. The importance and history of this festival dates back to thousands of years. Sisters tie ‘Rakhi’ to the brothers’ wrists and pray for their well-being.

Your sister must already be planning for the ‘Rakhi’ but have you thought about her return gift? Here are five financial gifts that are ideal for this festival.

1. Begin a Systematic Investment Plan [SIP]

To achieve financial goals, you need to invest systematically in a sensible way. Most people consider recurring deposits; however, the rate of interest is lower. Moreover, the income is taxable further reducing the returns. In comparison, an SIP is a mutual fund, which is able to deliver better returns. You may consider an SIP in an equity fund if you do not mind staying invested for the long-term.

2. Invest in a Fixed Deposit [FD]

You may invest in an FD, which will allow your sister to earn higher returns and give her financial security. Compared to a zero balance savings account, the interest rate on FDs is higher. It is important that you choose a reliable and reputed financial institution to invest in the FD.

3. Purchase a risk cover

The modern lifestyle poses a big threat to an individual’s health. If you want to ensure financial security for your sister, consider purchasing a health insurance plan for her where you pay the premium on her behalf. Alternatively, you may choose life coverage to provide financial security. A term plan is a pure life cover and it will help indemnify risk.

4. Invest in paper gold

Gold is a popular investment in India since years and provides security in case of a financial crisis. You may consider purchasing gold for your sister, which provides her with security. However, consider investing in gold Exchange-Traded Funds [ETFs] or gold savings schemes instead of physical gold. Gold ETFs are traded on the exchange and are a convenient way to invest in this precious metal. Gold savings schemes invest the corpus in underlying gold ETFs and benchmark performance against physical gold. Therefore, both these are good options to gift your sister this Raksha Bandhan.

5. Open a savings account

A zero balance saving account in a well-reputed bank is also a good gifting option for your sister. You may deposit the amount you want to gift her. It will not only allow her to earn some interest but give her the freedom to use the money as per her choice.

The aforementioned gifts are not only thoughtful but also provide her with financial freedom and security. Consider these, this Raksha Bandhan and fulfill the promise of protecting your sister.

Mumbai is the capital of Maharashtra and the most populous city in India as well. With a large population of 20.5 million, Mumbai stands fourth in the population wise ranking of cities in the world. Also known as the ‘city of dreams’, Mumbai has different contrasts and welcomes everyone with warmth and love.

Mumbai is a union of seven islands, which were held together over a period to build a magnificent and beautiful city. Situated on the Western Coast of India, Mumbai faces the Arabian Sea and hosts one of the most famous harbours in India. Mumbai was first ruled by the Hindu Dynasties, then by the Mughals, and in the end by the Portuguese. Then it was handed over to the East India Company in the year 1668. From there, Mumbai started growing as a mega industrial hub, leaving all another metropolis behind. Mumbai has the highest economy as compared to any city in India. Also, it has the highest GDP rate in South Asia and is listed in the world’s top ten commercial centres concerning global financial flow.

Mumbai is a manufacturing hub of industries like healthcare, diamond polishing, and shipbuilding. It has the largest cotton textile industry and the largest stock exchange in the country. It is also the leading oil and natural Gas provider in India. Mumbai, the entertainment capital of India, is the home to Bollywood, which is one of the most prolific centres of film production in India.

Public transport is considered the best way to go around this megacity. BEST and local trains are the most preferred means of transportation here. Approx 80% of people commute by these means and use them to go to work and come back. Due to the enormous population and poor condition of roads, Mumbai always sees heavy traffic and congestion. However, you will find latest SUV’s, sedan and sports cars in abundance, zooming away on the streets of Mumbai. People are exceptionally affluent in Mumbai, and a significant chunk of crowd owns more than one car for their private use. Hence, it is obvious that you will be surrounded by a wide variety of vehicles and people in Mumbai.

Concerning the recent Motor Vehicle Act amendment by the Indian government, car insurance is now mandatory in India. A comprehensive car insurance policy protects your car against the damages caused due to accidents, natural disaster, theft or burglary. It also protects you from personal liability in case of third-party damages.

At Reliance General Insurance, we offer a comprehensive car insurance policy. You can even buy car insurance online in few easy steps. Avail several benefits like 24*7 roadside assistance, a cashless facility at more than 3800 garages across India, instant policy issuance, and much more.

Here is a list of garages that offer cashless facilities across Mumbai in service of your motor insurance policy