Jago Grahak Jago

August 2024

Diabetes is lifestyle disease, so insurance claim can’t be rejected

July 31,2024 DEHRADUN: The state consumer commission ruled against Oriental Insurance Co Ltd (OICL) for rejecting a mediclaim on the grounds of concealing pre-existing conditions of diabetes mellitus (DM) and coronary artery disease. The commission found credence in the complainant’s assertion that in an analogous case, the national consumer commission has adjudicated that “diabetes is a lifestyle-related ailment and is so pervasive in India that the entire insurance claim cannot be denied on this basis.” The order was issued on Monday and made public on Wednesday. Anshul Garg, a resident of US Nagar, had purchased a mediclaim policy of Rs 2 lakh for himself and his parents in 2013. In July 2014, his father underwent cardiac surgery, which cost around Rs 5 lakh. Garg submitted the necessary documents to OICL for reimbursement but his claim was denied, forcing him to approach the consumer court. In March 2018, the district consumer commission ruled in favour of Garg, directing OICL to pay a compensation of Rs 2 lakh, along with 7% interest from the date of filing the case and Rs 15,000 for mental anguish and litigation expenses. OICL then challenged the order in the state commission. After reviewing the documents, the state commission concluded that OICL did not provide any credible evidence to support their claim that there was concealment of pre-existing illness while filling up the proposal form. The commission stated that OICL failed to establish that the father of the respondent had been suffering from DM for the last 15 years and as per the doctor’s report, the pre-existing disease was the primary cause of coronary artery blockage. “Thus, we are of the considered opinion that the district commission has perfectly and legally passed the judgment,” the division bench comprising president Kumkum Rani and member BS Manral said and directed OICL to pay Rs 2 lakh with 7% interest from April 2014 and Rs 5,000 as litigation costs to the complainant. Source: TOI

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The tax tweaks that you need to be aware of if you’re planning to study or travel abroad

July 24,2024 Budget 2024 has proposed a significant change in tax regulations, allowing individuals to benefit from a reduced Tax Deducted at Source (TDS) on their salaries. This adjustment is particularly relevant for those who have paid Tax Collected at Source (TCS) on foreign remittances, foreign travel among other expenses. Under the new provisions, employees can now inform their employers about any TCS payments they have made. This information will enable employers to factor in these payments when calculating the TDS on employees’ salaries. The move is designed to lower the TDS deduction, thereby easing the financial burden on individuals and simplifying the process of reclaiming any overpaid taxes. The TCS on international remittances under the Liberalised Remittance Scheme (LRS) was raised to 20% from 5% in budget 2023, with several exceptions. Under the Liberalised Remittance Scheme, individuals can remit up to $250,000 annually without seeking prior approval from the Reserve Bank of India. This scheme facilitates a range of overseas expenses, including education, travel, and medical treatments. However, the introduction of TCS on these remittances requires taxpayers to account for additional cash outflows, which can impact one’s finances significantly. The TCS requirement adds a financial burden at the time of remittance. Like the tax deducted at source (TDS), TCS can be adjusted against an individual’s income tax liability. According to the Budget 2024 proposals, credit for TCS will now be available against TDS deducted by the employer on salary income, which can help ease cash flow for employees. Should the TCS paid exceed the actual tax liability, the excess amount is refundable. However, claiming this refund can be a time-consuming process and involves additional paperwork, including providing PAN details. The revised TCS rates vary based on the purpose of the remittance. For education, if it is financed by a loan from a financial institution, the TCS rate is nil up to ₹7 lakh and 0.5% above ₹7 lakh. For self-financed education, the rate is nil up to ₹7 lakh and 5% above ₹7 lakh. Expenses for self-financed education include airfare for overseas students, tuition, food, accommodation, local transport, health services, and other fees paid to educational institutions, as well as day-to-day expenses. For overseas tour packages, the TCS rate is 5% up to ₹7 lakh and 20% thereafter. The cost of the tour package must include at least two of the following: international travel tickets, hotel stay with or without food, boarding, lodging, or other similar expenditures. Other expenses, such as gifts or donations, employment abroad, emigration, maintenance of relatives, and business travel, have a TCS rate of nil up to ₹7 lakh and 20% above ₹7 lakh. Medical treatment expenses have a TCS rate of nil up to ₹7 lakh and 5% above ₹7 lakh. Expenses for medical treatment include airfare for the patient and an attendant, medical expenses, day-to-day expenses required for treatment, and related food, accommodation, and local transport. To minimize TCS liabilities, consider booking travel and hotel accommodations separately, as this can sometimes reduce the overall tax rate. Furthermore, using an international credit card overseas does not currently incur TCS, offering another potential avenue for cost savings. Source: Economic Times

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Web of lies: How consumers are turning cautious as internet companies use dark patterns

July 21,2024 Akshit Rajpal finds the online shopping experience increasingly frustrating. “Every app I visit has some form of dark pattern ,” says the 26-year-old media and entertainment lawyer from Mumbai. “I can’t find a single safe app that lets me pay only for what I want,” he adds. What is a dark pattern? It refers to manipulative or deceptive tricks—such as hidden fees, subscription traps and sneaking items into online baskets—that get users to perform an action they would not have otherwise done had they understood it well or had a choice. Harry Brignull, a UK-based UX (user experience) designer coined the term in 2010, referring specifically to digital platforms. Rajpal often falls for dark patterns like false urgency , where ecommerce sites display fake scarcity to trigger quick purchases from users who tend to wait for better deals. “Only two items left in stock,” they say, and he immediately clicks “Buy Now.” “That’s what they do,” says an exasperated Rajpal. “They make you think you are being smart, but you are just dancing to their tune. I have felt stupid falling for these dark patterns despite knowing about them,” he admits. Stupid,” “annoyed,” “cheated,” “stressed.” Over a dozen urban Indian consumers ET spoke to have used these words to describe their experience of navigating apps like ecommerce, food and grocery delivery, cab and online travel aggregators, all due to dark patterns. The apps are getting so creative that even savvy users like Rajpal fall into their trap. “I find myself being extra vigilant while doing even the smallest of transactions on an online platform now, constantly checking to make sure I haven’t been duped,” says Rajpal. Consumer internet apps gained popularity with their promise of convenience, but now many deliver nuisance as part of the package. A recent report by the international consumer protection and enforcement network (ICPEN) says at least 76% of sites and apps worldwide use at least one dark pattern, and 67% use more than one. In October 2023, the Central Consumer Protection Authority (CCPA), which operates under the Ministry of Consumer Affairs, identified 13 dark patterns, including false urgency. Product designers ET spoke to highlight some of the more notorious patterns from the list. Like basket sneaking, where items are added to the cart without user consent. ‘Confirm shaming’ uses guilt-inducing language to push users into buying, such as “I’ll risk my safety and family’s” to get people to buy insurance while booking flight tickets. B Narayanaswamy, 67, learnt about both terms from his son Chandra Ramanujan recently while getting a refresher course on the different kinds of dark patterns. Narayanaswamy had fallen for a case of basket sneaking on Urban Company ’s app when it added a 6-month membership plan to his cart, unbeknownst to him. And while the action was rectified by the company in less than a week, it left a sour taste in Narayanaswamy’s mouth. “I feel less confident using any app now because the experience taught me you have to keep your eyes open at all times and be very wary. If you miss even one pattern, you come away feeling very unsuccessful,” says Narayanaswamy, a consumer behaviour specialist based in Bengaluru. Urban Company declined to participate in the story but it has made the membership plan an opt-in instead of an opt-out since Ramanujan called it out on X in March. Among the more sinister patterns is “forced action”, which makes users take unrelated steps such as entering credit card details to access a free trial. As per the ICPEN report, six out of 10 consumer internet businesses force users to fill in payment details to access free trials. Then there are “subscription traps” that complicate cancellation. 81% of sites use automatic subscription renewal, while 70% lack clear subscription cancellation information. Before the CCPA guidelines, the Advertising Standards Council of India (ASCI) had issued guidelines for deceptive design patterns in online advertising. “However, despite attention from regulators, consumer-driven actions against dark patterns are limited and public awareness regarding dark patterns remains sub-par,” says Tanu Banerjee, partner at corporate law firm, Khaitan & Co. Take the case of Balram Vishwakarma. The Mumbai-based content creator and marketing consultant was unfamiliar with the term “dark patterns”. Upon explaining, he realised that he had indeed been a victim of it. While booking an Ola ride recently, he was subject to a case of “interface interference”, where a platform obscures relevant information in fine print. “During the trip, I received a message saying I don’t have to pay the driver,” he recalls. His usual payment method is cash or UPI, but he realised it had been moved to Ola Postpaid, which he did not choose and which he thought could entail a late fee if it was not paid back within a prescribed time. Unable to change the payment option mid-ride, he had to request an opt-out via email. Ola did not respond to ET’s emailed queries till press time. For his part, Vishwakarma has become extremely cautious while using consumer internet apps. He says it is overwhelming to remain watchful during basic online transactions. “I just wanted a straightforward ride,” he laments. Gauri Bansal, a strategy manager at a consumer tech company, highlights another potential case of interface interference. On the quick commerce platform Zepto, you can buy a Zepto Pass membership to avail of free delivery. However, a delivery fee is automatically charged unless deselected from the bill—a company practice that regularly gets criticised by users on X. “Why put it there in the first place?” asks Bansal. An email to Zepto did not elicit a response till press time. Bansal observes that smaller players, aiming to lower entry barriers, often resort to dark patterns like “drip pricing”, revealing extra costs only after purchase confirmation. She recalls ordering a cake from a Delhi bakery online, where the site initially mentioned a standard delivery fee, but additional fees were revealed at checkout depending on the area. Bansal points out that such

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