ABOUT INSURANCE

What is Insurance?

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event.

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Why do I need Insurance?

Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

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What does General Insurance do for me?

Accidents... illness... fire... financial securities are the things you'd like to worry about any time. General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

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How much Insurance do I need?

It is very important to have adequate amount of coverage for each insurance policy. For any asset or property insurance, the value of the asset based on market value or reinstatement value should be taken into consideration before deciding Sum Insured. If the Sum Insured is not adequate, the percentage representing the uncovered portion of the asset is to be borne by the insured.

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What all can I get covered under insurance?

Almost everything that has a financial value in your life and has a probability of getting lost, stolen or damaged, can be covered through insurance. Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty and also your liability towards others can be covered.

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Why should one cover oneself immediately?

Accidents and mishaps can occur anytime and anywhere. It is important to identify the risks faced and insure oneself against these at the earliest.

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What is Premium?

Premium is the fixed amount of sum paid over the period by the insured to the insurance company to take insurance policy and to complete the contract of insurance.

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Why should I fill up proposal form for buying Insurance?

Insurance is a contract between the insured and the insurer. The proposal form is the basis of contract and it contains all the required information for the preparation of the policy which is a contract document.

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What is Underwriting?

It is the consideration of material fact to asses the risk and to take the decision whether to accept the risk for insurance contract and if so at what rate of premium.

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What is deductible?

The amount, which the insured has to bear in all cases and this amount is first, deducted from the total assessed payable claims amount before determining insurance company's liability.

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What is Reinsurance?

It is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurance.

6 Things you must know about Employee Provident Fund

The Employee Provident Fund (EPF) is one of the most common forms of investment among salaried individuals. A small part of your salary is invested in EPF and that amount is matched by your employer every month. 

The employees and employers contribution is maintained by the Employees Provident Find Organisation (EPFO), under the administrative control of Ministry of Labour and Employment, Government of India.

Here’s all you need to know about Employee Provident Fund :

Equity: Since the EPF is invested in fixed income alone, it is expected to offer a good rate of return when invested in equities. The EPFO has also started investing in stock market through exchange-traded funds. The government has approved for 5-15% of EPF money to be invested in the volatile stock market.

Nomination: Did you know that you can assign a nominee for the amount of provident fund you’ve been investing every month? The nominee listed in your account will be contacted at the time of death and handed over all your money. The Form 2 provided by the EPFO department will allow you to nominate and update nomination changes.

Employee Pension Scheme (EPS):  12% of your salary every month goes into your provident fund. However, out of the money your employer matches, 8.33% of it or a maximum of Rs 1,250 goes into your Provident fund and the rest into your pension scheme. You are liable for pension only if you’ve survived 9.5 years of work life and your EPF has been transferred when you changed jobs.

Withdrawal: Did you know that it’s illegal to withdraw your EPF amount when you’re switching jobs? Yes, you can only withdraw your provident fund money if you don’t have a job at the time of withdrawal. You are only supposed to transfer your EPF account when you are changing jobs.

Opt out of EPF: If your basic salary is more than Rs 15,000 then you have an option to opt out of employee provident fund. However, you will have to make this choice at the start of your job. If you’ve been a part of the EPFO family even once, then you don’t get the choice of opting out.

RTI: If there is any kind of information you would like to know about employee provident fund, all you have to do is access your right to information. You can file an RTI application for any issues regarding your provident fund, be it transfer, withdrawal or balance enquiry.

OUTCOME OF JOINT MEETING HELD ON O4-11-2015

Dear Friends,

Further to our earlier news we are giving some main issues discussed with jointly

with GIPSA Management.. Mr Sujit Bagchi , President and Mr P S Bajpai, General Secretary on behalf of NFGIE attend the meeting.

Outcome of the Jt. . meeting

... Demands for HRA and CCA without ceiling 

Education Loan for children with 8.5% interest.

Cash handling allowance for MO

Newspaper reimbursement for Class III & IV

Upto 3 days SL without Medical Certificate.

Lunch Coupon --- are some of the benefits that they may be mooted after consultation with LIC.

Denied :  LTS Encashment.

Further revision of Basic and DA portion of FPA

Management will have a round of discussion on amendments of Promotion Policy

PLLI may be split into Profit linked and Productivity Linked.

Seperate Scheme for MO incentives. Paternity Leave  will be decided in GM(P)

meeting  seperately.

Detail circular follows.

DEBASISH BANERJEE

ORG.SECY/NFGIE