July 15, 2024

When should a business open a current account?

5:26 am

A current account is a bank account commonly used by businesses to manage their day-to-day financial transactions. Businesses need to open a current account when they are looking to manage their finances effectively and efficiently. However, opening a current account is not always necessary, and it’s important to understand when it’s appropriate.

What is a current account?

A current account is designed for businesses with a high transaction volume and to manage their finances more efficiently. A current account offers features such as overdraft facilities, cheque books, debit cards, and internet banking facilities, making it easier for firms to manage their cash flows.

When should a business open a current account?

Here are a few reasons when a company should consider opening a current account:

  • High volume of transactions

A current account is an ideal option if your business has a high volume of transactions. Current accounts provide unlimited transactions, meaning you can deposit and withdraw money as often as you need. This makes it easier for businesses to manage their finances and cash flows.

  • Need for an overdraft facility

An overdraft facility is a feature offered by current accounts that allow businesses to borrow money from the bank up to a certain limit. This can be useful for businesses that experience occasional cash flow problems. It is also helpful for businesses that have seasonal fluctuations in their sales, as they can use the overdraft facility to bridge the gap between payments received and payments due.

  • Multiple payment methods

A current account allows businesses to make and receive payments in multiple ways, such as cheques, debit cards, and online banking. This flexibility makes it easier for firms to manage their finances and provide payment options to their customers.

  • Business growth

As a business grows, it needs to manage its finances more effectively. A business current account provides features such as online banking, which allows businesses to track their transactions and manage their finances more efficiently. It also allows automated payments, making it easier for businesses to pay their bills and manage their cash flows.

  • Business structure

If you have a registered business, it is advisable to have a current account in the business’s name. This will help you keep your personal and business finances separate and make managing your taxes and other legal obligations easier.

Legal obligations

There are certain legal obligations that businesses need to comply with, such as filing taxes and maintaining proper accounting records. A current account can help businesses fulfill these obligations by providing a record of all transactions and making it easier to manage finances.

Benefits of having a current account

Easy management of finances: A current account makes it easier for companies to manage their finances as it provides a single platform to manage all their financial transactions. Businesses can easily track their expenses, make payments, and receive funds, making it easier to track their cash flow.

Access to credit: A current account can also give businesses access to credit, which can be essential in times of financial stress. Banks and financial institutions are more likely to offer credit facilities to businesses with a current account, as it gives them a better understanding of the business’s financial health.

Ease of international transactions: If a business deals with international transactions, having a current account can be particularly useful. It provides businesses with access to services such as currency conversions and international wire transfers, which can be expensive and time-consuming to do through other means.


A current account is essential for any business to manage its finances effectively. Choosing the right current account for startups or business can make a significant difference in managing cash flow and ensuring that all financial obligations are met on time. If you are a business owner, it is advisable to research the various options available for current accounts and choose the one that best suits your business’s needs.

Read More

 The Impact of Tourism on Wadi-e-Jinn and The Surrounding Community

6:12 am

Wadi-e-Jinn, also known as the Valley of Jinn, is a breathtaking valley located in Madinah, Saudi Arabia. It is a popular tourist attraction that draws visitors from all over the world. However, the impact of tourism on Wadi-e-Jinn and the surrounding community is a subject of much debate. In this blog post, we will explore the positive and negative impacts of tourism on Wadi-e-Jinn and the surrounding community.

Wadi-e-Jinn in religion

According to Islam’s oldest scriptures, Jinn is a supernatural phenomenon that lived in the valley of Wadi-e Jinn in ancient times, and the Quran has mentioned Jinn about 29 times. There is a belief that they are made of smokeless fire and can fly as well as invisible creatures that coexist with humans but live apart from them.

It is said that once Allah’s Messenger had a chance encounter with a Yahudi in the Wadi-e Jinn Madinah valley when he was passing through and asked him to perform or demonstrate a miracle. During the Prophet’s inquiry, Yahudi pointed at a tree and asked for it to be called toward him. It was at that moment that the Prophet PBUH laid his eyes on the tree, causing it to ramble towards him, making the Yahudi accept Islam.

However, the many tales about Wadi-e-Jinn made it a destination for tourism, which has had a huge impact on the local society.

Positive impacts of tourism

One of the most significant benefits of tourism on Wadi-e-Jinn and its surrounding community is the increase in job opportunities. The development of the tourism industry in this region has created a significant number of jobs for locals, including tour guides, hotel staff, and other support services. This increase in employment opportunities has not only helped to boost the local economy but has also helped to improve the standard of living for many people in the region.

In addition to creating job opportunities, tourism has also helped to increase investment in the region’s infrastructure. The influx of tourists has led to the development of new roads, bridges, and other infrastructure that has improved access to the area, making it easier for locals and tourists alike to visit and explore this beautiful region. This investment in infrastructure has not only made it easier to travel to the area, but it has also helped to improve the quality of life for those living in the region.

Another positive impact of tourism on Wadi-e-Jinn and the surrounding community is the preservation of local culture and traditions. As tourism has increased, locals have become more aware of the value of their unique culture and traditions, and there has been a renewed interest in preserving and promoting them. This has led to the development of cultural events and festivals that celebrate the region’s history and heritage, providing both locals and tourists with a deeper understanding of the area’s cultural significance.

Tourism has also helped to raise awareness of the need to protect the environment in and around Wadi-e-Jinn. As more and more people visit the area, there has been an increasing awareness of the need to protect the region’s natural resources, including its water sources and unique geological formations. This increased awareness has led to the development of initiatives to protect the environment, including efforts to reduce waste, conserve water, and promote sustainable tourism practices.

Finally, tourism has had a significant positive impact on the local economy. Tourism’s revenue has helped create new business opportunities for locals, including small businesses selling souvenirs, food, and other items to tourists. This has helped to stimulate the local economy, creating a ripple effect that has benefited many people in the region.

Read More

Why Shouldn’t You Stop Paying Your Life Insurance Premium?

10:35 am

Do you believe that life insurance plans are intended to squander your money? Hold there before you consider cancelling one because, in this two-minute read, we have debunked every myth.

Ravi, a buddy’s friend, had obtained a life insurance policy. He has now utilised this policy as collateral for the repayment of his home loan and other debts. But, he later got an unexpectedly sizable sum from inherited property and had already paid off all of his debt. Although having paid back the loan, he still needs to cancel the life insurance coverage. He kept the coverage since he had two children who attended school and wanted both life and income protection.

A life insurance calculator is a tool you may use online to determine the amount of coverage required based on your needs.


Do not revoke a life insurance policy

Even though the goal has changed, life insurance will continue to provide Ravi’s family with additional financial protection in light of the uncertain future. In other words, cancelling a life insurance policy does not really make sense if you are raising a family and have people who depend on you financially.

You shouldn’t terminate your life insurance policy for the following reasons:

  1. To meet the financial necessities of your family’s future

The spouse, children, ageing parents, and any other family members would depend on the family breadwinner’s income and resources even after their death. When a regular source of income is lost, the family may have to make sacrifices in order to meet their basic necessities. One such product that aims to offer security and promote financial stability in the event of unfavourable income is insurance.

  1. Surrender fees may negatively affect your budget

Life insurance premiums can be the first thing that comes to mind when you’re trying to reduce your spending. It is absolutely a terrible idea to temporarily reduce the premium cost by cancelling the life insurance plan in the hopes of purchasing a new plan down the road. You might have to pay a hefty price for the same policy with equivalent coverage in the future. If an unforeseen disease is diagnosed, you may be unable to acquire coverage.

  1. To save some money on income taxes

Section 80C of the Income Tax Act of 1961 allows for the tax deduction of annual insurance premium payments. Simply put, cancelling the policy means that no additional life insurance premiums will be paid for it and that the insurer will not provide life insurance coverage.

This bonus will be forfeited if you cancel the policy. Unlike other investment options, life insurance policies such as endowment and unit-linked insurance plans provide you with tax-efficient returns. You cannot get a good tax return if you stop paying the premium in the middle and cancel the coverage. Life insurance is still required as a tax-saving measure, even if you are wealthy.

  1. For mental tranquilly

You may live without anxiety, thanks to insurance. Your long-term financial needs are met by an insurance policy, depending on your selected coverage. Also, because life insurance policies can be used as collateral for loans, they can assist you with your immediate needs. Several financial alternatives are also available through life insurance coverage. At an additional fee, it offers additional riders, such as critical illness, accidental disability, etc. You can plan for your children’s future very organised and methodically with the help of certain life insurance plans, such as child and endowment plans.

  1. The cost of new coverage may increase

You will forfeit the coverage you have paid for when you surrender your life insurance policy. If you need to get the same policy in the future, it can be more expensive because life insurance costs rise with age. If you still think that your life insurance is a burden on you, use all the flexibility supplied by the life insurance company. The life insurance coverage does not have to be cancelled. You don’t have many other options.

  1. Modify the premium payment method

If the annual premium is too much for you to afford, speak with your insurance provider about changing the payment schedule to monthly or quarterly. By doing this, you can get through a challenging moment.

  1. Release the riders

If your policy has any riders or add-ons for which you are paying extra and are not actually necessary for you, you can lower your premium by removing them from the package. Always mind that riders should be picked just as per your demand. Never purchase one just because your friend or your friend’s friend chose to. ##

A life insurance calculator is an easy-to-use tool to check the amount of premium you would have to pay.

Read More

Understanding the Conveyancing Process: A Step-by-Step Guide

7:46 am

Conveyancing is the legal process of transferring property ownership from one person to another. It involves a number of steps and can be quite complex, especially for first-time buyers. In this article, we’ll walk you through the conveyancing process step-by-step, so you know what to expect when buying or selling a property.

Step 1: Instruction

The first step in the conveyancing process is to instruct a conveyancer. A conveyancer is a qualified legal professional who specializes in property law and will help you with the legal aspects of buying or selling a property. Once you’ve found a conveyancer you’re happy with, you’ll need to provide them with details of the property and any other relevant information, such as your mortgage lender details if you’re buying a property.

Step 2: Contract Drafting

Your conveyancer will then draft a contract of sale, which sets out the terms of the transaction. This will include the purchase price, any special conditions, and a settlement date. They will also carry out any necessary property searches to ensure there are no issues with the property that may affect the sale.

Step 3: Exchange of Contracts

Once both parties have agreed to the terms of the contract, they will sign it and exchange contracts. At this point, the buyer will usually pay a deposit, which is usually 10% of the purchase price, to the seller’s conveyancer.

Step 4: Completion

Completion is the final stage of the conveyancing melbourne. It’s when the property officially changes hands and the purchase price is paid in full. The seller’s conveyancer will receive the balance of the purchase price and the buyer will receive the keys to the property.

Step 5: Post-Completion

After completion, your conveyancer will register the property with the Land Registry and send you confirmation of the registration. They will also pay any stamp duty due and provide you with a copy of the title deeds.

Other Important Considerations

There are a number of other important considerations to bear in mind when going through the conveyancing process:

  1. Mortgage: If you’re taking out a mortgage to buy a property, your conveyancer will liaise with your lender to ensure the funds are available for completion.
  2. Property Searches: Your conveyancer will carry out a number of property searches to ensure there are no issues with the property that may affect the sale. These include local authority searches, environmental searches, and drainage searches.
  3. Surveys: It’s important to have a survey carried out on the property before you buy it. This will highlight any potential issues with the property that may affect its value or make it unsuitable for your needs.
  4. Chain: If you’re buying a property as part of a chain, it’s important to keep in touch with your conveyancer and other parties in the chain to ensure the transaction proceeds smoothly.
  5. Post-Completion: After completion, your conveyancer will register the property with the Land Registry and send you confirmation of the registration. They will also pay any stamp duty due and provide you with a copy of the title deeds.


Conveyancing can be a complex process, but with the right support and guidance from a qualified conveyancer, it needn’t be stressful. By following these steps, you’ll have a better understanding of the conveyancing process and what to expect when buying or selling a property.

Read More

Finding Your Dream Home: Tips for Navigating the Properties for Sale Market

6:48 am

Are you in the market for a new home? With so many properties for sale, the search for the perfect house can be overwhelming. But don’t worry – with a little planning and some expert advice, you can navigate the market and find your dream home. Here are some tips to get you started:

Determine Your Budget:

Before you start looking at properties, it’s important to determine your budget. This will help you narrow down your options and prevent you from falling in love with a home that’s out of your price range. Take into account your income, expenses, and any other financial obligations you have.

Research the Area:

Once you have a budget in mind, start researching the areas where you want to live. Look into factors such as schools, crime rates, amenities, and transportation. This will help you narrow down your search to neighborhoods that meet your needs.

Find a Real Estate Agent:

A good real estate agent can be an invaluable resource when it comes to finding Properties for sale Surrey Hills. They can help you identify homes that meet your criteria, negotiate the price, and guide you through the buying process.

Attend Open Houses:

Attending open houses is a great way to get a feel for different properties and neighborhoods. Take your time exploring the homes, and don’t be afraid to ask questions. You may even find a home you love that you wouldn’t have considered otherwise.

Get Pre-Approved for a Mortgage:

Before you start making offers on homes, it’s important to get pre-approved for a mortgage. This will give you an idea of how much you can afford to spend and will make you a more attractive buyer to sellers.

Make an Offer:

Once you’ve found a home you love, it’s time to make an offer. Work with your real estate agent to come up with a fair price and any contingencies you want to include.

Consider Your Must-Haves:

Before you start looking at properties, make a list of your must-haves. This might include things like a certain number of bedrooms, a backyard, or a specific location. Knowing what you absolutely need in a home can help you avoid wasting time on properties that don’t meet your criteria.

Be Flexible:

While it’s important to know what you want in a home, it’s also important to be flexible. Keep an open mind when it comes to things like layout, finishes, and even location. You may find that a home that doesn’t meet all your criteria on paper is actually perfect for you in person.

Get a Home Inspection:

Once you’ve made an offer on a home, it’s important to get a home inspection. This can uncover any hidden issues with the property that you may not have noticed during your initial visits. Depending on the results of the inspection, you may want to adjust your offer or even walk away from the deal.

Understand the Market:

Understanding the current real estate market can help you make more informed decisions when it comes to buying a home. Research factors such as home prices, inventory, and interest rates to get a sense of what’s happening in your area.

Be Prepared to Act Quickly:

In a competitive market, properties can sell quickly. If you find a home that you love, be prepared to act quickly. Have your pre-approval letter and other paperwork ready to go so that you can make an offer as soon as possible.

Don’t Forget About Resale Value:

While you may be focused on finding a home that meets your current needs, it’s also important to think about resale value. Look for properties that have features that will be attractive to future buyers, such as a desirable location or a flexible layout.

By following these tips, you can navigate the properties for sale market with confidence and find the home of your dreams. Good luck!

Read More

Understanding the role of SIPs in debt mutual funds

11:40 am

When it comes to investing, debt mutual funds are often favoured by risk-averse investors who prefer stable returns over the volatility of equity markets. These funds are known for their flexibility, as they work in both short and long-term investment horizons. However, regardless of your investment term preference, Systematic Investment Plans (SIPs) can help you build a robust portfolio through debt funds. This article will explore the importance of SIPs in debt funds and how they can help you achieve your financial goals. So, whether you’re a seasoned investor or a newbie, read on to find out how you can benefit from this investment strategy.

What are debt mutual funds?

Debt funds  are a type of mutual fund that primarily invests in debt instruments such as bonds, treasury bills, and other fixed-income securities. These funds pool money from investors and invest in a portfolio according to the theme of the fund. The primary objective of debt funds is to provide a stable return on investment with lower risks. Therefore, if you are a risk-averse investor who seeks a relatively safer investment option, then debt funds could be the perfect choice for you. As debt instruments have less risk and provide stable returns, debt funds offer an ideal investment avenue for those who prefer to invest in risk-free options.

SIPs for debt mutual funds

Investing in debt funds through SIPs has several benefits. Below listed are some of them.

  • SIPs in debt mutual funds can help investors to average out the cost of investments. As the cost of debt mutual funds fluctuates with the interest rates, investing a fixed amount through SIPs can help investors to buy more units when the cost is low and fewer units when the cost is high, thus averaging out the cost.
  • SIPs in debt mutual funds can help investors to benefit from the power of compounding. By investing a fixed amount at regular intervals, investors can earn interest on interest, which can lead to higher returns over the long term.
  • SIPs in debt mutual funds offer flexibility to investors. Investors can start and stop their SIPs as per their convenience. They can also increase or decrease the amount of their SIPs as per their financial goals and investment objectives.
  • SIPs in debt mutual funds can help investors to achieve their financial goals in a disciplined and systematic manner. By investing a fixed amount at regular intervals, investors can stay committed to their financial goals and avoid the temptation to time the market.

Do SIPs work for short term in debt funds?

In the short term, the returns from debt mutual funds may not be significant enough to justify the cost of regular investments through SIPs. Moreover, if an investor needs the money in the short term, they may have to withdraw their investment before the completion of the SIP tenure, which can result in exit loads and capital gains tax.


If you are looking to invest in debt mutual funds for the short term, it may be more beneficial to invest in liquid or ultra-short-term debt funds that offer higher liquidity and lower risk. However, if you have a long-term investment horizon, SIPs in debt mutual funds can be an excellent investment strategy to benefit from the power of compounding and averaging out the cost of investments.

Read More

Value funds vs growth funds: A comparison of features, benefits, and drawbacks

9:33 am

The world of investing is full of opportunities, but it also comes with its own set of complexities. Investors are always looking for the best approach to maximising their returns in the ever-volatile markets. Growth and value investing are two well-known types of fundamental investing, but how can you know which one is best for your portfolio and financial goals?

Whether you are looking for a long-term investment or something that may bring quick returns, knowing how these investments compare can give you a better idea of which type suits your financial goals better. Having said that, here are some key differences between value and growth funds, including their features, benefits, and drawbacks.

Understanding value investing and its features

Value investing focuses on buying undervalued stocks when their current market value is lower than the intrinsic value, with the expectation that the stocks will reach their true or intrinsic value or even exceed it. This strategy requires investors to search for undervalued stocks using technical analysis, charts, data, and financial ratios such as:

  • Price-to-book ratio (PB)
  • Price/earnings-growth (PEG) ratio
  • Price-to-earnings (P/E) ratio
  • Dividend yield, etc

The key motivation behind value investing is capital appreciation over time, not immediate gains or income generation.

Benefits of value investing

  • Since you buy stocks at a lower price, you have a built-in margin of safety that protects you from losses if the stock doesn’t perform as expected.
  • The strategy takes a long-term view which is ideal for investors who don’t want to worry about short-term fluctuations in the market and are willing to wait for their investments to pay off.
  • With higher dividend yields, value funds can help generate steady income.

Overview of growth investing and its features

Growth funds are focused purely on capital appreciation. Investors choose stocks or growth mutual funds whose prices are expected to grow at a better rate than its peers or the overall market. This type of investing requires more research and analysis since you need to identify stocks with high-growth potential.

There are many ways to create a growth investment plan focusing on capital appreciation, such as investing in small-cap stocks with huge growth potential, emerging market stocks, blue chip stocks, or mutual fund investments focusing on high-growth sectors like technology and healthcare.

Benefits of growth investing

  • You can choose high growth mutual funds to benefit from their high return potential.
  • Diversifying your mutual fund portfolio with a mix of growth stocks can reduce overall volatility exposure.
  • If done wisely, returns from mid and small cap growth mutual funds can be significantly higher than inflation.

Value funds vs growth funds – Comparing features and potential risks of both investment options

Parameters Growth funds Value funds
Company type Small to mid-sized with growth potential Mature, financially strong companies
Market growth Focused on capital appreciation and long-term growth Focused on growth and dividends
Period of holding Short term to long term Long term
Benefit to investor Capital gains Dividend and stock price appreciation
Risk Carry high risk due to equities’ volatility. Intrinsic values are difficult to predict
P/E Ratio P/E Ratio tends to be higher than value stocks Generally, a low P/E Ratio
Expense More expensive than value investments Relatively less expensive
Bet returns on Profitability estimates for the future Market psychology
Ideal for Investors with a moderate to high-risk appetite along with a long investment horizon Investors aiming for regular income and long-term growth potential

From the potential returns to the risk profile and overall investment strategy associated with each fund, evaluate your individual needs to invest in the right fund. Or you can even create a balanced portfolio that combines these two investment styles to get a consistent portfolio performance.

Read More

Know All About Trip Cancellation Coverage Under Travel Insurance

12:08 pm

We must schedule transport, lodging, and any other expenses well in advance when arranging a trip. Additionally, it is advisable to plan ahead for unforeseen circumstances like sudden cancellations brought on by unforeseen events or losing luggage while travelling, which is why travel insurance cover was created.

Specifically, trip cancellation insurance covers the case where you are compelled to cancel your trip or reservations for circumstances beyond your control, including becoming critically ill or hurt a few days prior to your departure. You can receive reimbursement for all of your non-refundable travel expenses thanks to this coverage.

How does travel insurance operate?

In addition to dealing with the inconvenience and disruption of having to change your travel plans, having to pay cancellation costs can be a significant financial hardship. The majority of travel and lodging companies charge larger cancellation fees and offer smaller refunds the closer the departure or check-in date gets.

When completing cancellations, you must notify them as soon as possible (preferably, five days before the event) and submit supporting documentation (e.g., medical certificate, a certificate from employer). Because different travel and lodging providers have different cancellation policies, it depends on when you cancel if you will be charged a portion of the whole cost or forfeit your deposit. The full cancellation price levied by the suppliers is covered by international or domestic travel insurance.

Cancellation insurance is usable if the following circumstances apply:

  • Appears in the policy
  • After you purchased insurance
  • Is unexpected
  • Is accidental

A few instances of legitimate cancellation scenarios may include:

  • Passing away of a family member
  • Severe illness or injury (applicable to you or family)
  • Damage to the home
  • Date modifications for your paid leave
  • Natural disaster or terrorist assault at the destination
  • You’ve been refused a tourist visa
  • Having to take an exam again
  • Employment loss or employment gain
  • Identity theft or ticket fraud

The grounds for cancellation may differ depending on the policy, so be sure to take attention of the exclusionary language.

Several exclusions might include:

  • Strikes involving organised public transportation unless the insurance period begins before the strike is anticipated.
  • An airline, cruise line, or tour operator may modify or cancel your travel plans due to bad weather.
  • Changes made individually by the insured or their travelling companion to their travel plans for any reason.
  • An adverse shift in the insured’s financial situation.

Refer to the policy’s ‘General Exclusions’ as well before you buy travel insurance online.

Insuring against trip cancellation:

When making your travel arrangements, you can purchase trip cancellation insurance at the travel agency’s or the tour operator’s website. The overall cost of the insurance varies based on the coverage you choose and is proportional to the cost of the trip.

Is trip cancellation covered by travel insurance?

Yes, travel insurance does cover trip cancellation as well as medical costs, lost or stolen property, delayed flights, and emergency airlifts, provided you fall within the guidelines of the claim. The most often used travel insurance coverage is trip cancellation. You should get travel insurance as soon as you’ve made your vacation arrangements because it offers more complete protection against various financial hazards.

In summary, travel insurance policies are individualised and based on your insurance company. Therefore, it is crucial to thoroughly read the small print and understand the validity and restrictions of the coverage. While trip cancellation policies are required, flight insurance policies will provide you with better protection because they not only cover unforeseen cancellations but may also assist with making arrangements for a temporary passport in the event that you lose yours. It will make for a more relaxed journey.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions,

limitations, terms, and conditions, please read the sales brochure/policy wording carefully

before concluding a sale.

Read More

All about Indemnity Health Insurance That You Should Know!

11:49 am

You shouldn’t have to worry about medical costs when it comes to your health and your family’s health, whether hospitalisation is unexpected or planned. A safe and reliable solution to reduce these medical costs is health insurance. There are many types of health insurance plans that you can consider. Indemnity Health Insurance is one of them. Continue reading to learn more about indemnity health insurance plans and their advantages.

What is indemnity health insurance?

Health insurance programmes, known as indemnity policies, cover the real medical costs associated with hospitalisation and reimburse you for them. According to the terms and conditions, you may make claims up to the maximum amount of the sum covered. If you have indemnity health insurance, the insurer may cover the full amount of the medical bill, excluding any deductibles, when you are hospitalised. Individual and health insurance plans for family are available for purchasing indemnity health insurance.*

Why choosing indemnity health insurance is essential?

The following are the benefits of selecting an indemnity-based health insurance plan.

  1. Rising medical expenses: Medical care is expensive. An indemnity plan could help with the fees in the event of an unforeseen incident.
  2. Reduce personal expenditures: In the event of a planned or unforeseen hospitalisation, an indemnity-based health plan could pay the entire medical expenditure, excluding the deductibles and other related costs.

Advantages of purchasing indemnity health insurance:

The key benefits of choosing indemnity health insurance are listed below.

  1. Flexibility in hospital choice: You can select the hospital from the company’s network based on your preferences. The advantage of a cashless facility is that it eliminates the worry of having to pay a large medical bill upfront and then get reimbursed later.*
  2. Widespread coverage: Pre- and post-hospitalisation costs, ICU costs, room rent, surgeries, diagnostic procedures, medication, daycare costs, and in-patient costs, including physician fees, could be covered.*
  3. Affordable plans: Indemnity health plans can come with deductibles. The cost of the health plan decreases if you choose a larger deductible. Since you are prepared to pay out of pocket, the insurer faces less risk, which results in a lower cost for your indemnity health insurance plan.*


Cons of Health Insurance Plans with Indemnity:

Health insurance plans with an indemnity component don’t have many drawbacks. However, deductibles are one of the major drawbacks of indemnity-based health insurance plans; as a result, you must pay a specified amount of the cost out of your own pocket.

Inclusions and Exclusions:


  • In-patient hospitalisation (a minimum of 24 hours of hospitalisation)
  • Pre and post-hospitalisation
  • ICU
  • Diagnostic procedures
  • Daycare services
  • Medicines*


  • Pregnancy
  • Existing illness
  • Dental/cosmetic procedures
  • HIV/congenital disorders
  • War/ intentional injuries
  • supplies like a PPE kit, etc.*

Costs and deductibles for the Indemnity Health Insurance Plan:

Indemnity-based health plans are priced similarly to other types of health insurance based on the beneficiaries’ various characteristics like age, pre-existing conditions, the amount of insurance, the number of beneficiaries, etc., are a few of them. Deductibles are present in the majority of indemnity policies. As a result, you must pay a set sum out of your own pocket.*

Important things to note about indemnity health insurance

To gain the most benefit from indemnity-based health insurance, consider the following factors before making your decision.

  • Most indemnity-based health plans often cost more than fixed-benefit plans.
  • When the insurer resolves the claim, deductibles are taken into account.
  • An online insurance is a good option for a seamless experience.
  • Usually, there is a 30-day waiting time before you can utilise the coverage.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply


Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


Read More

Free Cancellation Insurance Add-on Service On Flight Tickets

10:11 am

Flight travel insurance is typically available as an add-on when purchasing an airline ticket, either directly from the airline or through the various third-party sites that you find online, which they offer at a discounted price at the time of purchase. Due to the lower plan limits compared to other options, flight insurance is considered “light” coverage.

Every insurance plan, including flight insurance, has a certificate that specifies what is covered in the event of an unexpected event and the maximum amount of coverage. This certificate describes the plan limits. It is important to understand these limits before your trip begins to avoid any confusion or misunderstandings at the time of claim.

What is flight insurance covered for?

Most travel insurance for flights cover only unexpected events related to your air travel. This policy generally covers flight delays, trip cancellation or interruption, and lost, damaged, or stolen luggage up to the plan limit.

It also covers you if you cannot fly on the day of your trip due to a documented medical condition. Keep in mind that because the limits are so low, there may be some gaps in coverage.


  • The passenger must be at least three years old on the travel date. The maximum age on the date of travel is 70 years.
  • If you cancel your flight ticket at least one day (24 hours) before the scheduled departure date, you can claim flight cancellation insurance.
  • The fee will be assessed per passenger and per sector. For example, if you book a round trip, the price will be charged twice.

What is the process of flight insurance?

One of the essential things to remember when considering flight protection is that any benefits are secondary to any compensation you may receive directly from the airline. If conditions necessitated the delay or cancellation of your flight or if you had a claim for lost or stolen baggage.

You must file a claim with the airline first for compensation under the “carriage contract,” which includes your ticket purchase and outlines how the airline must refund or compensate you above your ticket cost in various situations. Your flight insurance policy would then cover the difference between what the airline paid you and the policy limit.

Should I purchase flight insurance?

While the cost of flight protection is low compared to other types of coverage, it is critical to consider the parts of your trip that follow your flight. Because of the lower maximum value and narrower range of covered events, flight insurance may leave you with coverage gaps if you have made a significant investment in your travel arrangements.

If you have a pre-booked excursion or non-refundable hotel costs, your total trip cost could easily exceed the plan maximum of airline insurance. Consider other travel insurance coverages to select a plan that meets your needs. You can insure your entire trip, including your flight, because comprehensive travel insurance may have higher limits on maximum plan value and a broader range of benefits.

For example, suppose you are injured while travelling. In that case, comprehensive travel insurance may reimburse you for covered medical expenses up to the plan limit and transportation to another hospital if the nearest one does not have the required facilities. All comprehensive plans also provide travellers with a 24-hour assistance line.

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘

* Standard T&C Apply

Read More