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.
Insurance plans cover the different types of financial risks that you might face and compensate you for the financial loss that you suffer. You buy different types of insurance policies to avail a comprehensive scope of coverage against possible risks that you might face. Life insurance, health insurance and motor insurance plans are the most basic and important coverages needed for financial security. But what happens under these plans when the policyholder dies?
Each type of plan is affected differently on the death of the policyholder. So, let’s assess the plans independently for a clearer picture.
Life insurance plans
Life insurance plans cover the risk of premature death. Under these plans, the policyholder and the life insured can be two different individuals. For example, if you buy a life insurance policy on your life and you pay the premium, you would be the policyholder as well as the life insured. However, if you buy a life insurance policy on your wife’s or children’s life, you would be the policyholder but your wife and/or children would be the life insured.
Life insurance plans pay the death benefit if the life insured dies. If the life insured and the policyholder are the same person, the death benefit is paid on death of the policyholder and the plan is terminated. However, if the life insured and policyholder are different individuals and the policyholder dies, the insurance policy would not be affected. The policy would continue till the life insured is alive and the due premiums should be paid under the plan for receiving full benefits. If the life insured dies, the plan would pay the death benefit and terminate.
Let’s understand with an example –
Suppose, Mr. Verma buys three life insurance policies as follows –
- Policy 1 for himself
- Policy 2 for his wife
- Policy 3 for his child Rahul
Here’s what would happen to the policies when Mr. Verma, the policyholder, dies –
|Policy details||Policyholder||Life insured||Benefit payable|
|Policy 1||Mr. Verma||Mr. Verma||Death benefit would be paid and the policy would be terminated|
|Policy 2||Mr. Verma||Mrs. Verma||No effect on the policy. The policy would continue since Mrs. Verma is alive. The premiums should be paid for complete coverage|
|Policy 3||Mr. Verma||Rahul||No effect on the policy. The policy would continue since Rahul is alive. The premiums should be paid for complete coverage. If this is a child plan, the premiums would be waived and the plan would continue unaffected|
If the death benefit is payable on the policyholder’s death, the benefit would be paid to the appointed nominee, beneficiary or legal heir of the insured.
Health insurance plans
Health insurance plans cover medical expenses incurred if the insured is hospitalised. They also have the concept of policyholder and insured members. If you buy the policy for yourself, you would be the insured and the policyholder. If, however, you buy a family floater plan or a senior citizen policy for your dependent parents, you would be the policyholder while your family members would be covered under the plan.
Whether you are the insured or not, if you die, no benefit would be paid by the health insurance policy since death is not covered under such plans. However, if the policyholder dies during treatments or after incurring a claim under the health plan, the claim process would have to be handled by the nominee. In case of cashless claims there would be no problems as the insurance company would settle the medical bills directly with the hospital. However, for reimbursement claims, the nominee should complete the claim formalities and the claim amount would be reimbursed to the nominee’s account.
If, after the death of the policyholder, the spouse wants to continue the family floater policy, he/she can submit a written request to the insurance company to change the policyholder at the time of renewals. The death certificate of the policyholder should be submitted along with original policy document for the change. The insurance company would recalculate the premium for the family and renew the family floater policy with the spouse acting as the policyholder.
Motor insurance plans
Under motor insurance plans, since the vehicle is insured, in case of death of the policyholder, no claim is payable. However, death of the policyholder results in change in ownership of the policy as well as the vehicle. For doing that, the legal heir should, first, get the ownership of the vehicle changed in the local RTO. An application should be made to the RTO for a change in ownership of the vehicle. The applicable RTO form, original RC book, death certificate of the policyholder, succession certificate and the identity proof of the legal heir would be needed for such change. Once the RC Book is updated with the name of the legal heir as the new owner, the insurance policy can be transferred too. The legal heir should inform the insurance company and submit the original policy document, updated RC book, death certificate of the policyholder, succession certificate and identity proof to get the motor insurance policy transferred in his/her name. The insurance company would do the needful and the legal heir would become the new policyholder.
Even if the vehicle is sold after the death of the policyholder, the insurance policy and the RC book need to be updated with the name of the legal heir to complete the sales. The legal heir would be allowed to sell the vehicle and transfer the ownership of the vehicle as well as its insurance policy to the new buyer subsequently.
You should understand the impact of the death of the policyholder under these common and important insurance plans. If you are the policyholder of your policies, educate your family on how they can claim the policy benefits in case of your unfortunate demise.
A term insurance policy is a must for financial protection against the risk of premature death. If the breadwinner dies, the family needs sufficient financial reserves to help them meet their lifestyle expenses and financial responsibilities. A term insurance plan does exactly that and becomes important in financial planning. Given the importance of term insurance, every insurance company offers this coverage. Moreover, modern day term plans have become comprehensive and offer a range of coverage benefits to policyholders. Understanding these benefits and choosing an affordable plan might become challenging and so the Insurance Regulatory and Development Authority of India (IRDAI) has introduced the concept of a standard term insurance plan called Saral Jeevan Bima. Let’s have a look at what this plan is all about–
What is Saral Jeevan Bima?
Saral Jeevan Bima is a standardized term insurance plan which would be offered by all insurance companies with a uniform set of coverage features. The plan would launch on 1st January 2021 and insurance companies are required to file this product with IRDAI by 1st December 2020. The coverage benefits, exclusions and eligibility parameters of the plan would be uniform across all insurance companies. However, the premium rate can be fixed by the companies based on their pricing policies.
Salient features of Saral Jeevan Bima
Here are some of the salient features of Saral Jeevan Bima for your knowledge –
- You can choose the sum assured within the minimum and maximum limits in multiples of INR 2.5 lakhs
- You can pay the premium once, for a limited period or throughout the policy tenure depending on your affordability
- The plan does not have any maturity benefit
- On death, higher of the following would be paid –
- 10 times the annual premium or 1.25 times the single premium
- Sum assured
- 105% of total premiums paid till death for limited or regular premium plans
- You can opt for two riders for a comprehensive scope of coverage. The riders allowed include Accident Benefit Rider and Permanent Disability Benefit Rider
- There is no surrender value or loan payable under the plan
- Death within 45 days of buying the policy, except due to accidents, would not be covered
- The plan has no exclusions except suicide. If the insured commits suicide within a year of buying or reviving the plan, the death benefit would not be paid only the premiums paid would be refunded
Eligibility conditions of Saral Jeevan Bima
Here’s a look into the eligibility conditions and coverage criteria of Saral Jeevan Bima –
|Entry age||18 years||65 years|
|Maturity age||23 years||70 years|
|Policy tenure||5 years||40 years|
|Sum Assured||INR 5 lakhs||INR 25 lakhs|
|Premium paying term||Regular premium – throughout the policy tenure
Limited premium – 5 years or 10 years
Single premium – once
What does the plan mean for you?
Saral Jeevan Bima is a right step in the direction of standardizing term insurance plans. Given the range of policies available in the market with exhaustive coverage, choosing the best plan might prove difficult, especially when you are short on time. Moreover, affording a very high sum assured might not be possible for many. Saral Jeevan Bima overcomes these difficulties and allows you to buy a term plan with decent coverage at affordable premiums. You can also compare the plan across insurers based on its premium because the other features would be the same. So, comparing and buying a term insurance plan would become easier for you.
What does the plan mean for insurers?
For insurance companies, this standardization is beneficial. As the policy is simple to understand and easy to buy insurers can sell the plan over-the-counter and increase their revenue. Moreover, as the plan becomes popular, insurance penetration is expected to increase. Insurers can target low-income individuals who want suitable coverage at affordable costs and provide them with the much-needed insurance cover and boost their business at the same time.
The Saral Jeevan Bima plan is, therefore, beneficial for both customers and insurance companies and once the plan is launched, it is expected to become popular.
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
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
- 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
- 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
- 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
- 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.
With the Coronavirus pandemic becoming a major concern, the Insurance Regulatory and Development Authority of India (IRDAI) introduced two COVID-specific health insurance plans of Corona Kavach and Corona Rakshak. These plans were aimed to provide individuals the much-needed health insurance coverage against COVID-related hospitalisation expenses. While Corona Kavach was launched as an indemnity health plan, Corona Rakshak was a launched as a fixed benefit plan paying a lump sum benefit on hospitalisation due to COVID. After their launch, these plans became the ideal solution for individuals seeking short term coverage against COVID infections. However, since the pandemic is still a severe threat, IRDAI has asked insurance companies to provide continuity benefits in Corona Kavach policy. Let’s have a look at what IRDAI has proposed –
IRDAI’s changes in the context of Corona Kavach and Rakshak
IRDAI has allowed three new benefits in the Corona Kavach and Rakshak plans. These benefits are as follows –
Let’s have a look at these three changes in details and what these changes mean for you.
Change#1 – Renewal benefit
Corona Kavach and Corona Rakshak were both launched as short-term health insurance plans having a tenure of 3.5, 6.5 and 9.5 months. However, since the pandemic is not under control and there has been no development of a successful vaccine, IRDAI has asked insurance companies to allow extended coverage under these policies. Policyholders are allowed to renew their existing Corona Kavach or Rakshak plans if the coverage tenure expires. You can renew the policy before the existing cover expires and also opt for enhancement of the sum insured. On renewal, the waiting period of 15 days would not apply. However, if you increase the sum insured, the waiting period would be applicable on the increased amount. Renewal would be allowed up to 31st March 2021.
What it means for you?
The Corona Kavach policy provides a comprehensive scope of coverage against COVID compared to normal health insurance plans. It covers the cost of consumables incurred on hospitalisation as well as home hospitalisation expenses which are not covered under normal health plans. Moreover, Corona Rakshak gives you a lump sum benefit to meet other financial expenses that you might incur. The facility of renewal is beneficial for you as you can extend your coverage till the vaccine is developed and you don’t fear the threat of infection.
Change #2 – Portability benefit
IRDAI has also allowed policyholders to port their existing Corona Kavach and Rakshak plans from one insurance company to another if they are dissatisfied with their current insurance company. Porting is also allowed from an existing Corona Kavach or Rakshak policy to a standard indemnity oriented health insurance plan. When the policy is ported, the new insurance company should allow a reduction in the waiting period in the new plan for the waiting period already applied in the existing policy. Policyholders are also allowed to increase their sum insured at the time of porting.
What it means for you?
With the option of portability, you can switch to another insurance company if you are not satisfied with the current company. You can also find a lower premium offered by another company for the same policy since insurers price their Corona Kavach and Rakshak policies differently. So, porting allows you the option of choosing the best insurance company for your coverage.
Change #3 – Migration
Through migration facility, you can convert your Corona Kavach or Rakshak plan to a standard indemnity health insurance plan which covers other illnesses besides COVID. Migration, therefore, allows policyholders to change their COVID specific plans to normal health insurance plans and expand the scope of coverage. When you migrate, you can carry forward the waiting period of the existing plan to the new plan. The premium would change when you migrate as the scope of coverage increases. Moreover, the new policy might have sub-limits on room rent and pre-existing waiting periods which you should factor in before you choose to migrate. You would be allowed to enhance the sum insured on migration but if the sum insured is increased, the waiting period would apply again on the increased amount of coverage.
What it means for you?
This is a beneficial change as it allows you to convert your COVID policy to a more comprehensive plan when your COVID coverage need is fulfilled. Thus, you can enjoy wider coverage and also enjoy the continuity benefit of the existing policy.
These changes by the IRDAI have widened the scope of both Corona Kavach and Rakshak health insurance policies and made them more customer-friendly. These plans now offer better benefits and you can insure yourself and your family under these policies to protect against COVID and its related expenses.
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:
- 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
- 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:
- As the registered owner of the vehicle will have to put an application to the same RTO where the vehicle was registered
- 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
- 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:
- 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:
- Properly filled Form Number 25 which is the application of renewal of registration
- Registration Certificate in original
- A valid Pollution Under Control Certificate or the PUC
- Insurance Certificate of the Vehicle
- 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:
- 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
- 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:
- 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:
- 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
- A No Objection Certificate should be attained from National Crime Record Bureau or NCRB affirming that its not a stolen vehicle
- 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
- You need to provide 3 properly filled copies of:
- Form No 27, i.e. the application for the assignment of new registration,
- Form number 28, i.e. the application and
- The grant of No Objection Certificate together with
- NOCs from the Traffic Police,
- NCRB as well as
- The financer to obtain the NOC from the respective RTO
- 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.
- Step 2:
There are a specific set of documents needed for car registration renewalin other state mentioned as below which you need to submit:
- Documents that need to be shown in the original include Smart Card, Insurance Document, Pollution Under Control or PUC Certificate
- The Original Invoice so that the RTO can compute the road tax basis the depreciation of the vehicle
- 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
- 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
- If you have a used vehicle, you must submit the relevant documents for the transfer of title or ownership
- After the vehicle is being registered, you can apply for a refund of tax as appropriate
The RTO then will issue an interstate automobile transfer NOC within a timeline of 2-3 weeks.
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:
- Application Form in Form Number 27 as mentioned above
- Registration Certificate
- No Objection Certificate as mentioned above
- Residence Proof
- Certificate of Insurance
- Form Number 28 as mentioned above
- Form Number 20 as mentioned above
- In the case of commercial vehicles, Challan clearance from the department of traffic police
- Certificate of Fitness
- PAN Card or Form 60 as applicable
- Fee for parking
- Certificate manufactured about emission standards
- Sketch imprint of the Chassis and the Engine
- Your Date of Birth proof
- Proof for the address of the seller
- 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:
Light Motor Vehicle for Non-Transport
Light Motor Vehicle for Transport
Vehicles carrying medium goods
Vehicles carrying medium passengers
Motor Cycle which is Imported
Vehicles carrying heavy passengers
Motor vehicles which are Imported
Vehicles carrying heavy goods
Other vehicles not included in the above list
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:
- 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
- Payment has to be clear for all the taxes which are unpaid if there are any
- 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.
- 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.
- 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.
- Transfer of ownership when you are selling your vehicle to another buyer
- 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.
- 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
- What documents are accepted as proof of residence?
Any one of the following documents is accepted as proof of residence.
- Ration card
- 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
Medical costs are increasing by leaps and bounds as modern-day medicine has become advanced and technology-driven. At the same time illnesses are rising as lifestyle changes have made people prone to health risks. In this scenario, affording quality healthcare has become difficult and challenging for many because of financial constraints. That is why people invest in health insurance plans to protect against the financial strain of a medical emergency.
When it comes to health insurance plans, buying them is easy as the plans can be bought online. However, there is a concept of pre-entrance health check-up under many policies before the coverage is granted. Let’s understand what this check-up is all about –
What is pre-entrance health check-up?
When you buy a health insurance plan, the insurance company insures the risk of diseases and injuries. While injuries cannot be predicted, it is easy to predict the occurrence of diseases based on your medical health. That is why many insurance companies ask you to undergo specific medical check-ups before you can avail coverage. These check-ups are called pre-entrance health check-ups as they are required before buying the policy.
Why such medical check-ups are required?
Insurance companies want to assess the probability of claims in the policies that they issue. To assess this probability they insist on pre-entrance medical check-ups. The medical check-ups help insurers understand the present medical condition of the insured and to find out if there are any pre-existing illnesses or medical complication. If the medical reports are found to be favourable, insurance companies can easily offer coverage to the insured. If, however, the medical reports show some medical complications, health insurance companies can do one or more of the following –
- Increase the premium to compensate for the higher health risk that they are undertaking by issuing the policy
- Restrict the amount of coverage available
- Put restrictive coverage terms on coverage of specific illnesses which might arise due to the medical complication found in the report
- Reject the proposal for insurance altogether if there is a very high health risk
The requirement of medical check-ups in health insurance plans
Now that you know why medical check-ups are required by health insurance companies, you should know that not all health insurance plans need you to undergo pre-entrance health check-ups. The requirement of pre-entrance medical check-ups occur in one or more of the following instances –
- If your age is high
Usually, health insurance plans require pre-entrance health check-ups if you are aged 46 years and above. It is believed that individuals up to 45 years of age are comparatively healthy and as the age advances, medical complications set in. So, under many plans, you would find the requirement of pre-entrance health check-ups if you are aged above 45 years. Some plans, however, do not need pre-entrance health check-ups till 55 or even 60 years of age.
- If you opt for a high sum insured
If you choose a sum insured which is high, the risk for the insurance company increases as the claim amount increases. As such, for high levels of the sum insured, pre-entrance health check-ups are needed even when you are young. Generally, the sum insured level above which pre-entrance medical check-ups are required is INR 10 lakhs while some plans might even allow coverage up to INR 20 lakhs without medical check-ups. However, if you choose a higher limit of sum insured, medical check-ups would become mandatory even when you are young.
- If you declare an adverse medical condition in the proposal form
When filling up the proposal form you are required to divulge your medical history and present medical condition to the best of your knowledge. So, when filling up the proposal form if you mention that you suffer from an adverse medical complication or condition, the insurance company might ask you to undergo a medical check-up before issuing the policy irrespective of your age and the sum insured that you choose.
Health insurance without medical check-up
When it comes to undergoing pre-entrance health check-ups, many individuals tend to avoid buying the health insurance plan altogether. The reasons for such avoidance are as follows –
- They are averse to the idea of pre-entrance medical check-ups even when such check-ups can help them know about their health.
- Many also fear the detection of a medical condition which might increase the premium charged and avoid buying plans with medical tests.
- People find it inconvenient to undergo health check-ups before buying the policy
- The insurer bears the cost of pre-entrance health check-ups only if the policy is issued. If the policy is rejected, the cost falls on the shoulders of the policyholder which is an added expense
- Many companies pay only 50% of the cost of health check-ups making policyholders pay the remaining 50%. This is an added expense which many individuals do not like to undertake
Whether it is a mental aversion to health check-ups, the costs involved or the inconvenience of undergoing the test, pre-entrance medical tests are not favoured by all. That is why many people look for health insurance plans which do not require medical check-ups. Are there such plans available?
The answer is ‘Yes’. There are health insurance plans which do not require pre-entrance health check-ups up to a certain age and/or sum insured limit. Let’s have a look at such health insurance plans without medical check-ups –
Name of the health plan
The need for medical check-ups
Star Health Family Health Optima
No medical check-ups needed till 50 years of age. However, if an adverse medical history is mentioned in the proposal form, medical check-ups would be needed
HDFC Ergo Health Easy Health Plan
Pre-entrance medical check-ups depend on the entry age and the sum insured opted. If the tests are required, 100% of the cost of the tests would be borne by the insurance company
Universal Sompo Complete Healthcare Insurance Plan
Pre-entrance medical check-ups are not needed till 55 years of age. However, if there is a medical complication disclosed in the proposal form, medical check-ups might be required even if you are below 55 years of age
Care Health Insurance Plan
Pre-entrance medical check-ups are not required till 45 years of age if the sum insured is below INR 15 lakhs. For higher sum insured levels and/or higher ages, medical check-ups would be compulsory
Manipal Cigna ProHealth Plus
No pre-entrance medical check-ups would be required till 45 years of age if the sum insured is up to INR 50 lakhs. For higher ages and/or sum insured, pre-entrance health check-ups would be needed
Disclosures at the time of buying health insurance
Even if you are young or you choose a low level of sum insured, you might be required to undergo pre-entrance health check-ups if you disclose about any adverse medical condition in the proposal form when you apply for a health insurance policy. Fearing this many individuals try to hide important medical information when buying a health insurance policy. This is a mistake because of the following reasons –
- If you hide material information which directly impacts the risk undertaken by the insurance company, you breach the principle of utmost good faith. If the insurance company finds about your non-disclosure, the policy would be cancelled and it would become null and void. You would not only lose coverage but also the premium paid under the policy
- At the time of claims, if the insurance company finds out that you did not disclose about your medical condition when buying the policy, it might reject your claim
To avoid claim rejections and termination of coverage, you should always disclose about your medical condition when buying a health insurance plan. In case of an adverse medical complication, the company might increase your premium or limit the coverage but your claims would be honoured when the time comes and even your policy would not become null and void. So, complete disclosure at the time of buying a health insurance policy is a must.
While there are health insurance plans which do not require medical check-ups, remember that such plans would allow only limited coverage without health check-ups. So, if you are looking for a higher sum insured and want comprehensive protection, do not avoid medical check-ups. Undergo the required medical tests and get comprehensive coverage.
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
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.
The trend of healthy living has gone viral. Many of you opt for organic food, go for walks, practice Yoga, Zumba or Pilates and/or opt for a balanced and nutritious diet. While healthy living helps you stay fit, now, you can also get rewards in your health insurance plans for your heathy efforts.
Earlier, some health insurance policies were rewarding you for practicing healthy habits. For instance, HDFC Ergo Health’s Optima Restore and Easy Health Plans have a Stay Active Benefit which gives you a premium discount if you take a specified number of steps in a policy year. Now, the Insurance Regulatory and Development Authority of India (IRDAI) has asked all health insurance providers to design health plans with wellness benefits. IRDAI has asked companies to reward their customers for practicing a healthy lifestyle. Let’s have a look at what the IRDAI guidelines state –
Health rewards being promoted by IRDAI guidelines
IRDAI has asked insurance companies to provide one or more of the following benefits to policyholders –
- Cover for preventive healthcareCosts included in preventive healthcare are usually incurred on an outpatient basis. They include doctor’s consultations, health check-ups, pharmaceuticals, diagnostic tests as well as outpatient treatments. IRDAI has asked insurance companies to offer coverage for these OPD costs so that customers can track their health regularly. Insurers might offer such coverage at networked or empanelled hospitals. Alternatively, rather than covering such costs insurers can also allow discounts on the expenses if the same are incurred at specific hospitals.
- Wellness benefitsHealth insurance companies can issue vouchers to customers that can be redeemed on health supplements or on buying memberships of fitness clubs and centres. Moreover, if the insured member practices a wellness program during the policy tenure, a premium discount might also be allowed at the time of renewals.
- Coverage for excluded costsSome medical costs are not covered under inpatient hospitalisation which incurs out-of-pocket expenses for customers. IRDAI has urged insurance companies to cover such excluded costs as a part of a wellness program which they might start in their plans.
Insurance companies are free to choose the wellness benefit which they want to offer their customers. IRDAI has asked companies to mention the details of their wellness programs in plan brochures so that customers can find out the wellness rewards when buying the policy. These wellness benefits can also be offered either as an inbuilt benefit or as an add-on depending on the insurer’s practices.
Objective behind the new guidelines
In these new guidelines being pushed by the IRDAI, there are two main objectives. The first one is to promote the concept of healthy living among individuals. With the incentive of the reward program, IRDAI believes that policyholders would become mindful of their health to avail wellness benefits from their health insurance plans.
The second objective is to improve the claim experience of the insurance company. As individuals start practicing healthy living and take care of their health, the probability of claims due to illnesses would reduce. This would help insurance companies reduce their claim liabilities and improve their profitability. This improved profitability would, in turn, allow insurance companies to offer cheaper premium rates and more benefits to policyholders.
Thus, IRDAI’s benefits are beneficial for you, the customer, as well as the insurance company. In fact, you would become more health-conscious and start taking care of your health as health plans promote wellness benefits. Your lifestyle would improve and you would also get additional benefits from your health insurance plan. So, while the new guidelines are good for the insurance company, they are better for you, the customer, as they give you better benefits and might also reduce your health insurance premiums.