Are Women Optimally Insured under Health Insurance Plans?

‘Men are from Mars, Women are from Venus’, a best-selling book by John Gray, an American psychologist, talked about the psychological differences between men and women. The title of the book, however, has become a catchphrase to highlight the differences between men and women as a whole. 

Women are definitely different from men, both in terms of their psychological needs as well as physiological ones. Then why is it believed that a basic health plan would be suitable for women too?

Women’s anatomy is different from men. They are prone to specific illnesses or ailments which men don’t suffer. For example, women suffer pregnancy related complications, breast cancer, cancer of the reproductive system, degradation of bones resulting in osteoporosis, etc. As such, women need a comprehensive health insurance policy which specifically covers these women-centric illnesses. But is this what women get?

Trends in health insurance for women

When it comes to covering women under a health insurance plan, the answer is most commonly a family floater policy. The policy provides coverage to all family members, including women. Additionally, if women are employed, they might also have a group health scheme sponsored by their employers.

Though women enjoy coverage under group or family floater plans, such coverage might not be comprehensive enough to cover them against illnesses that they specifically suffer. For example, most group health plans do not cover maternity. 

Health insurance for women – what women want?

For the woman of today, the following coverage benefits are a must –

  • Maternity 
  • Critical illness
  • Other minor illnesses that they suffer

    If a health insurance plan offers these coverage benefits, women can avail of quality healthcare facilities without worrying about affording the same.

    So, for empowering women through health insurance, here’s what should be done –

  • Enhancing the coverage of an existing family floater plan

    If there is a family floater policy that covers the women of the family, a review of the coverage is a must. You should check if the coverage is sufficient to provide an all-round coverage to women. The health insurance policy should be rejigged to provide coverage for the following –

    • Maternity related expenses and complications suffered during pregnancy if family planning is on the near horizon
    • Opting for a critical illness rider at the time of renewals
    • Enhancing the sum insured of the policy for optimal coverage 

      If your existing policy does not provide maternity and/or critical illness coverage, you can always port to another, more comprehensive plan. Ensure the sum insured is at least INR 10 lakhs and above so that the plan covers the medical bills optimally.

  • Buying a new comprehensive plan

    If you do not have a health insurance plan altogether, buy a comprehensive coverage ASAP. Ensure the coverage has maternity cover, optimal sum insured and the critical illness rider. You can opt for an independent women-centric health plan or a family floater policy for covering the entire family.

  • Buying a standalone critical illness policy

    If the critical illness rider is not available or if you want to opt for a comprehensive coverage against critical illnesses, a standalone critical illness policy would be better. You can opt for a women-specific critical illness policy that covers women-related illnesses like the different types of cancers, burns, etc. The policy has affordable premium allowing you to opt for an optimal coverage amount.

  • Buying a super top-up policy

    An optimal sum insured is a must. This fact cannot be stressed enough especially if you look at the rising costs of medical treatments. So, whether you buy a family floater policy or an independent plan, choose a high sum insured. If affording the premium becomes a concern, go for super top-up health insurance plans. Super top-up plans help in increasing the coverage at very affordable premiums. Choose a deduction that matches the sum insured of the base policy. This way, claims up to the deductible would be covered by the base policy while claims exceeding the deductible would be covered by the super top-up plan. 

Empowering women through health insurance – the road ahead

The healthcare needs of women require specialized coverage. If your normal health insurance policy is not equipped to provide the coverage that women need, it’s time for a change. Women are caregivers but they need care too. Empower women with a suitable health insurance policy that would take care of their medical needs. If you are a woman yourself, it’s time to take action. Invest in a suitable health insurance policy that provides an all-round coverage for your needs and take the next step towards financial empowerment.

A Millennial’s Guide to Health Insurance

Millennials have become aware about the importance of a health insurance policy. They understand the need of a financial cover if medical emergencies strike and so, they are investing in a health plan for themselves as well as their family. Health insurance, however, is a technical cover and so, here is a simple guide to the policy if you are thinking of investing in it –

  • There are different types of plans

    Health insurance is not only available for covering your medical bills in case of hospitalisation, there are different plans that you can avail of for comprehensive coverage. Besides the basic plan for covering hospitalisation, you can buy critical illness cover for protecting against major illnesses. Then there are COVID plans if you are worried about being infected. So, expand your coverage. Opt for other plans and build a layered coverage against medical contingencies.

  • Check for sub-limits

    Some health insurance plans impose room rent sub-limits which restrict your coverage. Check for these sub-limits. Try and avoid plans which have such limits because your claim would be considerably affected if the actual amount exceeds the limit. Moreover, there are coverage limits on various benefits like ambulance costs, maternity expenses, AYUSH coverage, domiciliary treatment, etc. Check the limits when buying and try and opt for a plan which has a higher coverage limit so that your out-of-pocket expenses reduce.

  • Riders are beneficial 

    Health insurance plans allow optional riders that you can choose by paying an additional premium. Riders like critical illness cover, maternity and new born cover (if you are planning a family), personal accident cover, etc. make for good coverage additions as they provide a wider scope of coverage. So, look for the available riders and try and add them for an inclusive coverage in your policy.

  • A healthy lifestyle is rewarding

    Modern day health insurance plans reward you for living a healthy life. Daily exercising, walking, meditation, Yoga, balanced and nutritious meals, etc. not only keep you fit but also help in reducing your health insurance premium. So, if you are a health conscious millennial, use your healthy lifestyle to get rewarded under your health plan. If not, it’s time you adopt a healthy lifestyle, both for your health and your wallet.

  • Insure parents separately 

    If you are buying a health insurance plan, try not to include your parents under the same cover. There are two reasons for this –

    1. Since your parents would be the eldest members, the premium would be calculated based on their age. This would drive up your health insurance cost
    2. If they make frequent claims on the policy, you would not be able to accumulate the no claim bonus

    So, opt for a separate health plan for your parents and buy another plan for yourself. Besides ensuring a suitable coverage, you would also be able to avail additional tax benefits on the premium paid.

  • Don’t depend on your group health plan only

    If you are employed, your employer might provide you with a group health scheme. Though the plan provides the basic coverage, the coverage is limited and not customizable. Moreover, the coverage is available for as long as you are employed. Invest in an independent policy so that you can get optimal coverage that can also be renewed life-long. 

Understand the basics of health insurance and invest in a suitable policy. You might be a modern age individual in the prime of your health but, remember, contingencies come unannounced. Prepare yourself against medical contingencies by investing in health insurance plans. Believe me, you would be thankful that you did!

Will the New Budget 2021 Introduce better Health Reforms?

It is that time of the year again when all eyes are directed at the Union Budget which would be presented on 1st February 2020. As always, before the actual budget is delivered, industry experts make their assumptions on what possible changes are expected. This year is no different. With the last year largely overshadowed by the COVID-19 pandemic, the budget is expected to have considerable health reforms.

Health insurance has always been an important cover against the financial implications of a medical crisis. Many individuals have opted for the cover to protect their savings against expensive medical treatments. Moreover, over the last year, the pandemic highlighted the importance of having health insurance plans. With hospital bills amounting to lakhs in case of severe COVID cases, people woke up to the importance of a health insurance policy. Even the Insurance Regulatory and Development Authority of India (IRDAI) directed the launch of COVID specific health plans – Corona Kavach and Corona Rakshak – which found many takers. 

From the tax angle, health insurance plans allow deduction on the premiums paid under Section 80D. The deduction limit is INR 25, 000 on a policy covering self, spouse and dependent children. Senior citizens, aged 60 years and above, can enjoy a deduction limit of INR 50, 000. Moreover, for buying a policy for parents, you can claim an additional deduction of up to INR 50, 000.

Earlier, the additional deduction for parents was INR 25, 000 but in an earlier budget, the limit was increased to INR 50, 000. Experts believe that this year, as the importance of health insurance has increased, the Finance Minister can come out with enhanced deduction limits. It is expected that the limit of deduction for individuals below 60 years of age would also be enhanced to INR 50, 000 from the current limit of INR 25, 000. 

This limit enhancement would have two benefits –

  • It would motivate buyers to opt for high coverage levels and opt for a comprehensive coverage
  • It would drive the penetration of health insurance policies

Health insurance penetration in India is steadily increasing since 2015. From a 22% penetration in 2015, the number increased to 35.6% in 2018. (Source: Statista). However, the numbers are still not very impressive. For the penetration to cross the 50%-mark, aggressive reforms are needed, both by the health insurance segment as well as by the Government. While the health insurance segment is constantly reinventing itself, with better reforms in the 2020 budget, it is expected that the Government would also do its part.

What reforms would be proposed by the Government would be disclosed on 1st February 2020. Meanwhile, the outlook is positive about strong health reforms for the next financial year.

Health Insurance Solutions for all Ages

What, according to you, is the right age to buy a health insurance policy? 

Many of you believe that health insurance is needed when you are older because that is the age when you are most likely to suffer from illnesses or diseases. However, the fact is quite different from this belief. A health insurance policy is needed at all ages, even for a new born, because illnesses, injuries and diseases are not age specific. Even children can become a victim to diabetes or heart related ailments. So, you need to insure yourself and your family members under suitable health insurance plans at all ages. 

Health insurance plans are also designed in such a manner that they fulfil the specific needs of individuals at different ages. So, let’s have a look at the relevance of health insurance at different ages and which insurance policy would be right to provide the required coverage – 

  • Health insurance for new-borns

    Why? – New-borns are prone to infections and illnesses since their immunity is very weak. That is why you take utmost care when raising a new born baby. If the baby suffers from any illness after delivery or if the delivery is complicated and baby needs additional medical attention, the medical costs can be considerable. Moreover, the cost of vaccinations in the first year is also quite high. That is why a health cover is needed for new-borns.

    How? – You can invest in a family floater health plan which has coverage for the new born baby as well. Usually, such plans cover the baby for up to 90 days post birth. After that, you need to pay an additional premium to get the baby covered. Look for plans that also cover first-year vaccinations so that the vaccination costs are also handled. 

    Pro tip: Check the limit of coverage on the new born baby. Opt for a plan which has a high coverage level for adequate cover.

  • Health insurance for infants and dependent children

    Why? – Infants are also in their growing stages when they are prone to illnesses and diseases. In case of children aged 5 years and above, there are increased chances of accidental injuries. Moreover, children can also contract diseases and lifestyle illnesses given their changing lifestyle habits. That is why you should have a health insurance cover for your children so that when they get sick, the policy would cover your medical expenses.

    How? – Buy a family floater health plan and cover your dependent children under it. Ensure that the plan has an optimal sum insured to cover the expensive medical costs.

    Pro tip: Dependent children can be covered from 91 days to up to 23 or 25 years. After the maximum age, you need to insure your children under an individual health plan.

  • Health insurance for young adults

    Why? – Young adults, i.e. those in the age group of 25 to 35 years, need health insurance plans to cover them against possible illnesses and injuries. Moreover, when you buy a health plan young, you can avail comprehensive coverage and even wait out the waiting period applicable for pre-existing illnesses. 

    How? – If you are married, invest in a family floater health plan for you and your spouse. Choose a plan with maternity coverage if you are planning a family soon so that the maternity costs would also be covered under the plan. If you are not married but would be married soon, you can buy an individual coverage and then convert it to a floater plan after marriage.

    Pro tip: For your dependent parents, opt for an independent senior citizen policy. This would help you avoid frequent claims and also give you an additional tax benefit.

  • Health insurance for adults

    Why? – As you age, you become prone to illnesses. As such, a health insurance policy is a must for you and your family members.

    How? – Invest in a comprehensive family floater plan covering all your family members. Choose a senior citizen policy for your dependent parents and cover them separately. Opt for a high sum insured or buy super top-up plans to enhance the coverage at affordable premiums.

    Pro Tip: Try and supplement your health plan with a critical illness plan as well. This policy would give you an added financial assistance in case of critical illnesses.

  • Health insurance for senior citizens?

    Why? – Once you cross 60, your health slowly starts deteriorating and different ailments set in. Your employer sponsored cover also expires once you retire leaving you without coverage. A health insurance plan is, therefore, essential in older ages.

    How? – Choose senior citizen health insurance plans if you don’t have an independent health insurance policy. If you already have an independent health plan, check the sufficiency of the coverage. While your existing plan allows lifelong renewals, you should enhance the sum insured for sufficient coverage. 

    Pro tip: Health plans that cover senior citizens have a co-payment ratio wherein you are responsible to pay a part of the claim yourself. Check the co-payment ratio of the policy when buying.

As you can see, health insurance is needed at all ages and there are policies designed to provide you coverage at whatever age you are in. So, assess your and your family’s health insurance needs and pick the right coverage for an all-round protection.

Now FASTags to become necessary for Third Party Motor Insurance cover

FASTags were introduced for easier inter-city travels as the tag allowed automated payments of toll tax at every toll plaza. Though the Government promoted the use of FASTags and also made them mandatory in certain cases, many vehicle owners ignored them. However, in a recent draft issued by the Ministry of Road Transport and Highways, dated 1st September, the Government has stated its intent on making FASTags compulsory for vehicles. But before we get into the new proposal, let’s have a quick understanding of what a FASTag is.

What is a FASTag?

A FASTags is a prepaid tag which is affixed on the windshield of vehicles. The tag is either brought through a bank or a mobile wallet and is linked with the same. Once you recharge the FASTag, it would contain a balance, much like your mobile wallet. Thereafter, whenever you cross any toll plaza, the FASTag would be scanned and the applicable toll would be deducted from the balance in the FASTag. You can recharge the FASTag any time and with any amount and the tag is valid lifetime. Every vehicle needs an independent FASTag. The FASTag allows you to drive conveniently without having to wait in queue for the payment of the toll tax.

What were the earlier rules on FASTags?

After FASTags were introduced, the Government made them mandatory for four-wheelers for the purpose of registration. This mandate became effective from 2017. The Government asked the vehicle manufacturers or their dealers to supply new vehicle owners with the required FASTags. Moreover, for transport vehicles which renewed their fitness certificates, the renewals were allowed only after the vehicles had FASTags fitted on them. For National Permit Vehicles, FASTags were made mandatory since 1st October 2019.

What changes does the Government want?

In the circular issued by the Ministry, the following changes were proposed by the Government to promote FASTag usage –

  • FASTags would become necessary for new vehicles when they buy a third party insurance policy. This mandate would be effective from 1st April 2021. The details of the FASTag would be recorded in the third party insurance policy
  • From 1st January 2021, FASTags would be made mandatory for vehicles sold before December 2017

What it means for you?

If you are planning to buy a new vehicle in the next financial year, you would have to opt for the FASTag in order to get the vehicle insured once the rule is passed. Moreover, for vehicle owners who have bought their vehicles before 2017, having a FASTag would become necessary. Both these changes would have a positive impact on you especially when you are travelling inter-city. Payment of toll tax would become easier and you wouldn’t even have to carry the required tax in cash.

The Government has introduced this rule, which is still pending confirmation, to ease the traffic flow on highways and to ensure that the payment of toll tax is not avoided. Once the proposed changes become the rule, travel would become easier and convenient. You should, however, fit your vehicle with a FASTag whether or not the proposed changes become a rule for your own convenience.

Which Cancer Cover is better? Cancer Care plans or Critical Illness Insurance

Cancer has become a dreaded illness in recent times as more and more individuals are falling prey to one or the other form of the illness. According to a report from the National Cancer Registry Programme conducted by the Indian Council of Medical Research (ICMR), the projected incidence of cancer in India for the year 2020 was 94.1 per 1 lakh male lives and 103.6 per 1 lakh female lives. (Source: Ascopubs.org). The numbers are rapidly increasing and when cancer strikes, the medical expenses are too expensive to bear. In such cases, having a dedicated insurance cover for cancer seems to be like the most ideal solution.

Many individuals have realized the importance of coverage against cancer and are opting for specialized cancer care plans for themselves and their families. Even health insurance companies are offering multiple solutions to individuals for coverage against cancer. Besides a comprehensive health insurance plan, critical illness and cancer care plans are offered for specialized coverage against cancer. But which plan is better – critical illness or cancer care?

Let’s have a comparative analysis of both these options to find out –

What is a critical illness plan?

A critical illness plan is a health insurance plan which covers a list of critical illnesses, cancer included. If you suffer from any of the covered illness, the sum insured is paid in lump sum and the plan terminates.

What is a cancer cover plan?

A cancer cover plan is an illness-specific health insurance plan which covers only cancer. Under this plan, all stages of cancer are covered and the benefit pay-out depends on the severity of cancer that you suffer from. Usually, in a minor stage cancer, 25% to 50% of the sum insured is paid and future premiums are waived for some years. If the cancer advances, the remaining sum insured is paid and the coverage is terminated.

Difference between the two

Both critical illness and cancer cover plans differ from one another in the following respects –

Critical illness insurance

Cancer insurance

Covers a range of critical illnesses besides cancer

Covers only cancer

Coverage for minor stage cancer might not be available

Covers cancer at all stages

The sum insured is paid in lump sum on diagnosis of cancer

The sum insured is paid partly on diagnosis of minor stage cancer. However, for major stage cancer, the sum insured is paid in lump sum

The plan terminates once a claim is paid

The plan continues after payment of claim for minor stage cancer. However, if claim for an advanced stage cancer is paid, the plan would terminate

Pros and cons of critical illness and cancer care plans

Here are the advantages and disadvantages of both these types of plans so that you know which plan scores over the other and in what aspect –

Critical illness insurance 

Pros 

  • The plan covers other illnesses as well. This makes its scope wide and allows you coverage against other dreaded illnesses too
  • The sum insured is paid in lump sum which helps you take care of your financial obligations if you face any critical illness

Cons

  • The plan provides a generic coverage against cancer of a specified severity. It, therefore, has a restricted scope of coverage
  • Coverage for early stage cancer might not be allowed under the policy
  • Once the claim is paid, the coverage is terminated. If there is a relapse of cancer or if the cancer advances to a major stage after the payment of claim, you would not be covered

Cancer care insurance

Pros

  • Provides a comprehensive scope of coverage against all types and severity of cancer
  • In an early stage cancer, you get financial assistance as a part of the sum insured is paid. The premium waiver benefit helps you enjoy coverage without the strain of paying the premium after suffering from cancer.
  • If your cancer advances, the plan pays the remaining sum insured to help you meet the financial costs of the illness
  • Some plans also allow coverage against recurrence of cancer

Cons

  • This plan is limited to cover only cancer. If you suffer from any other illness, the plan would not give you any coverage benefits
  • Since the claim payment depends on the severity of cancer, the claim might be limited at an early stage cancer when you need funds to avail advanced medical treatments

So, both critical illness cover and cancer care insurance have their respective pros and cons. Assess these aspects and then make your choice. If you want a comprehensive scope of cover against different types of illnesses, a critical illness plan would be better. However, if you need only a cancer specific coverage, opt for cancer care plans for an inclusive coverage. Either of these plans would be a good addition to your existing health insurance plan and would provide enhanced protection against cancer. So, understand your coverage needs and then make your choice.

How to Re-Register a Vehicle in India?

Registration is a process of registering the vehicle in some specific person’s name. This is done at the time of purchase of the vehicle. Without a valid vehicle registration, it is illegal to ply the same in India. Once a vehicle is registered, you can officially drive the same anywhere within the geographical boundaries of India. 

Registering a motor vehicle in one’s name was quite a tedious process but that seems like a distant past now. The Government of India has launched its official website named “Vahan” as a part of the ‘Digital India’ drive. Now the entire procedure has become simple. Thus, it has become quite easy for you to follow the process without any hassle. 

What is Vehicle Registration?

Vehicle Registration is a process whereby you get your car number plate and it is registered under the list and records of the Government. The main motto of registration is to have a linkage between you as the owner and your vehicle through a distinct identification number and therefore shows a car registration number plate. It is of extreme importance to register your vehicle so that the Government can curb any illegal activities in India. One of the main important reasons for registration of the vehicle is to get valid insurance coverage, without which is not possible. 

According to the Motor Vehicle Act, 1988, section 39A, a vehicle is permissible to be driven in public roads only after registration by the respective transport authority for registration. Hence, the registration certificate is a certified legal document which acts as a proof that your vehicle is recorded and verified in Government records. In India, registration within 7 days from the delivery date of the vehicle is compulsory.

What is Re-Registration of the Vehicle?

There are 2 situations under which a vehicle needs to be “RE”-registered, i.e. registered again. Those situations are: 

  1. Situation 1:
    It is compulsory for all private vehicles to do the re-registration of the vehicle after 15 years from the date of the initial registration as per the Central Motor Vehicles Act. After this, the registration is renewable at a gap of 5 years till the RTO declares the vehicle to be safe and fit for driving on the roads in India
  2. Situation 2:
    It is necessary for you to re-register your vehicle if you move from one state to another with your vehicle.
    The law says: If a motor vehicle, when registered in one particular state, is present in another state for any valid reason, for more than twelve months’ time, you would have to transfer your vehicle to the new state and RE-register the same. So, if you simply visit another state for a tenure of 12 months or less, then there is no need to re-register your vehicle.

    However, if your period of stay exceeds 12 months, then you need to apply for a Transfer and Re-Registration. The process of Transfer of Vehicle is:

    1. As the registered owner of the vehicle will have to put an application to the same RTO where the vehicle was registered
    2. Then you need to fill in the documents and submit them to the authority of the new RTO in the respective jurisdiction for the assignment or re-registration of the vehicle 
    3. There is a timeframe of 1 year for this entire process to be completed, as mandated by the Central Government.

The procedure involved in Re-registration of vehicle

Steps for re-registering of the vehicle under certain scenarios:

  1. Situation 1:
    In order to re-register your vehicle after a tenure of 15 years of initial registration, you will have to put forward an application form. Your vehicle has to be presented before the RTO for scrutiny and the essential fee has to be paid to the RTO. After the vehicle is scrutinised and verified with all other documents, the RTO will be in a position to issue a fresh Registration Certificate or an RC. For car registration renewal, the below-mentioned documents need to be submitted to the RTO:
    1. Properly filled Form Number 25 which is the application of renewal of registration
    2. Registration Certificate in original
    3. A valid Pollution Under Control Certificate or the PUC
    4. Insurance Certificate of the Vehicle
  2. Situation 2:
    In order to transfer your registration from one state to the other, there are two vital aspects which you should be careful about which are:
    1. Vehicle Hypothecation Position:
      If the vehicle had been taken under finance and it has the hypothecation done by the financer in the Registration Certificate. In this case, you need to get the No Objection Certificate or the NOC from the respective financer beforehand, so that you can register your vehicle in the other required state without any hassles
    2. Compulsory Road Tax:
      On transferring the vehicle from one state to another,you may have to pay the road tax of the new state at a depreciated price of the vehicle. If you need to apply for a refund of the Road Tax from the state you are moving for the remaining tenure of the tax validity, you need to apply for the same at the time of obtaining the NOC.
      Road Tax is levied by the State and the Central Government, and hence each state has its own specifics and basis of road tax calculation which you need to pay accordingly.

Steps for car registration renewal

Let us now see the 3 broad steps of car registration renewal in details for a better understanding: 

  1. Step 1: The first step for you is to get the No Objection Certificate or NOC.
    Some important points for you to note for obtaining a NOC are:
    1. Notary attested self-declaration affidavit has to be furnished by you on an INR 10 stamp paper stating that all relevant documents for the vehicle are original with no outstanding dues for the vehicle
    2. A No Objection Certificate should be attained from National Crime Record Bureau or NCRB affirming that its not a stolen vehicle
    3. A No Objection Certificate from the financer in Form Number 35 if the vehicle had been taken on loan and the same hasn’t been repaid yet
    4. You need to provide 3 properly filled copies of:
      1. Form No 27, i.e. the application for the assignment of new registration, 
      2. Form number 28, i.e. the application and 
      3. The grant of No Objection Certificate together with 
      4. NOCs from the Traffic Police, 
      5. NCRB as well as 
      6. The financer to obtain the NOC from the respective RTO
    5. Other vehicle documents like the PUC Certificate, copy of Smart Card, copy of Chassis imprint, proof of identity and proof of address have to be submitted. 

    The RTO then will issue an interstate automobile transfer NOC within a timeline of 2-3 weeks.

  2. Step 2:
    There are a specific set of documents needed for car registration renewalin other state mentioned as below which you need to submit:
    1. Documents that need to be shown in the original include Smart Card, Insurance Document, Pollution Under Control or PUC Certificate
    2. The Original Invoice so that the RTO can compute the road tax basis the depreciation of the vehicle
  3. Step 3: Re-registration of vehicleand Road Tax payment

    After the above step, you can apply for Re-registration of the vehicleand pay the appropriate road tax with a certain set of documents for the vehicle, your personal documents, NOCs etc. The following documents are to be submitted by you at the RTO

    1. Re-registration of the vehiclecan be made in Form Number 20, the application for registration for your vehicle and Form number 33, the application of intimation for address change
    2. If you have a used vehicle, you must submit the relevant documents for the transfer of title or ownership
    3. After the vehicle is being registered, you can apply for a refund of tax as appropriate

List of documents needed for re-registration of a Vehicle

Here is the exhaustive list of documents that are needed for re-registration of a Vehicle:

  1. Application Form in Form Number 27 as mentioned above
  2. Registration Certificate
  3. No Objection Certificate as mentioned above
  4. Residence Proof
  5. Certificate of Insurance
  6. PUC
  7. Form Number 28 as mentioned above
  8. Form Number 20 as mentioned above
  9. In the case of commercial vehicles, Challan clearance from the department of traffic police
  10. Certificate of Fitness
  11. PAN Card or Form 60 as applicable
  12. Fee for parking
  13. Certificate manufactured about emission standards
  14. Sketch imprint of the Chassis and the Engine
  15. Your Date of Birth proof
  16. Proof for the address of the seller
  17. Sign identification of the seller

Fees re-registration of a Vehicle

There is a charge for re-registration of the vehicle which must be paid before the process is completed. Here is a list of the required fees that need to be paid for re-registration of a Vehicle:

Vehicle Type

Amount (INR)

Two Wheelers

300

Light Motor Vehicle for Non-Transport

600

Light Motor Vehicle for Transport

1000

Vehicles carrying medium goods

1000

Vehicles carrying medium passengers

1000

Motor Cycle which is Imported

2500

Vehicles carrying heavy passengers

1500

Motor vehicles which are Imported

5000

Vehicles carrying heavy goods

1500

Other vehicles not included in the above list

3000

Points to keep in mind while applying for a Re-registration of the vehicle:

The Registration Certificate can be renewed easily and you need to keep in mind the following points:

  1. Within 60 days of the Registration Certificate expiry, the fresh application for the renewal of the Registration Certificate has to be made via Form number 25 to the particular authority in registration in the same area the vehicle is registered
  2. Payment has to be clear for all the taxes which are unpaid if there are any
  3. Payment has to be made as per in the CMVR Act of 1989

The car registration renewalof a private vehicle is effective for a period of 5 years. You are allowed to renew them every 5 years as mentioned above.

Re-registration is a legal and easy process which can be quite hassle-free if you get the documents beforehand. All you need to do is to follow the process, get the right documents and get the vehicle re-registered.

FAQs

  1. Is re-registration and reassignment of registration certificate same?

    Yes, re-registration and reassignment of registration certificate are the same and the same applies when you are moving from one state to the other.

  2. Is Transfer of ownership related to re-registration?

    No, transfer of ownership and re-registration are different. Transfer of ownership happens under the following 3 scenarios:

    • Transfer of ownership when you are selling your vehicle to another buyer

      As soon as the vehicle is sold off, the name of the buyer is recorded as the registered owner of the vehicle instead of the earlier registered owner and this process is called as the transfer of ownership.

    • Transfer of ownership upon the death of the owner of the vehicle

      As soon as the registered owner of a vehicle dies, transfer of ownership is effective in the name of the legal heirs of the expired registered owner and the usage of the vehicle can be for a period of 90 days within 30 days from the date of death of the owner.

    • Transfer of ownership in auction

      When a vehicle is sold in public auction, the name of the buyer is recorded as a registered owner instead of the earlier registered owner and once again this is the process called and named as the transfer of ownership.

  3. Is No Objection Certificate mandatory in case of re-registration?

    Yes, it is compulsory to get the No Objection Certificate and is a crucial step in the process of re-registration of your vehicle.

  4. What documents are needed for address change in the registration certificate?

    You can change the address in the RC book once you are shifted to a different state. As an owner of the vehicle to register a new address in case of any change in the address, you need to apply for the same with a certain document which is as follows:

    • Form number 33 application form for address change in the RC book
    • RC book
    • Your new address proof
    • Pollution Under Control Certificate
    • Certificate of Insurance
    • No objection certificates
    • Fee for the Smart card fee or the registration certificate
    • Your attested PAN card copies or form 60 as appropriate
    • Sketch imprint of the Chassis and the Engine
    • Your signature proof as an owner
  5. What documents are accepted as proof of residence?

    Any one of the following documents is accepted as proof of residence.

    • Ration card
    • Passport
    • Voters’ Id
    • Aadhar Card
    • Life insurance policy
    • Utility bills like telephone bill, electricity, gas bill
    • State or Central Government issued payslip
    • House Sale or Rent Agreement

IRDAI’s new rules would reduce your out-of-pocket expenses. Here’s how

Health insurance plans prove to be a blessing in times of medical emergencies when expensive treatments and hospitalisation might blow a hole in your finances. Health plans cover your hospitalisation expenses as well as the costs of treatments sparing you the financial burden. 

The Insurance Regulatory and Development Authority of India (IRDAI) constantly makes changes in the rules and regulations governing health insurance plans to make the plans more customer-friendly. Recently, IRDAI has made new guidelines for the concept of ‘proportionate deduction’ which is applicable under plans with room rent sub-limits. Before having a look into the recent changes made by the regulator, let’s understand the concept of proportionate deduction and how it works.

Sub-limits on room rent

Under many health insurance plans, especially when the sum insured is up to INR 5 lakhs, there are sub-limits on room rent covered under the policy. This sub-limit is expressed as a percentage of the sum insured and ranges between 1% and 2% of the sum insured. For example, if the sum insured is INR 5 lakhs and room rent sub-limit is 1% of the sum insured, the applicable limit would be INR 5000/day.

Proportionate deduction – the concept

Many hospitals have preferential pricing for treatments and doctor’s fee depending on the type of room that they are admitted. If you are admitted to a suite room and undergo an appendectomy, its cost would be higher compared to the same treatment taken in a normal room. So, since hospitals price their costs based on the room rent, health insurance companies do not want to pay higher claims for rooms with higher room rents especially when there is a specific sub-limit on the rent under the plan.

The concept of proportionate deduction, thus, becomes applicable if your actual room rent exceeds the specified limit. If your actual room rent is higher than the allowed limit, the insurance company does not pay the full cost of inpatient hospitalisation. It reduces the bill proportionately to the cost which would have incurred had you taken treatments in a room within the allowed room rent. Let’s understand with an example –

Say for a plan with a sum insured of INR 5 lakhs, the room rent limit is 1% or INR 5000. If you seek treatment in a room whose rent is INR 6000 and incur a total hospitalisation bill of INR 1.5 lakhs, the claim payable would be calculated as follows –

INR 1.5 lakhs * (5000/6000) = INR 1.25 lakhs

Thus, even if the claim is within the sum insured, the amount would be proportionately reduced to arrive at a figure proportional to the allowed room rent. Any excess costs incurred, i.e. INR 25,000 in the above example, would be borne by you and become your out-of-pocket expenses.

What has changed?

IRDAI has made two important changes in the concept of proportionate deduction in health insurance plans. These changes are as follows –

  • Costs included under proportionate deduction

    Earlier, health insurers considered the total inpatient hospitalisation bill when calculating the proportionate claim payable. However, in the recent guidelines, IRDAI has eliminated some medical costs from the purview of proportionate deduction. The following costs would now no longer be considered in the hospitalisation bill when doing proportionate deductions – 

    • Pharmacy costs
    • Costs of medical implants and devices
    • Cost of diagnostic tests
    • Consumables 

    Other hospitalisation costs would be considered when calculating the proportionate amount of claim thereby reducing your out-of-pocket expenses.

  • Non-applicability of proportionate deduction 

    According to the guidelines specified by the IRDAI, if hospitals do not have different room rents for different rooms, the concept of proportionate deduction would not apply. In that case, if the actual room rent is higher than the sub-limit, the total inpatient hospitalisation claim would be paid by the insurance company without any deduction.

Furthermore, if the insured is admitted to the ICU, the concept of proportionate deduction would not be applicable because ICU rent is fixed and does not change with the type of room you are admitted into.

Implementation of the change

These changes would be made effective for all new health insurance plans bought on or after 1st October 2020. For existing policies bought before 1st October 2020, the changes would be effective from 1st April 2021.

What the changes mean for you?

As specific costs are being excluded from the computation of proportionate claim, you would get full coverage for such costs irrespective of the room rent. Moreover, if you seek admission at hospitals where there are no different room rent categories or in case of ICU admissions, proportionate deduction would not apply. All these aspects would increase the claim amount payable and reduce your out-of-pocket expenses thereby making health plans more pocket-friendly.

The rules are, therefore, a welcome change for health insurance customers and might even drive the sale of new health plans. Your health plan has just become better and you should know these changes to know the expected out-of-pocket expenses when claims occur.

Complete Information on How to Transfer Two-Wheeler Ownership

Buying a second-hand bike is quite common in today’s age. A second-hand bike is more affordable and it also fulfils your conveyance needs. That is why the used vehicle market is growing as sellers sell off their existing bikes to buy newer models or to invest in a car and buyers looking for affordable options buy them. While buying and selling used bikes has become easy in today’s times, you should know the process of transferring the ownership of the bike. As long as the used bike is not transferred from the name of the seller to the buyer, the purchase process is not complete. Thus, it becomes necessary to understand how the ownership is transferred if you sell or buy a used bike.

A transfer of ownership not only completes the process of buying a second-hand two-wheeler, but it is also essential to avoidany future problems and difficulties concerning registration of the vehicle, insurance policies for the vehicle, etc. Moreover, the Motor Vehicles Act, 1988 also mandates the transfer of ownership if the bike is bought and sold second hand. So, let’s understand the process of Bike Ownership Transfer in detail.

Process of Bike Ownership Transfer

For the purpose of Bike Ownership Transfer, you should take the following steps –

  • If you are the buyer you are required to submit an application form for transferring the ownership of the two-wheeler. This form should be submitted to the same RTO office where the two-wheeler or bike that you are buying was previously registered
  • You are, then, required to submit two forms at the Directorate of Transport office. These forms are Form 29 and Form 30. Form 29 is a No Objection Certificate which should be signed by the seller stating that the seller has no objection in transferring the ownership to the buyer. Form 30 is the report or intimation of transfer of ownership. This form should be filled by you, the buyer as well as the seller and it would contain the signatures of both parties. Along with these forms, you would also have to submit certain documents like tax paid receipts, insurance, RC, proof of address of the seller, a photograph of passport size, etc. All these documents should be submitted in original
  • Once all the necessary verification process has been done by the RTO, the ownership documents and the insurance documents of the two-wheeler would be transferred to the buyer within 14 days
  • If the buyer and seller of the bike live in the same State, the buyer would have two weeks’ time to submit the forms and documents for transfer to the concerned RTO. On the other hand, if the buyer and the seller live in different States, the forms and documents for the transfer of the vehicle should be submitted within 45 days
  • If the seller of the two-wheeler dies, the buyer should inform the RTO about the death of the seller. The death certificate should be submitted along with the forms and documents of transfer of ownership. The buyer can, then, apply for Bike Ownership Transfer within 3 months of the death of the seller.

Documentation required for Bike Ownership Transfer

To complete the process of transfer of ownership of the bike, the following documents would have to be submitted –

  1. Certificate of Registration:
    This is a compulsory document for the transfer of ownership to be effected. The seller should give the certificate of registration to the buyer of the bike. This document confirms and endorses the fact that the bike or the two-wheeler belongs to the seller.
  2. Pollution Certificate or PUC:
    Once again, a mandatory document which states that the two-wheeler has followed all the rules relevant to pollution control and is PUC certified.
  3. Certificate of Insurance:
    An insurance cover on the bike is necessary as per the Motor Vehicles Act, 1988. Due to this rule, the bike, which is being bought, would have an insurance cover on it and the policy would be in the name of the seller. This insurance policy would also have to be transferred in the name of the buyer and for the transfer to take place the certificate of insurance would be required. At the time of buying the bike, the insurer would have to be informed of the sale of the bike so that the insurance cover can be transferred in the name of the buyer.

Other documents required for Bike Ownership Transfer

The above-mentioned documents are the three important documents which would be required in all cases of buying a second-hand bike. Besides these three mandatory documents, there are other documents too which are required to be submitted when you are buying or selling a second-hand bike. These documents depend on how the bike is being bought or sold second hand. So, let’s have a look at the documents required in different instances of bike ownership transfers –

  1. In case of standard purchase and sale of a second-hand bike:

    If you are buying or selling a second-hand bike under normal circumstances, the following additional documents would be required to be submitted –

    ⮚Form number 29, which is the No Objection Certificate and which has been filled and signed by the seller of the bike

    ⮚If the two-wheeler is being bought or sold within the same State, a No Objection Certificate from the RTO would be required. If, however, the two-wheeler or bike is being transported from a different State, then you would have to provide the No Objection Certificate or NOC of the entry tax for that State. However, in the case of transporting from another State, the bike should not be more than 30 months old.

    ⮚Original RC book of the bike

    ⮚Receipts of road tax paid on the bike

    ⮚Passport-sized photographs of the seller

    ⮚If the seller had bought the two-wheeler through a two-wheeler loan and the loan has not been repaid fully at the time of sale of the bike, then a No Objection Certificate or NOC from the lender would also be required. The bank or the financial institution from where the loan was availed should issue a No Objection Certificate on the transfer of the bike. This certificate is also needed to be furnished to the RTO at the time of transfer

  1. In the case of Death of the Owner:

    If the owner of the bike dies, the buyer would have to submit the below-mentioned documents for transferring the ownership of the bike in his/her name –

    • Form number 30, which is the notice of transfer, has to be filled appropriately with the accurate details of the bike. The chassis inscription of the bike should also be attached with the form when it is submitted.
    • Form number 31 which is the form for transfer of ownership of a vehicle in case of death of the seller
    • Form named TCA which is the intimation of transfer by the buyer and TCR which is the intimation of transfer by the seller,
    • Since the seller has died, the death certificate of the seller would be required to be submitted to the RTO
    • Other important documents like the succession certificate, affidavit from the preceding owner of the vehicle and the No Objection Certificate from the financial institution or the financer (if the bike was financed) are also needed.
    • All the documents pertaining to the vehicle together with the fee for registration. As per Rule 81 of the Central Motor Vehicles Rules 1989, the fee will be charged as appropriate.
  1. In case of the auction of the bike:

    If a bike is being bought at an auction, the following documents would be required –

    1. Form number 32 which is the application for transfer of ownership of the bike when the bike is bought at a public auction
    2. PAN card of the buyer of the bike. If, however, the buyer does not have a PAN Card, Form 60 should be filled and submitted
    3. Vehicle’s Chassis and Engine pencil print
    4. Proof of date of birth of the buyer
    5. Proof of address of the buyer
    6. An undertaking by the buyer
    7. Passport size photographs of the buyer of the bike
    8. Tax clearance certificate
    9. A certificate which certifies that the vehicle or the bike is sold to the new owner in an auction which is being directed by the Central Government or the State Government
    10. A certificate which confirms that the auction has been directed by the Central Government or the State Government

Two-wheeler ownership transfer fees

To get the ownership transferred in your name, you would have to pay a transfer fee to the RTO. This transfer fee is equal to INR 30.

So, if you are buying a second-hand bike, do know the process for the transfer of the bike and the documents which would be needed for such transfer. Only when the process is followed and you submit all the relevant documents would you be able to become the owner of the second-hand two-wheeler that you buy. So, remember the process, arrange for all the relevant documents and buy that second hand bike which you need.

Frequently Asked Questions

  1. How can I get the insurance policy transferred in my name?

    Only transferring the ownership of the bike is not enough, the insurance policy on the bike should also be transferred. To transfer the insurance policy, you should inform the insurance company of the purchase of the second-hand bike. You would, then, have to submit the new RC book which contains your name as the owner of the vehicle, original policy document, your address proof and passport-sized photographs. Once the documents are submitted, the insurance company would verify the documents and transfer the insurance policy in your name. You might be required to pay a fee for transferring the insurance policy in your name. This fee would depend on the insurance company and would be communicated to you when you request for transfer of the policy.

  2. Within how much time should the insurance policy be transferred?

    The insurance policy should be transferred within 14 days of buying a second-hand bike.

  3. I am buying a second-hand bike from another State. Where should I apply for transfer of ownership?

    The application for transfer of ownership of the bike would have to be made in the State where the bike is registered. 

  4. I am selling my bike second hand. Would I lose the accumulated no claim bonus on my bike insurance policy when I transfer it to the buyer?

    No, the no claim bonus remains with the seller when the bike insurance policy is transferred. So, you would be able to retain the no claim bonus when you transfer your insurance policy to the buyer of your bike.

  5. If the insurance policy has lapsed on the bike, can the transfer of ownership be done?

    Usually, the bike insurance policy would have to be renewed when the bike is being sold second hand. When the policy has been renewed by the seller then the process of transfer of ownership can be done.