Automobile Insurance

The Automobile Insurance is today a basic necessity for every vehicle owner. Basically the Auto Insurance means providing a repay to the vehicle owner for any future losses regarding their vehicle. The company that gives an Insurance cover for a vehicle can reimburse to the owner for natural calamities and man-made calamities. Here it is important to know that anything can happen and thus the vehicle owner should always think about the future and must also prepare themselves strong enough in both financial and mental aspects. It is a matter of fact that every vehicle does not run into calamity but it is important to be ready with the financial assessment. The company can provide financial assistance in case of vehicle accident and even it thieves snatch your vehicle. Hence, the Automobile Insurance is a must have policy for every vehicle owner.

Required documents for claim :

The Automobile Insurance is mandatory for each and every vehicle owner and thus the vehicle manufacturing companies had already tied up with different companies which provide insurance cover. It is obvious that the vehicle owner has to pay a prerequisite amount as soon as the vehicle is being registered on their name. The Automobile Insurance Premium amount changes with respect to the type and price of vehicles. Hence, the automobile industry has many options to offer to their customers where they can choose the premium amount according to their balance sheet. The required documents for claim of Automobile Insurance are RC (Registration Copy) copy of the Vehicle, duly signed claim form in original, Original estimate of vehicle cost, Driving License and the FIR copy if your vehicle is been stolen. Therefore, to claim Automobile insurance one has to pay its premium on time and prepare themselves financially for any situations.
Types of Automobile Insurance:

The Automobile Insurance types are Two Wheeler Insurance, Private Car Insurance and Commercial Vehicle Insurance. The detailed information of each type is as follows:

Two Wheeler Insurance: In this type of Automobile Insurance, the driver of the vehicle can claim insurance on accident of the vehicle. Some Insurance companies provide vehicle damages and some don't. Hence, the Two Wheeler Insurance must be chosen after reading all the terms and conditions. The important thing is to know the exact premium amount and it is determined on the basis of the actual cost of vehicle at the time of delivery from the showroom and the rate decided by Tariff Advisory Committee.

Private Car Insurance: The private car insurance is compulsory in all over India. In India the private car Insurance is a sector which is increasing day by day. Here it is emulated on the basis of the year of manufacture of car, the cost price of car and the state from which it is been registered. There are several companies who provide varying premium amount and the vehicle owners can choose it on the basis of their balance sheet and affordability.

Commercial Vehicle Insurance: The Vehicles that come under Commercial Vehicle Insurance are the big ones which are used commercially and they are Heavy Motor Vehicle's (HMV's) and Trucks. It is important to note that the organization that aims to get an insurance cover for their commercial vehicle must assess its tenure of Insurance policy. In this type of Insurance the type and make of vehicle, place of vehicle registration and the tenure of Insurance policy is important.


Advantages of Automobile Insurance:

i) The reimbursement for faulty electrical/electronic parts of vehicle if and only if the payment of additional premium is done by the Vehicle owner.
ii) If in case the vehicle gets crashed in an accident and there is injury or even death of driver then the Insurance company can support with the financial assistance if they find it appropriate.
iii) The vehicle driver too gets an Insurance cover if in case his car is being crashed and he faces death.
iv) The Automobile Insurance generally includes the natural and man made calamities towards vehicle such as lightning, theft or housebreaking, self start of car ignition which damages the car, external explosion, fire, burglary and accidental damages.


The Automobile Insurance fails due to following reasons:
The major failure to claim the Automobile Insurance is due to the drunken driving case and many of the vehicle owners don't care about this situation. The Automobile Insurance does not support the breaking of mechanical parts of Vehicle and also the failure of electrical parts is not included. The last but not least thing is that if the vehicle is driven outside geographical area then the Insurance Company rejects the claim process of Automobile Insurance. Hence, everyone should read all the norms before applying for an Automobile Insurance and then only they should proceed to register it for their Automobile.

Why to prefer cash over credit

Short on cash? No problem! Just bring out your credit card. Punch a few numbers on your computer screen or swipe the card at the store. Technological advances have changed how we use money. Yet, there are good reasons for choosing to pay by cash instead.


1. Regulate spending
Paying by cash allows you to set up a safety net against overspending. That is because you can only spend what you have. Let us say you go shopping and fall in love with a set of high-end speakers. But you are out of cash. Admit it, you would think twice before buying it if you have no credit card.


2. Restrict overpaying
Purchases made by credit card need to be paid for later. Sure, you bought the speakers. But are you happy about paying every month for an extravagance that you could have delayed? Paying only the minimum amount due on your credit card bill is a bad idea. You are simply attracting more interest on the debt.


3. Prioritise needs
Spending in cash allows you to rethink your priorities. You can budget and prioritise your needs. You could have purchased the speakers. But since you have limited cash, you may buy something that is more essential. Instead of buying speakers, you may choose to carry out repair work at home.


4. Trigger savings
By relying on cash more than on credit, you build a base for future savings. Cash helps you to stick to your budget and avoid overspending. This leaves you with good financial habits. Your credit history would remain healthy as a result. Moreover, you are likely to have more money to set aside as savings.


5. Avoid risk
Technology comes with its own set of disadvantages. Identity theft is a major risk associated with credit cards. But there are other risks. Imagine the threat plastic money can pose if you begin to default on payments. What if someone steals your card and uses it to make expensive purchases?

Of course, there are situations where using a credit card is unavoidable and necessary. But being judicious in your use of credit and cash will help you strike the right balance.

UPI - Unified Payment Interface

The much-awaited, revolutionary payment system UPI -- Unified Payment Interface, developed by the National Payment Corporation of India -- has been launched with 21 banks in India.
UPI is a unique payment solution that provides a single interface across all systems for any payment transaction, unlike the traditional NEFT/IMPS (Immediate Payment Service) transactions, where a bank account number is a must.


In a country like India where the most of the people, specifically in rural areas, are not bank-savvy, this is likely to be the best solution for cashless transactions and to promote mobile banking transactions.
Currently, the app to enable this is only for Android phones. Here are the things you should know about Unified Payments Interface:

Firstly, to initiate a payment all you need is a smartphone and your banking app installed on it. Then you have to register with your mobile number to get a unique 'virtual address', which is basically a payment identifier. The UPI app offers the facility to identify a bank customer with this email-like virtual address. You can also use a mobile number or a short name for the virtual address such as XYZ@icici or 123456789@axis


Once the unique ID has been generated you can pay bills, do recharges, and receive or transfer funds real time. This works on a single click two-2factor authentication method, which makes mobile payments easier and quicker. The UPI app also allows you to have multiple virtual addresses for multiple accounts in various banks. While making a payment, the transaction will be complete once the customer authenticates the transaction through a secure PIN.


With UPI, transactions can be as small as Rs 50 to as high as Rs 100,000 and will be done in real time without the need of the bank account or Indian Financial System Code (IFSC).


It is currently available with 21 banks, of which 19 can be downloaded from Google Play Store, which are: Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank.

IDBI Bank and RBL Bank, as the issuers, will help the customers to download the UPI-enabled Apps and link their account.

Eventually, the goal is, with the increasing usage of smartphone, to encourage mobile banking transactions and bring cashless ecosystem.