Know the paperwork involved when transferring vehicle ownership

Selling your used car or bike in the pursuit of a new one is not uncommon. Almost every vehicle owner sells his used vehicle when buying a new one. When the vehicle is sold to another, its ownership also changes. The buyer becomes the new owner. A lot of paperwork is involved in transferring the ownership and insurance policy to the new buyer. Do you know the paperwork involved when transferring ownership of your car or bike?

Many don’t and that’s why transferring ownership seems like a difficult process. In reality, it is not if you know about the documents involved. So, here is a car or bike ownership transfer documents checklist –

  • Registration Certificate

The primary and the most important document is the Registration Certificate of the vehicle. The RC book needs to be transferred to the new owner. The new owner would then verify the vehicle details, submit the RC book in the RTO and get the ownership details changed.

  • Insurance certificate

Every vehicle has an insurance cover. This cover also needs to be transferred to the new buyer when the vehicle is being sold. The car or bike insurance transfer process is easy. To transfer the ownership of the insurance policy, you can send a request to your insurance company for the same. The insurance company would verify all the details and transfer the ownership of the policy in the name of the buyer. You can, however, retain the accumulated no claim bonus. This bonus can be transferred to the insurance policy of a new vehicle which you buy in place of your old one. To transfer the bonus, avail a No Claim Bonus Certificate from your insurance company. The certificate can then be submitted at the time of buying a new policy for transferring the no claim bonus of the old policy.

Read more about no claim bonus in car insurance

  • Other forms required

To transfer ownership, you are also required to avail specific forms from the RTO, fill those forms and submit them along with the RC book to change the ownership details. The forms required include the following –

  • Form 28 which is the No Objection Certificate
  • Form 29 which is the Transfer of Ownership form
  • Form 30 which notifies the RTO of your intention to transfer your vehicle
  • Road tax card

Road tax is paid on every vehicle. When transferring ownership, you have to give the road tax card to the buyer. The card contains the details of the road tax paid on the vehicle. The buyer then submits the road tax card to the RTO to complete the transfer formalities.

  • PUC certificate

PUC (Pollution Under Control) certificate is required for all vehicles which are older than six months. Your vehicle’s PUC certificate should be handed over to the buyer. If the certificate is valid, the buyer can use the certificate for future. If the certificate is invalid, it needs to be updated either by you or by the buyer.

These are the main set of documents which are required at the time of selling your vehicle to another individual. Have all these documents handy to avoid hassles with paperwork at the time of sale. There are some points which you should remember though. These include the following –

  • The RTO should be informed at all times when the transfer of ownership is taking place
  • Your original insurance policy document is also important. Though the insurance certificate does the work, keep your original policy handy
  • The buyer’s identity proof and other KYC documents would also be required by the RTO and also by the insurance company to complete the transfer. If the buyer’s documents are not available, ownership would not get transferred. So, ensure that the buyer has all his documents ready.

Keep these points in mind, have all the documents handy and transferring ownership of your vehicle would be a piece of cake.

This article has been contributed by Moneycontrol team

Find out how insurance helps when selling a used car

Read more about buying a used car? Remember these 5 things.

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Life insurance in your 30s

In your 20s, everything is shiny and brand new, filled with hope and you are open to experimentation. By your 30s you are starting to settle down. Obligations and responsibilities –a new family, new home, bigger car – start to take up all your time. You may even have started semi-permanently settling in a job or got a couple of promotions. All this starts changing your thought process and brings to the forefront the need for financial planning, especially if you are the sole bread earner in your house. If you bought a life insurance policy in your 20s, you probably went for a lower cover, but now, with increasing financial obligations and dependants, that cover might start to seem rather inadequate. And if you had put off buying a life cover in your 20s, then 30s is the best time to start considering it.

Why life insurance and why now?

When you start a family, the biggest worry that plagues you is their financial dependence after your death – basically income replacement. You don’t want them to go look for alternatives to your income or leave them without some sort of cushion that would make their life a whole lot easier. Your untimely death could put a wrench in all your best laid plans that may include anything from children’s higher education to owning your mortgage-free home. Life insurance serves well as that cushion. In fact, it is one of its more obvious benefits. But what it also helps in is in providing ‘living benefits’. Living benefits refer to the returns that you may receive when you are still alive. These returns can be utilized to fund your many pet projects, like home loans, car loans, kids’ college fees etc.

Still low premiums: Unlike your 20s, stress will start to set in along with your family responsibilities. There is also possibility of health issues. Before things get too dire, it’s best to opt for insurance plans that will still give you good life cover at low premium rates. The more you wait, the costlier the premium will get.

Wealth accumulation: Opting for investment cum insurance plan at this time will give you more time to accumulate wealth for the future and also to compound it. The more years you save wisely, the larger the savings will be for your income-less years.

Short-term goal fulfillment: Many short-term plans like mortgage, car loan, children education, holiday expenses, health care costs can be covered by a sensible life insurance policy.

Saving on taxes: With increasing wealth, taxes woes also seem to multiply. During this stage of financial obligations, every penny counts and it’s just good sense to save on it. Life insurance makes sure you get tax benefits under sections 80C and 80D of the Income Tax Act of 1961.

What kind of life insurance should I opt for?

Protection plans: If you are looking for income replacement in the event of your death, protection plans, especially online ones are the way to go. They are also ideal to cover your family against home loan liabilities. There are simple term plans with no frills and only basic covers at extremely low premiums. Insurance companies are also extending protection plans with added benefits that not only offer a lump sum amount (death benefit), but a monthly income for a set period of time to your family after your death.

Savings and Investment plans: This is the age, you would prefer to start saving as this is when you start accruing it as well. Life insurance also includes savings and investment plans that offer multiple avenues to multiply your investment. ULIPs and traditional endowment plans are such avenues that allow you to not only cover your death with a life cover, but also allow you to accumulate a lump sum amount to manage you and your family’s needs during your lifetime. The two most critical savings and investment plan that you should have are the below:

  • Child plans: The birth of your children will bring a host of new financial responsibilities. Right from their birth you start saving to provide them the best education. At the same time you also want to secure these dreams in your absence. Child plans allow you to accumulate savings or give you timely payouts for school and college education.
  • Retirement plans: With the growing years and rising inflation, your need to secure your own future too preys on your mind. The compounding wealth in retirement plans will come to you in the form of monthly income when you cease to work, making sure you don’t become a financial burden on your children.

Health insurance plans: Our constantly changing lifestyle makes us vulnerable to health issues. Unexpected expenses can be emergency hospitalization or an accident. It can also mean multiple hospitalizations in a single year for more than a single family member. In hospitalization, expenses will not only mean the actual surgery/treatment, but also the innumerable tests that will precede it and follow it. One medical emergency and your entire savings could vanish without a trace. A suitable health insurance plan will make sure you are covered for all these surprises and that you get the best treatment for you and your family.

Here is a video to know how much life insurance cover is appropriate for you:

Read more about 5 reasons why you need life insurance

Read more about understanding tax benefits of life insurance policy

Read more about types of life insurance.

This article is contributed by HDFC Life team

How insurance can help your finances grow

With the changing times, our needs are also constantly changing. The improved standard of living has evolved what used to be our wants into needs. Our life stage goals, which used to once include paying out home loans, education loans and marriage expenses, now includes dreams of owning one’s own business and making sure it grows in an environment of competition and market inflation. Subsequently, we need financial tools that would help us accumulate and grow that wealth in order to not only meet our needs but to also make sure they are met in our absence.

This is where life insurance comes into play. Life covers not only protect your finances but also help you plan each stage of your life. A life insurance plan, carefully selected as per your need, not only works as a steady means of investment, but also provides the much needed protection till you attend that financial goal of yours.

The advantage with using insurance as a means of facilitating financial planning is that it is a beneficial tool which enables immense diversification. Insurance plans make available different options, each of which act as a solution for almost every requirement like education, retirement etc.

How to adopt insurance to help your money grow

To build a strong financial base, you need to make sure your money has been invested where one gets the benefit of growth with the additional protection of the savings or corpus. Here is how insurance can help you achieve each of these objectives.

Make saving a priority: It’s a fact of financial planning, often iterated, that saving at an early stage in your life will build a bigger corpus. The major benefit of starting early, especially when it comes to life insurance, is the fact that you have to pay lower premiums. Some of the best options to turn to when you are looking to save are endowment plans and money back plans, especially in your start up years, as they can help you build your habit of saving. These plans usually come with a secured returns and a reasonable life cover.

Invest your money where it grows: The early stages of your life are not just for saving but also for building your wealth for your income less years. And to build wealth, you have to invest in financial tools that will help you grow it significantly, keeping in mind the constantly increasing inflation and volatile market. Life insurance is apt in this scenario, as the risk involved is minimal with added protection for your corpus.

Protect your finances: The reason you want your finances protected and growing is to make sure your family is taken care of in your absence. Insurance can provide you with various options that allow you to protect your money for your family’s future, upon your death or in case you are incapacitated due to some accident. Some of the most prominent options that make this possible are term plans, and riders like Waiver of Premium or Accelerated Critical Illness (ACI). The benefit of riders is that they provide additional features that can be taken along with your base plan, at a nominal additional cost.

1. Term plans: These are the most simple and traditional life covers that are always useful to have in your financial kitty. They come with various options that could range from providing security for future situations such as change in responsibilities depending on your life stage, inflation, etc., to taking care of loan liabilities by your family, in case of an unfortunate occurrence. They make sure your family receives the complete sum assured in your absence.

2. Waiver of Premium: This option makes sure your family is not obligated to pay the premium for the remaining policy term, in your absence. The elimination of premium may come into effect in case of death or accidental total permanent disability.

3. Accelerated critical/terminal illness: This option provides financial relief in a situation that includes the occurrence of a critical health illness. It makes sure money is made available to your family in their time of need, by advancing your life cover payout.

Life Insurance- A multi pronged financial tool

Life insurance these days serve several purposes in addition to simply providing your family with basic monetary relief once you are gone. It is, therefore, a good idea to think about insurance the next time you want to invest your money wisely.

This article is contributed by HDFC Life team

Read more about 10 best investment options in India for 2018

Read more about 5 best ULIP plans to invest in 2018

Read more about Unit Linked Pension Plans – All you need to know.

What to do if your car or bike gets towed?

Say you are busy street-shopping in that crowded area of your city. You come back after two hours to find out your car is towed (A word you wouldn’t want to use for describing your vehicle). And, if this dreaded incident is in a metro city, wish yourself good luck.

Everyone has been through this situation and ideally the first thing to know should be how not to get your vehicle towed. Here are some quick pointers:

As per law, you should not park your vehicle:

  • So it causes or is likely to cause danger, obstruction or undue inconvenience to other road users
  • At or near a road crossing
  • Obstructing another parked vehicle or on wrong side of the road
  • On a footpath
  • Far away from the edge of the footpath
  • Near a traffic light or pedestrian crossing
  • Near a bus stop, school/ hospital entrance, blocking traffic sign or premises entrance or a fire hydrant.
  • Unattended for more than 10 hours at a public place so that it blocks the flow of traffic.
  • In a No Parking Zone

Firstly, avoid any of the above to keep your vehicle from getting towed. Secondly, if you have not broken any of the above rules and your car has been towed, you can quote them in your defence.

The main reason you should be careful of getting towed by RTO is that there have been cases where unintentional damage was done to the towed vehicles. The reparation of damages will be costlier than the parking fine. Though you can claim compensation, these damages will depreciate the value of your vehicle and affect your insurance rates too.

If this situation is very likely to happen to you, there is an additional insurance cover for your insurance policy. The Collision Coverage for your car covers towing damages in general. To know more about this cover you can ask the Turtlemint chatbot, consult us at support@turtlemint.com or call us at 1800-266-0101

Finally, if your car or bike gets towed, here’s what you do:

  • Go to the nearest RTO office or towing grounds immediately.

Here are the RTO addresses and helpline numbers of major cities for you to contact your RTO in case of a towing –

City Address of the RTO RTO Helpline number
Mumbai Transport Commissioner Office
Administrative Bldg., 4th Floor, Govt. Colony,
Opp. Dr. Babasaheb Ambedkar Garden,
Bandra (East), Mumbai – 400 051
022-26550932 / 33 / 34 Ext. 216
New Delhi Public Relations Officer,
Transport Department,
5/9 Under Hill Road, Delhi 110054
011- 42-400-400, 9311900800
Ahmedabad RTO Office, Subhash Bridge,
Sabarmati, Ahmedabad – 380027
079-27559696
Chennai First floor, Municipal Commercial Building,
New Street, Alandur,
Chennai , TN – 600016
044-22325555
Kolkata The Regional Transport Officer ( RTO ),
Beltala Road, Kolkata,
West Bengal – 700020
033-24751621, 033-24751622
Pune 38, Dr. Ambedkar Road,
Near Sangam Bridge, Pune 411 001
+91 20 26058080, 26058090/8282
Bangalore Commissioner for Transport, 5th floor,
M.S.Building, Dr.B.R.Ambedkar Veedhi,
Bangalore – 560 001
080-22210994, 9449863459
Jaipur Transport Department
Parivahan Bhawan, Sahkar Marg,
Jaipur-302 005
0141-2740021, 2740023, 5116111, 5108461-63
Hyderabad JTC, Hyderabad D.No.6-3-646,
Opp. Eenadu Office,
Khairtabad, Somajiguda
Hyderabad-500 082
040-24462727, 9848787505
Lucknow Transport Commissioner UP,
Tehri Kothi, MG Marg,
Lucknow – 226001
0522-2613978, 0522 – 2436445, 1800-1800-151
Agra Regional Transport Officer,
Agra, U.P. – 282002
0562- 2600793
Shimla Directorate of Transport,
Parivahan Bhawan, Cart Road,
Shimla -171004
0177-2658379
Chandigarh Registering and Licensing Authority,
Sector 17, Chandigarh
0172-2700341

(Source: https://blog.karconnect.com/contact-details-rto-offices-major-cities/)

  • Remember, RTO has the right to auction your vehicle if you don’t claim it.
  • Enquire about your car/bike and the offence (if not clear to you already).
  • Check if your there are any damages. If so, you can claim compensation from the towing agency.
  • Pay the respective fine.

In any case, always park like you shouldn’t have the need to get towed in the first place.

Read more about Bought a new vehicle? Know these rules before taking your vehicle for a drive

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Life insurance for every stage of your life

As we are in wake of nuclear family and inflation is exploding our financial life, life insurance has become a vital financial weapon in this situation. It is paramount for every individual to first adequately insure his life for the financial security of his/her dependents and then proceed to address other aspects of financial planning.

Life Insurance also has lot of sentimental value because it is an effort by the life assured to ensure that his loved ones don’t have to suffer after his demise. But life insurance shouldn’t just have sentimental pull. It should also be something that we plan for keeping in mind every stage of our life. Nowadays, life insurance offers more than just life cover protection. Let’s explore this thought in detail.

In your 20s

20s is the most enjoyable age in a person’s life. Fresh out of college with loads of hopes and aspiration, you take the first steps in your career. Some of you may even go for higher education. When it’s the age of enjoying every moment, insurance hardly fits into your perspective, unless as a tax saving vehicle for your newly earned salaries. As you are planning for the first stage of your eventful adult life, uncertainties like death or illness seem to be a remote possibility, and insurance is the last thing on your mind.

But there is a critical advantage of opting for life insurance at such an early age – low premiums. At this stage of your life, your savings are minimal, as you have just started working. And this is not to mention the carefree life you are still probably inclined towards. You may often push your decision to buy insurance into a distant future.  But there is a ‘cost of postponement.’ In life insurance, premium rates are directly linked to your age. The earlier you buy insurance, the cheaper it is. For example, a 25-year old youth needs to pay about Rs 2,888.6 per year for a regular premium online term plan like Click2Protect 3D Plus for 30 years term and Rs 10 lakh sum assured. If he opts for the same at the age of 35, he will need to pay about Rs 5142, which is an extra Rs 8,11,224 compared to a 25 year old guy!

Insurers offer lower premiums to young people as they are mostly fit and healthy, which automatically implies a lesser possibility of death and risk.

In your 30s

Obligations and responsibilities –a new family, new home, bigger car – start to take up all your time. You may even have started semi-permanently settling in a job or got a couple of promotions. All this starts changing your thought process and brings to the forefront the need for financial planning, especially if you are the sole bread earner in your house.

When you start a family, the biggest worry that plagues you is their financial dependence after your death – basically income replacement. You don’t want them to go look for alternatives to your income or leave them without some sort of cushion that would make their life a whole lot easier. Your untimely death could put a wrench in all your best laid plans that may include anything from children’s higher education to owning your mortgage-free home. Life insurance serves well as that cushion, like Click2Protect 3D Plus, which offers the Income Replacement Option. Under this option, upon the unfortunate demise of the policyholder, the nominees receive a regular monthly income for the term of the policy along with a lump sum benefit at the time of death.

Here is a video about buying Term Insurance policy at a young age:

In your 40s

Having enjoyed your carefree 20s and your slightly less carefree 30s, the current decade will now be bringing home the importance of financial planning and the part that life insurance plays in it. This is the age in which financial obligations are not only at their peak but also giving you a massive headache, especially considering the fact that you’re already half way done with your working years. The looming personal loans and the retirement years make it vital that your savings not only compound but also ensure you have a stress-free future ahead of you.

Most people already have an investment portfolio with a few insurance covers littering it. If you are one of those people, it is time to start reviewing them based on current prices and the rate of inflation. But if you are a procrastinator, then considering a life insurance policy now is extremely vital to your financial planning. You not only want to keep your family away from financial burden, but you also want to make sure to leave a legacy for your children.

Click2Protect 3D Plus offers the Life Long Protection Option, which allows you to stay covered for the whole of your life.

In your 50s

After making sure your children are taken care of, it is time to start thinking about your future and your health. Your employment years are nearing an end, making you feel wary of the looming income-less years. But this need not be the case. Instead of depending on your children, it is better to make sure you and your spouse are financially independent and are able to continue living the life you are used to, without any hiccups. Towards this end, Click2Protect 3D Plus provides the options of 3D Life Option and 3D Life Long Protection Option, which not only make sure your spouse is taken care of in your absence, but also provides waiver of all future premiums upon diagnosis of any of the 34 critical illness listed in the policy.

Conclusion

A financial plan is very important and life insurance is integral part of that financial plan and life insurance should be based on considering all factors of different life stages of a person and it should be protective first than it can be used as savings and wealth creation tool. Life insurance these days serve several purposes in addition to simply providing your family with basic monetary relief once you are gone. It is, therefore, a good idea to think about insurance the next time you want to invest your money wisely.

This article is contributed by HDFC Life team

Read more about Reasons to buy term insurance before you turn 30

Read more about Should I buy term insurance riders.

Read more about 5 reasons why you need life insurance

Thinking about cancelling car insurance? Know these things first

Your car insurance policy is a compulsory requirement if you want to adhere to the rules set out in the Motor Vehicles Act, 1988. That is why, if you own a car, you should own a valid car insurance cover on it. However, for some reasons, you might opt for a cancellation of your car insurance policy. For instance, if you think you have bought a wrong policy and want to switch to another one, you might want to cancel your existing plan and replace it with another one. Similarly, if you are relocating to an international location and leaving your car behind, you might want to cancel your policy and claim any refunds. Do you know how such cancellations work?

Car insurance cancellations are mid-term cancellations which are done after you have bought the policy. Let’s understand how the cancellation works –

Mid-term cancellation of car insurance policy

If you cancel the policy after having bought it, it is called mid-term cancellation of the policy. In such cancellations, the premium is refunded back. However, the insurance company retains some portion of the premium for the cover provided to you till you cancel the plan. The percentage of premium retention depends on the period after which the policy is cancelled. If cancellation is done in the starting months, 75% to 80% of the premium is refunded. This percentage reduces as the policy period increases. If cancelled after 6 to 9 months of coverage, there might be no premium refund.

Read more about the things to know before you buy your car insurance plan

How to cancel a car insurance policy

If you wish to cancel your car insurance policy, here are the steps to cancel car insurance policy in India –

  • Buy a new policy

You should first apply for a new car insurance policy before cancelling the existing one. If a replacement policy is not availed of, cancellation might not be allowed. The insurance company might require you to provide proof of a new third party cover before cancellation is allowed. Moreover, if you do not buy a new policy, you face penalties for driving uninsured. You also bear the risk of third party financial liability and damages suffered by your car. So, buy a new policy before cancelling an existing one for continued coverage and also to provide proof of cover to the existing insurance company.

  • Inform your insurer

The next and the most obvious step towards cancellation is to inform the insurance company. You can write a letter to the company informing it about your desire to cancel the plan. Alternatively you can send an email. The insurance company would acknowledge your request and begin the cancellation process. The process might take 7 to 12 working days.

  • Take guidance from the insurer

Your insurance company helps you with your car insurance cancellation process. It would ask you to submit a declaration stating your intention to cancel the plan. You would have to sign the declaration and submit it with the company. You would also have to submit proof of another insurance policy which you have bought as a replacement to the policy being cancelled. Once these formalities are complete, the company would issue a notification cancelling your policy.

  • Avail the car insurance certificate

After the policy is cancelled, you should get a car insurance certificate showing the details of the cancelled policy and the no claim bonus accumulated till cancellation. This certificate is an important document. It would help you use the accumulated no claim bonus in your new car insurance policy.

  • Claim a premium refund

If you are cancelling the plan during mid-term, you might be eligible to receive a premium refund.  The insurance company would refund the premium either in your bank account or issue a cheque in your name.

Here are the consequences of not having car insurance

Long term car insurance and cancellation

With the recent changes in motor insurance policies, cars and bikes bought on or after 1st September, 2018 would have to opt for long term third party coverage. So, if you have bought a car on or after this date, you must have bought a long term third party cover for three continuous years. In these long term policies, cancellation of third party coverage is not allowed. Once taken, you cannot cancel the third party cover before the completion of 3 years. However, if the car is sold, not in use, lost or there is double insurance on the car, the policy can be cancelled. Similarly, if you show the insurer that you have invested in the third party policy of another insurance company, cancellation of existing third party cover is allowed. The insurance company would then refund the pro-rated third party premium when the policy is cancelled.

Things to remember

If you have disposed of your car and not buying a new one, you can still retain the insurance certificate you received upon cancellation of your car insurance policy. The accumulated no claim bonus is valid for three months after cancellation. So, you can use the bonus for future policies.

Though rare, car insurance cancellations do occur. If you are also thinking of cancelling your car insurance policy, remember the above-mentioned points.

Read more about types of car insurance covers and their benefits.

Read more about discount on car insurance.

 

 

Health insurance for disabled/differently abled persons

The Oxford Dictionary defines a disabled person as a person having a physical or mental condition that limits their movements, senses or activities. Such a disability could be physical or mental. There are, in actual, three different kinds of disabilities which are as follows –

  • Congenital disability

Disability which is existent ever since birth is called a congenital disability. Some common examples include Down syndrome, cerebral palsy, cleft palate and lip, spina bifida, etc.

  • Accidental disability

Disabilities which arise out of an accident are called accidental disabilities. For instance, if an individual loses both his legs in an accident, it is called a permanent total disability.

  • Mental disability

Mental disability is a mental illness which impairs the individual’s thoughts, speech, behavior and functioning. Examples include Schizophrenia, autism, Asperger’s syndrome, etc.

Disabled, or differently-abled, persons have a challenging life. They manage to lead as normal a life as possible but are often restricted due to their disability. Their medical expenses are also high and they have higher probability of facing medical emergencies. Given the current medical expenses, it becomes difficult for differently-abled individuals or their families to bear the medical burdens. Does a health insurance plan come to the rescue?

Yes, health insurance plans are available for differently abled individuals. Let’s understand –

  • Government health plans for the differently abled

The Government, in its bid for social welfare, has launched some health insurance schemes for the disabled. One such scheme is the Swavlamban Health Insurance Scheme which has been implemented through the National Institutes and Composite Regional Centres for Persons with Disabilities. This is a cashless hospitalisation scheme for people whose income is up to Rs.3 lakhs annually. The scheme has been launched under the Department of Education and Ministry of Social Justice and Empowerment. Another scheme is the Nirmaya Health Insurance Scheme with a cover of Rs.1 lakh. The scheme covers cost of pathology, diagnostic tests, medicines, dental check-ups, corrective surgeries for treating the disability, ongoing therapies, etc. Thus, the scheme also allows coverage especially for people with disabilities.  People suffering from autism, cerebral palsy, mental retardation and other disabilities can buy this insurance. The premium rate is a flat rate for all ages. Pre-existing illnesses are covered. No pre-entrance medical check-ups are required to buy the plan. The premium rate is Rs.250 if the insured’s family’s income is up to Rs.15, 000 per month. For families with incomes of Rs.15, 000 and above, the premium amount is Rs.500.

Private health insurance plans for the differently abled

Other than the Government’s health insurance schemes, private companies also allow their health plans to be bought by differently abled individuals. However, such plans have some terms and conditions applicable to the coverage. Health insurance companies check various factors before the plan is issued. They check –

  • The extent of disability
  • The present health state of the individual
  • The individual’s earning capacity
  • Total family earnings, etc.

The plan also requires various documents like a disability certificate, type of disability, medical records, etc. Pre-entrance medical check-ups are also required irrespective of the age of the individual. These check-ups help the company understand the type and severity of the individual’s disability before issuing the health plan.

So, differently abled people can avail health coverage under Government sponsored schemes or through private health insurers. However, they should remember that the coverage would come with terms and conditions and would be limiting. The coverage would, however, help them deal with their medical expenses and be financially rewarding.

This article has been contributed by Moneycontrol team

Read more about 7 Reasons why you should invest in health insurance early.

Read more about does your health insurance cover all medical expenses.

Read more about how to choose a health insurance plan.

 

Switching to a new car insurance policy? Here’s a complete guide

Sticking to one insurer year on year for car insurance is rare. With so many insurance policies available in the market, you can always find a better deal in another car insurance policy. Or, you might be dissatisfied with your current insurance company and might want to switch to another insurer. Whatever be the reason of your change, there is a process which is to be followed when you switch to a new policy. Do you know what the protocol is?

Here is a complete guide to switch the car insurance policy if you don’t –

The process involved

If you don’t know how to switch your car insurance policy or insurer, here are the steps which you should follow –

  • At the time of renewing your policy, go online and find the available car insurance plans
  • Compare the available plans and choose the one which has good coverage features at competitive premium rates
  • Once the policy is shortlisted, pay the premium online

If you are renewing before the due date, the existing policy would continue till midnight of the due date. After midnight, the new policy for which you have paid the premium would become effective. If your existing policy has expired, an inspection would be required before switching and renewal are allowed. The new insurance company should be informed about the expired status of your existing policy. The company would, then, arrange for an inspection of the car. Once the inspection is done and its report submitted, the policy would be renewed with the new insurance company.

Things to look out for in the new policy

Switching is good only when you get a better plan than your existing one. To ensure this, you should be careful when comparing car insurance plans. You should compare car insurance plans on the following parameters –

  • IDV offered

The Insured Declared Value (IDV) is the effective value of your car. A higher value is, therefore, advised. When switching, ensure that the policy offers you a better IDV than your existing one. If your IDV is higher, you would get a higher claim settlement in case of theft or total loss of your car.

Read more about Should you increase IDV of your car.

  • Premium rate

Though you must have checked the premium rate when you compared, ensure that the premium is in tandem with the car insurance coverage. Don’t be tempted by a low premium if the coverage features and IDV of the new policy are low. Ensure that you get a comprehensive scope of coverage at the lowest possible premium rate.

  • Add-ons available

Comprehensive car insurance policies provide various add-ons to enhance the scope of coverage. When switching to a new policy, make sure that the add-ons which you require are provided by the new plan. If not, you would be compromising on the coverage which is always a mistake.

  • Claim settlement ratio of the company

The claim settlement ratio of an insurance company denotes the company’s claim settlement history. If the ratio is high it means that the company has settled most of the claims which were presented up on it. Thus, you should check the claim settlement ratio of the new insurer. Make sure it is higher than your existing insurer.

  • Available discounts

You get attractive discounts in your car insurance policy. The rate of available discounts varies across companies. So, when switching your policy, ensure that your new company’s discount rates are higher than your old ones.

  • List of garages

Insurance companies have tied-up garages where you can avail cashless repairs of your cars. The higher the number of tied-up garages the company has the better are your chances of locating a preferred garage for cashless claims. So, look for a company which has the highest number of preferred garages.

Keep these points in mind when you compare different plans.

Read more about comparing online before renewing your car insurance plan.

There are a lot of car insurance plans available in the market today. Each one offers something better than the other. So, find the most suitable plan and switch your car insurance policy. The process is quite simple, isn’t it?

Know about the changes in third party motor insurance premiums

A motor insurance policy is legally mandatory if you want to drive on Indian roads and not face penalties. The Motor Vehicles Act, 1988 mandates every vehicle plying on Indian roads to have a valid third party liability policy. The policy covers your financial liability if you are involved in a vehicular accident and harm any third party or property. Here’s a brief look at what the third party policy covers –

  • Bodily injury or death of the third party arising out of an accident involving your vehicle
  • Damage caused to any third party property because of your vehicle

In both these instances, you might be financially held liable for compensating the aggrieved third party for the damages caused. A third party liability policy covers this financial obligation and settles the compensation payable to third parties in case of any accidental injury or damage.

Given the nature of the third party policy, the policy was made mandatory. Since the policy is mandatory in nature, the premium is fixed by the Insurance Regulatory and Development Authority of India (IRDAI). IRDA is the apex governing body of the insurance sector and is entrusted with the task of fixing third party policy premiums. Third party premium rates depend on the cubic capacity of the motor vehicle. Ever since 2011, IRDA has been formulating and notifying the third party premium rates to general insurers offering motor insurance policies. These premium rates are, usually, modified every year and the changed rates are communicated to the concerned insurance companies. This year too, IRDA has made some changes in the third party premium rate and has issued new rates which are applicable from 1st April, 2018. Here are the new rates –

For private cars

Third party motor insurance

For privately owned two-wheelers

third party motor insurance

If you compare the older rates which were applicable in the year 2017-18, you would find that there have been some reductions in the new premium. For private cars and two-wheelers with a small engine capacity, the new premium is lower. However, for higher engine capacities in two-wheelers, the new premium has increased. Here’s a comparative analysis of the old v/s the new –

change in third party premium rates for car

Small cars up to 1000 cc have seen a premium decrease of about 11%. Other than that, there has been no change in third party premiums for higher engine capacities.

change in third party premium rate for two wheeler

For two-wheelers, there has been an only decrease in two-wheelers with limited engine capacities. No changes have been made to two-wheelers with engine capacity of 151 cc to 350 cc. Premium and luxury two-wheelers have seen an increase in premium. While vehicles with engine capacities of 151 cc to 350 cc have seen an increase of 11%, premium for luxury two-wheelers have been increased by more than 127%.

In case of commercial vehicles, taxi owners have a reason to rejoice. Third party premiums for taxis have come down by 15%. In case of three-wheeled autos the premiums have increased. Goods carrying vehicles like trucks and dumpsters have seen a premium increase of 10% to 25% while for smaller vehicles the premium rates have been kept same.

Though the premium for third party policy has changed, the change would be applicable from the coming financial year. Policies bought or renewed on or after 1st April, 2018 would reflect the changed premium rates. Existing policies would not be cancelled and reissued for affecting the change in premium.

The third party premium rates are changed every year. You should know about these changes whether you are buying a third party policy or a comprehensive one. After all, you should know how much premium are you paying for your motor insurance policy, should you not?

Visit our site Turtlemint.com to compare and buy your car or bike insurance.

Read more about Why you need third party insurance for two wheelers?

Read more about Is it worth buying third party car insurance policy?

Read more about All you need to know about car insurance

Read more about Everything you should know about two wheeler insurance policies in India
 
Check out our video below to understand why the premium of motor insurance has shot so high