Finance

Things have become much more manageable since the transformation of the banking sector to digital transactions. Nowadays, people prefer online transactions to visiting branch offices to pursue banking. Since online transfers have become so important, people must know the best options. Let’s explore to learn about the best banks that offer secure and fast online transfers in India:

Best Banks in India for Secure and Fast Online Money Transfers

Since people prefer digital transactions, knowing about the best banks that offer secure and fast online transactions is essential. Below is a list of five such banks, including

1. IDFC FIRST Bank

IDFC FIRST Bank is considered one of the best service bank in India that offers secure national and international bank transfers. Its account holders can transfer through various channels, such as IMPS, NEFT, RTGS, and UPI. The bank also offers features like real-time tracking for international transfers and 24/7 access.

The online transfer of IDFC FIRST Bank helps customer manage their finances or make transfers from anywhere and anytime. It also offers strict security measures to protect online transactions, making it a wise option.

2. Axis Bank

Axis Bank is one of the renowned financial institutions in India that offers both national and international money transfer services online. It offers multiple channels to initiate the transfer, such as mobile applications and internet banking. A substantial markup in the exchange rate charged by the bank influences the total cost of conversion and the amount received by the recipient. It is considered one of the best options because it offers competitive rates, safe and secure transfers, permits transfers in over 100 currencies, and more.

3. HDFC Bank

HDFC is a popular bank in India that offers multiple financial services, including online national and international money transfers. However, money transfers from these banks come along with limitations. Online money transfer services with banks that have accounts with the bank are registered with Third Party Funds Transfer (TPT) through net banking. Therefore, its online services are available for a limited number of purposes.

4. ICICI Bank

ICICI Bank is one of the trusted banks for online money transfers that offer services like NEFT, RTGS, IMPS, and UPI. Customers can easily manage their transactions through internet banking or the iMobile Pay app. The bank’s security features, such as two-factor authentication and encryption, ensure that online transactions remain safe and secure.

5. Kotak Mahindra Bank

Kotak Mahindra Bank is another popular private bank offering secure and fast online money transfer options. Customers can use NEFT, RTGS, IMPS, and UPI for seamless transactions. It also supports international wire transfers with real-time exchange rate tracking. With a user-friendly mobile banking app and robust security features, Kotak Mahindra Bank ensures smooth and secure digital transactions.

Conclusion

Picking the right bank for your online money transfer is essential. You want fast, safe, and easy transactions. Banks like IDFC FIRST, Axis, HDFC, ICICI, and Kotak Mahindra offer reliable digital banking. They have secure systems, easy-to-use apps, and many ways to send money. These banks can smoothly send money within India or to other countries.  Before choosing one, compare the transaction limits, fees, and features they offer to see which one best meets your needs. This will help ensure you have a good experience.

As the internet becomes more accessible around the world, more and more people are looking for different ways to earn money through this medium. This should not come as a surprise in a country with 462 million social media users.

Metrics like this also highlight the potential of Indians to use these platforms to earn money right from the comfort of their homes. All they need is a good device like a smartphone and a stable internet connection, which is easily accessible today.

So, if you are wondering, “how can I earn money through online mediums” then you are at the right place. This blog will provide you with some valuable insights on making money online from the comfort of your home.

1. Online Tutoring

Gone are days when physical limitations would prevent people from accessing proper tutoring sessions. With widespread internet accessibility, offering online tutoring services has become much easier.

All you need to do is find the right platform, create a profile as an online tutor, highlight your specialities, and get students in no time. This does not even require you to leave your home as long as you can provide quality services to your students.

2. Freelance Writing

If you have a knack for writing, then freelance writing is another highly effective way to earn money from home. It is the perfect job for anyone who has the right expertise in something but does not want a full-time job outside their home.

It is also not very difficult to sell your content as a freelance writer as long as you meet the quality requirements of the client. This is a lucrative way to earn money from internet since every online business needs content to connect and demonstrate its offering to customers.

3. Social Media Management

As mentioned at the beginning, India has many users on social media platforms. Businesses understand this and the value of maintaining an effective social media presence in today’s world.

However, managing social media is not easy, and this is where your expertise as a social media manager earns you a lot. The best part of it all is that you will not even need to leave the comfort of your home to manage your client’s social media channels.

4. Dropshipping

Another great and relatively simple way to earn money from your home using the internet is dropshipping. It is a process where you can sell different products without having to maintain an inventory.

The customer will make the purchase through you, and the supplier will ship it to their address. In the meantime, you can charge the retail price from the customer and pay the wholesale price to the retailer to make a profit.

Bottom Line

There is no shortage of Indians waking up every day and wondering how I can earn from home. However, it is about time you stand out and stop wondering. Instead, you must leverage this information above to find a way to earn money from your home. All you will need is a stable internet connection, a smartphone and the right skills to market your brand.

Mobile banking has transformed the financial landscape, presenting an array of conveniences, advantages, and considerations for consumers. In this guide, we’ll discuss everything in detail about mobile banking, its evolution, advantages, and how it shapes the future of financial services.

Mobile Banking: A Modern Revolution

Mobile banking uses smartphones or tablets to manage banking accounts and conduct financial transactions. Banks and financial institutions offer this service, enabling customers to remotely perform a broad spectrum of financial activities.

Whether it’s checking account balances, paying bills, transferring funds, or applying for loans, mobile banking has evolved into a holistic solution for diverse financial needs.

The Advantages of Mobile Banking

• Unparalleled Convenience: Mobile banking eliminates the need to visit physical bank branches. Customers can access their accounts around the clock, from any location, saving precious time.

• Real-time Transactions: Immediate updates on account balances and transactions always give customers control over their financial activities.

• Robust Security Features: Mobile banking applications are fortified with security measures like biometric authentication, secure login methods, and encryption, ensuring the safeguarding of sensitive financial data.

• Effortless Bill Payments: Paying bills becomes hassle-free with just a few taps on a smartphone, significantly reducing the chances of missing due dates.

• Swift Fund Transfers: Transferring money to family or between accounts is swift and secure through mobile banking applications.

• Check Deposits Made Easy: Many mobile banking apps now allow users to deposit checks by simply capturing an image, eliminating the need for physical visits to a bank branch.

• Customized Notifications: Customers can set up alerts and notifications for various account activities, enhancing financial vigilance and early detection of any irregular transactions.

Considerations and Tips for an Optimal Mobile Banking Experience

To maximize the benefits of mobile banking while ensuring a secure experience, here are essential considerations and recommendations:

• Secure Network Usage: Avoid conducting banking activities on public Wi-Fi networks. Opt for secure, private networks to protect your data from potential threats.

• Regular App Updates: Keeping your mobile banking app up to date ensures you benefit from the latest security features and bug fixes, enhancing your app’s robustness.

• Multi-Factor Authentication: Whenever available, enable multi-factor authentication for an additional layer of account security.

• Active Account Monitoring: Routinely monitor your accounts for any unauthorized or suspicious transactions. Promptly report any irregularities to your bank.

• Stay Informed: Keep yourself informed about the latest security threats and best practices in mobile banking, empowering you to protect your financial assets effectively.

The Future of Mobile Banking

Mobile banking’s future promises more innovations, from integrating investments, insurance, and discounts to enhancing customer experience. As financial institutions adapt to the digital age, mobile banking is set to play a central role in delivering versatile and accessible financial services.

Conclusion

Mobile banking has matured into an indispensable facet of modern banking, offering numerous benefits and only a few considerations. It empowers consumers to take control of their finances, saving time and offering convenient account management at their fingertips. By staying informed and practicing vigilance, users can enjoy the full potential of mobile banking while ensuring the security of their financial information.

If you’re ready to revolutionize your banking experience, look no further than the IDFC FIRST Mobile Banking App. Download now to enjoy convenient and secure banking services.

Introduction

Personal loan has become a solution of all financial needs and emergencies. Demand of an unsecured personal loan has increase drastically within a few years due to various use of personal loan. A personal loan can be used for medical emergency, home renovation, debt consolidation and wedding. personal loans can be used for almost any legitimate financial requirement. However, it’s crucial to understand when applying for a personal loan makes sense and when it might not be the best choice.

In this article, you’ll understand about the situations in which applying for a personal loan is a wise decision.

1. Debt Consolidation

One of the most common and responsible uses of a personal loan is debt consolidation. If you have multiple loans with a high-interest, such as credit card balances or medical bills, a personal loan can help you combine them into a single, more manageable payment. Personal loans often offer lower interest rates compared to credit cards, which can save you money in the long run and make it easier to pay off your debt faster.

2. Emergency Expenses

Life is full of unexpected and medical and financial emergencies can be arrive anytime, like medical bills, car repairs, or urgent home repairs are necessary to fix. In such situations, a personal loan can provide the instant funds to cover these expenses quickly. Having access to a personal loan can be a financial lifesaver, preventing you from resorting to high-interest credit cards or depleting your savings.

3. Home Renovations

Home improvements can increase the value of your property and enhance your living conditions. If you’re planning a renovation project but don’t have the cash on hand, a home renovation loan can be a suitable option. You can use the funds to remodel your kitchen, upgrade your bathroom, or make other improvements that can pay off in the long term.

4. Education Expenses

Investing in education is a best investment for a better future. Education loan can help you to finance funds for your child’s education so that they can make a better future. You shouldn’t hesitate to opt for an educational loan for your children.

5. Business Ventures

Starting a small business or expanding an existing one often requires a significant upfront investment. Personal loans can be used as a source of capital for entrepreneurs who don’t want to take on the risk associated with business loans. It allows you to maintain control over your business without involving external investors.

6. Special Occasions

While it’s essential to manage finances prudently, there are moments in life that deserve to be celebrated. Personal loans can help you finance a dream wedding, a memorable vacation, or a milestone birthday party. Just be sure to budget and plan for repayments to avoid excessive debt.

When Not to Apply for a Personal Loan

While personal loans can be beneficial in many situations, there are also instances where applying for one may not be the wisest choice. Here are a few scenarios to consider:

1. Unnecessary Expenses: Avoid taking out a personal loan for non-essential or impulse purchases. Financing a luxury vacation or a shopping spree with a personal loan can lead to unnecessary debt.

2. Risky Investments: Using a personal loan to invest in share market to buy equity shares may be a risk which can lead to financial loss. You should never put loan money in stock market because, it required lot of research and patience to earn from the stock market. It’s important to assess the risk and potential return carefully.

3. Ongoing Living Expenses: Relying on personal loans to cover day-to-day living expenses is not sustainable and can lead to a cycle of debt. It’s crucial to create a budget and seek other financial solutions in these situations.

Conclusion

Personal loan can be a valuable tool for responsible borrowers. It can be burden for you if do not know how to use a personal loan, your ability to repay loan, interest rates, fee and hidden charges. When used for the right purposes, such as debt consolidation, emergency expenses, home renovations, education, and business ventures, they can help you achieve your financial goals and navigate unexpected challenges. However, it’s equally important to exercise caution and avoid using personal loans for frivolous or risky endeavors to maintain your financial well-being. Always make sure to compare loan offers from different lenders and choose one with favorable terms that suit your needs and repayment capacity.

In a seller’s market, mortgage pre-approval can give you a leg up when bidding. It also helps you set reasonable expectations for your house hunt and prevent the heartbreak of finding a home you can’t afford.

Pre approval is more valuable than prequalification because the lender verifies documentation to approve a loan amount. Final loan approval occurs when the property appraisal is completed and you close on your mortgage.

What Is Pre-Approval?

Homebuyers often make the mistake of researching home options without first consulting with a mortgage lender and getting pre-approved. That mistake can lead to financial setbacks down the road and may even prevent a buyer from being able to purchase a property at all. Pre-approvals allow borrowers to understand their house-hunting budget and the monthly mortgage payment they can afford. It’s important to note that mortgage pre-approvals typically require a hard credit pull, which can temporarily drop a borrower’s credit score by a few points. The good news is that mortgage lenders bundle pre-approval requests into one inquiry on a credit report to minimize the impact on a homebuyer’s credit score.

It’s important to note that a mortgage pre-approval is not a guarantee and that actual loan approval will take place during an underwriting stage where a lender examines all aspects of a borrower’s finances. This includes verifying employment, income and assets, as well as examining a borrower’s credit history and debt-to-income ratio.

How Does Pre-Approval Work?

In the preapproval process, you fill out an application with your lender and submit supporting documents like pay stubs and bank statements. You also agree to a credit check, and the lender will perform an analysis of your debt-to-income ratio to see how much you can afford to spend on a mortgage each month.

The lender will consider your current debt, including credit cards and auto loans, in addition to your new mortgage. Generally, lenders want the monthly home loan payment to take up no more than 28 percent of your gross income and total debt payments (including the mortgage) to make up no more than 36 percent.

The lender will send you a letter that indicates the maximum loan amount you have been approved for. While a letter of pre approval is not a guarantee, it will show home sellers that you are a serious buyer and can secure financing for your new purchase. That gives you a competitive advantage during a frenzied market.

What Can I Do With Pre-Approval?

Home buyers who get pre-approval have more negotiating power when shopping for a home and can avoid the heartache of falling in love with a house only to find out later that it’s financially out of reach. It also demonstrates to sellers that the borrower is serious about buying the property.

Mortgage pre-approval is valid for a specific time period (which varies by lender), and the loan file will eventually transfer to an underwriter to determine full approval for the mortgage. The underwriter will review the borrower’s credit history, tax returns, pay stubs, savings account records and other information to verify that the borrower meets guidelines for their home loans program.

The underwriter will also verify the borrower’s income to ensure it’s sufficient to cover the new monthly mortgage payment and debt payments. If there are any changes to the financial picture, the underwriter may approve or disapprove the loan offer and require new documentation or a lower borrowing amount.

How Long Does Pre-Approval Take?

It’s often recommended that prospective buyers seek pre-approval before they even start shopping for a home, so any issues can be resolved before they set their hearts on a particular property. For example, it’s important to know how much you can afford, and a pre-approval process helps with that by assessing your creditworthiness and verifying employment and financial documentation.

In addition, a mortgage pre-approval typically involves an in-person interview with the lender. The actual loan approval takes a deeper look at your records and may take longer to obtain if you have complicated finances, like a lot of debt or previous foreclosures on your record.

Getting pre-approval can help speed up the purchase process by showing sellers that you are a serious buyer with the means to close on the home. It’s also a great way to shop lenders and learn about differences in rates, fees and timeframes for closings. You might even find that you can save money by getting pre-approval from multiple lenders.

Venture debt is a popular type of financing for startups. It allows startups to raise more capital without significantly diluting their ownership stakes.

Despite its advantages, venture debt is still a risky investment. Founders should consider whether it is the right financing option for their company and what they can expect out of a venture debt deal.

It is cheaper than equity

Venture debt is a form of financing that can help you grow your company without the hassle of equity dilution. It can be a great solution for companies that are seeking to increase profitability and build a strong money runway, or it can also serve as a bridge between an equity financing round.

A company can use venture debt to pay for a variety of business expenses. It can be used as performance insurance, to fund acquisitions or capital expenses, or it can act as a bridge to the next round of equity.

Another benefit of venture debt is that it typically costs less than equity. For instance, a lender may pay you an interest rate that accrues over time (similar to a bank loan) instead of cash each month, so the total cost of your venture debt is less than if you raised equity.

However, you need to consider your own financials and how well they perform before deciding to raise venture debt or equity. This is a big decision that will affect your company’s long-term future and you should always be mindful of the risks involved.

It is a form of financing

Venture debt is a form of financing that can be used to fund growth in an early-stage or emerging company without losing equity. It can be ideal for companies at Series A and B stages that want to expand their routes to market, or to acquire new equipment.

As the value of a startup depends on its performance milestones and ability to achieve them, venture debt lenders are interested in how well a company is doing relative to those goals. They also look at the enterprise value of a business, as well as the potential for future business growth and revenue growth.

In the venture industry, it is common for startups to run into unforeseen issues and delays. Venture debt can serve as an insurance policy to protect the company from these mishaps, which can make it easier for the company to raise another round of equity funding once it is back on track.

It is a form of insurance

Venture debt serves as a form of insurance for startups in the case of business failure or delays. It eliminates the need for an emergency bridge round or for equity dilution in a subsequent round of capital.

During the underwriting process, lenders consider several factors such as the management team, investors, product and market traction, and other value drivers to decide if a company should receive venture debt. They are also interested in the company’s growth strategy and its ability to raise future rounds of equity.

Unlike traditional business loans, venture debt financing does not require personal guarantees and offers funds earlier in the life cycle than traditional bank loans. It is a flexible type of funding that is ideal for scaling up high-growth SMEs.

It is a form of dilution

Venture debt is a form of financing that is offered to early-stage innovative companies. It acts as a complement to equity investments and is often used as a form of runway extension.

It can also serve as a form of insurance to protect a company from unexpected market conditions or short-term challenges. This type of loan is a good option for startups that may not qualify for traditional bank financing because it does not dilute existing shareholders and is flexible in terms of how it can be paid.

While dilution is generally desirable for a company, it can be a downside for investors if the company fails or the market changes. In addition, dilution can lower the value of a company’s shares and impact the company’s earnings per share.

If you’re looking to invest in gold, you may be wondering how to save on your purchase. Here are a few tips to keep in mind. First, look for government-issued gold. This can often be found at a lower price than other types of gold. Second, consider different types of gold. For example, 24-karat gold is purer than 14-karat gold, but it may also be more expensive. Third, buy gold from a reputable dealer. This will help ensure that you’re getting a quality product. Finally, when purchasing gold, determine how much you need and consider the purity of the gold. By following these tips, you can be sure to get a great deal on your next Gold rate!

How to Save on Gold Purchases.

The first way to save on gold purchases is to look for government-issued gold. One example of this is the American Gold Eagle, which is produced by the United States Mint. These coins are made from 22-karat gold and are considered legal tender in the United States. Another option is the Canadian Gold Maple Leaf, which is produced by the Royal Canadian Mint. These coins are also made from 22-karat gold and are considered legal tender in Canada.

Consider different types of gold.

Another way to save on gold purchases is to consider different types of gold. For example, 24-karat gold is purer than 22-karat gold, but it is also more expensive. If you’re looking for a cheaper option, 18-karat or 14-karat gold may be a better choice. Another thing to keep in mind is that not all forms of gold are created equal. For example, bullion coins are typically more expensive than bars or ingots because they are easier to trade and transport.

Buy gold from a reputable dealer.

The last way to save on gold purchases is to buy from a reputable dealer. There are many dealers who sell fake or counterfeit gold, so it’s important to do your research before making a purchase. A good place to start is with the Better Business Bureau (BBB). You can check if there have been any complaints filed against a dealer before doing business with them.

Tips for Buying Gold.

The first step in Saving Schemes on gold purchases is to determine how much gold you actually need. You may want to purchase gold for investment purposes, or you may simply want to have some on hand in case of an economic emergency. In either case, it is important to know exactly how much you need so that you do not overspend.

Consider the purity of the gold.

When purchasing gold, it is important to consider the purity of the metal. The higher the purity, the more expensive the gold will be. However, purer gold will also be more valuable in the long run. So, if you are planning on holding onto your gold for a while, it may be worth paying a bit extra for higher purity.

Choose the type of gold you want.

There are many different types of gold available on the market today. From coins and bars to jewelry and other decorative items, there is something for everyone. When deciding what type of gold to buy, it is important to consider your needs and budget. For example, if you are looking for an investment piece, coins or bars may be a better option than jewelry since they will be easier to sell later on.

Gold Purchasing Resources.

The United States Mint is a good resource for buying gold. The Mint offers a variety of gold products, including coins, bars, and rounds. You can buy gold from the Mint online or at one of its retail locations.

The World Gold Council.

The World Gold Council is an organization that promotes the use of gold. It provides information on gold markets and prices, and it offers resources for buying gold.

Gold dealers.

Gold dealers are another option for purchasing gold. You can find dealers online or in your local Yellow Pages directory. When choosing a dealer, be sure to check their reputation and fees before making a purchase.

Conclusion

Purchasing gold can be a great way to invest in your future and save for retirement. However, it is important to do your research before making any gold purchases. There are many different types of gold available on the market, and not all of them are created equal. Look for government-issued gold, consider different types of gold, and buy from a reputable dealer to get the best value for your money. With a little bit of planning and research, you can make smart choices about your gold purchases that will pay off in the long run.

Are you finding managing your financial life tricky? If yes, then you can start investing in a 1 crore term insurance plan to start building a strong base for your financial future. A 1 crore term insurance is an insurance plan that provides your family with a cushion to lead their lives comfortably after your unfortunate demise. A 1 crore term insurance provides you with an 8-figure assured sum upon your death that makes sure your family’s lifestyle remains intact & all their needs can be taken care off after your demise. In addition, a 1 crore term insurance provides you with a plethora of benefits that not only make it a wise investment for the current period but also for the future.

Here is how you can make the most out of your 1 cr term insurance to stabilize your financial life:

• Simple but a significant investment: A 1 crore term insurance plan is very straightforward in your nature. You don’t need to make many choices apart from deciding the sum assured, the tenure & fill in the required details. Once you have fixed all of the requirements, all you need to do is pay your premiums on time so that the 1 crore term insurance plan does not lapse.

• Value for money: The 1 crore term insurance plan is value for money. It provides you with the cover you need to ensure your family’s wellbeing after your demise. If you are an individual who is in their early 20s, then making an investment early on will provide you with the benefit of a lower cost of premium & It does not have any cash value; thus, it becomes the most affordable term plan there is. 1 cr term insurance & term plans are some of the most affordable plans in the market.

• Riders that sweeten the deal: The 1 crore term insurance can be loaded with riders that sweeten the deal. A 1 cr term insurance can be added up with riders like accidental death benefit, accident total, disability riders, and more.

• Savings on tax: With a one crore term insurance, you have an added benefit of saving tax in the form of claiming tax deductions of up to Rs 1.5 lakh on the premium you have paid in the financial year under section 80C. You will also not be liable to pay taxes on the death benefit that is provided with the policy benefits. Keep in mind that these benefits are applicable only if you have opted for the old tax regime.

• Higher cover for less investment: The premium amount and tenure being lower allow you to get one-crore term insurance for a lower investment amount & your family is assured with a sum of 1 crore too.

As an individual, you need to think about your retirement life while you are working and align your investment targets with your retirement goals in order to lead a happy retirement life. It is really necessary to get a 1 cr term insurance, as you can relax with the sum you get on maturity.

Small business ventures require capital to flourish. The funding can come from a wide array of sources. Before such ventures seek out Small Business Funding Options, there needs to be a well-defined business plan and a clear outline of the plans to utilize the capital. It is also important for the business to know the risks involved and the ways to pay the capital back. One’s business idea might be great, but the investors need to be impressed for funding the idea.

The article highlights some of the common funding options for small businesses.

Bank loans

Conventional bank loans are one of the popular choices for small business financing. Some of the funding options offered by banks are term loans, equipment loans, business credit cards, and business lines of credit. Though the interest rates are low, qualifying for bank loans can be tougher. A strong personal credit score, settled business revenue, at least a year’s operation are required for bank loans.

Crowdfunding websites

In the past few years crowdfunding has become one of the popular Small Business Funding Options. Such websites are there to help small business ventures raise capital and launch particular products or services. Crowdfunding is a time-consuming process and requires putting up information about the business on the website along with images and videos of the products/services. But they can be an excellent way of pre-selling the products and yield capital. There are crowdfunding sites that give access to funding only when the business caters to fundraising goals and the site would acquire a percentage of the earnings.

Angel investors

Angel investors are high net-worth business individuals who demand an equity stake in return for their financing the small business. Their expertise in the specific area helps the small business grow and make profits. Getting funding from angel investors is not an easy task as small business ventures might be scrutinized for their business plans. In addition, the businesses have to impress the angel investors for funding and providing capital.

SBA loans

The U.S Small Business Administration offers traditional banks, a federal assurance of loans demanded by small businesses. This is less risky for banks to lend capital to small businesses and enable the ventures to grow and be successful. Along with loan assurance, SBA also offers varying SBA loans with different favorable rates. SBA loans are an easier way for small business funding, but one still requires a good credit score to qualify.

Small business grants

When a small business venture is considering capital without worrying about funds being paid back, small business grants are the best option. Such free grants are provided by non-profit governmental agencies and corporations. Some grants offer funds to specific types of industries. The small business grants are best for start-ups and small businesses that fail o qualify for traditional bank loans.

Conclusion

Determining the best Small Business Funding Options is important to expand a small business venture. Having a clear idea about the amount of money a venture requires is the best way to move forward in acquiring capital and growing businesses. For more information please visit WOW Wifi router

IRDAI (Insurance Regulatory and Development Authority of India) has issued guidelines that insurers offering vehicle insurance should abide by. Also, it is mandatory for all vehicle owners to buy a vehicle insurance or opt for motor insurance renewal plan and abide by all guidelines set as per IRDAI.

A vehicle insurance certificate is issued by the insurance provider to the insured after purchase of the vehicle insurance or its renewal. This insurance certificate is mandatory for the vehicle owners to carry while driving the vehicle. Violators may be penalised with hefty charges or even imprisonment. Moreover, an individual’s license and vehicle’s registration documents may also be suspended.

Here are some of the crucial guidelines set by IRDAI for vehicle insurance plans:

• 3rd party liability insurance

It provides compensation to third parties in the case of vehicle property damage or bodily injury due to the insured’s motor vehicle. All the vehicles, be it a 4-wheeler or 2-wheeler should mandatorily have a third-party insurance cover.*

• Comprehensive policy

This insurance offers extended cover to the insured. Alongside meeting the third-party liabilities, this policy also provides for any injury or damage caused to the insured and his/her vehicle.*

• Factors for insurers to account for while insurance premium calculation

Fundamental factors that impact the premium amount for vehicle insurance are:

• Engine’s cubic capacity
• Vehicle’s age
• Vehicle’s model

Besides the above factors, insurers also factor aspects like driving history, presence of safety device in the vehicle, etc. when quoting the final premium. This inspection is addressed by the term IDV or Insured Declared Value.

IDV is one of the crucial factors taken in consideration by insurers. Based upon the IDV, the premium calculation and sum assured for the insurance is decided. The calculation for IDV is performed based on the vehicle’s current market valuation. Another crucial factor considered is depreciation. IRDAI has clearly stated that depreciation rate must be factored in. This is one of those factors that majorly impacts the claim amount. In simple words, the older the vehicle, the lower is the claim amount. For all vehicles less than 6 months old, 5% is the depreciation rate. On crossing this mark, the depreciation rate rises to 15%. After 1 year completion, the rate further elevates to 20%. After this, the depreciation rate rises annually by 10%. Note that IRDAI has also mentioned the depreciation rate for different parts in a vehicle. Please feel free to visit the official website of IRDAI for further details.

• NCB transfer from one insurance provider to another

IRDAI mentions that policyholders will not miss out on NCB status on switching to another insurer during motor insurance renewal.

• Third-party insurance

As per IRDAI, all insurers are required to purchase a third-party policy for a compulsory 5-year period.

Here are some essential documents to be kept handy when driving:

• PUC (Pollution under control) certificate
• Insurance certificate
• Driving License
• Vehicle registration copy

• Exclusions from vehicle policy

Vehicle insurance policy will be considered invalid in the listed cases:

• On driving a vehicle with invalid driving license.
• On driving a vehicle in an intoxicated condition or under the influence of any illegal substance or drug.
• On indulging in an accident due to high speed or traffic law violation.
• On using the vehicle for any unlawful or illegal activity.
• On witnessing any damage due to radioactive or nuclear elements.
• On reduction of the vehicle’s monetary value owing to wear and tear.

* Standard T&C Apply

Bottom line

Whether opting for the online or offline mode to buy or renew motor insurance, ensure to note the above crucial points. Also, before opting for the motor insurance, use a motor insurance calculator to compare amongst different insurers to opt for the one offering a suitable deal at the lowest premium. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read sales brochure/policy wording carefully before concluding a sale.