Insurance Newsletter - August 25 to 28, 2014

Finance Minister Arun Jaitley on Tuesday expressed hope that the long-pending Insurance Bill seeking to hike FDI cap to 49% will be passed by Parliament by the end of this year

August 28, 2014 2:05 IST | India Infoline News Service
Top Stories
Jaitley expects Insurance Bill to be cleared by year-end
Finance Minister Arun Jaitley on Tuesday expressed hope that the long-pending Insurance Bill seeking to hike FDI cap to 49% will be passed by Parliament by the end of this year. Speaking at an event organised by Pension Fund Regulatory and Development Authority (PFRDA) in New Delhi, Jaitley said, There is an intrinsic link between insurance and pension sector... the foreign direct investment limits in the Insurance Act automatically applies to the pension sector. The Insurance Bill seeks to raise the foreign investment cap in the sector from 26% to 49%, with a rider that the management control rests in the hands of an Indian promoter. The Bill to hike the FDI limit has been pending since 2008 in the Rajya Sabha.
EPFO retains rate at 8.75% for FY15
EPFO's trustees decided to retain interest payment on provident fund deposits for 2014-15 at 8.75 per cent. The EPFO had provided 8.75 per cent rate of interest on PF deposits for 2013-14, which was higher than 8.5 per cent paid for the previous fiscal. The EPFO has about 5 crore subscribers and the decision will have a bearing on their retirement fund. The final notification for payment of the interest rate for the current fiscal will be issued by the Finance Ministry later.
RBI simplifies KYC norms for account opening
The Reserve Bank of India on Tuesday released a note along with a poster and a booklet comprising a few common questions relating to Know Your Customer (KYC) norms for opening bank accounts. The objective of this is to bring awareness among the general public about the KYC simplification measures taken by RBI in the recent times with a view to helping the common man in opening bank accounts.
There is now no requirement of submitting two separate documents for proof of identity and proof of address. If the officially valid document submitted for opening a bank account has both, identity and address of the person, there is no need for submitting any other documentary proof... Read more
RBI notifies increased PPF deposit limit
The Reserve Bank on Friday notified the increase in deposit money under Public Provident Fund (PPF) to Rs. 1.5 lakh from Rs. 1 lakh earlier. The Government of India has enhanced the individual subscription limit under PPF from existing Rs. 1,00,000 to Rs. 1,50,000 in a financial year, the RBI said in a notification to banks on Friday. RBI asked the banks to communicate the same to their branches operating the PPF scheme.
It also advised them to display about the enhanced limit under the scheme on the notice boards of their branches for the information of the PPF subscribers. PPF is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal.
RBI issues draft charter of customer rights
The Reserve Bank of India (RBI) on Friday issued the draft of a charter comprising five basic customer rights. Feedback has been invited by September 22. These cover a right to fair treatment, transparency, suitability, privacy, grievance redress and compensation. The draft Charter of Customer Rights to deal with entities regulated by RBI, has been framed based on global best practices of consumer protection as also discussions and interaction with various stakeholders. The Charter spells out the rights of the customer and also the responsibilities of the financial service provider. The Charter spells out the rights of the customer and also the responsibilities of the financial service provider (FSP)... Read more
IT dues can be paid at RBI offices, banks
The Reserve Bank has asked the public to pay their income tax dues well in advance so as to avoid standing in long queues and stated that 29 agency banks are also authorised to accept such payments. The RBI said the assessees can use alternate channels like select branches of banks or the facility of online payment of taxes offered by banks. Banks, which are authorised to accept payments of Income Tax dues, are: Allahabad Bank, Syndicate Bank, Andhra Bank, UCO Bank, Bank of Baroda, Union Bank, Bank of India, Bank of Maharashtra, Vijaya Bank, Canara Bank, SBI, Central Bank of India and Dena Bank among others.
Taking a term policy makes lot of sense in today's fast pace world
Term insurance is a kind of insurance in which a person does not receive any amount on maturity however the individual has higher amount of Life Cover at lesser amount of premium compared to other insurance products which are there in the market.
Why you should buy Term Insurance Plan?
You should buy term insurance plan to provide Protection and Financial security to your family in event of unexpected death. It is a basic and inexpensive form of coverage which gives all the security you need. It has different tenures for which you can buy a term insurance policy ranging from five years, 10 years, 20 years and so on. People can take the policy based on the amount of coverage which they want to take. If the insured person dies during the tenure of the policy, his immediate beneficiaries will get the Sum Assured amount. However, it is important to note that a Term Insurance plan doesnt pay anything on maturity... Read more

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