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General query

National Pension Scheme Or System

  • National Pension System (NPS) is a government-sponsored pension scheme that was launched in the year 2004 by Pension Fund Regulatory and Development Authority of India (PFRDA) for Government employees only but was later made available to all the employees from Public sector, Private sector and even the unorganised sector w.e.f. 1st May 2009.

    The objective of this scheme was to secure financial future of the individual after the retirement. Under NPS, the individual contributes to his / her retirement account and his/her employer (if applicable) can also co-contribute for the welfare of the individual.

  • An individual should opt for NPS for the following reasons:

    1. Confirmed annuity in their retirement life.
    2. Reduce post retirement dependency on others for livelihood
    3. Good returns in long term on their investment.
    4. Simple &hassle free process of enrollment.
    5. Entry age 18 to 70 years.
    6. Voluntary contribution
    7. Portable Investment.
    8. Various investment options available to cater to all risk appetites (i) Equity (ii) Govt Bonds (iii) Corporate Bonds (iv) Alternate Investment option.
    9. Tax benefits U/S 80 CCD – up to Rs. 50,000/-.
    10. Very low cost investment scheme.
    11. Partial withdrawal up to 25% after 3 years.
    12. Minimum Contribution 1000/- per year.
  • Yes. Investment in NPS is independent of one’s contributions or subscription to any Provident/Pension Fund.

  • An individual citizen can open an NPS account through CSC e Governance Services India Limited registered by PFRDA.

  • The Government will not be making any contribution to your NPS account.

  • No. Multiple NPS accounts for a single individual is not allowed and there is no necessity, as NPS is fully portable across sectors and locations.

  • NPS offers two categories of accounts as of now:

    Tier 1: Meant for retirement savings

    NPS Tier I account is a mandatory account and is meant to save up for retirement. When you open an NPS Tier I account, you get a Permanent Retirement Account Number (PRAN). You have to make a minimum contribution of Rs. 500 while opening a Tier I account.

    The minimum contribution to be made in Tier I account per annum is Rs. 1,000. However, note that there is no ceiling on the maximum contribution. The NPS Tier 1 account matures at the age of 60 and you can extend it till the age of 70. It is eligible for tax deduction on contributions up to Rs 1.5 lakh under Section 80 C and an additional Rs 50,000 under Section 80 CCD (1B) of the Income Tax Act, 1961

    Tier II: Meant for general investment

    NPS Tier II account is a voluntary account which can be opened only when you have a Tier I account. It is an account with flexible withdrawal and exit rules. Though Tier II account works almost like Tier I account, there are certain differences. 

    To open an NPS Tier II account, you need to make a minimum contribution of Rs. 1000, and unlike Tier I account, contributions to Tier II account don’t qualify for any tax exemption, you can’t claim deductions and on exit, the corpus is taxed. Tier II account is more like a bank account that you can use to meet your needs in a holistic manner.

  • Yes. A subscriber has to contribute a minimum annual contribution of Rs.1000/- for his/her Tier I account in a financial year and if not contributed the account will be frozen. In order to reactivate the account, the customer has to pay the minimum contribution of Rs. 500/- . For unfreezing an account the subscriber has to approach the Point of Presence (PoP) and pay the required amount, or he/she can make contribution through online e-NPS platform.

    The following table provides the complete information on the minimum contribution requirements:-

    For All citizens model Tier I Tier II
    Minimum Contribution at the time of account opening Rs. 500 Rs. 1000
    Minimum amount per contribution Rs. 500 Rs. 250
    Minimum total contribution in the year Rs. 1000 -
    Minimum frequency of contributions 1 per year -
  • NPS sales earns the VLE good commission on first time registration and on every subsequent contribution made by the customer. In addition, for all Non- Financial transactions VLEs get a service charge. Details below:

    Intermediary Income Head Service Charge Method of Deduction
    Point of Presence or Point of Sell Initial Subscriber Registration Rs. 200 Collected upfront
    Initial Contribution 0.25% of the Contribution amount
    All Subsequent Contribution Min : Rs 20 & Max Rs. 25,000
    All Non Financial Transaction Rs. 20
    Persistency Rs.50/- per Annum (Only for NPS -All Citizen Through Cancellation of units
  • The subscriber needs to visit the nearest VLE center to enroll on the scheme. The following documents need to be submitted for opening of a NPS account:

    1. Completely filled in Subscriber registration form
    2. Photograph
    3. Proof of identity ( Self attested copy need to be uploaded )
    4. Proof of Address ( Self attested copy need to be uploaded )
    5. Date of birth proof
    6. Cancelled Cheque or bank passbook copy ( Self attested copy need to be uploaded )
    7. PAN or Form 60 ( Self attested copy need to be uploaded )

    VLE needs to upload all these documents to NPS portal. While processing this request couple of point need to be selected by VLE on behalf of the customer

    1. Preferred Pension Fund needs to be selected. Currently the approved Funds are

    1. ICICI Prudential Pension Fund
    2. LIC Pension Fund Ltd
    3. Kotak Mahindra Pension Fund
    4. SBI Pension Fund
    5. UTI Retirement Solution Pension Fund
    6. HDFC Pension Management Company Ltd
    7. Birla Sunlife Pension Management Ltd

    This list may undergo changes if new PF are registered or existing PF are de-registered by PFRDA.

    2. NPS offers two approaches to invest subscriber’s contributions:-

    1. Active Choice – The funds will automatically be invested in funds as per percentage defined by PFRDA (Asset Equity Class, Asset Corporate Bond, Asset Class Govt Bond and Asset Alternate Class)
    2. Auto Choice: - Subscriber needs to choose between three lifestyle fund i.e.
      • Aggressive Life Cycle Fund – Chances of high returns and carries high (LC75)
      • Moderate Life Cycle Fund – Medium returns and medium risk (LC50)
      • Conservative Life Cycle Fund – Low return and low risk (LC25)

    For more details, please visit www.pfrda.org.in

  • The subscriber can partially withdraw his investment from NPS after a minimum of 3 years after subscription. The withdrawal is limited to maximum of 25% of their contribution. Partial withdrawal from NPS is permitted up to a maximum of 3 times during the entire tenure and is available only in case of urgent need of funds requirement such as Marriage, Medical emergency, Purchase of house.

  • 1. For subscribers joining between the age of 18-60 years

    1. Upon attainment of 60 years of age:- At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for the purchase of an annuity providing for the monthly pension to the subscriber and the balance 60% is paid as a lump sum to the subscriber. The subscriber can choose to increase the annuity component if they so wish. If the total corpus does not exceed Rs. 2lakh then subscriber has the option to withdraw the total corpus in lump-sum.
    2. Exit NPS before attainment of 60 years of age: - At least 80% of accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension to the subscriber and the balance 20% is paid as a lump-sum to the subscriber. If the total corpus does not exceed Rs. 1lakh then the subscriber has the option to withdraw the entire corpus in lump-sum.

      Subscriber can exit from NPS only after completion of minimum 10 years in NPS.

    1. Upon Death (Irrespective of Cause): - The entire accumulated pension wealth would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/pension. However, the nominee(s), if they so wish can choose to purchase annuity.

    2. For subscribers joining between 60-65 years

    1. Normal Exit: - After completion of 3years form the date of joining NPS, the subscriber will be required to annuitize at least 40% of the corpus for purchases of annuity for receiving the monthly pension and the remaining corpus of 60% can be withdrawn in lump-sum. In case the accumulated corpus at the time of exit is less than or equal to Rs.2Lakhs, the subscriber will have the option to withdraw the entire corpus in lump-sum.
    2. Premature Exit: - Any exit before completion of 3 years will be treated as premature exit. The subscriber will required to annuitize at least 80% of the corpus for purchases of annuity for receiving the monthly pension and the remaining corpus of 20% can be withdraw in lump-sum. In case the accumulated corpus at the time of exit is less than or equal to Rs.1Lakh, the subscriber will have the option to withdraw the entire corpus in lump-sum.
    3. Upon Death (Irrespective of Cause): - The entire accumulated pension wealth would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/pension. However the nominee(s), if they so wish, have the option to purchase annuity.
  • On maturity, the subscriber has a choice to opt for the pension of entire corpus or they can opt for a partial amount as pension and the rest can be taken as a lump sum amount (subject to terms & conditions mentioned above).

    For Pension: - Customer has to choose the Life Insurance company from list of empanelled companies. All Indian Life Insurance companies who are licensed by Insurance Regulatory and Development Authority (IRDA) are empanelled by PFRDA to act as Annuity Service Providers to provide annuity services to the subscribers on exit/maturity from NPS.

Motor Insurance

  • In general, a comprehensive car insurance policy will cover you for a wide range of damages, injuries, and loss to your passengers, your vehicle, and other property. Third party car insurance is more restrictive, covering damage to other vehicles and their passengers, but typically not much else.

  • There is no difference in insurance coverage across companies, although prices do vary. Some companies offer Zero Depreciation covers, which are usually more expensive, and offer full coverage of parts and replacement.

  • Motor Insurance is very simple. 1) Always look at buying regular coverage or Zero Depreciation covers. 2) Look at car value to be insured. Most insurers use standard formulas – also called Insured Declared Value. This is the value for which your insurance is valid. 3) The actual Premiums vary from company to company – but the coverage is standard and exactly the same. So going for the cheaper option is always sensible. 4) Some of our customers are particular about adequate Cashless Garages in their locality that each insurer have tie-ups with.

  • No, all covers are standard and cover you for any damage or theft to your car and also any liability you or your car can cause (referred to as Third Party cover). Then there are “Zero Depreciation” covers, which cover you for the full value of repair – without deducting any depreciation. Remember, when you got a claim last time and found out that the insurance company deducted “depreciation” for your parts and made you pay for it. That won't happen when you buy a Zero Depreciation cover. However, these covers are more expensive.

  • Simple. In regular covers, when you claim insurance for any damage or repair, the insurance company would deduct some amount and make you pay for it. Wondered why. That’s what they call “Depreciation charges”. So, you had a claim of 20,000 rupees but the insurance company paid only 15000 to the garage and you had to pay the balance. The balance 5000 is called Depreciation charges. If you had taken a Zero Depreciation cover, the insurance company would have paid the entire amount of 20,000 rupees.

  • If your car is less than 3 years old – take Zero Depreciation. Repair costs of luxury car models are very expensive, especially since you go to the authorised dealers usually. Go for Zero Depreciation covers. Otherwise, look at the difference in premiums and decide. Zero Depreciation covers are expensive, sometimes by even 50%.

  • No Claim Bonus (NCB) is your bonus for driving or riding carefully and not making a claim. You get a discount on your premium. Starting from 20% going all the way to 50%. So be careful on the road. If any claim is made, however small, the no claim bonus is lost.

  • Yes! Absolutely. Your No-Claim Bonus is freely transferable to another insurance company.

  • There are lots. You can get additional discounts under Own Damage Premium for membership of the Automobile Association of India, Vintage Cars (Pvt. Cars certified by the Vintage and Classic Car Club of India); Installation of ARAI approved anti-theft devices.And lots more. You must read your policy and make sure you get all.

  • Yes, GST is applicable and would be as per prevailing rule of law.

  • Deductible or “excess” is the amount over and above, the claim payable. This ranges ranging from Rs 50 for two-wheelers to Rs 500 for Private Cars and Commercial Vehicles. Increase in the cubic capacity/carrying capacity of the vehicle increase this cost. In some cases the insurer may impose additional excess depending upon the age of the vehicle or if there is a high frequency of claims.

  • Changes like that of an address or modifications to the vehicle or its use will be done by an Endorsement by the insurance company. All you need to do is submit a letter to the insurer with proof of the changes. Some endorsements may require you to pay an additional premium.

  • If your vehicle is registered in Chennai, the rate applicable for Zone A is charged. Even when you shift to a different city/town, the same rate will continue to be applied. Similarly, if a vehicle is registered in a town, it attracts Zone B premium rate. Subsequently, if the owner shifts to a metro, he will continue to be charged the Zone B rate.

  • As per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is to be issued only in Form 51. It is only in Motor Vehicle Insurance, apart from the policy, that a separate certificate of insurance is required to be issued by insurers. This document should always be carried in the vehicle. The policy should be preserved separately at home/office.

  • Inform your insurer immediately. Any modification to your vehicle will make a difference to your policy. It could get cancelled. Make sure all modifications are updated in your policy.

  • Yes, the insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. And there is a nominal fee charged. This needs to be done within 14 days of the change of ownership.

  • No. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise, the claim is not payable.

  • Yes, you can.

  • Different companies have different requirements. Here are a few things you will need: Filled claim form, RC copy of the vehicle, an Original estimate of the loss, Original repair invoice and payment receipt. In case the cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims, vehicle keys along with non-traceable certificate need to be submitted.

  • In general, a comprehensive car insurance policy will cover you for a wide range of damages, injuries, and loss to your passengers, your vehicle, and other property. Third party car insurance is more restrictive, covering damage to other vehicles and their passengers, but typically not much else.

Health Insurance

  • A health insurance policy is an insurance coverage that covers medical expenses such as - in-patient hospitalisation costs, surgery costs, emergency ambulance cost, hospital per day allowance, medicines bill etc. of life insured; if he/she becomes sick or gets injured in any accident. A mediclaim policy, in general, very much similar to a health insurance policy; but it’s ambit of coverage is not as comprehensive as a health insurance policy has. A mediclaim policy pays-out medical expenses towards accident and pre-specified illness, and for specific sum insured; whereas, a health insurance policy covers maximum diseases including critical illness, and accidents as well. A health insurance policy gives you flexibility to review your sum insured and policy term after a specific period; but in mediclaim policy, you can’t

  • A health insurance policy covers expenses that incurred due to the medical treatment/surgery. In order to get the benefits of the health plan, the policyholder has to go for at least 24 hours of continuous hospitalization. There are some day-care procedures that are also covered under a health plan, but you also need to get hospitalized to avail benefits. Read your policy document to ascertain what is included and excluded under your policy.

  • Yes, it’s always advisable to buy a health insurance policy of adequate sum insured when you are young and in good health. Here are the two points why to buy a Health Plan. First and most important reason is- ‘peace of mind’. Having a health insurance policy, you won’t have to worry about the doctor’s fee and other medical expenses. Also, the possibility of any mishap or accident cannot be ruled out; it can happen to anybody, anywhere. By buying a health plan in the young age, you can save on premiums. The possibility of becoming sick in younger age is lesser; you, therefore, can get a health insurance policy of adequate sum insured at best premium rate in your early age.

  • Anyone between the age group of 3-month (for the health floater plan) to 65-years can take a health insurance policy. However, the insurer may ask you to go through a medical check-up to ascertain your health condition before issuing the policy.Basis the underwriting guidelines which include age, health condition, family history, etc. the insurer will determine to give you a health plan or not.

  • A cashless health policy provides facility to get treatment at network hospitals (may vary from insurer to insurer) without making any payment. To avail this facility, the policyholder only needs to take approval from the insurance company/assigned TPA in advance in case of planned surgeries, and within the stipulated time in case of emergencies. Policyholders, in order to avail cashless treatment at network hospitals, need to produce health cards provided by insurers, with valid identity proofs to hospitals/TPAs.

  • TPAs or third-party administrators are intermediaries between insurance companies, policyholders and hospitals. A TPA helps policyholder settle his/her claim hassle-free by establishing communication between the policyholder, the treating hospital and the insurer.

  • Network hospitals are hospitals/health units that have tied-up with TPAs or directly with the health insurance companies. With hospitalization in one of the network hospitals of the insurer, the policyholder can avail cashless hospitalization depending on the terms of the policy.

  • If there is no network hospital in your vicinity, don’t worry, get treatments at the hospital of your choice and pay all the medical bills at the time of discharge. And your insurer, later on will reimburse the medical expenses incurred after making claim under the policy.

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  • It’s good that you are covered under a group health insurance policy provided by your employer. But generally, insurance covers provided by employers are of a lesser sum insured, which seems to be insufficient in case of any medical emergency. Most group insurance policies have co-payment and high deductibles in-build, due to which you may require to pay from your own pocket. Another reason, why you should have a separate policy is, you cannot be working with the same company for whole life, and as soon as you leave the job, your previous employer may take back health benefits, and you might not get such benefits from your current employer. As a result of this, you’ll have to buy a fresh policy in which you’ll lose pre-existing benefits that you have accrued over the period. By buying a separate health policy, you can choose cover amount and other benefits as per your medical requirement.

  • Cost has always been a critical element in the entire decision making process for most of the Indians for any purchase. However, while buying insurance products, you must assure if the sum insured is sufficient. There are some other salient elements that should be taken into account while buying a health insurance policy. (a) Adequate cover (b) List of Network hospitals (c) Cashless facility (d) Deductibles (e) Waiting period for specific illnesses/condition (f) Room-rent capping (g) Exclusions (h) Insurer’s claim settlement ratio.

  • Yes, premiums paid under any health insurance policies are entitled for income tax exemption under section 80D of the Income Tax Act

  • Premium for a health insurance policy is calculated taking several factors on account, such as – sum insured, age, coverage provided, risk pool of your profession, estimated overall health expenditure and on your living style. It’s also determined on whether you are a tobacco user or not. Previous medical history is another factor that determines your premium. If you are in good health, your health insurance premium will automatically be lower.

  • Yes, normally there is a waiting period of 30 days from the date of inception of the policy; during which, the insurer will not be bound to pay you any hospitalization bill. However, in case of an emergency occurring due to an accident, there is no such restriction, and the insurance company will pay your medical expenses..

  • A pre-existing condition is a disease/illness that existed before you buy a health insurance policy. Insurance companies do not cover pre-existing conditions that had symptoms or treated within 48 months of buying the first health policy. The pre-existing conditions are liable to be covered after a regular health cover of 48 months.

  • ‘No Claim Bonus’ is a discount offered by the insurer on the policy renewal to encourage policyholders stay healthy, and avoid claims. If the policyholder does not make any claim in the preceding policy year, the insurer offers the NCB benefit. The policyholder also has the option to accumulate the NCB for a couple of years and this simply leads to lowering of premium amount of the health policy. Some insurers also offer this bonus in the form of increment of the basic sum insured. For every claim free years, insurers increase the basic sum insured at pre-defined percentage.

  • Yes, as per recent guidelines of the insurance regulator IRDAI, you can port your existing health policy to the insurer of your choice. Now you can switch your health insurer without losing the benefits of your existing policy. The premium and policy benefits may differ depending on the plan you choose from the new insurer.

  • You can make any number of claims in a policy year. However, the sum insured is the maximum limit you can claim for in a policy year. If the sum insured is exhausted, you can’t make more claim in the same policy year. But some health insurance companies have come up with top-up and super top-up health cover that covers your additional medical expenses incurred over and above the limit of the sum assured.

  • It’s not a wise decision to include parents in your health insurance policy. Since premium is calculated on the basis of the age of the senior most members included in the policy, the premium will automatically go up compared to the premiums charged for two separate policies. Today, there are numerous health insurance policies for senior citizen; it’s advisable to buy one separate policy out of them for your parents.

Life Insurance

  • Life insurance policy is a contract between an individual and an insurance provider, in which the insurance company gives financial protection to the policyholder in exchange for monthly fee (known as premiums).

  • Below are the products of Life Insurance

    1. LIC India: i) Micro Bachat Plan, ii) New Jeevan Mangal, iii) Bhagya Lakshmi
    2. IndiaFirst: i) India First POS Cashback, ii) Micro Bachat Plan
  • Life insurance is important, as it protects your family and lets you leave them a non-taxable amount at the time of death. It is also used to cover your personal loans, such as your car loan. Your individual life insurance follows you when you retire and you are no longer insured by your employer. This insurance will also replace your family income when resources are less so they can maintain their quality of life.

  • All Micro Bachat insurance products are exempted from GST. In a way with the same amount of payment more coverage (sum assured) is available compared to conventional life insurance product.

  • Yes, you can have multiple policies from the same or different life insurance companies.

  • Through a Life Insurance policy, you can claim a tax benefit under section 80C of the Income Tax Act 1961, up to Rs. 1,50,000.

  • The cost of life insurance depends on the type of policy you take, , the sum insured , your age, health condition and the benefits you expect to receive when your policy matures.

  • Yes, there are multiple options available for you to pay your premiums. You can pay your premiums monthly, quarterly, half-yearly or yearly. You can also pay it in one flat rate.

  • No, you will not have to pay any tax on the maturity proceeds of a life insurance policy.

Fasal Bima Insurance

  • The application that is not approved on the grounds of not providing proper document, incorrect name on document, name mismatch on land documents & bank passbook, duplicate entry of documents, document is not readable, etc is called a Reverted Application. The Insurance company reverts the application that is visible on the CSC VLE portal so they can check and remove the discrepancy.

  • The discrepancies mentioned in the reverted applications need to be resolved within a pre-set time limit. It then goes back to the IC for approval. In case the discrepancies are not resaolved within the specified time frame , the application gets automatically rejected.

  • When an application is rejected the premium paid by the farmer is refunded to the farmer directly by the insurance company and the VLE Commission gets reversed.

  • Multiple applications can be generated through one Farmer ID depending on the number of crops to be insured/land holding etc.

  • There can be multiple applications against a policy but there will only be one policy per farmer ID regardless of the number of crops insured.

  • Crop insurance is a means of protecting the agriculturist against financial losses due to uncertainties that may arise from crop failures/losses arising from named or all unforeseen perils beyond their control.

  • Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of - a) providing financial support to farmers suffering crop loss/damage arising out of unforeseen events b) stabilizing the income of farmers to ensure their continuance in farming c) encouraging farmers to adopt innovative and modern agricultural practices d) ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

  • 01st June to 31st August (Can be extended till 30th September in some states)

  • 1st October to 31st December (Can be extended in Tamil Nadu)

    1. Agriculture Insurance Company
    2. Cholamandalam MS General Insurance Company
    3. Reliance General Insurance Co. Ltd.
    4. Bajaj Allianz
    5. Future Generali India Insurance Co. Ltd.
    6. HDFC ERGO General Insurance Co. Ltd.
    7. IFFCO Tokio General Insurance Co. Ltd.
    8. Universal Sompo General Insurance Company
    9. Tata AIG General Insurance Co. Ltd.
    10. SBI General Insurance
    11. Bharti Axa
    12. United India Insurance Co.
  • This scheme has been tax exempted from service tax.

Personal Accident

SME Shopkeeper Policy (SBI)

Travel Insurance