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What is Indemnity Insurance?


Indemnity insurance or professional indemnity insurance is a type of insurance policy which is designed to shield professionals and business owners if they are found to be guilty of some event such as misjudgement or some other professional risks. Indemnity insurance is also called as professional liability insurance. It provides cover for the claim of providing inadequate services, advice, design, etc. against the insured. Liability insurance also covers the compensation that is payable to the client for correcting the mistake.


Need of Professional Indemnity Insurance


While working as a professional, it is always a possibility that you or your colleague could make a mistake, regardless of the experience. So, it is a good option to have a liability insurance if you regularly work with clients or businesses and Handle their work, data, intellectual property or even provide them with professional services or advice. The indemnity insurance covers you and your firm from facing financial losses if a claim is made against you or your company. Thus, having a professional liability insurance which adequately covers your organisation is a safe option while doing a day to day business.


Professional Liability Policy Covers


An indemnity policy covers the following Range of scenarios –


  • • Professional negligence
  • • Loss of data or other documents
  • • Loss of goods and/or money
  • • Unintentional breach of confidentiality or copyright
  • • Claim investigations expenses
  • • Defamation


Who Can be Insured Under the Professional Indemnity Insurance?


This policy can be taken by –


  • • Doctors and medical practitioners like surgeons, pathologists, etc.
  • • Engineers, contractors, architects, etc.
  • • Hospitals, clinics and nursing homes
  • • Lawyers, chartered accountants, counsellors, advocates
  • • financial advisors, management advisors, etc..


Exclusions from the Professional Liability Insurance Cover


There are certain exceptions which are not covered by the indemnity insurance. Let us take a look at those –


  • • Criminal acts, frauds and other law violations.
  • • Being under the influence of drugs or alcohol while rendering the service.
  • • Intentional damage
  • • Contractual liability
  • • Act of war or terrorism
  • • Insolvency of the person with indemnity insurance.


Top Insurance Companies that Provide Liability Insurance


  • • New India Insurance
  • • Reliance General Insurance
  • • United India Insurance Company
  • • ICICI Lombard Insurance Company
  • • Tata AIG Insurance.


Source: Fincash

What is Commercial Crime Insurance Coverage?


A commercial crime insurance is a policy which offers comprehensive cover and provides protection against employees’ theft and any losses from forgery, computer fraud, etc. In the event of any commercial crime, it becomes the duty of the insurance company to safeguard the policyholder against various losses or damages.


Undeniably, you can’t ignore white collar crime which is rising at an alarming rate. Many times, companies don’t think of purchasing the cover against fraud. However, the reality is that it’s more the senior staff and trusted employees that commit fraudulent activities. And when they strike, they do it not for once but again and again over a period of time.


As a company, it becomes necessary for you to have a viable financial coverage instead of wishful thinking, to get protection against such fraudulent activities. Here, commercial crime insurance policy can play an important role.


Here are the coverages which are available with a commercial crime insurance policy=


Employee theft Cover= It includes loss of securities, money or other property by theft or forgery by the employee of the company.


Premise Cover= It includes losses from destruction, wrongful abstraction, theft of securities or money from the policyholder’s premises by third-parties.


Transit Cover= It comprises of losses from disappearance, destruction of money or security outside the policyholder’s premise by a third-party.


Depositors Forgery Coverage: It includes losses or damages which arise due to losses from instruments like cheques which are fraudulently drawn by a third-party on account of the policyholder


Computer Fraud Coverage: It comprises of losses which a policyholder has to endure due to computer fraud made by third-party along with the expenses which the policyholder has to incur due to a violation of computer.


In most of the cases, commercial crime insurance policy comes with a deductible clause which states that at the time of loss, a part of the claim would require being paid by the policyholder. The insurance company would pay the remaining amount. Further, most of the insurance companies allow customizing commercial crime insurance policy to cover various fraud-related losses as per the company’s specific requirements.


The insurance policy also helps by covering the additional costs which a policyholder incurs at the time of loss or damage. For instance, after the commercial crime, the policyholder may require a temporary replacement of equipments or temporary workforce or office space. Similarly, additional expenses may be spent by the company in transporting of documents or equipments. Here, the insurance company may pay the additional cost along with the additional cost incurred in bringing the external workforce on board.




KS Automobile Spare Parts was situated in Pune. Backed with over 100 employees, the company had a huge clientele base both in India and abroad. Last year, the company got a big contract of exporting spare parts worth Rs 2 crore to a buyer situated in Dubai. Considering the quanturn of the order, employees were working in double shifts.


One day, a worker named Kishore was working in night shift. During the break when a few employees were outside the site, he took an undue advantage of the situation and stole ten packets of spare parts which were to be included in the part of the exporting order.


However, Kishore’s crime was captured on CCTV which was installed there. Though the company recovered the packets of spare parts were found; they were in bad condition.


The act of Kishore caused heavy losses to KS Automobile, who had to employ extra employees to manufacture spare parts which got damaged during the theft. It was an additional cost that the company had incurred. The entire incident made the management of K.S Automobile to think what could have been done to avoid the situation.




The situation would have been different if KS Automobile had a commercial crime insurance. The insurer would have come forward to cover the losses which the company had to incur due to theft committed by its employee. Further, as K.S Automobile had to pay extra to get additional workforce, the cost associated with it would have been covered by the insurance company as well.

Source: Secure Now


What is Commercial General Liability Insurance in India?


A Commercial General Liability (CGL) insurance policy is designed to protect businesses against any legal liability that involves paying compensation for damage or injuries incurred by a third party from your routine business operations. This unique policy offers financial protection to the companies against Public Liability and Product Liability claims. It is required for all the companies that involve manufacturing and developing of software and physical products for its clients and customers.


CGL also protects the policyholder against any monetary loss resulting from legal matters in case of death, bodily injuries, property damage, and personal injuries caused due to your business operations within your premises. For instance, it includes a Fell, Trip, or Slip claim filed by a client who sustained injuries on your business premises and by falling/ tripping/slipping.


It is important to keep your premises in good shape and manufacture good quality products that are safe to use and consume. The major concerns are the security and safety of premises and product reliability. The laws are nowadays stringent to maintain third-party interest and amendments are also being made in this regard that companies need to adhere to.


A general liability insurance policy offers compensation for claims arising due to bodily injuries, and property damages or for which your business is accountable.


This coverage is provided to the Owners of a company, or managing directors, operations heads, etc. who are involved in the business operations. It also covers sellers, manufacturers, and distributors.


CGL policy is extendible to both industrial activities like construction, manufacturing, and non-industrial activities like offices, multiplexes, and hotels.


Understanding Comprehensive Commercial General Liability Insurance


Comprehensive General Liability Insurance (CGL) is a combination of Product Liability and Public Liability. It provides full protection against third-party liabilities. Public liability covers third parties’ legal procedures for loss or damage incurred within the insured premises. Product liability offers protection against damages caused by the products that your company manufactures.


Basically, it is designed to recompense all the liabilities on behalf of the insured member. The insurance company shall pay off for third-party liabilities/ accidental death/ bodily injuries resulting due to:


  • • You can get compensation for an accident that took place in the insured premises or any other premises where you run your business operations


  • • It will also cover the operations, product, and premises hazards


  • • Medical expenses of the injured third-party as part of the public liability insurance cover


  • • You can opt for additional covers by paying an additional amount of premium



Why Should You Buy Comprehensive General Liability Insurance?


It is imperative to have to buy commercial general liability insurance for anyone whose:


  • • Business involves interaction with third-party sites


  • • Business involves person-to-person interaction with the vendors, clients, and customers


  • • Businesses that are based on contracts between two parties


  • • Businesses that represent  their client’s business in any form


Some of the Hazards That May Lead to Financial Liability on a Company are as follows:


1. Third-party Property Damage/Bodily Injuries


If any injury is caused to a third person due to falling, slipping, or getting electrocuted then you might be held responsible for the same. A Commercial General Liability (CGL) insurance policy will bear the cost of medical expenses on our behalf. And if the injuries lead to the death of a third person then compensation will be provided as per the court of law.



It also compensates for third-party property expenses such as replacement, repair, and renovation costs if any damage is caused to a third-party laptop, phone, or any other belongings ( apart from your employees).  It would also involve paying for the renovation of other building that is damaged due to an accidental fire on your premises.



2. Advertising Infringement


 A CGL policy will be of great help in case you indulge in intentional or unintentional copyright infringement of some other brand or product’s tagline or logo. This may include slander and libel for indirectly causing harm to a third party’s reputation. In such cases, the insurer shall compensate the settlement expenses, and legal expenses and will protect your business from closing down.


3. Product Quality Issues


It is always a priority for most manufacturers. And any claim is filed by a customer or client for the harm that is caused by using your product can land you in deep trouble. A CGL policy will protect your business from any such minor ignorance as well.


4. Invasion of Privacy


This involves intentional and unintentional invasion of a third party’s privacy. For instance, if a celebrity is using your product and you commit the mistake of endorsing it without permission then also you would need commercial general liability insurance coverage. For claims arising due to the invasion of privacy, the insurer shall help you out with the out-of-the-court and legal settlement costs.



Additional Coverage is also provided on Payment of Additional Premium:


Depending on your requirements you can opt for:


  • • Extension for the Act of God Perils


  • • Extension for Accidental and Sudden Pollution


  • • Lift, Escalator, and Elevator Liability Extension


  • • Transportation Liability cover


  • • Food and Beverages Liability Extension


  • • Fire Damage Cover


  • • Extension for Medical Expenses Cover


  • • Advertising and Personal Injury extension


  • • Limited Vendors Liability Cover


Why is it recommended to Have a Commercial General Liability Insurance Cover?



With CGL insurance, you can ensure seamless business operations and enjoy your peace of mind. And even a small disruption would mean a huge financial loss. So, here’s why you should have commercial general liability insurance coverage if you own a business:


  • • You don’t need to worry about third-party claims involving agitation, segregation, and discrimination


  • • The insurer pays off medical expenses for claims arising due to mental injuries, physical injuries, humiliation, and shock


  • • It would also reimburse advertising infringements such as trademark breaches etc.


You can easily buy commercial general liability insurance online. There are top insurance companies in India that offer CGL cover to a variety of business groups.



It is Quite Easy to Lodge Claim for Comprehensive General Liability Insurance Plans


So, the process is quick and hassle-free. All you need to do is furnish the required details, proofs, and documents along with a duly signed and filled claim form. The process may vary from one insurance provider to another and to check the details you can refer to your insurance company or refer to the policy documents.


Listed above are the features, benefits, and coverage under a commercial general liability insurance policy. But here’s a quick rundown of the limitations that follow:


Your claim would not be accepted under the following situations. However, this may also vary from one insurer to another:


  • • Any kind of deliberate attempt or intentional Injuries caused to a third party including clients, vendors, and customers are not covered


  • • Usually, compensation is not provided for damages resulting due to the pollution


  • • Contractual liabilities are not covered ( you can buy this as an add-on)


  • • Work and employee-related perils would not draw any compensation


  • • Claims lodged for war-related damages and injuries are not covered by any policy


  • • Criminal acts and dishonest claims would also not draw any compensation in a commercial general liability insurance policy


You must have understood by now that purchasing a general liability insurance policy is a smart and wise decision for all business owners. And before you zero down on a policy, it is suggested that you compare the plans first, do your preliminary research and get a policy that covers all the major concerns.


Source: Policy Bazaar

What Is Global Health Insurance Cover?


If you enjoy travelling or have a job that requires you to make frequent trips to different countries, you probably are well-versed with various cultures, cuisines and may even know a couple of foreign languages. And there is very little that can actually hold back someone who loves travelling. Take the pandemic, for example; no sooner were the vaccines introduced than the foreign borders started welcoming foreign visitors – with stringent safety COVID-19 protocols in place, of course!


But despite all of the precautions and planning, a trip cannot always go the way intended. This is why you will always need a health insurance plan that will offer you adequate coverage when you are travelling to another country. You may already be familiar enough with medical insurance that takes care of your medical emergencies or hospitalisation bills within India; however, have you thought about how it can be possible to tackle the expenses of getting medical treatment abroad?


What is the Global/Worldwide Cover?

A global/worldwide cover in your health insurance plan offers coverage for medical treatment that you choose to get abroad. Hence, if you are diagnosed with a disease, ailment or condition in India but opt for medical treatment and healthcare services in another country, these costs will be covered by the global cover. The global health insurance coverage ensures that you can avail of quality healthcare facilities in another country and do not have to foot expensive bills that you may incur as a result of this.



Features of a Global Health Insurance Cover

Choosing the best international health insurance in India can be a tough choice, considering that the cost of getting medical treatment abroad needs adequate health insurance coverage. There can be several problems arising from the lack of sufficient global health insurance coverage, which can either lead you to spend a lot of money from your own pocket or settle for mediocre healthcare services. Since both the situations are equally unappealing, here’s a look at what a typical health insurance plan with a worldwide cover should offer:



  • •  Adequate coverage The purpose of having a global health insurance cover is to ensure that you do not have to compromise on getting access to good or even private healthcare facilities or hospitalisation when abroad. Hence, consider an affordable health insurance plan that offers sufficient coverage.



  • •  Pre-existing diseases cover – If you have previously suffered from chronic illnesses, diabetes or a heart condition, ensure that your global health insurance coverage can secure you against the high costs of emergency treatment in a foreign country if the need arises.


  • • Medical evacuation coverage – The cost of transportation by ambulance or a rescue helicopter, in case of a severe accident, can be quite expensive when you are in another country due to the currency exchange rates. Therefore, your health plan with a global cover should be able to take care of these costs.


  • • Repatriation or Evacuation – Travelling to and from a foreign country to India for a series of medical procedures can be as expensive as the medical treatment itself. However, if your global health cover secures these costs, then the necessary travel between the two countries can be covered under the plan


  • • Emergency room charges – A global health cover should be comprehensive enough to cover a range of medical situations, subject to certain exclusions. However, if there is a sudden emergency while you’re travelling abroad, the cost of medical emergency care should be covered in your policy.


  • • OPD charges – When abroad on a short holiday or trip, you may suffer an accidental but minor injury at some point. In this case, hospitalisation may not be necessary. But even the smallest procedure or the visiting charges in foreign hospitals can be costly. Therefore, your policy should be able to cover that.


  • • Diagnostics – Running diagnostic tests for a second medical opinion or other medical purposes can get very expensive. If you are being treated in a country that offers advanced and hi-tech medical equipment, you should be aware that the costs of these tests can be unexpectedly high. Therefore, check if your global health insurance coverage can cover the costs of these tests.


  • • Other medical requirements – The global cover you choose for your health insurance plan should have some provisions for maternity benefit or dental benefitcoverage needs or even access to mental healthcare services. When choosing a worldwide cover with your health insurance plan, be sure to look into these details and explore the coverage in depth.


How to Choose Global Health Insurance in India?

When choosing the best medical insurance policy for yourself, always ensure that your health insurance plan has a provision for covering overseas treatment. Or you can also avail of the Tata AIG Worldwide Cover on your health insurance plan if you want to be able to cover the cost of medical treatment in a foreign country. Since an international health insurance plan can get quite expensive, the addition of this simple cover can ensure that you can avail yourself of medical treatments both inside and outside of India.


With this cover, you need not worry about the rising expenses of medical care and hospitalisation if you are diagnosed with an ailment or condition in India but choose to receive medical care abroad.


However, these few points you will need to keep in mind when choosing an affordable health insurance plan that offers a global cover.



  • • Ensure that your global health insurance cover offers cashless benefits where your insurance company can settle the bills with the hospital. The Tata AIG Global Cover offers reimbursement for medical facilities availed; however, the cashless benefit may be considered in some cases.


  • • You can also get health insurance tax benefits with your global health insurance plan. Under Section 80D, you can claim a deduction of up to ₹25,000 if you are below the age of 60 years.


  • • Most of the major expenses in global healthcare come from inpatient and daycare hospitalisation. Our Global Cover ensures that you are covered for these huge expenses if you have to be hospitalised during your treatment.


  • • You can avail of the cumulative bonus on your health insurance global cover if you do not file any claims. Hence, when there is a need for you to utilise the worldwide cover, the basic sum insured of the global cover, along with the cumulative bonus of up to a maximum of 100% of the coverage, can be used.


  • • Look out for a hassle-free claim settlement process from your insurance provider. Even though you will have received treatment abroad, back home, we will ensure that our quick and convenient online claim settlement process will help you out.


With this basic but essential checklist, you should be able to find a suitable health insurance plan that enables you to add a global cover.


International medical insurance can be very expensive, but if you compare health insurance plans, you will be able to find the right amount of health coverage at affordable rates. Moreover, the Worldwide Cover add-on in your health insurance policy ensures that while you can avail of healthcare facilities inside India, you can also opt for medical care in another country if needed


Source: Tata AIG


4 reasons why e-commerce sites need cyber insurance


It’s no secret that online shopping has started to eclipse brick-and-mortar retail. After all, nothing beats the ease and convenience of visiting all your favorite stores from the comfort of your couch and having your orders delivered right to your doorstep.


In addition, ecommerce has also opened a world of new opportunities for fledgling business owners. All it takes to get started is a product, a website and plenty of dedication. Unfortunately, many e-commerce vendors see their dreams of success fizzle out after suffering a cyberattack.


If you want to protect your ecommerce site from financial ruin, you ought to invest in a cyber insurance policy from Deeva Ventures today. Otherwise, you’ll be burdened with the recovery costs all on your own. Be honest, could your digital small business handle that kind of strain? Below are a few of the most common threats faced by ecommerce businesses and how to avoid them.


Fraudulent Payments: Since you are operating an online storefront, you won’t have to worry about bogus sawbucks. But you will have to keep an eye out for fraudulent payments nonetheless.


Hackers routinely buy large batches of stolen credit card numbers from the dark web, which are then used to order big ticket items from your site. Be on the lookout for dozens of separate orders being sent to the same address, as this is a dead giveaway for cybercrime.


Breach of Customer Data: For better or worse, most e-stores save information on their customers to expedite the ordering process. However, this also makes your business a hot target for cyber crooks. Don’t believe it? Just take a look at Alibaba who suffered an attack on 20 million user accounts in 2016! And how likely is it that customers will want to return to your site after you let their personal information fall into the wrong hands? Exactly.


The solution? Follow PCI regulation at all times and avoid storing sensitive financial information (such as credit card expiration dates) on your site; or at the very least encrypt consumers’ personal data.


Business Downtime: E-stores have the benefit of being open 24/7, at least until a hacker has his way. Ransomware and distributed denial-of-service (DDoS) attacks can take an ecommerce site down for hours or even days!


How long could your online SMB survive without customers or income? Combine this with the fact that the vast majority of customers will jump to your competitors if your site load times take over three seconds and you’ve got a real problem on your hands.


Thankfully you can avoid malware attacks by eschewing suspicious messages, downloads and apps. DDoS attacks can be stymied by employing mitigation software on your network to analyze and redirect malicious traffic.


SQL Injection: Especially crafty hackers can actually inject malignant segments of code into your ecommerce site via entry fields (such as an account creation box). This code could be anything, including commands to ‘download all customer information and send to remote server.’ Yikes!


To block an SQL injection attack, you’ll need to invest in a safe API that can detect noxious commands and prevent them from being picked up by the application layer. It is also helpful to keep your applications and services up to date with all the latest security patches.



Source: CyberPolicy


What is Home Loan Insurance? Why is it Important?


Life is not certain and also doesn’t come with any guarantee cards. Instances like partial or complete disability, or death of the sole bread earner can result in huge financial trouble for the family. And, if there is a home loan repayment running, the situation can get really bad.


Therefore, to avoid such a situation, to protect your near and dear ones from financial trouble due to home loan repayments in the event of the unfortunate demise of the primary borrower, it is advised to take insurance for a home loan. It’s very important for maintaining the financial stability of your family.

Let’s have a detailed view of the topic.


What is Home Loan Insurance?


Home loan insurance is a type of life insurance cover, where in the event of the death of the borrower, the home loan insurer will settle the entire outstanding home loan amount with the lender. And the borrower’s family gets complete ownership of the house property.



How Do I Avail Home Loan Insurance?


A home loan insurance policy is taken while procuring the home loan. Usually, the home loan insurance cover comes bundled with the home loan package, where the premium amount is deducted from the total home loan amount or the lender may ask you to pay the premium.


As home loan insurance cover is not mandatory, meaning, neither RBI nor IRDAI has any rules that force the borrower to buy the home loan cover. You can buy the home loan insurance cover from your preferred insurer.


However, it is better to buy one from your lender, if there is no marginal difference in premium rates to reduce the complexities in the home loan approval process.


How Does Home Loan Insurance Work?


Home loan insurance plans are a type of term plan, where the borrower is covered under this insurance plan until the repayment is complete. Once the outstanding home loan is repaid entirely, the home loan insurance tenure expires.


If the borrower dies during the repayment tenure, and a large part of the home loan amount is still needed to be repaid, the family can claim the home loan insurance cover to settle the entire outstanding home loan amount. This ensures the family will not have to repay the home loan and gets full ownership of the house property.


In absence of home loan insurance cover, the lender will seize the house to recover the losses, even in the case of unfortunate events. Please note that the insurance does not provide cover against situations such as job loss or disability due to accidents.


Lenders such as Grihashakti offer customers plans from top insurance providers which can go above and beyond basic home loan insurance coverage. We allow our customers also to purchase useful policies such as health insurance, accidental health cover, and more.


How Home Loan Insurance Premium is Paid?


Most home loan insurance has a one-time lump sum premium payment option, which is either deducted from the approved home loan amount or the lender asks to pay the additional premium amount.


For example, if the home loan amount is Rs 50 lakh for 15 years tenure, and the premium amount is Rs 1 lakh, the borrower has the option to take either Rs 51 lakh as a home loan or deduct the premium amount from the home loan amount.


However, it is cost-effective to pay a home loan insurance premium annually, because most borrowers prepay the outstanding sum before the tenure ends. While in a one-time premium payment option, the premium is calculated for the entire pre-determined repayment tenure.


Importance of Home Loan Insurance for Borrowers and Lender


The utility of a home loan insurance scheme is unmatched and provides all-around protection to borrowers. Some of the home loan insurance benefits include:


Protect family: It protects the family from financial uncertainty, in case, if there is a sudden death of the borrower during the repayment tenure. The home loan insurance policy settles the outstanding home loan amount with the lender and the ownership of the property is transferred to the borrower’s family.


Protect Assets and other collaterals: It protects your assets and other collateral, as the lender will not seize the property to recover the dues of the outstanding loan amount.


Tax benefits: Since a home loan insurance plan falls under the category of term plan insurance, the borrower can claim a tax deduction under Sec 800 of the Income Tax Act for the premium paid.


Protects lenders from financial loss. For lenders too. home loan insurance helps them to prevent loan accounts from going bad and go through the time-consuming process of seizing the property to recover dues.


A home loan insurance cover is a win-win financial solution for both parties, as it saves from irreparable financial damage while protecting the property.


Wrap Up


Buying your dream home using a home loan is a big financial decision, as the repayment tenure lasts up to several years and EMIs form a significant part of your income.


Having insurance against home loans helps to protect your family against any uncertainty and the burden of home loan repayments is taken care of and they don’t have to abandon the house property due to non-payment.


Source: Fullerton


Asset allocation strategy during market volatility : Expert views for investors


Stock markets are volatile by nature which tends to make investors nervous about their exposure to one asset class, especially equity. To get your asset allocation formula right at all times, it is important for investors to understand their risk appetite and choose the right strategy to build wealth in the long term.


Diversification plays a key role in your financial planning. We asked Chirag Mehta, Senior Fund Manager – Alternative Investments, Quantum AMC if there is a thumb rule for diversification to achieve financial goals in the long term.


“Diversification helps in balancing out the risks and returns to achieve adequate returns at the same time minimizing the risk for increasing the probability to get the return an investor is looking for,” he said during an exclusive session conducted by Economic Times to address investor concerns amidst market volatility.


Chirag Mehta also shared a tried and tested Asset Allocation Rule of 12:20:80 that works across market cycles and that investors should adopt while investing in mutual funds to mitigate risk.


“Asset Allocation Rule of 12:20:80 refers to 12 months of expenses kept aside for emergencies like job loss or loss in business or a medical emergency. The rest of the money needs to be split 80:20 which means 80 percent to be invested in equities and 20 percent in gold assets. Gold acts as a diversifier and adds stability to your portfolio,” adds Mehta.


Maintaining a good balance between asset classes that have appreciated too much and those that have not performed well in the short term is crucial. For investors to set the asset allocation right, it’s important to understand the characteristics of each asset class. “Investors should stick to their objectives while diversifying into different assets like equity, debt, and gold. Since asset allocation is for the long term, short-term volatility should not affect your portfolio,” feels Anup Bansal.


On factors that play a crucial role in rebalancing and monitoring the portfolio, Kaustubh Belapurkar, Director – Fund Research, Morningstar India says, “Rebalancing is within a strategic limit depending on investor’s needs and market conditions. From 80 percent, the equity allocation can come down by a few percentage points but never zero, this has to be remembered.


Gold can be a great diversifier provided investors have it in their portfolio at all times, not just when it’s performing. You have to stick to your thesis and keep rebalancing the portfolio within a confined (bracket) rather than trying to make it zero or one as it’s always about modulating the exposure where you see pockets of overvaluation and undervaluation.”


Source: Economic Times

Personal Loans for Debt Consolidation: Everything You Need to Know

You can combine two or more unsecured or secured debts into a fresh personal loan through debt consolidation. This facility lets you avoid tracking and paying EMIs for all your existing loans separately. In fact, by paying a single instalment towards the new personal loan, you will be able to meet all your debt liabilities.

Keep reading to know about how you can benefit from personal loan debt consolidation.



Features and Benefits of Personal Loan for Debt Consolidation:


The features and benefits are as follows:


Collateral-free: You do not need to mortgage any property to obtain a fresh personal loan for consolidating existing debts.


Repayment Flexibility: You can choose the loan repayment time between 1 to 5 years, considering your repayment potential.


On-time Approval: The seamless online application and lenient documentation procedures let you get approval on this credit facility without much delay.


Instant Disbursal: The loan amount is disbursed without delay after you get approval.


Prepayment Option Available: Several financial institutions offer loan prepayment facilities. It helps you eliminate the debt obligation before time, saving much of your interest outgo.


Online Application Facility: You can easily apply for this loan online from the comfort of your home.


Advantages of Choosing Personal Loan for Debt Consolidation:


The advantages of choosing a personal loan for debt consolidation are as follows:

Lower Interest Rate: Business loans and debts obtained from credit cards come at a higher rate than a personal loan. By combining them into a personal loan, you can reduce the applicable interest and save much of your overall borrowing costs.


Single EMI for All Loans: You do not need to pay EMIs separately for all the loans. Instead, you can pay only a single EMI, which is easy to keep track of and manage.


Single Loan Repayment Tenure: Single loan repayment tenure makes it easy to plan the repayment and close all the loans together.


Factors to Consider Before Opting for a Personal Loan for Debt Consolidation:


You must consider the following factors before applying for debt consolidation:


Check Your Credit Score


Credit score leaves a prominent impact on the interest rate charged by a debt consolidating financial company. So, you need to make an effort to opt for debt consolidation when you have a healthy credit score. If your CIBIL score is below 750, you need to inform all your income sources to financial institutions. Alternatively, you can apply with a co-borrower with a CIBIL score above 750. These will help you get the debt consolidation facility easily.


Consider Repayment Tenure of Existing Debt


Before opting for debt consolidation, check the repayment tenure of the existing loans. If the tenure of a present debt is about to end and you feel that you can repay your loan on time, there is no need to go for debt consolidation.


Go Through Eligibility Criteria Set by Financial Institutions


Eligibility criteria vary considerably from one lender to another. So it is a must to check if you fulfil all the eligibility standards they have set to qualify for debt consolidation.


Compare Interest Rate and Additional Charges


Before deciding on a financial institution for debt consolidation, you need to compare interest rates offered by different financial institutions. At the same time, you must also consider the additional charges lenders levy, such as processing fees, stamp duty, etc. This will help you minimize your borrowing cost.


Loan repayment Tenure after Debt Consolidation


You also need to ensure that financial institutions offer enough time to repay your consolidating personal loan. In a shorter tenure, the instalment amount will be higher, making it stressful for you to repay. You can use a personal loan calculator to know whether the repayment period gives you a manageable EMI. Only by mentioning the interest rate, loan amount and tenure you can determine the EMIs.


Personal Loan for Debt consolidation v/s Balance Transfer


Choosing between debt consolidation and balance transfer is a tough task when it comes to making a solution for loan repayment. Both have their advantages and are effective for different scenarios. You can go for a balance transfer when you have taken a single loan at a higher interest rate.


On the other hand, if you have applied for multiple loans, you can go for debt consolidation, so that you can make single EMI payment. It will become easier to track repayment status. Hence, it would be best to choose the most appropriate option after ensuring that it benefits you the most.


Now that you have a complete idea of the benefits of a personal loan for debt consolidation, you must evaluate your situation and apply for the financial facility if needed. However, before opting for it, compare the interest rates and loan tenure offered by different financial institutions to get the best deals.


Source: Goodreturns

10 Tips on How to Plan for Early Retirement

Many of us might be planning to quit job or close a business or pursue hobbies (without expecting money) by taking early retirement. However, early retirement is not that easy unless you plan them well. You need to be ready with a few things. Certain things would not be in your control. In this article we would provide some tips on how you can plan for early retirement.


What does early retirement mean?


While retirement age is 58 years, many are going on early retirement of 5 years or 10 years or even 20 years. Means, people want to retire at 40 years or 45 years or 50 years of age itself.


10 Tips on How to Plan for Early Retirement
Here are major pointers which can help you to plan for early retirement. This list is not comprehensive, however, can provide clarity.


1 – Decide what you intend to do


One of my friends Mr. Srinivas indicated he wanted to have an early retirement at 45 years of age. While I appreciated his decision, I asked him what he is gonna do after retirement life. He said “I have not yet planned”.


This is not the biggest mistake one would do when they plan for early retirement. You want to retire early, but you do not know what you are going to do after retirement? One can pursue their hobbies. They can try to achieve whatever they aimed, but could not do in their life. They can try creating Vlogs, freelance service in the areas they are passionate about, wealth management tips, mentor people in the area which they are expertise etc., There are Several Ways where you can earn during your leisure time.


I know many people personally who planned early retirement and worked as consultants in advising corporates on how these corporates can scale-up both in terms of business and also in reducing attrition in the company.


2 – Take Sabbatical / Leave for a few months


Last year, one of my colleague was thinking of resigning as she wanted a break. Just before she put the resignation, we had to casual talk. Taking a break is good, but the approach could be different. Based on my advice, she approached HR and had 6 month sabbatical leave. Those 6 months, she had fun and frustration both. Finally, she agreed that she wanted a small break and not a long break.



One should decide what kind of break they are looking for. Planning for early retirement is good, but, one should experiment by taking couple of months leave or with sabbatical leave of 6 months to 1 year. This is like testing yourself whether you are ready for early retirement or not.


3 – You don’t get regular income after early retirement


Many individuals would estimate how much income they might get by doing adhoc / hobbies / freelancing services etc., However this is not regular income. It such income can fluctuate.


I still remember one of my friends who took early retirement and had insurance blog where he used to earn income through advertisement as well as selling insurance policies online. He used to earn anywhere between 1 lac to 1.5 lacs per month till couple of year back from where he used to manage expenses. However, these days he earns some peanuts. One should not expect to have regular income from such activities.



4 – Expenses would continue to rise

You might be spending a specific amount of expenses now. However post retirement, you do not have control over such expenses. Check the latest inflation rate in the US which has crossed 8%. You should understand that you do not have control on your monthly expenses. An increase of 6% to 9% of yearly expenses should be considered while you estimate your future expenses.


5 – Don’t expect high returns from fixed income

Till 2020, Bank FD’s offered 6% to 7.5% returns. In the last 2 years, fixed income options including bank FDs or debt funds have given 4% to 5% returns. Don’t expect high returns from fixed income options in future. Countries like Denmark, Japan, Sweden and Switzerland have negative interest rates i.e. Investors need to pay money to keep their money in banks in these countries. While it might take some time for such situation to arise in India, one should expect that FD rates would decline gradually in the coming years.



6 – Invest in equity to beat inflation

If you have accumulated some money and investing in non equity options, then be ready that your accumulated money would reduce at a higher pace compared to the inflation rate. The only way to have returns that beat inflation is to invest in equity. However, investment in equity comes with risk. If you are thinking of early retirement, consider taking risks and invest in equity.


7 – Don’t invest in equity and expect to withdraw regularly

This is the biggest blunder mistake investors make. They plan for early retirement, they feel they can still take risks, invest in equity and start withdrawing some money on a regular basis. Investment in equity is a long term game. Don’t play in the short term. You would lose money. Alternatively, you can try for Some of the Good Systematic Withdrawal Plans in Mutual Funds.


7 – Two bucket strategy works very well

We discussed about 2 bucket strategy earlier.


i) Based on whatever accumulated amount, one can divide this into 3 parts. Two parts can be invested in equity for over 7 years. Since equity generates 10% returns, your investment would get doubled in 7 and odd years.


ii) One third of the amount can be withdrawn for over a 7 year period. One can invest this in simple FD or simple short term debt fund.


iii) Repeat step-1 every 7 years. Means the investment amount would always double for the rest of your life.


This 2 bucket strategy works well as you are not touching the equity investment for 7+ years which is required to grow.


8 – Have you considered all your financial goals

Don’t be in a hurry and go for early retirement. Consider all your financial goals as part of your plan. It could be children education, foreign education for children, foreign vacations in the future, buying a dream home etc. All these come with a cost. Don’t go for early retirement and then start thinking about these things.


9 – Don’t underestimate skyrocketing medical expenses

Mr. Rajesh wanted to have an early retirement at the age of 45 years. He is physically fit when he had an early retirement plan. However, after a couple of years, he had serious health problems and his medical insurance did not support them. He had to spend lacs of rupees on medical expenses which he never planned. While it is impossible to estimate the skyrocketing medical expenses, there should be a health insurance plan + some amount allocated towards it.


10 – You need to take your family support too

After you have considered all these pointers, consider taking your family buy-in too. Unless they support you, early retirement is not going to be that easy. Once you explain your plans, how you would manage family expenses and what you intend to do after your early retirement, things can be clear to your family too.


Source: Myinvestmentideas

Why it’s time to say goodbye to ‘one-size-fits-all’ in insurance

When it comes to the insurance industry, change is the only constant, says Anup Rau, MD & CEO of Future Generali India Insurance


In chaos theory, the butterfly effect is the idea that small things can have a non-linear impact on a complex system. The flapping of a butterfly’s wings in the Amazonian jungle, for instance, could create tiny changes in the atmosphere that lead to a tornado in Texas. Just like the minuscule yet deadly novel coronavirus in 2019 triggered a storm of changes that swept across all sectors in the world, including the insurance industry.


Analysing risks and planning for a crisis is what the insurance business is about. While the pandemic has wreaked havoc on the industry, it has done better than most other. The industry has changed structurally, mostly for the better. The changes, forced into the industry in a tearing hurry, have proved to be sticky and durable. And whether intended on not, have put the customer firmly at the centre. Let’s dive in.


Tech-first approach


Consider this: India has 1.18 billion mobile connections, 700 million Internet users, 600 million smartphones, and a population that has the highest data consumption in the world—about 12 GB per person a month (National Health Authority of India, 2021). Today, being digitally versatile is central to every decision and every interaction made by both individuals and companies. The insurance industry was among the first to recognise this and made the best possible use of technology, investing early in collaborative tools like social media, WhatsApp, Zoom, Microsoft Teams, and so on—as well as digital technology assets such as mobile apps for insurance, chatbots, and tools that allow processes like faster KYC verification and onboarding, automated underwriting, virtual claims adjusting, and so on. Digital technology that is cheap, scalable, functional, and replicable is here to stay.


Choice is nice


A marked increase in awareness about health during the pandemic has resulted in an uptick in demand for health insurance. But the ‘one-size-fits-all’ approach is a thing of the past. With a plethora of choices and a greater appreciation for the gift of health, people are taking a more holistic approach to their health. This means customers today demand customised, personalised, and intuitive policies that were not covered by companies earlier. For example, policies specially designed for Covid-19, mental health issues, certain types of cancer, seasonal illnesses such as dengue, malaria, or even a cover for those with ‘adverse’ medical history who were denied cover earlier. As customer demands and expectations continue to change, insurers will have to find a way to adapt their business model to meet new demands and win trust.


Innovate or perish


During the pandemic, the changing consumer behaviour spurred companies to reimagine and build new product strategies to offer relevant products that sustain customer interest. This is a trend that will continue for the foreseeable future and companies that adopt a mix of hyper-segmentation and innovation are the ones that will emerge stronger than others.


For instance, an innovative cyber insurance product, especially now, due to the increased risk of vulnerability, cyberattacks, data and identity theft. Companies will target newer age groups, such as millennials and gen Z, who traditionally tend to underestimate the importance of health insurance. Innovative products in insurance are not restricted to just health either. Hourly car insurance, women-only driver’s insurance that rewards good drivers with lower premiums, pet insurance, trip delay or cancellation insurance just for honeymoons (anyone who tied the knot during the pandemic will vouch for the need for this)—innovation is the mantra for success.




During the pandemic, like the rest of the world, the insurance industry too adopted the work-from-home model. However, remote working comes with challenges, such as a fragmented workforce, the blurred lines between working and personal hours, mental fatigue, and the challenge of building a cohesive organisational culture with a distributed workforce. Hybrid work culture is the future. Make no mistake, there is no going back to a 9 AM to 6 PM, five-days-a-week workplace.


While the physical demands of travel to the office and other locations and cities have diminished, the demands on the employee’s time have increased and will continue to stay elevated. Or worse, in most cases, employees have to fend for themselves and take responsibility for their sanity and well-being. Distance between the organisation and employees, and between employees themselves, could lead to the serious consequence of the company distancing itself from the customers. Of all the changes, this is the most significant and impactful one. How this is dealt with will have the biggest bearing on the future and success of an organisation.


“The secret of change is to focus all of your energy, not on fighting the old, but on building the new,” said Socrates. How we build the new will separate the wheat from the chaff and the winners from the also-rans.The next five years promise plenty of drama and upheaval. Let’s grab the best seats in the house and enjoy the show.


The author is the Managing Director & CEO of Future Generali India Insurance.

Source: ForbesIndia