Insurance
IRDAI Fines India First Life Insurance Rs65 Lakh
According to an order issued by IRDAI chairman, TS Vijayan, India First Life Insurance has violated norms related to payment of commissions and reporting of expenses pertaining to corporate agents.
 
IRDAI listed 48 charges on the India First Life Insurance for a range of irregularities some of which were serious in nature. These included wrongful involvement of business development managers on behalf of corporate agents, running sales campaigns for the employees of corporate agents, offering incentives, such as foreign trips, gift cards and online redemption points and faulty reporting of expenses, and file & use procedures. The company has also been warned against any future violations on many other counts, as per the order.

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Oriental Insurance To Pay Rs17.59 Lakh in a Road Accident Case
The presiding officer of Motor Accident Claims Tribunal (MACT), Sanjeev Kumar Singh, directed Oriental Insurance Company Ltd, insurer of the offending motorbike, to pay Rs17,59,890 to the husband and daughter of Suwari Devi, who was hit by the motorbike while crossing a road in the Civil Lines area of Delhi in 2014. She succumbed to the grievous injuries later.
 
MACT, while holding the motorbike rider guilty of rash driving, relied on the mechanical inspection report of the vehicle.”...Reading all the documents, specifically the mechanical inspection of the offending motorcycle depicting damages, headlight and speedometer broken and scratches on it, filed by the petitioners as a whole, it is clear that the bike was being driven in a rash and negligent manner,” it said.
 
MACT relied on the FIR filed against the accused and the post-mortem report of the victim, while awarding the compensation to her husband Bhagat Singh, a resident of Delhi. In his petition.

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Money Life after Retirement
Senior citizens, too, need to be safe and smart with their money
 
Over the years, longevity is increasing and senior citizens need to be careful about saving and investing their money correctly so that it lasts for 20-25 years after retirement. This is a challenge for most people. Also, increasingly, the world is moving towards more and more interactions through mobile, Internet and computers. While this makes for convenience, it brings its attendant risks. To address these two issues—of safety and investments, Moneylife Foundation conducted a special programme for senior citizens on post-retirement savings and investments. Sucheta Dalal, managing editor of Moneylife and founder trustee of Moneylife Foundation, conducted the first session on ‘safe investing and how not to lose money’. The second session was conducted by Debashis Basu, editor Moneylife and founder trustee of Moneylife Foundation on ‘smart investing’.
 
Ms Dalal highlighted that “Senior citizens trust people very easily and, hence, they are more susceptible of fraud.” This statement was supported by the concept of cognitive impairment which was explained by Ms Dalal in detail. Senior citizens should only invest in regulated offers by SEBI (Securities and Exchange Board of India), IRDAI (Insurance Regulatory and Development Authority of India), PFRDA (Pension Fund Regulatory and Development Authority) and RBI (Reserve Bank of India). Participants took a keen interest in phishing, vishing and identity traps which are rampant online these days. She asked them to keep all conversations with banks documented, store phone numbers and email IDs of relationship managers and managers, at least two levels above them. She suggested that selection of a bank should not be done in a hurry. One should follow some banking tips to keep one’s money safe. 
 
Nomination is a serious issue and it demands close attention. Ms Dalal emphasised that forgotten nominations can lead to great losses. Knowledge about the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (passed in December 2007) was shared with participants. The Act provides for benefits such as monthly maintenance, faster complaint disposal and levying fines, if children do not take care of parents. 
 
In the second session, Mr Basu explained why concerns of investors are different before retirement and post-retirement. He said that in the post-retirement stage, one should consider the average life span of individuals and plan investments accordingly. Amongst different schemes available in the financial market, Senior Citizens Savings Scheme (SCSS) is a better option than annuities as it pays a higher interest rate; but both are taxed according to your income-tax bracket.
 
Two-part portfolio is an effective investment methodology for people who are retired. One can invest 60% of the total corpus in fixed-income securities and the remaining 40% of the total corpus in diversified equity mutual funds which would work towards beating inflation. 
 
For the fixed-income part, based on one’s individual tax bracket, one can invest in a mix of bank fixed deposits (FDs), corporate FDs, corporate bonds or non-convertible debentures, tax-free bonds and short-term debt funds. For people who fall in 20% and, especially, 30% tax bracket, an excellent option is tax-free bonds from government companies. 
 
The different investment options need to be evaluated for parameters such as safety, ease of investment, post-tax returns, liquidity and interest payment options. The presentations were followed by lively discussions. 

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