All News

Risk of Inflation in Medical Costs

The prices of all medical devices except for stents, condoms and intrauterine devices can only be raised by up to 10% in a year, the National Pharmaceutical Pricing Authority (NPPA said in a new office order on Friday .

The drug price regulator also clarified that all medical devices notified as drugs under the Drugs and Cosmetics Act, including stents, orthopaedic implants, catheters and intraocular lenses, will have to mandatorily carry their maximum retail price (MRP on their packs.

March 2017
Delhi-India

Risks to Corporates in Digital World

With emergence of new threats such as ransomware (a malware which prevents users from accessing their system till a ransom is paid, companies across sectors, including banks, retailers and IT, are showing an interest in  new products -a cyber liability insurance cover (which also covers cyber extortion,

February 2017
Delhi-India

Risks in Payment Banks

Airtel Payments Bank on Thursday launched Bank on Thursday launched nationwide operations, offering 7.25% interest on savings bank balances, which is more than the maximum 7% paid by SBI on its fixed deposits.The only catch is that the payments banks, which do not offer loans and several other facilities offered by fullfledged rivals, are not allowed to accept deposits beyond Rs 1 lakh in bank accounts, which will have the same number as your mobile number

January 2017
Delhi-India

Risks in Investment

Diversification and asset allocation are strategic tools in the hands of the investor because those are the only ways in which investors can set aside their doubts about the future, and still make sound investment decisions. It is not difficult to implement sensible asset allocation. It just calls for a strategic long-term view of how we see our wealth being accumulated and used over a lifetime. Unless we are inheritors, most of us will start small. We will continue to accumulate assets over a long earning and drawing life span. That provides us with adequate flexibility to decide where our wealth will lie and how it would be allocated. For most of us earning adults, asset allocation can be done with the mind frame of strategic calm.

December 2016
Delhi-India

Insurance Policies Which are a Must for All to Cover Risks

1Life Insurance -A basic rule is that one needs an insurance cover of at least 6-8 times his monthly income. But this is a very rough calculation and ignore the liabilities of a person The cover should be big enough to settle all outstanding loans, provide for big-ticket expenses, as also generate an income for the living expenses of the family .Health Insurance -medical insurance is more important than life insurance because the probability of a family member needing medical care is higher than the death of the breadwinner.Medical care costs are rising very fast and even a 3-4 day stay in a hospital can leave you with a bill of 50,000-60,000.
2Accident Insurance -The policy will pay your nominee a lump sum in case of death due to accident. In case you are disabled, the policy will pay out a lump sum. There is additional cover that provides a monthly income if you are unable to resume work.
3Though home insurance covers what is possibly their costliest asset, very few Indians understand this and even fewer take steps to cover the risk.
3 Vehicle Insurance -Insuring your vehicle is important and in fact mandatory as per Law .In case of an accident, the insurance company picks up the bill for repair.insurance company also compensates victims of accidents in which the insured vehicle is involved

November 2016
Delhi-India

Risks in ATM

Risks in ATM Network 

In one of the biggest card replacements in Indian banking, State Bank of India has said that it will re-issue around six lakh debit cards to customers, which have been blocked following a malware-related security breach in a non-SBI ATM network.Yes Banks ATM network has been audited following concerns over fraud attempts through a private players network and HDFC Bank has asked several customers to change their ATM PINs at the earliest.

October 2016
Delhi-India

Debt Restructuring to give banks 30% stake in Shriram engg unit

A consortium of lenders led by Oriental Bank of Commerce will take around 30% stake in Shriram EPC, the engineering unit of the $10-billion diversified Shriram Group, as part of a corporate debt restructuring package. The 14member consortium -which includes Punjab National Bank, Axis Bank, IDBI and Central Bank -will convert slightly over Rs 1,200-crore loan into equity shares as the Chennai-based group works on trimming the debt and recasting the growth potential of its non-financial services businesses.

September 2016
Delhi-India

BoB Q1 profit plunges

BoB Q1 profit plunges 60% on bad loans

Mumbai: TIMES NEWS NETWORK

Bank of Baroda reported a net profit of Rs 424 crore for the quarter ended June 2016 a drop of 60% from the net profit of Rs 1,052 crore in the corresponding quarter last year - as bad loans increased.The bank said the ratio of its gross non-performing loans to total loans rose to 11.5% at the end of Q1FY17 as against nearly 10% in Q4FY16. In absolute terms, gross bad loans rose to Rs 42,991crore, up from Rs 40,521 crore in the quarter ended March 2016. Following the results, the banks share price slipped 9% to close at Rs 146 on the BSE.The bank has managed to turn in a profit from a loss position in the previous two quarters and its operating profit of Rs 2,669 crore was the highest in the last five quarters. Domestic low-cost deposits (comprising current account and savings accounts rose 6.9% year on year to Rs 1,47,082 crore. But total depo sits (domestic and international shrunk 3.1% year on year to Rs 5,57,817 crore from Rs 5,75,856 crore. This was largely due to a 12.4% drop in its international deposits.
Gross advances also shrunk 2.3% to Rs 3,96,123 crore from Rs 4,05,533 crore a year earlier as the bank focused on cleaning up its corporate loan book. 


Augest 2016
Delhi-India

Risks in Adventure Sports

With an increasing number of Indian tourists indulging in adventure sports like bungee jumping, parasailing and mountaineering, insurers see a new market. Insurance players  are  coming out with a specialized personal accident policy to cover such risks, which until now were excluded.

The Global Personal Accident Cover is targeted at travellers who engage in adventure sports and allows them to choose from a host of covers, such as adventure sports, air ambulance evacuation and accident hospitalization. While most of the covers are available worldwide, the air ambulance evacuation is available only in India.

July 2016
Delhi-India

Corporates Entry in Banks

Types of Banks :
Wholesale banks - These are institutions that service other banks and large corporations and do no take on any retail accounts or retail loans .They are the equivalent of investment banks in the West which lend to Corporates . They cannot accept deposits from individuals and raise funds through bulk deposits .

Custodian Banks - They specialize in safeguarding securities and accounts of other institutions.They play an important role in capital markets by helping oversee buying , selling and maintenance of investments .

June 2016
Delhi-India

Risks in MLM Business

Direct selling companies such as Amway , Oriflame and Tupperware will be barred from charging any entry fee from their agents or forcing them to buy back unsold inventory , guidelines prepared by the consumer affairs ministry to regulate the sector showed.

The companies will also have to allow full refund or buy-back guarantee for goods and services sold to direct sellers or agents. This will help protect thousands of housewives and professionals who work part time as agents.

The policy will also spell out the difference between a direct selling firm and a pyramid scheme to end any ambiguity. Normally , pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, instead of sale of products or services.

May 2016
Delhi-India

Bonus Use For Wealth

These simple financial tricks will help you boost returns manifold, cut down taxes
Its the start of the financial year. This is also the time when every investor should put in place a plan for investing and saving on taxes using all the options that the government has given to them. The main aim should be to build the required corpus for the goal for which you are investing.

Here are some tricks that will help you build wealth in the long run without much thought... 

1Use your bonus wisely
This is the time lot of people get a bonus. According to top  official at mutual fund houses and financial advisors, rather than spending on things that may not be an absolute necessity, you can invest the whole or a major part of the bonus in an equity mutual fund. 

2Make good use of ELSS 
Equity-linked savings plans (ELSS floated by mutual fund houses are one of the best tax saving options for investors. This is because in the long term they have the potential to generate an average annual return of 12%, saves on taxes under section 80C of Income Tax Act and has a lock-in of just three years.

3Use excess cash intelligently 
If you keep your excess cash that you need at a short notice, you probably keep it in your savings bank account. However, a better alternative is to keep it in a liquid fund of a good mutual fund house. 

April 2016
Delhi-India

Risks in Loans

A borrower takes money not from the lender, but from his future income. The risk comes from the unknown future and the change the loan can make in it. Loans differ based on the need they serve. A loan that is taken to tackle a liquidity crunch is a mere arrangement. A hand loan is an arrangement of trust. A loan that is taken for buying a house or any other long-term asset is a charge on future income and is a funding contract. A loan taken to punt on the future value of a commodity or index is a leveraged speculative position. It can turn either way .Understand your need before taking a loan.

March 2016
Delhi-India

Risks in Jobs

People are usually shocked when they are told to go. But in many cases, the signs are quite obvious. It is just that employees fail to read these indications. Here are some of the signs that can tell an employee that his job is in peril . 

1You have not learnt any new skill 2You do not get along with co-workers 3You are doing less work now 4Your pay hike was below average 5You are not consulted 6You do not do core functions in the company 7Your company is facing problems.

February 2016
Delhi-India

Risks in Bond Market

In the bond market, investors make money in two ways through capital appreciation in the price of the bond or through interest payments (or coupon from the bond. Duration funds focus on generating returns from capital appreciation in underlying bonds, which is more prominent when interest rates are headed south. When interest rates fall, bond prices rise, causing a debt funds NAV to jump. Duration funds trade actively in the underlying bonds to make the most of interest rate fluctuations, by moving across maturities in anticipation of interest rate movements. Accrual funds or credit funds, on the other hand, derive a chunk of returns from interest income, or coupon, from underlying bonds. These typically invest in shorter maturity instruments and hold on till maturity. Since they do not play on interest rate movements, they are not as exposed to interest rate risks as duration funds.

January 2016
Delhi-India

Child Education

Children education is an important financial goal for Indians
Inflation may be down but a major expense of the average Indian household is growing at a fast clip.
The cost of higher education is already high and rising at 10-12% a year. Childrens education is one of the biggest cash outflows that families must plan for. A four-year engineering course costs roughly `6 lakh right now.In six years, the cost is likely to touch `12 lakh. By 2027, it would cost `24 lakh to get an engineering degree. Lifestyle inflation, too, has affected the cost of childrens education.
The question worrying Indian parents is: will they be able to fund their childrens higher education? They can, if they plan ahead and take the right steps.

January 2015
Delhi -India

Role of Women in Decision Making

In what might just provide the requisite nudge to the economy , women consumers are wielding their purchasing power in sectors that go beyond food and grocery , such as automobiles, liquor, travel and financial products as well.

Almost all sectors that do not fall in the realm of household goods have traditionally and predominantly seen male consumers as decision makers. With more women entering the workforce and becoming equal wage earners in households, a large portion of their disposable income is also being directed to areas which have hitherto dealt with male buyers.

So while they continue to dominate as decision makers and purchasers in household goods and grocery , their numbers are rising among car purchasers, travellers and wine drinkers. As a result of this shift taking place in gender ratio of purchasers across sectors, the number of women taking personal loans has also risen. From April 2012 up to September 30, 2014, personal loans by HDFC Bank to women customers had more than doubled, said executives. In keeping with this trend, the bank has designed personal loans specifically for women customers who can avail of benefits and discounts on apparel, jewellery , restaurants and more.

February 2015
Delhi -India

Budget Proposals 2015-2016

Investment Benefits :
Additional deduction for contribution to National Pension Scheme.In order to encourage people to contribute towards National Pension Scheme, an additional deduction up-to INR 50,000 will be available on the employee’s contribution. This is in addition to the deduction available upto10% of salary within an overall limit of INR 150,000.
Investment in Life Insurance Corporation (‘LIC’ Annuity Plan / any other Pension Fund The limit of eligible deduction for investment in LIC Annuity Plan or any other Pension Fund is proposed to be increased to INR 150,000 from the existing INR 100,000

Contributions for the benefit of girl child -Contributions/ investments made by an individual in the name of girl child to notified securities/schemes will be eligible for deduction under section 80C. Interest earned on Sukanya Samriddhi account will also be exempt.

Transport allowance exemption increased:
For salaried individuals, exemption on account of transport allowance is proposed to be doubled to INR 1,600 per month from the existing limit of INR 800 per month
Relief with respect to medical treatment , etc.
Health insurance premium/Health check-up/Medical expenditure The existing deduction available for payment towards health insurance premium and preventive health checkup has been enhanced by INR 10,000 as under:
Existing limits-INR
15,000 for individual, spouse and dependent children INR 20,000 for senior citizens, including payment for parents

Proposed limits, INR 25,000 for individuals, spouse and dependent children,INR 30,000 for senior citizens, including payment for parents It is proposed that medical expenditure incurred for very senior citizens (80 years and above will be deductible up to INR 30,000 if no payment has been made towards any existing health insurance policy for such individuals. Relief for persons with disability Deduction available to a person/dependent with disability has been enhanced from INR 50,000 to INR 75,000. In case of a person/ dependent with severe disability, the limit has been increased from INR 100,000 to INR 125,000.
Medical treatment of specified diseases: Under the existing provisions, a certificate is required from a specialist doctor in a Government hospital for claiming deduction for expenditure incurred for medical treatment of specified diseases. It is now proposed that it will suffice if a prescription is obtained from a specialist doctor (not necessarily from a Government hospital for this purpose. In addition, the limit in case of very senior citizens (80 years or above is proposed to be increased to INR 80,000 from INR 60,000.

Proposals for Tax Deduction at Source
Withholding tax on salary payments :Under the existing provisions, while determining withholding tax on salary, the employer is authorized to allow certain deductions, exemptions, or set off of certain losses, etc. after obtaining necessary evidence/documentary proof from the employees. For example, house rent allowance, interest payment for claiming loss from self occupied house property, etc. However, the existing provisions do not contain any
specific guidance regarding the nature of evidence / documents to be obtained from the employees in this regard thereby resulting in lack of uniformity.To bring clarity, it is proposed to amend the provisions to provide that the employer shall obtain from the employees evidence / documentary proof in such form and manner as may be prescribed by the CBDT in due course
.
Withholding tax on provident fund withdrawals :Tax deduction at source on withdrawal of accumulated balance has been simplified. It is proposed that in case of premature withdrawals of INR 30,000 or more, where employers manage their own private provident fund trust, tax will be withheld @10%. If PAN is not furnished by the employee, tax will be withheld at maximum marginal rate. The amendment is proposed to be effective from June 1, 2015.
Relief from withholding tax on payments from LIC It is proposed that individuals not having taxable income and receiving payments under LIC upto INR 100,000 can claim relief of non- deduction of tax at source by submitting Form 15G / 15H

March 2015
Delhi -India

LIC Penalized for Rs 10 Lakhs

The Insurance Regulatory and Development Authority of India (IRDAI has imposed a penalty of Rs 10 lakh on Life Insurance Corporation (LIC of India.In an order, the authority said the filled in proposal forms were altered by LIC without necessary authentication from the proposers. The policies were also split and more than one policy was issued under a single proposal.
``Tampering with the proposal forms without the consent of the policyholders may affect the policyholders’ interest adversely,’’ it said.
Similarly, LIC had also violated existing norms on investments in other entities in certain cases. A fine of Rs 5 lakh each was imposed for both these violations. The corporation was also warned to follow regulations in many other areas of business, according to the circular.

April 2015
Delhi -India

Risks in opening lockers

Customers who apply for lockers are made to invest in costly insurance policies and big-ticket fixed deposits
If your bank is also pushing you to invest in insurance policies and fixed depos its, you can take up the matter with the banks griev ance cell. If they fail to resolve the complaint, you can approach the Banking Ombudsman. You can not go to the Ombudsman without first moving the banks grievance mechanism. If the Banking Ombuds man fails to resolve your concerns, you can also write to the RBI deputy governor, who is the appellate authority.

Finally, if you do not receive any satisfactory response, you can knock on the doors of a consumer court.

May 2015
Delhi -India

Bank Insurance Business

Banks will now be able to provide customers a choice of insurance companies whose products can be bought through the bank with the central bank permitting banks to get into insurance broking.However, RBI has put on banks, the onus of ensuring the suitability of insurance product sold to their customers.

The insurance industry meanwhile is almost equally divided between companies that have equity participation from banks and those that do not. Companies that do not have a bank partner have been lobbying with the regulator and the government for an open architecture system where one bank can sell products of multiple companies

June 2015
Delhi-India

Ordinance paves way for PSU insurers to go public

State-owned general insurance companies can now get listed on the stock exchanges with the recent promulgation of the ordinance on the insurance bill.

Besides hiking FDI, the insurance bill has a clause which amends Section 10 of the General Insurance Business Nationalisation Act of 1972, allowing the government shareholding in General Insurance Corporation, New India Assurance, National Insurance, Oriental Insur ance and United India Insurance to fall up to 51%.

Industry experts say that listing will bring in benefits far beyond enabling fund raising for the government and insurance companies. The chase for top line growth among the four public sector companies by giving up on profitability is expected to come down. It would enable companies to reward employees with performance incentives through stock options

July 2015
Delhi-India

Four states account for 62% of health cover premium

The insurance regulator has expressed concern over the skewed penetration of health insurance in India with four states accounting for 62% of premium. The regulator is also worried about the sustainability of the business given the high ratio of claims to premium.

“While four states of Maharashtra, Tamil Nadu, Karnataka and Delhi UT contributed 62% of total health insurance premium, the rest 32 statesUTs contributed only 38% of total premium. In fact, the health insurance premium from 8 sister states of north-eastern India is only Rs 118 crore (0.6% for 2013-14,“ the Insurance Regulatory and Development Authority said in its annual report for 2013-14.

One of the reasons for the skew in premium is that 46% of health insurance premium comes from group policies sold to corporates.As a result, the coverage is highest in states with high level of industrialization.Individual policies account for only 42% of total premium while the remaining 12% comes from the govern ment schemes such as Rashtriya Swasth Bima Yojana.

The insurance regulator said that although premium from health insurance has grown from Rs 15,453 crore in 2012-13 to Rs 17,495 crore in 2013-14, the incurred claims ratio (ratio of outstanding and paid claims to premium received was highest for health insurance at 100.7% and motor at 79.5%, respectively. While in motor insurance there has been an improvement in the net incurred claims ratio, in the case of health insurance the ratio has progressively deteriorated from 94% in 2011-12 and 2012-13.

Augest 2015
Delhi-India

A new term plan will cost less than old one

Competition, Online Distribution, Higher Life Expectancy Lead To Steep Fall In Premium.At a time when inflation is impacting every aspect of life, the cost of term life insurance has dropped dramatically in recent years. For a few thousand rupees, individuals can buy a Rs 1 crore policy thanks to competition, online distribution and improvement in life expectancy. The drop in prices has been so sharp that an individual who has brought a policy a few years earlier can now get a cheaper cover despite falling into a higher age bracket. Experts now say that policyholders have an opportunity to save money by buying into a new cheap cover and discarding the old one.

Unlike health insurance, the instalments for term insurance (policies which pay out only if the insured dies are ‘level’ premiums. What this means is that although the risk of death rises with age, the premium is computed by calculating the risk for every year and levelling it across the tenure of the policy.

So the same individual will pay a higher annual premium if the term of the policy is higher.

September 2015
Delhi-India

Art Insurance

Art Insurance - The concept of insuring valuables such as jewellery , paintings etc is now getting popular in India thanks to increased awareness, that the risk of a huge financial loss can be mitigated effectively by insuring such items .Besides paintings and antiques, there are instances of a high-networth customer insuring 350 pairs of shoes.

December 2015
Delhi-India