FLAME Newsletter - February 26, 2014


QUOTE OF THE WEEK:

“In our country, rich wants everything free and it is the poor who pays for it. Poor borrows at 40% but a rich borrows at 2%” - Dr KC Chakrabarty, RBI Deputy Governor

Your Finance Demystified:

Basic things to know about insurance repositories

Till now insurance policies were in paper form, whether we submit our proposal application in physical form or through online mode. The Insurance Regulatory and Development Authority (IRDA) launched the insurance repository system on 16 September 2013 to provide better services to policyholders and enhance insurance penetration.

Now, our insurance policies including the existing ones can be converted in an electronic form and held with an ‘insurance repository’. E-policies will eliminate paper and associated risks of storage and loss and provide convenience and safety to the customer.

At present, only life insurance policies and pension plans are being allowed to be held in e-insurance accounts. However, the facility will eventually be extended to health, car, home and other types of general insurance... Read more

7 ridiculous insurance myths debunked

Don’t let these insurance myths, keep you from achieving your financial goals. Planning for contingencies like death and hospitalisation forms an important part of financial planning. Buying a life insurance cover provides money to the dependents of the bread earner on his or her death.

However, there are a number of myths associated with life insurance that should be debunked first to ensure that one buys adequate life cover to protect the family.

Life insurance is bought to protect ourselves from the contingency of untimely death. It would take care of the living expenses of your family if you die young.

Life insurance is an investment that is more of a safety mechanism; it is to provide financial security to the dependants. Term policies that cover the risk of untimely death are cheap and most ideal for providing life coverage... Read more

DID YOU KNOW?

How to calculate value of a right

A rights offering is when a company issues to its existing shareholders a right to buy additional shares in the company. The company offers its shareholder a specific number of shares at a special price.

The company will also set a time limit for the shareholder to buy these shares. The shares are often offered at a discounted price to the existing shareholders... Read more

TERM OF THE WEEK

Electronic Commerce-ecommerce

A type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business.

IN THE NEWS THIS WEEK

We need a financial sector which is first rate: Rajan

Jalan panel submits report on bank licence to RBI: reports

RBI, bank branches to accept advance income tax

IRDA introduces e-insurance in insurance sector

ABOUT FLAME

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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