5 Things beginners should know about car insurance

 While buying a car, you always check its features, specifications, and comfort level. You ensure your family members and relatives do not experience discomfort and can roam around easily. They can reduce their reliance on public modes of transport and travel together on long trips and excursions. In such cases, buying a four-wheeler insurance policy is mandatory. It ensures the all-round safety of the vehicle and reduces expenses during an accident.

You can now find many insurance companies and several car insurance policies, particularly for first-time car buyers. The initial step is to understand the basics. It includes the type of vehicle, model, economy, colour, cost, etc. The next step is to finalise the insurance provider. Read all the policy inclusions, exclusions, terms, and conditions carefully.

Following are the things to remember before buying the insurance:

Assess your requirements: There are two types of car policy: third-party insurance and comprehensive insurance. Third-party insurance is obligatory under Indian law, but comprehensive insurance provides more coverage and benefits. If you select minimum coverage only against third-party risks, opt for third-party insurance. Choose a comprehensive policy to cover your vehicle as well.

Set the Insured Declared Value: While buying car insurance online in India, you need to consider the IDV of your car, which is the estimated current selling price. If the vehicle is stolen or meets a massive accident that damages it beyond restoration, it leads to complete loss. You will then receive the insurance provider’s compensation for the estimated IDV amount set when ordering the policy.

Deductibles: It is the amount you pay at the time of claim. There are two types of deductibles: voluntary and optional. Under the voluntary deduction, you will decide the amount you want to pay when making a claim. Setting a higher deductible is beneficial for safe drivers but can lead to a lower claim sum. Thus, when selecting a voluntary deductible, be cautious.

Add-ons: When you buy an insurance policy for your car, you can opt for add-on covers like depreciation cover, consumables cover, gap value cover, roadside assistance cover, passenger assistance cover, critical loss cover, etc. These protect you from facing financial liabilities when your car meets with an accident. It also helps you save for the future.

Timely renewal: You must ensure that your insurance policy is always active and renew it on time to avoid claim denial. The policy is typically valid for one year, though there are also long-term plans available. An expired policy is of no value and would not give you or the third party any form of financial protection. You can choose to renew your online car insurance policy to get the No Claim Bonus benefit.

With technological advancements, you can now conveniently buy, renew, and check your 4-wheeler insurance from home, office, or anywhere else. With an active internet connection on your PC, laptop, or smartphone, you can track it.

What is the importance of a savings account?

Banks in India have different types of financial products to meet the demands of their customers. You can choose them based upon your need and your purpose of funds. Some of the standard banking products include deposits, savings account, loans, current account, etc. You can apply for them by visiting the bank branch or even online.

A bank account is for individuals and salaried employees to meet their requirements. The primary function is to ensure liquidity. It enables you to make and receive payments. For example, you deposit the cheques you receive in your account and use them to make payments. And when you need cash to meet your day-to-day requirements, you can withdraw it from the branch ATM.

Most banks also offer online banking facilities, such as the internet and mobile banking, to make and receive payments easier. You can skip frequent trips to the bank for any transaction and use the app or website for fund transfer, account balance check, and lots more. You can make purchases, pay bills, send money to your family, and perform many other banking activities using your saving account.

You also get additional interest in your balance according to the bank’s saving account interest rates. They range between 3% to 6% and vary depending upon the account type and purpose. The account offers lots of liquidity of funds and allows you to access it at any time conveniently. You can also open a fixed deposit account to get higher earning on the interest rate.

You can opt for a regular saving bank account or a zero-balance account, depending upon your requirements. Remember that the regular account requires a minimum account balance, failing which the bank may charge you the penalty. Here are the benefits it offers:

It enables you to keep your cash safe

You can also pay and receive money easily

The idle cash earns interest

It is easy to operate

An extensive network of ATMs makes it easier to withdraw cash

Online banking enables easy payment of bills and fund transfer

With the help of an online savings account, you can track and access your funds 24x7 without any hassle. You can use them for an emergency or urgent fund requirement without visiting the bank branch or ATM. You can open the account by sending a request to the bank or automatically activate it during the account-opening process.

You need to submit a list of documents required for saving account opening for verification to the bank. They will check the Aadhar card, PAN card, Voter ID card, passport, utility bills, and passport-sized photographs before approving your request. These are mandatory to open a savings account in India and gain benefits. You can also use other financial products offered by the bank to meet your monetary needs.

How to get the FASTag for your vehicle?

 Many Indian people visit their city's outskirts to spend time with their families or attend business meetings. Cars or taxis are ideal for getting them where they need to go. However, they are required to pay a toll tax on Indian highways and expressways. The driver or car owner cannot afford to pay for them out of their salaries due to their high cost. They bring enough cash to cover emergencies, but they use it to pay tolls at toll plazas instead.

Toll payments have followed suit, as any utility and service now use the internet to meet their needs. FASTag was created to enable travellers to pay taxes when using tolls and expressways.

In India, it is now normal to see a line of vehicles forming at toll plazas, waiting for their chance to pay tolls before driving away. The process of drivers paying tolls with cash and collecting a toll collectors ticket can be sluggish and time-consuming.

Considering this, India's National Highways Authority (NHAI) has implemented cutting-edge technology that makes toll payments quick and simple. The NHAI's FASTag is a reloadable tag that automatically deducts toll charges for a vehicle as it passes through a FASTag electronic toll collection gate.

It saves a lot of time, and the Indian government has mandated that all vehicles get equipped with it. The speed and convenience have improved, resulting in a shorter wait time. A tag is stuck on the windscreens of all cars with this feature. As toll officials scan them, they link them to the vehicle's prepaid account for auto-debit.

To collect information and calculate charges, the tag employs Radio Frequency Identification technology. As soon as the toll charges get deducted from the account, the car owner receives an SMS. The FASTag electronic toll collection system has become more convenient, simple, and hassle-free. You can avoid waiting in line near the toll plaza or paying the toll operator in cash.

To pay toll tax, electronic toll collection has become common. Users can top up their account with a credit or debit card and pay for tolls electronically as required. You can get it in a variety of ways:

To create an account, go to the POS counters at toll plazas, Regional Transport Offices (RTO), and petrol pumps.

Some banks also provide this service for INR 499 with a minimum deposit and balance.

The service is also available at several online retailers.

List of documents required:

Users may also apply for a FASTag online, which can get used at approximately 450 toll plazas throughout India. The Indian government created this facility, and the unique feature is that they have their own lane to pay the toll charge. The following documents are needed to obtain the tag:

Vehicle registration certificate

The vehicle owner's passport size photograph

Relevant KYC documents like the owner's ID and residential proof

What is the MUDRA loan?

 The Indian government aims at progressing and developing together. It launches several schemes targeting various sectors of society to provide them relief from economic and financial problems. Money is a necessity, especially during unexpected events and urgent fund requirements. Hence, the NDA government launched the Micro Units Development and Refinance Agency on 8th April 2015. Non-corporate small business sectors can apply for a MUDRA loan to grow and progress.

Lack of financial support is the biggest barrier to the growth of small businesses in our country. The purpose of the loan is to resolve the issue by extending financial support to them. The number of small-scale enterprises in the country is higher than private organised ones. Most of them include sole proprietorship firms undertaking manufacturing, trading, retail, broking, and other activities.

There is immense potential to nurture small businesses to contribute more towards the country’s GDP. The segment is mostly unregulated without an organised financial system, especially in rural areas. Apply for MUDRA loan online by visiting the Udyamimitra portal or the official bank website. Loans under this scheme bring enterprises into the formal financial system and aim to fund the unfunded.

The Pradhan Mantri MUDRA loan offers credit facilities to micro and small businesses engaged in income generation. One of the benefits is that you do not need to provide security or collateral. Additionally, you get exempted from paying processing fees on loan. The Pradhan Mantri MUDRA Yojana extends credit facilities for any fund or non-fund requirement. Use the MUDRA loan EMI calculator to calculate the approximate EMI for various purposes, including term loans, overdraft facilities, apply for letters of credit, and bank guarantees.

There is no minimum loan amount when you apply for MUDRA loan. There are three types of loans, depending on the loan amount. Under Shishu, you can get a loan of up to Rs. 50,000. Under Kishore, you can borrow a loan amount between Rs. 50,001 up to Rs. 5 lakh. You can also get loans of up to Rs. 10 lakh sanctioned under Tarun.

The maximum loan amount you can borrow is Rs. 10 lakh. The MUDRA loan scheme targets enterprises in the non-farm sector. It also includes those involved in allied agricultural activities like horticulture and fisheries. According to the Marginal Cost of Lending Rate or MCLR set by the Reserve Bank of India, banks calculate the MUDRA loan interest rate.

You will also get a MUDRA card, a type of credit card at the time of loan disbursement. You can use it to buy raw material and equipment from registered vendors online. The credit limit of the card is 20% of the loan amount up to Rs. 10,000. This loan scheme encourages small business sectors to grow and progress, leading to a higher GDP.