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Moneylife Insurance seminar: Insure for the risk of high financial loss

Moneylife Foundation held an exclusive, in-depth session conducted by Raj Pradhan for the management students of Centre for Management, Bandra (Mumbai). Personal Accident, Life, Health, Car, Travel and Home insurance concepts were discussed in detail

Moneylife Foundation hosted an insurance session by Raj Pradhan for management students of Centre for management, Bandra (Mumbai). Mr Pradhan gave insights to an eager audience of B-school students on different types of insurance ranging from personal accident, life, health to car, travel and home insurance. Personal accident (PA) is a must-have for everyone. PA cover premium is inexpensive and remains unchanged, even though most products are offered only till 70 years. PA covers accidental death and disability.

Health insurance is skipped by students and young generation, but there is rise in lifestyle related diseases and even hospitalisation for gastric related issues. Even if students don’t buy health insurance, they should know the terms and conditions of the mediclaim policies of their parents. It is important not just to have right mediclaim, but also being able to get the claim paid by following the proper procedure and honouring the timelines given for hospitalisation intimation and claims filing. Critical illness can be thought as an add-on to your mediclaim. It will pay lump-sum irrespective of your expenses on medical condition. It is useful as many times after hospitalisation you may not be able to work for an extended period and mediclaim will not cover beyond hospitalisation expenses and few months of pre and post hospitalisation expenses.

It is imperative to get adequate life insurance for financial risk protection against death of a bread-winner in the family. There are different avenues to do it like Term Life, Endowment, Money-back, ULIP, Whole Life, etc. While a term plan is pure life insurance the others are insurance-cum-savings products. It is best not to mix insurance and investment needs. There is increasing awareness of online term plans and people are finding it to be attractively priced.

Buying life insurance policy in utmost good faith will ensure your family does not have to run from pillar to post to get the death claim paid. Every insurance company will repudiate fraudulent claim. Hiding a medical condition at the purchase of the product is as good as wasting the premium payment. Insurers know how to detect a fraud which can entail services of detective agencies.

Third party liability car insurance is mandatory, under tariff and inexpensive. It is important to ensure your car/two wheeler has this cover. Own Damage cover is optional, but gives comprehensive cover for your car. Shop for car insurance as premiums vary across insurance companies and even across channels like online, agents, car dealers, brokers, etc.

Overseas students and travellers should consider buying health insurance as medical treatment can be unaffordable abroad. Beware of fine-prints and check which hospitals offer cashless network. Paying upfront from own pocket can be expensive.


What the B-schools do not teach you

Exclusive workshop on how to be safe and smart with your money


The youth specially the ones with a new job and their own cash at their disposal have little idea of how to invest safely and smartly. Many end up falling into financial traps or invest in the wrong products. Being safe with money is very important at such a young age in life. A special orientation programme on this score was held in Moneylife Foundation Knowledge Centre for the management students of Centre for management, Bandra (Mumbai).


Eminent journalist Sucheta Dalal, Trustee Moneylife Foundation took the first session where she explained how to be safe with one’s money and the several ways one can lose large chunks of one’s savings. Ms Dalal in her session began with an overview of investing and said that one should keep it simple and should invest in just a few products—products that are safe and well regulated. “There is no guarantee that you will not lose money, but it is safer to invest in products that have regulatory oversight”, Ms Dalal informed the audience. One should be extra cautious, while dealing with your banker as well. Ms Dalal narrated to the packed audience incidents where “relationship managers” have taken genuine and educated customers for a ride.


She talked in detail about the various dubious schemes like QNET, Pearls, Citi Limozine, Japan Life which could be clubbed to category called then pyramid scheme or chain money schemes. These schemes claim to provide extremely high returns luring the unsuspecting savers. She talked at length about new phenomena like Phishing and Vishing on the internet that traps the gullible public and robs them of their hard earned money. She also explained how usurious are the rates charged on credit card outstandings.


The second speaker today was Debashis Basu, editor & publisher of Moneylife magazine. He described the rules for smart investment and stressed the importance of planning for the long-term and the power of compounding. He explained the powerful concept of compounding that one benefits from by saving regularly and investing in safe products. He explained how inflation erodes our wealth which can overcome by investing in blue chip companies and equity mutual funds over the long term. He also informed the participants on how to look at each asset class and identify the risks involved. According to him the most seasoned of the investors focus a much or more on risk rather than returns. Mr Basu showed the audience various routes one can use to invest safely and smartly. To a younger audience consisting of post graduate students his main emphasis was to save at least 20%-25% of their salary and invest at 85% of it in equity mutual funds regularly.


While answering a question he also talked about the macro economic scenario where rupee is on a downward spiral and the implications of the Federal Reserve affecting the trade and capital market of our country.





3 years ago

Fatwa against the nature of business in which QNET indulges…

Some IR asked this question emphasizing again and again on the word “HALAL PRODUCTS” but the council answering this question sees through the EVIL DESIGN and pronounces this business of “NETWORK MARKETING USING WATCHES AND JEWELLERY AS HARAM”.

Question: 20938
Saudi Arabia
I want to know about one business. Which is as following. Sir the business name is network marketing. The process is that I buy one product which is truely HALAL.e.g wathces, Jewellery etc. Aftre buying the product the company from where I bought the products asked me whether you want to become our business parter If I said Yes. Then I become the business partern of that company. And the money I paid to buy the product is my investment. Now if some more persons come to buy the product from this company through my refrece. Then company will give me commission let say 3% to 6% of each product. and the products are truely HALAL. And there is no cheating also. If I make the marketing of this company and asked the people to buy more product from this company then my i will get profit. If i stop then i will not getting anything. Please let me know whether this business is HALAL or not ... i shall be very thankfull to you if you email me this answer.
Answer: 20938
Mar 28,2010
(Fatwa: 548/L=186/tl=1431)

Network marketing involves cheating and invalid condition. Also, it involves earning profit by unlawful means; hence this business is unlawful according to Islam. It is not lawful to become a member of the company and receive profit.

Allah (Subhana Wa Ta'ala) knows Best
Darul Ifta,
Darul Uloom Deoband

The FATWA can be seen here

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