What’s the difference between sum assured and sum insured?

12:40 Unknown 1 Comments

Though on the face of it, the difference lies in only two alphabets, in principle the two terms have very different meanings. While a sum assured defines the benefit, sum insured only reimburses the insured loss.
Sum assured: It is a pre-defined benefit that the insurer pays to the policyholder in case the insured event takes place. For instance, in a life insurance policy, the insurer promises to pay the nominee a sum assured-a pre-decided amount-in case of the policyholder’s death. For this amount, the policyholder pays a premium to the insurer. If the policyholder dies during the term of the policy, the insurer will pay the nominee the sum assured and the policy terminates.
Sum insured: A policy that offers a sum insured works on the principle of indemnity. By definition, indemnity means compensation for any damage, loss or injury suffered. Non-life insurance policies such as health, motor and householder’s work on the principle of indemnity.

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What is plan and non-plan expenditure?

12:40 Unknown 0 Comments

There are two components of expenditure - plan and non-plan.
Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission.
Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments.
Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.

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What are indirect taxes?

12:39 Unknown 0 Comments

Indirect taxes are those paid by consumers when they buy goods and services. These include excise and customs duties.
Customs duty is the charge levied when goods are imported into the country, and is paid by the importer or exporter.
Excise duty is a levy paid by the manufacturer on items manufactured within the country. Usually, these charges are passed on to the consumer.

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What are direct taxes?

12:38 Unknown 0 Comments

These are the taxes that are levied on the income of individuals or organisations. Income tax, corporate tax, inheritance tax are some instances of direct taxation.
Income tax is the tax levied on individual income from various sources like salaries, investments, interest etc.
Corporate tax is the tax paid by companies or firms on the incomes they earn.

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What is a capital budget?

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  • The capital budget is different from the revenue budget as its components are of a long-term nature. The capital budget consists of capital receipts and payments.
    Capital receipts are government loans raised from the public, government borrowings from the Reserve Bank and treasury bills, loans received from foreign bodies and governments, divestment of equity holding in public sector enterprises, securities against small savings, state provident funds, and special deposits.
    Capital payments are capital expenditure on acquisition of assets like land, buildings, machinery, and equipment. Investments in shares, loans and advances granted by the central government to state and union territory governments, government companies, corporations and other parties.

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What do you mean by the revenue budget?

12:37 Unknown 0 Comments

The revenue budget consists of revenue receipts of the government (revenues from tax and other sources), and its expenditure.
Revenue receipts are divided into tax and non-tax revenue. Tax revenues are made up of taxes such as income tax, corporate tax, excise, customs and other duties that the government levies.
In non-tax revenue, the government’s sources are interest on loans and dividend on investments like PSUs, fees, and other receipts for services that it renders. Revenue expenditure is the payment incurred for the normal day-to-day running of government departments and various services that it offers to its citizens.
The government also has other expenditure like servicing interest on its borrowings, subsidies, etc.
Usually, expenditure that does not result in the creation of assets, and grants given to state governments and other parties are revenue expenditures. The difference between revenue receipts and revenue expenditure is usually negative. This means that the government spends more than it earns. This difference is called the revenue deficit.

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What do you mean by the Union Budget?

12:37 Unknown 0 Comments




  • The Union Budget is the annual report of India as a country. It contains the government of India’s revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31.
    The Union Budget is the most extensive account of the government’s finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year.

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What do you mean by Assessee?

12:36 Unknown 0 Comments

Assessee refers to the person whose income is being assessed. Every person who files his or her return is known as the assessee, even though if a person has no tax liability yet he gets his income assessed, he shall be known as an assessee. Therefore, a person who is getting his income assessed is known as an assessee.

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What Types of Funds do ULIP Offer?

12:35 Unknown 0 Comments

Most insurers offer a wide range of funds to suit one’s investment objectives, risk profile and time duration. Different funds have different risk categories.
Different funds have different return potential. Equity Funds, Fixed Interest and Bond Funds, Money Market Funds and Balanced Funds are some of the most common fund types.

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What is a Unit Fund?

12:34 Unknown 0 Comments

These are the invested parts of the premiums after deduction of all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders.

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What kinds of loans are covered under such an insurance schemes?

12:34 Unknown 0 Comments

Loan insurance is offered mainly for home loan borrowers. However, some banks offer loan insurance for personal loans as well as auto loans.

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Life Insurers first year premium declines 12.6% to Rs 69.2bn

11:42 Unknown 0 Comments

The first-year premium of life insurers in the first three quarters of the current fiscal ended December 31, 2012 declined 12.6% to Rs. 691.84 billion compared with Rs. 791.53 billion in the same period last year, according to IRDA (Insurance Regulatory and Development Authority) data.

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Haryana blacklists SBI Life for delaying annuity payments

11:41 Unknown 0 Comments

SBI Life Insurance company has been "blacklisted" by Haryana government for allegedly delaying the process of distribution of annuity to land owners under the Resettlement and Rehabilitation (R&R) Policy of the state government.
While giving this information in an release here today, an official spokesman of the Finance Department said, "Haryana government has blacklisted SBI Life Insurance Company Limited and cancelled the bid awarded to it for delaying the entire process of distribution of annuity to the land owners under the state’s R&R policy."
He further said stringent actions, including debarring SBI Life Insurance from doing any further business with the State or any of its department could also be taken as per the law.
The official spokesman said that an Expression of interest (EOI) was issued in February, 2011 inviting bids from Insurance Companies or Banks for purposes of providing services for disbursement of annuity to the land owners under R&R policy of the state government.
The bid cum tender document was submitted by SBI Life Insurance on March 31, 2011. He said that after receipt of the bid documents, several rounds of negotiations and discussions were held with respect to various stipulations and conditions stated in the draft Service Level Agreement (SLA) including the obligation of the noticee as service provider with respect to collection and validation of data of the beneficiaries.
The spokesman further said decisions regarding the contract were taken by the government on July 25, 2011 and August 11, 2011 for making payment of annuity under R&R policy by allocation of work amongst the selected insurance companies. A letter of intent (LoI) was issued to noticee on September 6, 2011.
The said LoI was also issued on specific and unambiguous stipulation that the LoI would be subject to execution of Service Level Agreement (SLA).
This was expressly communicated to the noticee that the government reserved its right to withdraw the said LOI in the event of failure of noticee to execute the Service Level Agreement, he added.
He said that the State Government in performance of its obligation as expressed under the LOI duly advanced payment in favour of noticee towards 50 per cent purchase consideration and allocated area of operation to noticee.
The noticee accepted the said advance payment knowing fully well that the state government has rejected its repeated requests for a change in the fundamentals of the EOI that is collection and validation of data, the official said.
In so far as the government was concerned, the issue relating to data was resolved, and the noticee had accepted the said condition of collection and validation of data, he further added.
He said that in furtherance of the agreed and accepted condition of LOI, the government vide its letter dated January 4, 2012 forwarded the SLA duly approved by it and called upon the noticee to sign the same with its concerned departments.
However, despite repeated reminders, including ones dated January 27, 2012 and February 3, 2012, for execution of the SLA, SBI Life failed to execute the same again for the same "frivolous" reasons of non deletion of the clause relating to the collection and validation of data, he said.

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Extra tax relief on Pension & Insurance Products

04:34 Unknown 0 Comments



According to current rules all, all tax saving schemes are clubbed together under the Rs 1 lac ceiling. Where in no special offers are considered for pension and insurance products.

Now Finance Ministry is planning to offer upto 50000 extra on the tax relief only for insurance and pension products. 

This is certainly going to be a breakthrough where the dilemma in the market that one should buy an insurance policy for tax rebate and not for long term savings & adequately insuring themselves.


My Note on this:-


     
  • Get adequate insurance for yourself.   
  • Plan for your pension fund as early as possible.
  • Considering Financial planning, or calculating adequate insurance for yourself, do cash capital need analysis or Human Life Value (depending upon the profession you choose).
  • Before just giving cheques to agents think that you have a long term commitment with the organisation for investment.   
  • Check with their competence and knowledge.  
ü

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Tips To Study For Board Exam :-

13:30 Unknown 0 Comments

Here is a real reply from a motivational speaker to one of his clients.
This Story endorses the real attitude the parents should have towards kids when they are facing their most furious exams for the first time in their lives.

Dear Priya,

It was a pleasure meeting you.
I could not reply earlier because I was busy and out of station for a training program.

Very short time is left to utilize the technique I want to suggest and which worked miracles for my daughter.
Nonetheless, whatever you can implement will surely help you.
My suggestions are keeping in mind short time.

I am giving you some tips to secure higher score.
Trust them and adhere to them.

1.       Select your two or three weak subjects and give them each 7-10% more time than other subjects.
2.       At college. during free periods if any, read in the library. Don’t spend that time with friends.
3.       If college is already over – than study at home. Do not study with other friends unless absolutely necessary because of lack of understanding on your part.
4.       Do not spend time to teach any one. If you have to then not more than an hour a week.
5.       Prepare a detailed schedule (time table to study) allocating time for each subject and chapters thereof.  
6.       Spend enough time to prepare a complete schedule from say tomorrow till the first day of exams and even for in between non exam days till the last date of exams.
7.       In all put in 12-14 hrs of study time (including college time, as long as you have to attend).
8.       Be realistic in your estimate.
9.       Start your day early. Go to sleep early. Do meditation for 10 minutes morn – eve.
10.   Also provide time in your schedule for revision and paper solving.
11.   Prepare notes in your own handwriting for each topic.
12.   Contents of the notes : Title of the topic, Major Points, Main Points, Sub-points. Not detailed notes. Leave a big margin for any note you need to make later on.
13.   Just before the exams read your notes only and not text books.
14.   Prepare these notes with color pens. Like Major Points in Red, Main Points in Green, Sub Points in Blue etc.
15.   Prepare acronyms or acrostics wherever possible, note down the same in big margins.
16.   You can remember your points with the help of a symbol say a tree – The Trunk = Topic, Roots-Major Points, etc.
17.   Keep the notes in a very systematic manner to refer.
18.   On the previous day of the exam – read and expand your notes several times.
19.   Use the right words in your answers.
20.   Sundays half days free, except that no holidays. Rest and friends only after the exams.
21.   Cut down telephone time drastically. Not unnecessary talking chatting smsing etc.
22.   Take a five minutes break after every one hour. Not more than five minutes for any reason.  
23.   At night do not read in your bed. Either in chair or in a standing position.
24.   Solve answer papers.
25.   While writing your exams, allocate a fix time to each question and finish in that much time only.
26.   Do not miss to read your answers and correct mistakes made in hurry. Provide 15-20 minutes for reading.
27.   Don’t discuss with friends before the exam. ‘How are you’ and ‘I am fantastic’ – that’s all and nothing else.
28.   No partying, movies, off, etc – now for the rest of the days.
29.   Not eating outside food at all. Eat healthy and energetic food.
30.   Make affirmations, and strong positive thinking.

Milind – TV off in the house
You and your wife should get up when she does and keep awake till she does.
Help her prepare her detailed and pacca time table / schedule. Monitor the same.
Help her prepare notes.
Ensure no negative thinking.
Meditate with her.
Be at home for more time and definitely on the day prior to the exam.
Not talking loudly at home.
Guests to be excused.
Help her getting better organized.
Ensure her peace of mind.
Both of you give her a hug and a kiss every day and of course blessings.

All The Best 

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FLEXI + "LIC's new Unit Linked Plan

13:20 Unknown 0 Comments

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LIC's New Plan "JEEVAN NIDHI"

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LIC AD : "Fake Agents"

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Insurance firms lingering on settling claims: Consumer forum

06:52 Unknown 0 Comments

Insurance firms are lingering on settlement of claims and using the money legally entitled to the insured for as long as they can, amounting to unfair trade practices, a consumer forum has held.
"This has become a general practice that the insurance companies tend to linger on the settlement of the claim and use the money which the insured is otherwise legally bound to have for as much longer period as they can. This clearly amounts to harassment and unfair trade practice," the North East District Consumer Disputes Redressal Forum said.

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Gap between market potential & insurance penetration is huge

05:39 Unknown 0 Comments

The Indian insurance sector needs to ensure prudent pricing by concentrating on bottom-line rather than the top line, according to Namo Narain Meena, Minister of State for Finance.
The minister urged the insurance industry to stick to the basics and promote good governance in its second decade of liberalization.
Mr Meena was speaking at an insurance conference organised by General Insurance Corporation of India and Asia Insurance Review on Tuesday in Mumbai. The two-day rendezvous with the theme of "Back to Basics” has over 470 delegates from 36 countries in attendance and is jointly organised by Asia Insurance Review and GIC Re.
Mr Meena said that prudent pricing should also need to be ensured by tightening the underwriting practices in the industry. “Trust is of utmost importance… There is also a need to have a balance between growth and profitability and our strategy in coming years should be guided accordingly,” the minister added.
There is a huge gap between the market potential and insurance penetration in India. Mr Meena citing example of a study said that a 1% increase in insurance penetration leads to 13% reduction in uninsured losses and 22% reduction in taxpayers’ contribution to recovery following a natural catastrophe.
Mr Meena also appreciated the efforts of IRDA (Insurance Regulatory and Development Authority) in helping the industry in challenging times.

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Expect to invest over Rs 20,000cr in equities in Q4: LIC

05:35 Unknown 0 Comments

Over the last few months, there have been reports of domestic institutional selling in the market. However, S Sarkar, Managing Director of LIC said they have been net buyers in the equity market in 2012 and they are not selling into the rally. Going forward, LIC expects to invest over Rs 20,000 crore in the equity market in Q4.

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