Posted: 08 Oct 2015 05:07 AM PDT

If you're saving for your child's future, a personal accident insurance cover would be a prudent way to provide a back up for your financial commitments, in case of unforeseen events. HDFC Children's Gift fund offers this essential cover free of cost along with its schemes.

I had, in my fund reviews, recommended both HDFC Children's Gift – Investment Plan as well as HDFC Children's Gift – Savings Plan at different points in time. But I missed mentioning about this free and valuable benefit. Thanks to our investor, Amit Tamhankar, who brought this to our notice. Hence this post.

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The cover
If you invest in HDFC Children Gift Fund, then you as the parent/legal guardian of the minor unit holder will receive a free personal accident insurance cover. The insurance will cover the parent/legal guardian upto the age of 80 years (during the course of holding the fund).
You need not pay any premium towards this policy.

The policy will commence from the time HDFC Children's Gift units are allotted, until the unit holder (your child) turns 18 or till the units are redeemed, whichever occurs early. The cover is available for HDFC Children's Gift equity-oriented scheme (called the investment plan) as well the debt-oriented scheme (called the Savings Plan).

The sum assured will be 10 times the cost value of your units outstanding, subject to a maximum of Rs 10 lakh. That would include dividend reinvested units as well as any bonus units. Suppose the cost of your outstanding units was Rs 75,000 at the time of any unfortunate event, then the sum assured will be Rs 7.5 lakh. The policy will cover the outstanding units whether bought as lump sum investments or as SIPs.

Death of the parent/legal guardian due to accident as well as various kinds of permanent and partial disablement (read pg 51 of the fund's SID for details on this) will be covered under the policy. The legal representative of the unit holder can directly file a claim with the designated insurance company.

Please read the scheme information document for rights of the AMC with regard to the policy.

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Health Insurance claim-free Benefits

Posted: 08 Oct 2015 01:47 AM PDT

For every claim-free year your health insurance policy is in place, the sum insured increases progressively by five per cent, up to a maximum accumulation for 10 claim-free years.

Now, let's say your sum assured has increased in successive 5 per cent bursts due to a few previous claims-free years. You made a claim on surgical expenses this year. The insurer will now reduce your sum assured by 10 per cent at the time of renewal of your policy to offset your claim. However, the basic sum insured in your health insurance plan will be maintained at all times.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Axis Tax Saver Fund

3.IDFC Tax Advantage (ELSS) Fund

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.BNP Paribas Long Term Equity Fund

9.Reliance Tax Saver (ELSS) Fund

10.HDFC TaxSaver

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

Shopkeepers Insurance

Posted: 08 Oct 2015 12:53 AM PDT

Shopkeepers Insurance Overview

The shopkeeper insurance policy is specifically designed to cover all the risks and contingencies faced by small or medium-sized shop owners. It provides protection for the property and the interests of the insured (and their partners) in the business venture.

The sum insured depends on the value of your shop and the value of the contents of the shop. The value of the shop is calculated on the basis of the estimated cost of rebuilding it completely. The contents of the shop are assessed according to their value at the time of purchasing the shop insurance policy. The valuation would also include electrical and mechanical appliances in the shop.

Shopkeepers' insurance provides you with cover for your shop and its contents.

Can I select the items to be insured in my shop?

Yes, you have that choice. The shopkeepers' insurance policy covers various perils and you can decide the type of cover you want to purchase. The only point you need to be careful about is that the coverage details for each section could vary by company, so do understand and confirm the details before purchasing the policy.

Fire and Allied Perils

Your shopkeeper's insurance policy covers any damage to your shop and it's contents. Read to know more.

This section of shopkeepers' insurance provides cover for damage to your shop and its contents - business assets, stock-in-trade, equipment, furniture, fixtures, fittings, interior decoration and other contents - against fire and its associated perils that might happen because of natural or man-made calamities.

Natural calamities include fire, lightning, earthquake, landslide or rockslide damage, flood, inundation, storm, tempest, typhoon, hurricane, tornado, or cyclone.

Man-made calamities include explosion of gas in domestic appliances, bursting and overflows of water tanks, apparatus, or pipes, damage caused by aircraft, riots, strikes, malicious, or terrorist acts.

Additional risk covers provide for:

Removal of debris
Costs to comply with building regulations following a damage
Consulting fees for architects, surveyors, and engineers
Temporary removal of equipment to another place for repairs or renovation
Loss of rent as landlord and
Additional expenses on rent for tenant
Escalation of sum insured throughout the year to guard against inflation

Exclusions

insurance companies tend to be selective about the risk covers offered. For example, some companies may charge an additional price for cover against terrorist activities. Yet others may have built-in deductibles where you will have to pay a portion of the claim amount for damage or loss due to natural calamities.

Loss, destruction or damage caused by:

War, invasion, foreign enemy hostilities, civil war, mutiny, civil commotion
Nuclear activity
Pollution or contamination
Stock spoilage in cold storage due to change in temperature

Loss, destruction or damage to bullion or unset precious stones, works of art for an amount exceeding Rs. 10000, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives unless otherwise expressly stated in the policy

Loss of earnings, loss by delay, loss of market

Loss by theft during a peril or after it happens except in the case of riots, strikes, and malicious damage covers

Loss or damage to property insured if they have been removed to another place; this is not applicable to machinery and equipment temporarily removed for repairs, cleaning, or renovation (not exceeding 60 days)

Burglary and Housebreaking

Your shopkeeper's insurance policy will cover your shop and its contents against loss or damage caused by burglary, housebreaking, theft, robbery, or dacoity. Read onn to know more.

This section of the shopkeepers' insurance policy provides cover to your shop and its contents against loss or damage caused by burglary, housebreaking, theft, robbery, or dacoity. Some companies restrict the damage payment to the shop due to burglary or house breaking to a maximum 5 per cent of the sum insured.

This cover also protects against loss due to impact damage by falling trees/electric poles/lampposts, breakage or collapse of aerials/satellite dishes and damage by civic authorities while preventing fire.

Exclusions:

Typically, the policy will not cover:

Loss or damage where a family member or business staff has directly/indirectly assisted any in the actual theft to cause the damage
Loss or damage by fire or explosion, or natural calamities, such as earthquake, tornado, cyclone, etc.
Gold or silver articles, watches, jewelry, precious stones, medals, coins, sculptures, manuscripts, rare books, plans, patterns, models, moulds, and designs
Deeds, bonds, bills of exchange, promissory notes, money or securities for money, stamps, books of accounts, business books or documents, cheques, share certificates, tickets, stamp collection, coin collections, medals, plans, specifications, blue prints, document of title to goods, contracts or other legal documents, or documents of any other kind

Unexplained losses, shortages due to error while making an inventory, losses resulting from your voluntarily parting with title or possession of any property, legally, illegally, or by deception

Some insurers state the policy will cease if:

Your premises have been left uninhabited by day and night for seven or more consecutive days and nights
You do any alterations on your premises by which the risk of burglary or housebreaking is increased; or change or relax any of the safeguards installed for securing the premises