FLAME Newsletter - April 02, 2014


First and foremost products need to be simple. Customers need to be able to easily fathom what they are ‘giving’ and what they are ‘getting’ — Yateesh Srivastava, COO, Aegon Religare Life Insurance


How to choose an appropriate car insurance plan

Car insurance indemnifies owners against any loss arising out of an unforeseen accident or event. With numerous car insurance policies available, how do you go about choosing the most appropriate one? Here is what you need to consider before making a choice.

According to the law of the land, every motor vehicle owner should at least buy a third-party cover to compensate a third person for damages or losses incurred. Driving without insurance is a punishable offence under the Motor Vehicles Act. In short, vehicle owners have no choice but to comply. A comprehensive insurance cover offers third-party protection as well as an insurance cover against any damage, loss or theft. Opting for a comprehensive policy, which would cover small collisions, major scratches or bumper hits, is recommended.

When choosing an appropriate car insurance policy, the most important aspects that would help you narrow down your choice are as follows... Read more

Why take a personal accident policy if you have a term cover?

Acting wisely, Mr. X has been planning his finances ever since he started earning. On the recommendation of his financial advisor, he took a term life insurance policy to secure his dependent wife and children against financial adversity in the event of his demise. He also took indemnity health insurance plans for each family member for protection against medical exigencies. Unfortunately, Mr. X meets with an accident leading to severe fractures which incapacitate him for a year. Whilst the health insurance suffices for a part of the hospitalization expense, Mr. X is forced to dig into his savings to meet the remaining treatment expenses. More importantly, with the only bread-earner unable to work for a year, the family faces severe difficulty in making ends meet.

What could Mr. X have done to avoid this dismal situation? An answer to this would be personal accident insurance. While term insurance provides for the family in case of death of the insured, it does not take into account the financial needs of the family if the insured is disabled, temporarily or permanently, thereby affecting the earning capacity. Thus, a personal accident policy can fill an important gap in one's insurance portfolio, helping the insured's family to continue leading a normal life despite the loss of income... Read more


What is Marginal Standing Facility?

Marginal Standing Facility (MSF) rate refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities. MSF is a very short term borrowing scheme for scheduled commercial banks. Banks may borrow funds through MSF during severe cash shortage or acute shortage of liquidity. Banks often face liquidity shortfalls due to mismatch in their deposit and loan portfolios. These are usually very short term and banks can borrow from RBI for one day period by offering dated government securities... Read more


What is an insurance repository?

An insurance repository provides the ease of holding insurance policies issued in an electronic form. It maintains data of insurance policies in electronic form on behalf of insurers. Insurance repositories cannot sell insurance policies. They are authorised only to maintain the policies in electronic form and provide a service record of all insurance policies. The insurance repositories will also act as a single point of service for all e-policies held by a policyholder... Read more


RBI Monetary Policy: Rates kept on hold

RBI proposes no minimum balance penalty

RBI mulls design changes to inflation index bond

SEBI disclosure norms for mutual funds effective from 1 April


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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