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Monday, September 16, 2002,
Chandigarh, India  
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Do
you have accident insurance policy?
Fatalistic
approach does not pay |
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Sensex:
bleak week ahead
Q: I had received arrears
of my salary for the past 10 years (1992 to 2002) in January, 2002 due
to pay revision and 30 per cent tax is deducted at source. For claiming
an income-tax refund should I file the revised returns for all 10 years
or there is one consolidated form for this purpose? If not for 10 years,
for how many years it can be spread and in which year the remaining
arrear is to be shown? Is it possible to spread amount deposited in the
P.F. account for rebate purpose? My ULIP policy of Rs 60,000 also
matured this year and there is capital loss. Should I spread this also
as Rs 6,000 was the premium per year for the last 10 years.
Railways
needs to learn lessons
A-I cuts
fares for senior citizens Inflation
falls to 3.46 pc FII net sellers in equities
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Do you have accident insurance policy?
Chandigarh Till recently, financial advisers and employees have considered insurance policies just for the sake of investment and tax saving measures. However, there are a number of personal accident policies to take care of unwanted expenses after an accident, offered by insurance companies. Insurance experts say young employees have often complained that with the increasing job insecurity and the decreasing government support to provide health services have created a situation where they cannot meet medical or family expenses in case of an accident. Different independent studies conducted over the years reveal that the cases of deaths and permanent disabilities have gone up substantially over the past few years, especially in the urban areas, but demand for personal accident policies have not gone up proportionately. Mr B.S. Chilana, Assistant Divisional Manager at the Oriental Insurance Company, here feels: ‘‘ There are a number of good policies offered by our company and other companies. However, there is a lack of awareness among employees and employers about these policies. The company is offering two policies — Janata accident insurance policy, started in 1976, and personal accident insurance policy. By paying a small annual premium worth Rs 60 to Rs 150, one can take insurance cover of up to Rs 1 lakh for accident related injuries and other injury.’’
Mr Pawan J. Durani, AAO (Marketing), at the Oriental Insurance, claims that this is the most popular policy, mostly opted by the public and private sector companies. There is a provision of discount of 10-15 per cent, in case a policy is simultaneously taken for other family members. He says:‘‘ Any healthy person can take the policy by depositing Rs 45 to Rs 150 as annual premium to take Rs 1 lakh cover. During the policy period, if due to any accident the person dies, his next family member will get 100 per cent of the sum assured. Similarly in case of loss of one or two limbs or eye sight, he will get 100 per cent of the capital sum assured. However, in case of loss of one limb or loss of eye sight , he will get 50 per cent of the sum assured that is Rs 50,000.’’ In the heavy risk fields, like sports, mining and chemicals, the premium rate is doubled. The policy also offers 100 per cent of capital sum assured in case of permanent
disability from injuries and 50 per cent for loss of hearing, he says. The scheme covers a person from accident throughout the world. The scheme is useful for employees working in the SSI sector and for self-employed persons. Instead of depending upon relatives, he said, one should opt for the policy. In case of temporary total
disability, the family will get weekly benefits up to Rs 5,000 during the treatment period for a maximum period of two years. Mr Tilak Raj Kunra, a development officer with the New India Assurance Company, Ludhiana, also admits that the scheme is very useful, though due to lack of awareness, employees are sometimes unable to get full benefits. There is a provision of payment for children education, carriage of dead body if the person dies in accident. He feels:‘‘ It is unfortunate that even the common man will spend hundreds of rupees on smoking and other unnecessary expenses, but will not take the policy though it will financially support other family members after the death of single earner in the family.’’
Insurance companies, including United India Insurance and National India Insurance, also cover accidental hospitalisation expenses along with other expenses in the personal accident policy. There is a provision of payment of hospital expenses up to Rs 1 lakh in the Nagrik Suraksha Policy of the Oriental Insurance Company, for Rs 5 lakh sum assured. One will have to deposit a single premium of Rs 450 for a one year policy of Rs 5 lakh sum assured and Rs 1,530 for a four year period for the same amount. Mr Kunra warns: ‘‘ To avail full benefits in case of accident, one should immediately register an FIR with the nearest police station, and admit the policy holder at the registered nursing home or hospital only. The company does not entertain any claims due to suicide attempt and natural death.’’
Mr Manider Sood, branch head of the company, admits that the few private players have so far come up to offer the general insurance policies, though it is a growing field in the insurance sector. The HDFC is going to launch another subsidiary, HDFC-Chubb company, for that purpose. So far, he says:‘‘ Our life insurance policy offers cover for various critical diseases like cancer, coronary artery bypass graft surgery, kidney failure and heart stroke and accidental death benefits by paying a marginal additional premium. For a 30 year old person, there is a provision of coverage of up to Rs 1 lakh medical expenses, in the money back policy, by paying an additional premium of Rs 144 and Rs 442 annually.’’
Bankers' initiatives Interestingly, a number of banks are also offering accidental death insurance benefits on their saving accounts and credit cards. Mr Harpal Singh, dealing in the credit division of the Punjab National Bank, claims:‘‘ We are offering a air-crash accident death insurance coverage of up to Rs 40 lakh and Rs 15 lakh on our gold and classic credit cards. There is also a provision of insurance coverage for loss of baggage as well, besides waiving off up to Rs 40,000 for the family members in case of death.’’ The SBI credit cards also provides personal accident insurance, besides other banks.
Other private players Among other private players, the ICICI Pru Life Guard and Tata AIG have also introduced accidental insurance policies , under their general insurance policy cover. The ICICI is offering a low-cost high protection plan that offers protection over a specified period. For a Rs 18,000 per annum premium, the company is offering a growth, income and balanced growth plan, that will offer accidental and disability benefits, major surgical assistance and critical illness benefits. The Tata AIG has come up with a Rs 99 monthly premium scheme named Shanti to offer personal accidental cover. The company is claiming to provide a cover of up to Rs 1 crore in settlement of claims. However, most of the private companies have to still expand their network in their region.
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Sensex: bleak week ahead Mumbai, September 15 According to market players, the rising oil prices in view of the ongoing war of words between the USA and Iraq, privatisation concerns after the Centre’s decision to postpone sell-off of oil PSUs for three months and the expected 15 per cent drop in the kharif crop output were likely to cast their shadow on next week’s trading. “The market is likely to be weak as the US market is under correction. The 3075 level of the BSE Sensex will be a crucial level. If the index falls below that level, it may slide to touch the 2800 level,’’ said Mr Jignesh Shah, a strategist at ASK Raymond James Associates, a leading investment bank. Trading ended on an extremely weak note at the BSE last week. The 30-stock Sensex ended lower by 43.17 points or 1.34 per cent at 3098.94 over the previous week’s close of 3141.11. The S&P Cnx Nifty index at the NSE posted a fall of 3.20 points or 0.32 per cent at 992 points from the previous week’s close of 995. Business volumes on both leading bourses witnessed a considerable decline during the week. Turnover on the BSE declined sharply by 34.06 per cent at Rs 4,539 crore as compared to Rs 6,884 crore. Similarly, NSE turnover dipped by 34.23 per cent at Rs 9,259 crore against Rs 14,078 crore. Though, the market remain closed on Tuesday on account of “Ganesh Chaturthi,” the drop in business volumes is being considered significant by the market players. The stock markets in the USA and Asia were down except a moderate gain recorded by the Tokyo Stock Exchange. The Dow Jones Industrial Average and the Nasdaq Composite Index lost 1.36 per cent and 0.28 per cent at 8313 (8427) and 1291 (1295) points. The Hang Seng Index of the Hong Kong bourse also recorded a fall of 0.72 per cent at 9651 (9721) points during the week. Back home, the fall in the share prices on the domestic bourses (BSE & NSE) was broad-based and both new and old economy scrips were battered due to aggressive selling pressure, dealers said. Ajit Singh’s statement indicating a 15 per cent drop in
the kharif crop output badly hit the market sentiments, especially affecting cyclical and FMCG shares. After HPCL and BPCL, shares of Rashtriya Chemicals and Fertilisers (RCF) came under pressure amid reports that privatisation of the state-owned company will be delayed by at least two years. The market was bereft of buying interest from major players such as domestic and foreign institutional investors in the last couple of weeks, said a stock broker. The lack of participation by institutional investor forced the market to be range-bound trade, he said. Delivery-based transactions have reduced drastically and even the speculative activities fell sharply, he added. Among the few gainers, ACC shot up by Rs 6.7 to Rs 144.70, Bajaj Auto Rs 1.15 to Rs 420.50, L&T by Re 1 to Rs 181 and the SBI rose by Rs 9 to Rs 244.65. Wipro shot up by Rs 99 to Rs 1,310, Infosys Rs 46 to Rs 3,580 and FMCG leader Hindustan Lever rose marginally by Re 1 to Rs 180. Losers included Bhel, BPCL, HPCL, HCL Tech, Madras Cement, ITC, Reliance, Rolta, Tisco, Zee Telefilms, Hero Honda, Gujarat Ambuja Cement, German Remedies, Dr Reddy’s Lab and Cipla.
UNI
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by R.N. Lakhotia Q: I had received arrears of my salary for the past 10 years (1992 to 2002) in January, 2002 due to pay revision and 30 per cent tax is deducted at source. For claiming an income-tax refund should I file the revised returns for all 10 years or there is one consolidated form for this purpose? If not for 10 years, for how many years it can be spread and in which year the remaining arrear is to be shown? Is it possible to spread amount deposited in the P.F. account for rebate purpose? My ULIP policy of Rs 60,000 also matured this year and there is capital loss. Should I spread this also as Rs 6,000 was the premium per year for the last 10 years. R.P. Gupta, Kurukshetra Ans: You can claim the benefit of spreading the arrears of salary received by taking advantage of the provisions of the Income-tax law as contained in S.89 of the Income-tax Act, 1961. You need not file separate Income-tax return. The amount deposited in P.F. account in different years can be taken advantage of. Similarly, the payments under ULIP made in different years will also be considered for tax rebate purpose. Q: My daughter who was divorced sometime back has two FDRs made out of the maintenance lump sum amount received by her against the decree. For the financial year 2001-02, her interest income exceeds Rs 5,000 in each case. She had submitted 15-H form to banks. While one bank has not deducted any tax, the other bank has deducted tax erroneously and issued 16-A form. My question is can I include her interest income for the tax deducted FDR in my return and claim for refund of tax. I am a retired person and filing my income-tax each year with PAN allotted to me. I shall be highly grateful to you for an early reply as date for filing income-tax return is approaching fast. B.M. Chopra, Jalandhar Ans: You cannot
and should not include in your tax return the income from two FDRs
belonging to your daughter. It would be better if your daughter were to
file her Income-tax return and claim refund of tax. In future, if the
gross amount of FDR interest belonging to your daughter is within Rs
50,000 in a year, then she must submit Form No. 15H to the bank in
advance so that no tax is deducted at source. |
co
by Pushpa Girimaji Railways needs to learn lessons THE tragic train accident involving the Kolkata-New Delhi Rajdhani Express raises serious doubts over the Railway administration's ability to ensure the safety of passengers. As of now, the exact cause of the accident is not known. While the Railway Minister Nitish Kumar said it could be a sabotage, yet others have pointed fingers at poor track maintenance. The tragedy, said to have occurred as a result of the collapse of the 139-year old bridge under the weight of the train, had exposed cracks in the Railways' inspection of underwater structures of bridges and also its casual attitude to safety. Now the accident involving a fast train like the Rajdhani Express has brought to the fore several other aspects of safety that the Railways needs to focus on, besides technical upgradation, improvisation and maintenance of tracks, signals, bridges and rolling
stock. These measures are particularly important in fast and fully air conditioned trains like Rajdhani and Shatabdi. The coaches, for example, should be so designed as to absorb higher impact of collision, thereby minimising the risk of injury to passengers. The carriages should be provided with emergency exits, removable windows, besides tools on board to break the window panes to facilitate exit of trapped passengers. On some of the fast trains in Europe for example, such hammers used for breaking the windows in an emergency are enclosed in a container and placed on the wall of the
coach. It is equally important to provide emergency lights at strategic places inside coaches. There should be luminous signs to indicate where these are all located. Similarly, it is important to provide separate luggage compartments for large baggage and even where small belongings are kept, there should be provision for restraining these stowed on luggage racks. This will prevent injuries caused by flying belongings during a mishap. As on airplanes, here too, safety instruction sheets should be provided to passengers indicating some of these features. The accident has also highlighted the Railway administration's lack of preparedness to deal effectively with rescue operations. Considering that accidents involving trains are not rare in the country, one would expect the Railways to at least respond to accidents with alacrity. An organisation as large as the Railways need to have the required infrastructure, including trained personnel and a definite plan of action, for dealing with railway accidents so as to save as many lives as possible. Side by side,
the Railways needs to keep in mind the anxiety of relatives waiting for news of their near and dear ones and ensure that the required information is provided to them quickly and efficiently. Surely, in this age of fast communication, it is not so difficult to devise a system of processing and disseminating information about missing persons, casualties and survivors quickly? In order to restore the confidence of the passengers in its ability to provide safe journey, the Railways should take the following steps: a)
provide detailed information on the internet on the safety standards adopted by it and the steps taken to constantly upgrade and enforce them. b) make public the reports of inquiries held after every major accident, including the present one, and also inform the people of the corrective steps
taken. c) engage independent experts to scrutinize at regular intervals the safety of rail transportation system and make public these safety audit reports d) inform consumers about the utilisation of the safety surcharge levied on passengers from October 1, 2001. Passengers have a right to know the total amount collected from them so far and how and where it is being used. In his Budget speech on February 26, the Railway Minister had made several safety-related promises. Passengers need to know how long it would take to implement them.
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A-I cuts
fares for senior citizens Chandigarh, September 15 According to a senior official, the scheme will be valid for a three- month period, beginning from today, September 15 to December 15. According to the scheme, men aged 65 and above and women of 60 and above can avail the special concessions for flights to Britain and the USA. The revised fares for New York, Chicago and London will be about 25 per cent lower than the existing ticket prices. However, Air-India official said the return travel had to be completed by May 15, 2003. For example, a New Delhi/ Mumbai -New York/Chicago flight that usually costs Rs 47,000 now will cost about Rs 38,700 for senior citizens. Also, they have to pay Rs 24,150 for a New Delhi/ Mumbai -London flight instead of Rs 28,000. They will have to attach the copy of passport with auditor's coupon of these tickets. Official felt that since the traffic to and from Europe and the USA had been somewhat less in the past few months with the world aviation sector yet to recover fully from the September 11 attacks on the USA and warnings issued by the respective governments to its citizens against visiting India due to security threats. He said international flights was going partially filled with a sharp drop in air travel around the world.
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Inflation falls to 3.46 pc New Delhi, September 15 The annual rate of inflation stood at 3.59 per cent for the previous week and 4.93 per cent a year ago. The wholesale Price Index (WPI) for the week ending August 31 remained unchanged at the previous weeks level of 167.4 and stood at 161.8 a year ago. The annual rate of inflation for week ending July 6 stood revised at 2.48 per cent as against a provisional figure of 1.99 per cent while final WPI stood at 165.2 as against 164.4.
PTI FII
net sellers in equities Mumbai, September 15 The mutual funds (MFs) were net buyers in the equity market at Rs 10.71 crore while netting purchases of Rs 298.73 crore in debt instruments, according to data available with SEBI here. The FIIs were net sellers and buyers on two days each and netted their highest outflow of the trading week on September 11 at Rs 33 crore ($ 6.8 mn). They were net buyers at Rs 35.2 crore ($ 7.2 mn) on the next day. On the debt front, the foreign funds transacted only on the first day of the week. They just sold equity instruments worth Rs 145 crore on September 9.
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