Alisha Gupta, Author at Invest Market

Travel Insurance During Coronavirus: Expect For Coronavirus Coverage or Not

July 13, 2020 Alisha Gupta No Comments

Coronavirus outbreak has just stunned the financial as well as the travel world to a massive extent. It has just forced every country to take strict steps for the control of the disease. The travel industry was on complete shutdown in the lockdown period. There was a strict ban imposed on traveling of foreigners from coronavirus infected countries to travel the world like citizens from China, Italy, the USA, Spain etc.

One thought must come in your mind that whether your Travel Insurance Policy will provide cover for Coronavirus?

Well, the worry is obvious. Let’s get into the detail of the concept of Coronavirus Travel Insurance.

What is Travel Insurance?

Travel Insurance is insurance that provides coverage for all unexpected and unwanted events while travel journey be it domestic or international. Coverage for multiple kinds of expenses like medical expenses, lost luggage, flight cancellation, delays in flights, loss of passport, etc. Get different and special covers for domestic, international, and travel insurance policy for different age groups.

What Is The Impact Of Coronavirus On Global Economy And Travel Industry?

Coronavirus first case was reported in Wuhan city, China on 31 December 2019 in a New Year party. It took some time to identify the reason behind this virus. Coronavirus symptoms were very common flu-like dry cough, high fever and difficulty in breathing. In no time it got spread in the whole world 170+ countries and was declared as Pandemic by WHO on 11 March 2020.

The emergency state was declared in a number of countries after the increment in Death rates at massive rates due to coronavirus. The travel was kept on hold and all the visas got suspended for a certain period of time. All international flights were on a complete ban from March 22, Janta Curfew. The entry of foreigners and Indian citizens from highly affected countries like China, Italy, Spain etc.

The travel industry was worst affected by the coronavirus pandemic. The battle with coronavirus is still on and the condition has not gone to the recovering stage yet as it is a very complicated and time-consuming process. Travel and tourism industry not only hits the travel sector but also several related sector that were somehow dependent upon the traveling of people like hotel occupancy rate, earning source of travel destinations, employment rates etc.

Time To Look For Some Facts and Figures

The travel and tourism industry contributes 10% of the Global GDP.
Travel restrictions were imposed on 200+ countries according to the report of UNWTO- United Nations World Tourism Organization
More than 70,000 commercial flights were shut down and canceled due to lockdown.

Before & After Situation Of Travel Insurance During Coronavirus-

▶️ If someone has booked travel tickets after the declaration of Coronavirus as a pandemic by WHO then it will not be covered under Travel Insurance Policy. The exact date was 12 March, 2020 when it is declared as Pandemic for the world. All the cancellations before 12 March covered under Travel Insurance policy.

▶️ Now one should check for the latest and updated Travel insurance Policy. Check whether it provides cover for Coronavirus and must read the updated details carefully. Even now it is suggested to ask for the updates in the existing travel insurance policy from your policyholder agency. It is advised to immediately ask for the claim compensation as some policies may have a stricter cut-off rate.

▶️ Some insurance policies may not provide Coronavirus coverage as it has become a much known event. At this point of time so government and travel advisories are against travel to some highly affected countries. From where the insurance agencies are taking leads and providing the best terms in their travel insurance policies.

▶️ The insured persons who were not able to travel during Coronavirus and have taken insurance policy before Coronavirus declaration as pandemic should be able to cancel the policy. One must check with their insurance policy agencies to know about cut-off dates for refunds.

Points To Remember-

One can only ask to cancel the policy if he/she has not made any claim from the policy yet.
If there are some pending claims left on the travel insurance policy then the cancel policy request will be nullified.
You can cancel and insurance policy after a certain period of time after having taken the policy out, so it suggested to check for this point as well.

Coverage for Trip Delays and Cancellations

If the insured person is willing to get covered from cancellations and travel postpones delays then he/ she will surely get cover against their Travel Insurance Policy. The claim amount will be as per the terms and conditions of the travel insurance policy of the agency. The policy must have purchased before the declaration of the coronavirus disease as a pandemic by WHO.

What Is Included In New Coronavirus Travel Insurance Policy?

With the outbreak of coronavirus, a new situation has raised. Will My Travel Insurance provides cover for Coronavirus disease expenses?

Keeping in mind the situation of market new insurance policies have been launched. These focus on providing cover for Coronavirus expenses during the travel. One needs to check for all the legal papers and exclusions and inclusion of the policy. Only then one can expect maximum benefit while claiming the process. The most important thing that must be checked before taking Travel Insurance are-

Cover for cancellation of travel bookings
Medical treatment while traveling
Value of your possessions and baggage
Cover for additional activities
And so on

What Is Property And Casualty Insurance? Why It Is Necessary?

July 10, 2020 Alisha Gupta No Comments

What Is The Relation Between Property & Casualty Insurance?

Property and Casualty insurance is the type of insurance policy that protects you and your property as a whole. These policies provide you coverage against all the damages and losses that are occurred to your property or caused by you to another person’s property or life.

Property and Casualty insurance is also known as P&C insurance which does not include other types of insurance coverage like life insurance, health insurance, and fire insurance.

What Is Property Insurance?

Property insurance provides risk coverage against your personal property from various unusual events and risks like fire, theft, lightning, etc. Property insurance is a combination of various specialized insurance like homeowner insurance, earthquake insurance, flood insurance, renters insurance, etc. It provides protection to the owner of the property and structures the contents of the property.

Property Is Insured Against Two Types Of Perils-

Open perils– It covers for all the causes of loss not excluded in the policy. Some of the common exclusions in open perils are Earthquake, Floods, terrorism, etc.

Names perils– in named perils, the actual cause of loss needs to be listed in the insurance policy. Some of the named perils include fire, explosion, theft, etc.

Types Of Property Insurance Coverage

Broadly there are three types of property insurance coverage-

1) Replacement Cost

Replacement cost coverage covers the cost of replacing and repairing with the same kind of assets of the same value regardless of depreciation or appreciation. This coverage is based on replacement cost value instead of the actual cash value of items.

2) Actual Cash Value

Actual cash value provides coverage for replacement cost minus depreciation. The insurance company will pay for the occurrences in a particular situation. For an instance- if some item is destroyed and it is 5 years old then you can only expect the 5-year-old price of that item, not the present value.

3) Extended Replacement Costs

Extended replacement costs pay more than the coverage limit. This limit will not exceed 25% in spite of the fact that the cost of construction has gone up. The maximum amount that insurance companies will pay for the occurrences in a particular situation.

Why It Is Necessary To Buy Property Insurance?

1) Risk Coverage Against Uncertain Natural Events

As natural calamities like earthquakes, floods, tsunami, etc. Are uncertain events and moreover we can’t control the happening of these events. But what can protect you against the financial loss faced by it is property insurance. Property insurance also provides coverage against “act of god” and natural calamities

2) Coverage Against Man-Made Risks

Your property is under risk from man-made events. You can get protection from various safety equipment like CCTV but these gadgets don’t provide a guarantee of financial loss. So in order to safeguard your property from man-made threats like terrorism, theft, burglary property insurance can protect.

3) Compensation Against Business Losses

Property insurance also provides you cover against business losses due to some unusual events like machinery breakage, system crashes, etc. With it, you will be able of getting compensation against business losses incurred during that time period.

4) Protect The Assets Of Your Property

if your property insurance also provides you cover against content or stuff then you are also eligible for the cover against financial losses to the assets of your property. Content insurance provides financial coverage to the various property assets like furniture, electronic appliances, and other precious stuff that you want to secure in the time of crisis.

What Is Casualty Insurance?

Casualty insurance refers to coverage for all the losses caused by the insured person to others or legal liabilities imposed on the insured. This insurance provides coverage to individuals, employers, against loss of property and other liabilities.

Let’s consider a hypothetical situation to explain the concept of casualty insurance in more detail

Suppose jack by mistake hits Ronnie’s car, resulting in damage to the car of 5000 rupees. Now legally jack is liable for those damages and must pay for all the wear and tear. But here the concept of casualty insurance shines out which would protect jack from paying for these damages out of his pocket and bear all the expenses on its own.

Why To Opt Casualty Insurance In Business?

If you are running your own business then you should understand the concept of casualty insurance depending upon u r type of need. One of the important casualty insurance types for businesses is workers’ compensation insurance that protects a company from all the liabilities that are raised by the workers while doing their job. For example if someone is injured.

If you have an online business then different casualty insurance types like cyber fraud insurance, identity theft insurance, etc can opt. You can also ensure your computer system in a separate policy.

It is important for every business to have casualty insurance coverage because no one wants to harm anyone. Liability insurance covers all the risks that arise by the insured person to its customer for which the insured person is liable.

How To Choose Property & Casualty Insurance?

A local agent can help you to provide you the perfect advice related to what type of coverage is right for you as per your requirements. He or she will also ensure maximum protection to the insured person so that one can peacefully enjoy daily life without the stress of any financial losses to life and property.

It is suggested to buy property and casualty insurance from a trusted agency. As it gives detailed information and a quick claiming process in case of losses.

Final Verdict

Casualty and property insurance are two sides of the same coin like property insurance protects your property on the other hand casualty insurance protects you from all financial losses for which you were liable to pay through your pocket. Casualty insurance bears all the expenses for the damages done by the insured person to a property or an individual.

Introduction-

Sukanya Samriddhi Yojana is a Government that launched the saving scheme. It was specially launched for the girl children. It is the most beneficial saving scheme with the highest rate of interest at present. At present, the interest rate is 7.6% annum which is revised by the government quarterly. It secures a girl’s life and helps her family to save the amount for her higher education and marriage. She is eligible to operate her account on her will after the age of 18 years.

When Sukanya Samriddhi Yojana was launched?

Sukanya Smriddhi Yojana was launched by our honorable Prime Minister Mr.Narendra Modi on 22 January 2015. It works as the part of “Beti Bachao Beti Padhao” Campaign. At initial stages, the interest rate was 9.1% later on which was changed to 9.2% for 2015-2016.

Table Showing Interest Rate Revisions Are-

Features of Sukanya Samriddhi Yojana-

Closure before maturity period is only allowed in the following cases-

Medical treatment of girl against some deadly disease
Death of the parent/guardians who deposits the amount in the account

If the depositor is unable to deposit Rs.250 even in a year then the account is tagged as the Default account. The default account will earn the interest applicable in the scheme.
The girl is eligible to operate her account after the age of 18 years after submitting all the required documents to the post office and bank from where the account has been opened.

Benefits of Sukanya Samriddhi Yojana-

If a girl child is born before twin girls then the account for the first girl child can be opened. In this way, one can open more than 2 accounts under SSY.
Tax deduction benefits of up to Rs.1.5 lakh under section 80C of Income Tax Act.
The highest fixed rate of return i.e. 7.6% per annum which is comparatively higher than other small saving schemes.
Huge benefits in case of Long term investments.
Easily transferable from one post office or designated bank to another bank or post office.

Eligibility Criteria Of Sukanya Samriddhi Yojana-

One can open an account under Sukanya Samriddhi Yojana on the basis of following parameters-

The age of girls should be less than 10 years.
The girl should be a citizen of India.
Two girl children in a single-family are eligible for the Sukanya Samriddhi Yojana account.
Multiple SSY accounts cannot be opened for a single girl child

How To Open Sukanya Samriddhi Yojana Account?

One who is looking forward to opening an account under SSY can visit the nearer post office or some of the authorized commercial banks. You can also download the Sukanya Samriddhi Yojana Application Form from RBI official website.
The girl child should meet all the eligibility criteria in order to open the account.
Deposit in the account can be made for the time period of 15 years after which one can close the account.
The girl after the age of 18 years is eligible for the partial withdrawal and after the age of 21 years, she can close the account on her will.

Sukanya Samriddhi Yojana Tax Benefits

The scheme got very popular and widely acceptable due to its tax benefits. It provides the maximum tax benefit of Rs.1.5 lakh under section 80C of the Income Tax Act. The interest accrued and maturity is exempted from the tax. One can easily calculate the maturity amount that the girl is getting from the SSY account at the end of the maturity period. The amount may vary on the basis of your deposits and interest rates per financial year. It will let you know how much you can save for your daughter’s education and marriage with the help of Sukanya Samriddhi Yojana.

Terms And Conditions Of Sukanya Samriddhi Yojana-

Girl’s age should not exceed 10 years.
A minimum deposit of Rs.250 is required at the initial stage for opening the SUKANYA SAMRIDDHI YOJANA account.
The maximum deposit limit account under SSY is Rs.1,50,000.
Withdrawal of 50% amount is allowed after the girl’s age of 18 years for higher studies.
Closure of account is allowed after 15 years of the time period from opening. If the girl is 18 and married then also normal closure of the account is allowed.
A minimum deposit of Rs.250 in a year (initially it was Rs.1000) is restricted otherwise fine of Rs.50 will be charged.

How To Calculate Total Amount With Sukanya Samriddhi Yojana Calculator?

As per the rules of Sukanya Samriddhi Yojana, the deposit must be made till 15 years from the date of opening the account. The limit of deposit was in a financial year was Rs.1000 at the initial stage but now it has reduced to Rs.250 which means a person has to deposit a minimum amount of Rs.250 in a financial year.

The maturity period of Sukanya Samriddhi Yojana is 21 years but the period for depositing amount is 15 years. From the time period of 15^th till 20^th year, no deposits are required to be made in the account. You will earn deposits made in the earlier years. The interest that will be accrued will be on the basis of past deposits.

Sukanya Samriddhi Yojana Account Transfer

One of the major benefits of the Sukanya Samriddhi Yojana account is that it is easily transferable from one part of India to another part. You can only transfer this account from one post office of India to another bank or post office only for the benefit of the girl child.

How to Transfer?

To initiate the transfer process for the account is extremely easy. You just need to fill out the Transfer Request Form from the post office where the account is currently opened.

Or if you have opened the account from the commercial bank then also the online and offline forms are available for the transfer of the account.

Latest News & Updates About Sukanya Samriddhi Yojana –

As the whole country is suffering from Coronavirus pandemic and has been facing a major financial crisis some relaxation norms have been announced by the Government.

As per the latest guidelines from the postal department, the account on the name girl child can be opened who attained the age of 10 years in the lockdown i.e. from 25 March 2020 to 30 June 2020. This is because the parents could not open the account due to lockdown.

The revised interest rate in the year is 7.6% which is highest among all the small saving schemes.

Know About: Coronavirus Health Insurance Policy

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