RAAHIL MANISH BUSA

Corporate

Life is uncertain & immeasurable. Accidents & uneventful incidents never ring a warning bell before they strike. Road mishaps, accidents have gone up tremendously & the victims along with their families suffer the consequences of the such unfortunate situation. Alarming statistics report about 1214 road related death that occur in India every year; this should be an eye opener on the perils an individual is exposed daily.

While minor accidents can cause temporary hurdles, major ones can lead to disability for life or even demise. With a view to providing certain relief, insurance companies have devised various policies that serve as true life savers when met with an unfortunate circumstance.

Auto insurance policy is mandatory for vehicle owners as per Indian Motor Vehicles Act 1988. This Plan is designed to give coverage for losses which insured might incur in case his gets stolen or damaged. The amount of Auto insurance premium is decided based on the Insured Declared Value of a car. The premium will increase, if you raise the IDV limit and vice versa.

Auto insurance is mandatory for all vehicles that ply on roads-like car, trucks, etc. The prime objective of this type of insurance is to provide complete protection & coverage on physical damage or loss from man-made & natural disasters. According to Indian Motor Act 1988, an auto insurance policy is mandatory for every automobile owner in the country. Hence, purchasing an auto insurance is not just a necessity, it is mandatory by law.

A fixed deposit or term deposits is an saving option offered by banks wherein a depositor can invest their money for a fixed tenure & rate. The rate of interests depends on the duration of the deposits & the banks.

Non-Convertible Debentures or NCD cannot be converted into equity shares & hence offer investors higher interest rates. NCDS can further be classified as Secured & Un-Secured. Secured NCDs are backed by the organization or the issuer company’s assets to fulfill debt obligation. Moreover, NCDs may also feature Put Or Call Options. In simple terms, if the NCDs are issued under “Call Options” (Callable Bonds) then they can be redeemed by the issuer before the maturity. The issuer can can call back bonds if they are issued in a high rate environment & the rates fall subsequently. Whereas in a bond issued under “Put Option” , the investor can sell the bond to the issuer at a specified price before its maturity, if the interest rates go up after the issuance of the bonds.

Small Savings schemes are designed to provide safe and attractive investment options to the public and at the same time mobilise resources for development. These schemes are operated through 1.54 lakh post offices in the country. Public Provident Fund Scheme is also operated from 8000 branches of public sector banks in addition to the post offices. Deposit Schemes for retiring employees are operated through selected branches of public sector banks only.