Page 35 - Insurance Times December 2022

The Motor

Salvage

Dr. K. Raja Gopal Reddy
Codicil Ph.D, FIII, FCII, FLMI, Chartered Insurance

Practitioner, Principal Officer
Topspot Insurance Broking Private Ltd.
(commercially known as 'insurancepe')

Let us say the vehicle's engine, body, chassis are badly We can only request the insurers to introspect. If the insurer
damaged & beyond repair. Example: A vehicle which was / the insured does not follow the regulation prescribed in
totally burnt. What do you think an insurance company is the Motor Vehicles Act, 1988, then the damaged vehicle
expected to do besides paying the insured's claim? Do they may even be misused, for example, for terrorist activities.
have any other responsibility other than settling the claim? Here, we present to you a chart which will clarify this
position.
Or shall we ask - What are the duties of the insured and the
insurer after an accident and settlement of a claim as per
the Motor Vehicles Act, 1988? Continued in next page

Tax benefits may not always apply to your health policies

Health insurance policies have become the need of the hour, especially in view of the rise in lifestyle diseases. These
policies, which help meet any planned or unforeseen expenditure on hospitalization and medicines, have tax benefits as
well. As per section 80D of the income tax (I-T) act, you can avail deductions on payments of up to Rs. 50,000 for premium
on policies for senior citizens and Rs. 25,000 for others in your family in a year. Yet, there are some scenarios where you
can still lose the tax deduction benefits even after following all the I-T rules.

No cash payments: Policyholders can claim a tax deduction on their health insurance policies only if they pay premiums
through a mode other than cash. "When buying a policy, you should pay the premium either by cheque, or funds transferred
via NEFT, IMPS or UPI. You need to use a banking route, whether offline or online, to be eligible to receive tax benefits,"
said Anup Bansal, chief business officer of Scripbox. Policy buyers should only make premium payments through online
transfer or cheque payments or other such modes while buying or renewing their health policies.
No proof, no benefit: Employees of most organizations have to submit an investment declaration form at the start of
the financial year, usually in January and February. They must fill in their investments and insurance premium details in
that form. "You need to send investment proofs to your employer via mail or upload them on the employer's HRMS portal
when claiming health insurance tax benefits during the financial year. If you fail to submit or upload such proof, you will
lose tax benefits on your policy," said Venkatesh Naidu, CEO of Bajaj Capital Insurance Broking Ltd. Nevertheless, if you
miss out on submitting the proofs, you can still claim a refund when you file an income tax return. However, you need to
keep premium payment slips in your records as evidence of policy purchased during the previous financial year.

The Insurance Times December 2022 31