Insurance
Insurance for Gadgets
Do you really need an insurance cover for your expensive gadget? Look at the pros and cons 
 
After losing an expensive mobile phone or laptop, we often regret our decision not to get it insured. Unfortunately, the decison is complicated which explains why not many people opt for insurance cover for their electronic devices.
 
The idea of buying insurance for gadgets looks good only on paper. Mostly, such insurance is sold at the store from where the device is bought, where physical inspection and verification can be done. So, if you are interested in buying insurance, then first check with the store if they have some arrangements for insurance. But before signing on the dotted line, do read all the terms and conditions of the insurance cover to know what is covered (technical faults, physical damage and theft) and what is not. Ask questions about the coverage limit, like how much you can get in case of technical faults, physical damage, or theft, and whether the full cost is also payable under certain conditions. This will help you avoid some known issues at the time of actual claim.
 
There are three circumstances, namely, technical fault, physical damage and theft, under which we need insurance. Almost all electronic devices carry a warranty of six months to one year, under which most technical faults get covered. You may have to change the motherboard, but if it’s under warranty, you may get it from the manufacturer free of cost, provided it is being serviced or repaired at the company’s authorised service centre. Remember, if your device is under warranty, always use only the authorised service centre. This will help you overcome ‘warranty void’ issues.
 
Any physical damage needs to be accidental. And this is difficult to prove. For example, if you mobile fell and got damaged while you were crossing a road, you will have to explain that it was, indeed, an accidental fall and you were not crossing the road in a rush. The other issue is theft. If you have lost your device, or somebody stole it, you are required to submit a copy of the first information report (FIR) and the purchase bill for claiming insurance. Unfortunately, most police stations will not record the FIR; instead they may hand you over a copy of a missing report (MIR) about your device. However, MIR is not accepted by the insurers. This is unfortunate but true in almost all cases of mobile theft, at least in and around Mumbai. Another issue to remember is that if your device is stolen from a vehicle, which was unattended, you will not get any claim. This falls under personal negligence, and the insurer is not responsible for it. Also keep in mind the time limit for filing claims. For mobile insurance, the time limit is 48 hours. This means, you will have to obtain a copy of the FIR, attach the copy of the purchase bill and submit the claim within 48 hours to the insurance company. See how difficult that is!
Insurers also consider depreciation, ranging from zero to 50%, while settling claims. For claims filed within 90 days of buying the insurance, 0% depreciation is considered. For claims filed between 91 to 180 days, the applicable depreciation is 25% and for claims beyond 181 days, it is 50% of the cost. 
 
Last, but not the least, is the cost of buying insurance. Some sellers offer insurance along with the device, if purchased from their shop. But the end price may include the insurance premium. In any case, the premium is not very costly. Usually, the premium is between Rs15 to Rs20 per Rs1,000. Insurance for expensive gadgets can be bought for less than Rs1,000. 
 
Insurance for gadgets appears attractive. But one needs to think and read all the terms and conditions before taking the plunge else it may be a wasted expense. The best thing to do, of course, is to be careful and handle your device with utmost care.

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India's current account deficit falls in Q3
Mumbai : India's current account deficit (CAD) dropped to $7.1 billion or 1.3 per cent of GDP in the third quarter of 2015-16 on account of narrowing trade deficit, Reserve Bank of India (RBI) said on Monday.
 
"India's current account deficit (CAD) at $7.1 billion or, 1.3 percent of GDP in Q3 (October-December) of 2015-16 was lower than $7.7 billion or, 1.5 percent of GDP in Q3 of 2014-15," an RBI release said. 
 
"The contraction in CAD was primarily on account of a lower trade deficit ($34 billion) than in Q3 of last year ($38.6 billion)."
 
RBI also said foreign exchange reserves (on a balance of payment basis) increased by $4.1 billion in October-December quarter of the current fiscal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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CBDT panel for 'equalisation levy' on foreign e-commerce firms
New Delhi : A Central Board of Direct Taxes (CBDT) committee on taxation of e-commerce has suggested an "Equalisation Levy" of between 6-8 percent for business-to-business digital transactions, as per its report made public on Monday.
 
The committee had already submitted, in February, its report, which had formed the basis of Finance Minister Arun Jaitley's Budget 2016-17 proposal for an equalisation levy of 6 percent in order to tax income accruing to foreign e-commerce companies from India.
 
"The committee included officers of the Central Board of Direct Taxes, representatives from the industry, the Institute of Chartered Accountants of India and tax experts," said a finance ministry statement.
 
The committee has suggested that the levy be imposed on the amount paid to a non-resident by an Indian resident for specified digital services. It also suggested that this levy should not be a part of the Income Tax Act.
 
The specified services would include online advertising or any services, rights or use of software for online advertising, including advertising on radio and TV, designing, hosting or maintenance of websites, digital space for website, e-mails, blogs, facility for online sale of goods or services or collecting online payments.
 
It would also include use or right to use or download online music, online movies, online games and online software applications accessed or downloaded through the Internet or telecommunication networks.
 
The commitee has suggested introduction of the tax based on the Base Erosion and Profit Shifting (BEPS) principle earlier endorsed by G20 countries and the Paris-based Organisation for Economic Cooperation and Development (OECD).
 
The budget for the next fiscal has proposed that a person making payment to a non-resident, without a permanent establishment, exceeding in aggregate Rs.1 lakh in a year for online advertisement, will withhold tax at 6 percent of the gross amount paid as an equalisation levy. The levy will only apply to business-to-business transactions.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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