Category: Kharcha paani

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Use RERA to your advantage when buying a Mumbai home

The RERA is a veritable boon in the hands of flat buyers in Mumbai. We explain how it helps bring greater transparency in the flat-buying process.

The real estate sector in India has been seeing some curious trends in recent years. On the one hand, there is a constant refrain from buyers that realty is too expensive to invest in at the moment. On the other hand, the luxury housing sector continues to show stable growth! Amidst talks of a slowdown in Indian realty year upon year, came the ambitious RERA (Real Estate Regulation and development Act) that was promulgated all over the country in 2017.

The RERA was created to bring in greater transparency in the house purchase process for buyers. Using RERA helps buyers become privy to all the important information they must necessarily know – flat and real estate developer credentials, project timelines, construction progress, reasons for delay, etc. The RERA is aimed at helping buyers make well-informed decisions about buying Mumbai properties and investing in the right projects.

Are you a first time homebuyer looking to invest in an under-construction property? Here’s a lowdown on how RERA can help you pick the right flat for sale in Mumbai:

* RERA assures you that everything is laid out in black and white. The primary thrust of the RERA is complete transparency, which means that buyers must be privy to all the information they seek whenever they seek it. The Act has been worded to include every facet of the process, from initial construction to final handover of the completed Mumbai property. It also specifies the legal and construction standards that developers must uphold per project, starting with taking a RERA project number that must be clearly mentioned across advertisements, brochures, project plans, etc. This number helps buyers keep online and offline track of the project’s progress. Prior to starting the construction, the developer must give written specifications, include copies of municipal approval, land title and reservation, project timelines, etc. and adhere to the same or furnish written reasons for delays.

* New constructions are more professionally handled from now on. Since RERA specifies stiff legal penalties for inordinate and unexplained delays, developers are now more cautious about using their available funds and giving completion timelines. Smaller players in realty were earlier quite glib about several parameters, which led to delays, stoppages and huge losses for buyers. But the RERA weeds out the unscrupulous developers from the professional ones. Since real estate developers must specify problems and delays in writing, there is no scope for buyers to be left high and dry with stalled projects, or builders abruptly stopping their rent payments (in case of redevelopment projects), etc. Thus, developers are now more accountable for their projects, leading to faster completion.

* Projects are now securing funding much faster. Buyers are now confident about investing in 1 BHK flats in Mumbai, or luxury 2 BHK flats in Mumbai, since every new project must be licensed and approved by RERA. In turn, an approved project automatically increases its own chances of getting home loan funding. This is good news for those buyers who wish to secure home loans for buying flats for sale in Mumbai. Meanwhile, real estate developers are also able to secure funding to start and finish the construction when there is RERA certification for the project.

(Featured image courtesy https://blog.ipleaders.in/stalled-projects-rera/)

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Kharcha paani

The main difference between richness and wealth

Being rich is great, but being wealthy has more enduring value. Let’s understand how to use insurance to move from being rich to being wealthy.

All of us dream of a stable life for ourselves, where there is enough money in our account to meet all our expenses. Some of us have a lot of money in our hands at intermittent points of time, but this does not mean that we are wealthy. Let us examine the difference between the two concepts:

Richness: It is a phase when one has a lot of money at one’s disposal. The money may appear suddenly as a result of an investment, a job completed or some other reason. However, it is transient in nature – it is apt to be spent quite quickly. It is a state in which a person may have money intermittently but not always.

Wealth: In contrast, the state of wealth is one in which a person may have a lot of reserves at their disposal over a longer period of time. It is said that the wealthiest people in the world are those that know how to make their money work for them even when they are asleep. True wealth is created when one does not need to work such that their effort results in money. Wealth can be created by taking one affirmative step and letting the investment work for itself.

A further proof of how wealth is created is given by an insurance investment option known as the ‘wealth plan’. This is an insurance plan that helps you create wealth over a period of time, such that your periodic investment is plugged into the right securities to give maximum returns.

Consider the following salient benefits of a good wealth insurance plan:

  • A high life coverage amount that is at least 30 times the annual premium paid.
  • The investment helps you fulfil your long term financial goals and also protects your loved ones’ future.
  • You can invest money monthly, quarterly or half yearly.
  • There are multiple fund options – debt, equity, balanced assets or more – as per your investment appetite.
  • There is the freedom to switch between different fund classes to maximise the returns.
  • You can partially withdraw funds against the investment after a certain number of years are complete.

The insurance plan may have a term starting from 15 years up to 40 years. The plan must include guaranteed loyalty additions, apart from a death benefit that equals the sum assured minus the withdrawals made (if any). The death benefit may also be calculated to the fund value, or it may be a sum equal to 105% of the premiums paid till the date of the policy holder’s demise.

Additionally, the policy holder gets higher coverage to 30 times the annual premium over a long term – thus it makes fiscal sense to remain invested in this plan for long.

(Featured image courtesy https://www.downtoearth.org.in/news/environment/education-health-help-the-most-in-wealth-creation-report-62394)

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Kharcha paani

Claiming car insurance? Read this first!

Driving your own car is a dream come true – but it all quickly becomes a nightmare if your car meets with an accident or is damaged due to another vehicle or an act of nature. After being upset initially, you console yourself that you can get the repairs done using your car insurance. After all, that’s what it’s for, right?

Wrong. We outline 3 situations where you should NOT claim car insurance for damage repair, and why:

#1 If the repair costs are lower than your deductible(s).

As a car insurance user, you are aware that there is a certain component of the claim that you must voluntarily and mandatorily pay. This component is known as the ‘deductible’ and it varies from policy to policy. It is also computed based on the age of the car, the package of benefits added to the policy, etc. So if the cost of the repair is lower than the deductible, the insurance provider will not pay any money towards your claim because your deductible covers all of it. Thus, you end up paying out of pocket and raise a claim that is not even paid back to you.

#2 If you want to accumulate a good NCB (No Claim Bonus).

Every car insurance policy has an NCB that accumulates for every year that you do not file a claim for insurance. So if the repairs needed are minor, it is better to not file a claim at all and contribute towards the NCB. Suppose there is a dent on the passenger door or the mirrors need replacement and will cost only about Rs 3,000, you can pay the money out of your pocket instead of raising a claim and getting a reduced NCB.

#3 If a third party is willing to pay for damages.

You might be the safest driver on the road, but other drivers’ skills and safety measures cannot be spoken for. Some other vehicle might bump into yours and cause significant damage. If the other car owner is willing to pay for the damages (he or she will mostly do so from their own car insurance), then why raise a claim against your own policy?

We hope this article was useful to you. Do tell us your thoughts in the comments. If you want to know more information about how to enhance your car insurance with the right add-on covers, we recommend this article.

(Featured image courtesy https://voi.id/en/economy/204347)

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Kharcha paani

Starting a home-based business? Read this first

It takes a lot of courage to become your own boss, especially if you have a salaried job that you wish to quit. Often, running your own business requires constant motivation and innovation, and the time you take to establish a steady revenue stream can be a taxing one. Little wonder that so many people give up on their dreams after a few months or a couple of years of starting the business. But if you want to start your passion project and see it through to a successful journey, this article is for you.

Your own venture will challenge you and make you want to give up several times. But taking the right steps before you launch is important. Here are some pointers to take on board:

* Build your business idea on solid research: Every second person has the Next Big Idea that can change the world – and if you do, too, then you need to bolster it with a lot of market research to ensure it doesn’t flounder and fail. Take the help of experts to get the right perspective on your idea, and/or hire a market research team to know if the chosen market is ready for your products and services. Don’t forget to test the product idea on a focus group to get honest feedback. Though this exercise might cost some money and time, it can give you invaluable insights about the direction your business can take, or not. If nothing else, it can give you the confidence to launch the business, or overhaul your initial strategy to ensure success.

* Create a business plan to show investors: A lot of people put in their own savings and investment corpus to fund their business. This is useful, but you should also consider venture capital if you want to start on a good footing. Before you approach private individuals or banks for seed money, create a professional business plan that outlines company goals and deliverables per quarter for at least two years. A detailed business plan with a targeted strategy and researched market projections is more likely to receive approval for funding than simply an idea presented passionately. Do not hedge or exaggerate your numbers.

* Invest in what the business needs: You’ve decided on the launch date. Now work backwards to gather resources like office space, staff, storage space for orders, office supplies, stationery, etc. Naturally, this is a costly affair and will require a bit of planning and a handy revenue source that can pay for whatever you need for at least six months. You could consider borrowing a low interest personal loan from a trusted loan app or your bank. (Read more on getting the personal loan in the last section of this article)

* Make every quarter count: Your business will need a constant look, and it helps to set clear marketing and sales goals from the get go. Sit with your teams to chart out goals for every quarter and discuss strategies to meet those goals.

Can you get a personal loan for business?

Whether you are a first-time entrepreneur or a serial startup founder, you can get a personal loan for business provided you have a healthy credit score. Personal loans are relatively simpler to get – you might even have a pre-approved one waiting for you at your bank – and you don’t need to give the lender a reason for borrowing the money, nor furnish any collateral for it. A few reputed loan apps and several banks and NBFCs offer highly flexible personal loans for business with minimal paperwork. But do crunch the numbers with your accountant to assess your overall need and have a clear repayment plan in place before you apply. Though personal loans are easy to get, they also have amongst the highest interest rates amongst all loans today.

(Featured image courtesy https://articles.bplans.com/14-resources-to-help-you-start-a-home-based-business/)

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Buy the right health insurance in 2023

Healthcare costs rise every year in India – as do infectious diseases and lifestyle disorders. Instead of shelling out money from your pocket to pay high hospital and medicine charges, you could have a good health plan backing you up. A good health insurance policy allows you access to quality treatment witout delay, and you don’t have to pay the high costs of surgery, hospital room rent, medicines, doctor fees, and so on.

Mulling over buying a new health policy this year? Read on.

What to consider

  • If you’ve selected the best policy: Always choose reputed health insurance companies (a quick Google search will show you the year’s Top 5). This is important whether you buy an individual plan or a family one. Reputed companies offer competitive premiums, easy buying processes and faster pay-outs when you raise a claim.
  • Choose the right coverage amount: The best plan is one that gives you and your loved ones sufficient coverage when a health emergency strikes. Here’s a rule of thumb when it comes to deciding the coverage amount: it must be at least 10 times your annual income at any point in time. The health insurance plan must allow you to revise the coverage to account for future inflation and/or changes in your family’s needs. If buying a high coverage plan results in a high premium that you cannot afford, then choose a coverage you can afford this year and invest in a super top up plan from the same insurance provider. The super top up offers additional coverage with affordable premiums.
  • Check the claims process and settlement ratio: The insurance provider must offer an easy settlement process – you will not have the time or inclination to jump through several hoops to get your claim settled while you battle a health emergency – and a high claim settlement ratio. A Google search will reveal the companies with the highest claims settlement ratio (this should be as close to 100% as possible). Also check if the company pays the coverage amount only after hospitalisation or immediately after an ailment is diagnosed.
  • The waiting period: Every health insurance plan in India has a waiting period during which no claim is paid. The waiting period comes right after policy purchase, and may range from one month to three months to even one year.
  • Hospitalisation cover limits: The health policy document will list if there are any limits on pre- and post-hospitalisation expenses, and what they are. Check carefully before buying health insurance this year.

(Picture courtesy https://navi.com/blog/wp-content/uploads/2021/12/best-health-insurance-plans.jpg)

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All You Need to Know About Two-Wheeler Insurance and What it Does

You cannot ride a two-wheeler without an insurance policy in India. Here’s looking at what the policy entails and covers.
By a staff writer | editor@themetrognome.in

If you own a bike in India, you cannot use it without having valid two wheeler insurance. And if you’re caught riding without two-wheeler insurance, you will attract substantial financial and legal penalties. As most Indians commute on busy and chaotic roads, the need to have bike insurance becomes all the more important.

As unfortunate road accidents are on the rise, many riders have been subjected to enormous financial obligations to the road accident victims, but luckily their insurance covered the expenses. Not investing in comprehensive two-wheeler insurance can prove to be a grave money mistake in the long run.

What is Two-Wheeler Insurance?

A two-wheeler insurance policy covers bike owners against potential financial losses due to accidents, natural calamities, and man-made disasters. It can also save you against financial claims made by a victim after a road accident.

Just like you plan and work on your financial health in advance to safeguard your senior years, you should also plan to protect your finances arising out of potential road accidents. If you are yet to get two-wheeler insurance for a bike, you’ll get to choose one between the two types of two-wheeler insurance discussed below:

  • Comprehensive Bike Insurance

Riders looking for complete protection should go ahead with this bike insurance. As the name suggests, comprehensive insurance offers full or comprehensive coverage to the vehicle.

Whether your two-wheeler met an accident, got stolen, was damaged due to man-made disasters like riots, or got damaged due to natural calamities, like flood or fire, your insurance provider will cover against financial losses arising from any of these instances.

Just like you invest in relationships to keep things going, you need comprehensive two-wheeler insurance to keep things going smoothly on the road.

  • Third-Party Insurance

Two-wheeler third-party insurance or limited liability insurance covers the insured against third-party liabilities developed due to a road accident. Even if your bike accidentally hit a person or damaged his vehicle, you can be sued for the damages caused.

If you have valid third-party insurance in place, you will be saved from huge financial strains, as the insurance company will pay off the expenses.

In the past, many people have been an eyewitness to road accidents, and things can take an ugly turn if the rider responsible for accident refuses to pay for the damages caused to the victim. If you want to keep your finances unaffected by third-party claims, go ahead with two-wheeler third-party insurance.

Benefits of Two-Wheeler Insurance

Whether you invest in comprehensive insurance or two-wheeler third-party insurance, both can save you from financial losses arising out of a potential road accident.

Though the two differ in terms of coverage, riders do get general benefits from both. If you don’t have two-wheeler insurance yet, you’re missing on the following benefits:

1 Cashless Repair at Network Garages

With so many known insurance providers in the market, it is not difficult to find bike insurance that offers cashless repair benefits at network garages. In case your two-wheeler got damaged due to accident, man-made disaster, or natural calamities; and it resulted in heavy repair expenses, you can get your vehicle repaired at zero or minimal out-of-pocket expenses (subject to exceptions) by taking your two-wheeler at a network garage.

2 Safety Against Third Party Obligations

Whether you’re living in one of India’s best cities or towns, the chances of road accidents cannot be overlooked. The road conditions at some places make you more vulnerable while riding, resulting in road accidents. If you end up damaging a person’s property or endangering his life, you will be liable to pay compensation for the same. Having insurance with maximum coverage can save you from such conditions.

3 Coverage for Own Damage

If you have to ride daily through narrow yet crowded lanes that make you prone to accidents, it is best to get yourself insured. Even if a minor accident can damage your vehicle and you may be subjected to physical damage too. Having insurance with the right coverage will pay for your bike repair expenses and your medical bills, saving you from significant out-of-pocket expenses which you wouldn’t be prepared for.

When you’re getting peace of mind and a worry-free riding experience against some premium, it is the best deal anyone can ask for.

(Featured image courtesy https://indiacsr.in/what-should-you-check-in-your-two-wheeler-insurance-policy/)

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