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Thursday, April 30, 2015

Food Krafters & Services LLP (FKS) acquires Hyderabad House Brand

FKS plans to invest Rs. 35 Crores in next 2 years to set up 50 outlets across different locations

 Food Krafters & Services LLP (FKS) a company promoted by Mr Khalil Ahmed has acquired Hyderabad House (HH), the pioneering Brand which provided & popularized the iconic Hyderabadi Kacche Ghost ki Biryani & other Deccan delicacies, to the food connoisseurs through its multiple outlets across the world.

With an objective to add more vibrancy and visibility, FKS intends to rebrand Hyderabad House in an all new design, with a view of providing traditional culinary experience to its patrons in a semi QSR format.

FKS will also bring on board a fresh team of expert Professional Chefs and Traditional Master Chefs with rich and varied experience to prepare and offer the best food experience to its customers.

FKS also plans to further strengthen Hyderabad House’s catering business by offering on-site services for weddings, corporate events, conferences and other private banquets, and offering more than 1000 new and expanded items on the menu in addition to the Distinctive “Mehmaan Nawaazi” service.

Announcing the deal Mr Khalil Ahmed, Managing Director- Food Krafters & Services LLP said “The deal would serve Food Krafters establish a firm foothold in the food retail industry. Hyderabad House fits well in our scheme of things and we intend to grow and expand using this brand name. Our objective is to do business whilecelebrating our traditional Indian culture, and we want everyone to get a taste of it. With every dish we serve, we strive to bring our heritage to life.”

The company will open a flagship outlet in Hyderabad and plans to expand across the country investing 35 crores in next 2 years to set up 50 outlets through a combination of company owned and franchisee route. A central commissary will be set at each regional hub which will cater to the outlets in that territory.

Maharashtra: A Giant Among India's Real Estate Markets

A Giant Among 
India's Real
 Estate Markets..!

by Mr. Kishor Pate, 
CMD - 
Amit Enterprises Housing Ltd

Real estate is one of the key drivers of Maharashtra's economy. It creates jobs at a number of levels, from construction labour to architects, engineers and town planners. At the same time, it also fulfills the fundamental need of providing housing as well as workplace spaces to the common man. Like every other state, Maharashtra has its key hotspots for economic activity and therefore real estate development. These cities and towns each has their own individualistic demand patterns, and developers operating in them have to chart this demand pattern and cater to it accordingly.
At any given point in time, some Maharashtrian cities and locations within these cities definitely provide higher value to real estate investors than others. This is because the rate of job creation, infrastructure deployment and housing demand are higher in those markets than in others. As job creation and infrastructure deployment spread gradually to other areas via the 'fallout effect', these locations pick up in terms of viability for real estate investment as well. 
At AEHL, our primary focus is currently on Pune because of the excellent economic attributes of this city. However, we have also launched operations in Nasik because this city is fast becoming a very serious contender both in terms of economic activity and real estate demand.  
Kishor Pate,
Amit Enterprises Housing Ltd
In Maharashtra, Pune, Mumbai, Nasik and Nagpur are currently the most promising cities. However, with the new Chief Minister showing an unerring focus on developing the state as a whole, we see a very uniform pattern of growth emerging in the future. Over the next few years, we will see the arrival of other growth nodes within Maharashtra. 
Residential real estate will continue to rule the roost, and budget housing as well as mid-income housing will be the most important categories driving real estate growth. At the same time, commercial real estate projects that open up employment opportunities will always work in tandem with residential real estate to unfold the state's fullest development and growth potential.

Celebrating Maharashtra's Unique Development Potential

Celebrating Maharashtra's 
Unique Development Potential

by Mr. Arvind Jain, 
Managing Director - 
Pride Group

Maharashtra and development are more or less synonymous concepts. This is a state that works very hard, and on a multitude of levels. Almost every manner of work happening in Maharashtra is either directly or directly or indirectly tied into real estate development. Be it IT/ITeS, manufacturing or the services industry, the demand for housing and commercial spaces is a given.
In Maharashtra, developers are constantly engaged in meeting the demand for housing at every budget level, from the LIG to the HNI segments, and they have been rather successful at plumbing the nature and direction of demand. Home ownership in Maharashtra is not just about stability and security - the desire to own a home is an inalienable part of the Mahashtrian psyche.
As Maharashtra is a work-oriented state, the most apt and successful residential projects are geared towards providing housing for the working class. Be it white collar or blue collar, every working Maharashtrian wants to own a home. This is where the highest growth will be; in fact, any development plan that does not factor in the needs and aspirations of Maharashtra's working class will fall short.
For Maharashtrians, the first and foremost real estate investment is always the family's primary home, which should offer reasonable accessibility to one's place of employment. Given that residential property close to workplace hubs tends to appreciate the fastest in any case, the primary home is also the most important real estate investment one tends to make.
After the first home is secured, it makes perfect sense to scan one's city for the more promising of emerging locations wherein to invest into a property for the purpose of rental income generation. The higher the rental income potential of a property is, the faster will be its capital appreciation as well.
Arvind Jain,
 Managing Director -
 Pride Group
In Maharashtra, Mumbai and Pune continue to be the fastest revving real estate dynamos. Though a lot has been said about overpricing, oversupply and market stagnation in Mumbai, the fact is that it is the country's financial capital. It remains unmatched in terms of its ability to draw people from all over the country who seek to make their living and hopefully fortune there.
However, this is a city with very finite geographical borders and land is scarce, which makes any kind of real estate very expensive. Areas like Navi Mumbai and Thane are currently the new havens for growth because of their more realistic pricing. However, one cannot write off Mumbai as yet. It will take a large-scale market correction to bring it back into the running, but it is still a very important market in Maharashtra. Meanwhile, most investors are now rightfully betting on Pune.

This city has held its own even during the worst of real estate market slowdowns, and continues to grow on all fronts. Its growth is driven by a number of sectors, including information technology, automobile industries and other manufacturing, healthcare as well as a thriving services sector.
 Pune is seeing a massive inward migration of talent, even as its high-class educational institutes continue to churn out highly qualified manpower every year. As a result, demand for residential and commercial real estate is very high in Pune, making it the ideal real estate investment destination.

ApartmentADDA ventures into new business vertical ‘ADDAAccounting Service’

ApartmentADDA, India’s leading online housing society management portal for apartments and MDUs announced its entry into new business vertical with the launch of its news service “ApartmentADDAAccounting Service Partner Network (AASPN)”. The new service from ADDA stable will cater to all CAs and Accounting professionals who manage housing society accounts by simplify the processes involved.

This fully automated online tool allow the accounting professionals to manage their society accounting completely online leading to fast and hassle-free account management of housing societies. This way the precision of the accounts is ensured and the valuable time of the people involved also saved. This service is available to all at a special price designed exclusively for AASPN.

Speaking on the occasion San Banerjee, CEO, said, “Online accounting system is now a necessity, not a luxury. Our new service allows the accounting professionals at different levels to partner with us and do all housing society related accounting in a simplified manner. With this service one can do complete accounting online - generate invoices, pay through payment gateways, track defaulters, track expenses and finally draw financial statements for auditing. More than 350 societies in India are already doing accounting on ADDA

“We work closely with the accounting professionals with our best in class support team form Mumbai and Bangalore. Transactions can also be entered manually and uploaded through MS Excel. The data is stored on international data center in a secured manner. And at the year-end it offers report generation support via user friendly tools”, she adds.


     Completely online accounts – Access anytime anywhere

     100% automated invoices including Late Payment interest and Service tax

     Bulk email and SMS to members – Invoices, Receipts and Reminders

     Complete integration of online collections – no manual entry required

     Readymade online reports for MC – leading to lower effort by Accountant

     Automated ad-hoc invoice in addition to regular Invoices – e.g. facility booking
     Automated entries for year-end closing       

     Best in class support team based at Mumbai and Bangalore

     Data hosted on International Data Centre with SSL security

Why Should Avoid New Versions of 80:20 Real Estate Schemes?

 In case of project delays, the entire equated monthly instalment (EMI) burden might fall on property buyers' shoulders

Gold coins & Jewellery were not the only things aggressively marketed this April 21, 2015 Akshaya Tritiya.

Indian Real estate developers / promoters were also pushing new variants of the once-frowned-upon 80:20 or / 75:25 schemes to lure property buyers.

Some of the schemes include variants such as 10:80:10, 2:92:6, 6:88:6 & even 10:10:70:10.
Many experts suggest such schemes are nothing but 80:20 or / 75:25 schemes - scrapped by the Reserve Bank of India (RBI) in 2013 - in a new avatar.

Under such schemes, property buyers can purchase properties with financing from a bank or housing finance company (HFC).

A small upfront amount is paid by the property buyer to the developer / promoter. The developer/ promoter / builder, then, pays the EMI for a specified period of, say, 2 or 3 years, or till the buyer gets possession of the property.

This works under a tripartite agreement between the buyer, the developer & the bank/ HFC.
For example, under the 5:80:15 scheme, a popular scheme being pushed these days, buyers will pay 5% of the flat cost at the time of booking and additional government charges like value added tax (VAT), service tax, and stamp duty. The developer will pay the EMIs to the bank until the time of fit-out or possession. The buyer then needs to pay the remaining 15% at the time of possession.

These schemes are used by developers to manage their cash flow. Developers / promoters get a funding at about 10% to 11% instead of the 18%-20% they would otherwise have had to shell out.

Mr. Ashutosh Limaye, Head (Research) JLL India said, "These schemes are a good means to attract buyers in a depressed market. Buyers benefit as the upfront payment is small and they can save on interest cost for one-and-a-half to two years"

Mr. Mudassir Zaidi, National Director (Residential Agency), Knight Frank said,"Such schemes can be good if the project is 2-3 years away from completion & all the necessary approvals are in place," said

However, the irony is that such schemes are typically available only for projects that are just launched or in the early stages of construction.

Property Buyers might need to be aware of gimmicks & additional costs associated with such schemes.

For example, an advertisement of a township in Palghar, a town close to Mumbai, says ready-possession flats are available for Rs. 18.11 lakh including stamp duty, registration, VAT & service tax.

Customers just need to pay 10% down payment and would get 90% in home loan. The marketing executive, however, reveals the housing loan will be on agreement value, which will be Rs. 14.5 lakh. The buyer needs to pay the remaining money of about Rs. 3.6 lakh partly in cash & cheque.

Another advertisement for properties in Pune and Goa markets a 10:70:10:10 scheme. The sales staff says the payment will be in 4 tranches.

A property buyer will need to pay 10% upfront to book the house, while the Bank or HFC will release 70% in loans. The customer will be charged EMI on this amount. While taking the keys, the customer will need to pay an additional 10% & the lender will release the remaining 10% to the developer/ promoter. The customer's EMI will go up in the same proportion.

Developers / promoters have a tendency to jack up prices of properties where such schemes are applicable to cover their cost of paying interest. So, if the property is available at, say, Rs. 4,700 a sq ft, the developer may sell the flat at Rs. 4,900 per square feet under this scheme.

"Property Buyers need to check the rates for the flat if they do not opt for the scheme & compare it with those when the schemes come into play. In all likelihood, the rates are likely to be different as the developers will try to recover the interest payment from these higher rates," says Mr. Limaye.

These projects are prone to accelerated disbursements. There may be cases where only 50% of the construction is complete but 80% of the disbursement has taken place through banks/ HFCs, according to industry observers.

Mr. Divakar Vijayasarthy, Co-founder, MeetUrPro said, "If the borrower or customer wants to exit at this stage, he will have to find a buyer who is ready to pay 80% upfront for a 50% completed property. Also, all the transfer charges will be on the completed value of the property,"
For example, if someone had purchased a property at Rs. 5,000 a square feet with a 3 per cent exit fee and he exits the project when it is 50% complete, he ends up paying an exit fee of Rs. 150 a square feet (3% of Rs. 5,000) on an investment of Rs. 2,500 or 50% of the total cost, amounting to an effective exit fee of 6%.

If the developers / promoters / builder delay, the entire burden of the home loan falls on the shoulders of the property buyer who is yet to have the home.

In case of default, there could be further complications. "The developer / promoter may be bearing the interest burden, but the housing loan is taken in the name of the buyer.

If the developer defaults, any delay or / default will appear in the credit report of the property buyer for no fault of his. The property buyer will also be forced to pay interest once the specified period expires even though the property is still under construction," says Mr. Vijayasarthy.

Since these schemes are applicable for under-construction projects, buyers will not be able to take the Income tax benefit immediately. The deduction for the interest paid up to Rs. 2 lakh for a self-occupied property during the pre-construction period can be claimed in 5 equal instalments commencing from the financial year in which the construction of the property has been completed.

However, if the property is not constructed within 3 years from the end of the financial year in which the home loan was taken, the interest benefit would be reduced from Rs. 2 lakh to Rs. 30,000.

According to Mr. Harsh Roongta, Director, Apna Paisa, the original 80:20 schemes had no housing loan component.

"In the original 80:20 scheme, buyers had to pay 20% upfront and the rest on possession. The scheme was later tweaked to bring in the housing component. Property buyers should not opt for schemes if the loans are involved or / where they come under any sort of liability," says Mr. Roongta.


  1. Variants of 80:20 schemes work under a tripartite agreement between buyers, developers & banks
  2. Schemes can be in property buyers' interest if the project is 2 to 3 years away from completion
  3. Developers / promoters may raise prices of properties under such schemes to cover cost of paying interest
  4. If the developer / promoter / builder defaults, any default will appear in the property buyer's CIBIL report
  5. Developers get a funding at 10% to 11% instead of 18% to20% they would otherwise have to pay
  6. No immediate income tax benefit for property buyers since these are mostly under-construction projects.

Src; Ashley Coutinho & Tinesh Bhasin, BS

Ten Things to Watch out for in Goods & Services Tax Bill..!

10 Things to Watch out for in Goods & Services Tax Bill..!

by Mr. Pritam Mahure, Chartered Accountant

The Constitution does not provide for a parallel levy of indirect taxes by the Centre & states, a pre-requisite for the roll-out of goods & services tax (GST) in India.

The central government introduced in Parliament last week the 122nd Constitution amendment Bill to address this. Some key highlights of the Bill are..

(1.) Enables introduction of GST..!

The Bill replaces the lapsed 115th Constitution amendment Bill, introduced by the United Progressive Alliance (UPA) government in March 2011.

This enables the Centre government & state governments, including Union territories, to introduce the law for levying GST on supply of goods and services. Under the GST regime, there will be one Central GST law and one state GST law each for the states.

(2.) 'GST' defined..!

The term 'GST' is defined in Article 366 (12A) to mean "any tax on supply of goods or / services or / both except taxes on supply of the alcoholic liquor for human consumption".

Thus, all supply of goods or services will attract Central GST (CGST) and state GST (SGST), unless kept out of purview of GST.

In effect, works contracts will also attract GST. As GST will be applicable on 'supply', the erstwhile taxable events such as 'manufacture', 'sale', 'provision of services', etc., will lose their relevance.

As the term 'supply' is not defined or / elaborated or / qualified such as, supply for a consideration etc, it needs to be seen whether even free supply will attract GST.

(3). 'Service' defined..!

The 115th Constitution amendment Bill did not provide for a definition of the term 'service'.

The latest Bill specifically provides that "services mean anything other than goods".
This broad definition of the term will altogether remove the disputes on the aspect whether something is goods or services (unless the government proposes different rates for GST on goods or services or both).

(4.) Integrated GST..!

At present, inter-state supply of goods attract Central Sales Tax. The Bill provides that an inter-state supply of goods or service will attract IGST (i.e. CGST plus SGST).

IGST will be levied and collected by the Centre, and the proceeds will be shared among the Centre govt. and the state govts.

(5.) Inter-state sale of goods to attract additional tax...!

The Bill provides that an additional tax up to 1% will be levied by the Centre on inter-state supply of goods (and not on services).

This additional tax, applicable for a period of 2 years, will be assigned to states from where the supply of goods originates.

The GST Council could further extend the period beyond 2 years.
 However, the Bill is silent on whether credit of this additional levy will be available, or / will it be a cost in the supply chain.

In case of latter, it could have a tax cascading effect on the supply chain.

(6.) Import of goods or services...!

At present, import of goods attracts basic customs duty (BCD), additional customs duty (ACD), and special additional customs duty (SAD), while import of a service attracts service tax (or / research and development cess in few instances).

The Bill provides that the import of goods or services will be deemed as supply of goods or services or both, in the course of inter-state trade or commerce and thus it will attract IGST (CGST plus SGST). Thus, import of goods will attract BCD and IGST, while import of services will attract IGST.

(7.) Alcohol for human consumption...!

It appears that alcohol for human consumption will be kept outside the GST regime.
Exclusion of the alcohol sector could mean that companies manufacturing alcohol may not be in a position to avail credit of GST paid by them on their procurements.

(8). Petroleum products & Tobacco...!

Petroleum products and tobacco will continue to attract excise duty. However, the Bill specifically provides that petroleum products might not attract GST.

However, at a later stage the GST Council might decide to levy GST on petroleum products.

(9.) Role of GST Council...!

The Bill is silent on some key aspects of GST like..

* What the model GST law would look like?

* Which taxes, cesses, surcharges would be subsumed in GST?

* Which goods and services are subject to, or exempt from GST?

* What will be the rate of GST, including the floor rates?

*  What will be the threshold limit of GST?

The 115th Constitution amendment Bill provided for a Dispute Settlement Authority to settle disputes between states or between states and the Centre with regard to GST.
However, under the latest Bill, the GST Council has been given the authority to determine the modalities to resolve disputes arising out of its recommendations. The GST Council will consist of the Union finance minister, minister of state and state finance ministers.

(10.) Compensation to states...!

The Bill did not provide for compensation to states. This Bill specifically provides that Parliament by law, on recommendation of GST Council, provide for compensation to states for loss of revenue arising out of implementation of GST up to 5 years.

By providing for compensation in the Constitution itself, the Centre seems to have addressed the concerns raised by the states regarding fear of loss of revenue.

The way forward...

After passage through both Houses of Parliament, to become a law, the Bill will have to be approved by more than half of the states.

A lot of mis-selling takes place in home insurance policies...!

Structural Insurance cover for a home comes in 3 ways.

First is based on the reinstatement value where the insurer gives the construction cost of the house excluding the value of the land.

Second is based on the agreed value of the property and includes the value of the land and the construction cost.

Third is based on the indemnity value, which takes into consideration the cost of construction and the depreciated value according to the age of the building.
It is important to understand the inclusions & the exclusions.

 Mr. Rohit Shah, Founder and Chief executive officer, Getting You Rich, a financial advisory company said, “A lot of mis-selling takes place in home insurance policies. People are fooled into believing that they will get a cover of a crore or 2 if they buy an expensive policy. Often, the structure cover formula, which is based on the area of the house and the approximate construction cost in the city, is not explained properly,”

Let’s take an example.

Suppose an individual wants to insure his / her 10-year old house with an area of 1,000 square feet. The cost of the house, based on parametres such as as locality, is Rs.5,000 per square feet or Rs.50 lakh. Its cost of construction is Rs.2,000 per square feet or Rs.20 lakh.

If the home insurance policy is bought on reinstatement basis, the sum insured will be the area of the house multiplied by the construction cost per square feet (1,000 x 2,000) = Rs.20 lakh.

If home insurance is bought for the same house on agreed value basis, the sum insured will be the area of the house multiplied by the cost per square feet (1,000 x 5,000) = Rs.50 lakh.

On the basis of market value or indemnity, the sum insured will be the total cost of construction minus depreciation (Rs.20 lakh minus Rs.5 lakh considering depreciation of 25%), which makes it Rs.15 lakh.

While the market value or the reinstatement value are common ways to decide cover, the agreed value formula is not frequently used.

Bajaj Allianz General Insurance Co. Ltd is one insurer that gives home insurance on agreed value basis.

“The sum insured in this is the area of the house multiplied by ready reckoner cost. This cost is declared by local authorities and the insured can also engage a government approved valuer to value the house. The cost would depend on several factors such as the locality, city and quality of construction,” said Mr.Sasikumar Adidamu, Chief Technical Officer, Bajaj Allianz.

Src: Mint

Two Rate Cuts by RBI in 2015: No Rate Reduction by 70 Banks

No rate reduction by about 70 banks despite 2 rate cuts by RBI..!

Earlier this April month, RBI Governor Mr. Raghuram Rajan was very critical of Indian banks for not passing on the rate cut benefits to the borrowers.
As many as about 70 banks, including 23 public sector lenders, have not passed on the benefits to their consumers from RBI’s 2 rate cuts so far in 2015.

Reserve Bank of India (RBI) cut the repo rate by 0.25% on 2015 January 15 & further by 0.25% on March 4, 2015

Out of 91 scheduled commercial banks in India, a total of 21 banks have lowered their base rates after RBI’s rate cut decisions, Minister of State for Finance Mr. Jayant Sinha said. These include 4 public sector banks, 6 from the private sector and 11 foreign banks.

The reduction in base rates has been in the range of 0.1% to 0.5% so far. This leaves as many as 70 banks that have not lowered their rates, despite RBI easing its monetary stance twice.

“Following the reduction in the policy rate, out of 91 scheduled commercial banks, 21 banks reduced their base rates in the range of 0.1% to 0.5% so far (up to April 15, 2105),” said Mr. Sinha, in a written reply to a Rajya Sabha question.

Accordingly, he said, the weighted average lending rates on fresh rupee loans sanctioned by banks for home loan and vehicle loans have also come down in the range of 8.53 basis points during the same period.

There are 27 public sector banks, 20 private sector and 44 foreign banks with scheduled commercial bank license in India.

PSU banks have 70% market share. In RBI’s last monetary policy meeting earlier this April month, Governor Mr. Raghuram Rajan was very critical of banks for not passing on the rate cut benefits to the borrowers.

A recent study paper from the International Monetary Fund (IMF) also pointed out that banks in India resist passing on RBI’s rate cuts to consumers, although they are rather quicker in responding to rate hikes by the central bank RBI. It takes 13 months on an average for pass-through from a change in the RBI’s policy rate to the interbank rate.

Thereafter, it takes over nine months for change in deposit rates for customers & a much longer period of nearly 19 months in case of lending rates, the study found.

Wednesday, April 29, 2015

Bajaj Allianz Life eases claim settlement norms for the earthquake affected


Initiatives for faster claim settlement norms; a special team to handle these cases on priority

Bajaj Allianz Life Insurance has simplified its claim settlement norms for the victims of the devastating earthquake in Nepal and northern and eastern parts of India.

In the massive earthquake in Nepal, Indian states of Uttar Pradesh, Bihar, West Bengal, Assam, Sikkim, Delhi, NCR, Uttarakhand, Rajasthan and Jharkhand many lost their near and dear ones and some are still missing.  

Considering the situation, Bajaj Allianz Life Insurance has reduced the documentation for claim applications for the earthquake victims. While the requirement for documents has been already minimized, procedure for investigation conducted by the insurer may be waived off if prima-facie documents establish the life assured’s death is due to earthquake.

The Company has announced that it would make the best efforts to settle a majority of the claims coming out of this natural disaster within 72 hours.

Wherever death certificate issued by Registrar of Births & Deaths is not available, the insurer will accept the certified list (Government Gazette copy) having name of life assured issued by either of Government Hospitals or Police or Government authorities of Nepal and States of India or Armed forces involved in rescue operations. Besides, the minimum documentation required for claim include KYC of nominee (ID proof & Address Proof) along with bank details for enabling NEFT and photograph of the deceased or missing life assured.

Other rider benefits (except Accidental Death Benefit) shall be processed on the basis of hospital records of treatment post disaster for accidental disability and other rider benefits.  Accidental Death Benefit shall be considered along with claim for Death Benefit.

 In case of missing persons, presumption of death shall be on the basis of the list provided, as and when, by the Government of Nepal/ Government of India or the respective state governments on missing persons and the requirement of 7 years waiting period shall not be insisted upon.

Bajaj Allianz Life Insurance claims team has also set up a dedicated team to assist the earthquake affected people in faster claim settlement. The helpline numbers email IDs include Rebecca Nunes 02066089926;, Mallikarjuna A 020-66286489;, Nirmala B 020-66089929;

About Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance is a joint venture between Allianz SE, the world’s leading insurer, and Bajaj Finserv Limited. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world. Bajaj Allianz Life Insurance is one of the leading private life insurance companies in India. The Company has developed insurance solutions that cater to every segment and age-income profiles. Currently, Bajaj Allianz Life Insurance has a strong product portfolio with adequate flexible products to cater to all kinds of customer needs from ULIPs to Child plans, from group insurance to health insurance. The Company began its operations in 2001 and today has a pan-India presence with 759 branches in India. Bajaj Allianz Life Insurance has been constantly expanding its operations to be close to their customers.

For further details:

Bajaj AllianzRanjan Dutt: +91 9673933355        
Ayan Pramanik: +91 9730240099 
Adfactors PRSnigdha Nair: +91 9920481191
Veena Krishnan: +91 9930309052

Veena Krishnan
Senior Account Executive, Financial Services

M: +91 99303 09052
T: +91 22 67574444  Ext : 301

Home insurance: Five Details to Note..!

Home insurance: Five Details to Note..!

Take care of a few things while buying home insurance so that the policy can be effective.

1. Time period..!

 Home insurance can be bought for a minimum of one year to a maximum of 5 years.
Do remember to renew.

2. Suitability..!

 A bank may encourage you to buy its home insurance product along with the home loan.
Choose only a policy that suits your needs.

3. Apartments..!

While an individual apartment may be covered, this would not help if the rest of the building is not.

“In the event of a loss, if the property is insured on an agreed value basis, the insured gets back the agreed value & the ownership of your house is transferred to the insurer. 

This helps because if your house is in a multistorey building you will need to wait for others to reconstruct their house first. But if you are insured, you simply take the agreed value and you can buy a house elsewhere,” said Mr.Sasikumar Adidamu, Chief Technical Officer, Bajaj Allianz.

4. Fine print...!

Home insurance policies are worded differently.

For example, structure insurance may only be for building and not land, or only jewellery kept in the locker may be covered.

5. Tenants...!

If you are living in a rented house, you can insure only the contents and not the structure as you do not own it.

These are only some of the specifications.

As with any kind of insurance policy, with a home insurance policy, too, the best results come through when the initial details are taken care of.

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