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Insurance
plans have traditionally been a very popular tax saving tool considered
by many people. Almost 70 percent of the overall insurance related
products are sold in the quarter from January to March. While insurance
plans do offer tax benefits up to Rs 1 lakh under section 80c of the
income tax act, new change in rules and regulations especially with the
implementation of Direct Taxes Code (DTC) means one needs to be careful
while selecting any insurance product simply because of its tax related
benefits. Here are some things to note while taking life insurance
premiums for tax saving.
Not all Insurance Payments are Tax Free:
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Insurance Regulatory and Development Authority (IRDA) issued a draft circular on policy servicing forms. The two main stipulations that IRDA has focused on are - (1) Availability in Languages recognized under Constitution of India (2) Minimum Font Size of “Times New Roman 7”
(1) Availability in Languages recognized under Constitution of India
While the existing regulations specify that all print material, used in the pre-sales and sales process, shall be made available in multiple languages, there is no rule for making available all the forms used during the course of post-sale policy servicing such as; claims, loans, surrender, alterations, nominations, assignments, revivals etc. Therefore, IRDA has advised all the Insurers to make available all the policy servicing forms also in languages recognized under the Constitution of India.
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A
life insurance policy lapses when the due premium has not been paid
even within the grace period. A lapsed policy means that the benefit of
insurance will not be available to protect the financial interest of the
dependants in the event of the death of the insured. A lapsed cover can
be revived by the policyholder during the period allowed by insurer
before its maturity. The procedure for revival depends on the type of
policy and the duration of its lapse.
http://www.myallagents.com/Things-to-know-about-reviving-a-lapsed-insurance-policy/details.html
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Insurance customers and their nominees don't have to suffer inordinate delays in claim settlement anymore. A new circular from Insurance Regulatory and Development Authority (Irda) is going to change the current opaque scenario from April 1.
"While unclaimed amount is not uncommon in insurance sector, a steep increase in unclaimed amount is a cause of concern," the regulator said in the circular that put out the figures of unclaimed insurance proceeds in the public domain for the first time. The unclaimed amount swelled from Rs3,037 crore in 2011-12 to Rs4,865 crore in 2012-13 — an increase of over 60 per cent. The unclaimed money is the result of insurance proceeds that have failed to reach policyholders or their nominees in time for various reasons. Needless to say, it completely defeats the entire purpose of buying an insurance cover.
http://www.myallagents.com/Policyholders-will-be-able-to-get-details-of-unclaimed-insurance-online/details.html
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