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Sep 07, 2024 Flooding continues to wreak havoc across Andhra Pradesh and Telangana. Gujarat saw similar devastation due to heavy rains between August 20 and 29. Every year, states like Assam, Odisha, Uttarakhand, and Himachal Pradesh are hit by floods, leading to immense property damage. The financial burden of such destruction can sometimes push individuals and businesses towards bankruptcy. How can you protect yourself if flooding is common where you live? The answer is insurance. Are there specific insurance policies for flood damage? There are no exclusive policies that cover only flood-related damage. However, flood protection can be found within broader insurance policies. “Flood insurance is available through Standard Fire & Special Perils Policy and Householders Insurance Policy,” says Sandeep Katiyar, co-founder and CFO at Finhaat. “Fire and Perils insurance covers damage caused by various events like riots, strikes, floods, storms, and cyclones.” Individuals and institutions can opt for these policies. STFI (Storm, Tempest, Flood, and Inundation) is a named peril in standard Irdai products like Bharat Udyam Suraksha Policy, Bharat Sookshma Udyam Suraksha, and Bharat Griha Raksha Policy. Katiyar explains that these products are designed to protect against various natural disasters, including floods. STFI is an add-on that extends your fire insurance policy to cover additional natural calamities such as storms and floods. While the main focus of fire insurance is on fire-related damages, an STFI cover ensures protection against other disasters like storms and floods, which can strike at any time. Protecting commercial property Beyond the coverage offered by the government, protecting commercial properties like shops, offices, or industrial units requires comprehensive insurance. “Many property insurance plans can be enhanced with a flood coverage add-on, providing protection against flood-related damages, waterlogging, and other water-related incidents,” says Sajja Praveen Chowdary, head of PolicyBazaar for Business. Key insurance plans with flood coverage include: * Standard Fire and Special Perils Policy (SFSP): Protects commercial buildings, equipment, and stock from various risks, with the option to add flood coverage. * Shopkeeper’s Insurance Policy: Designed for small shop owners, this policy covers property and stock, with an option for flood insurance. * Office Package Policy: Offers comprehensive coverage for office premises and equipment, with flood protection to maintain business operations. * Industrial All-Risk Policy: Provides broad coverage for industries, including flood-related damages. What about home insurance? Homeowners have access to the Bharat Griha Raksha policy, a standard home insurance policy launched under the direction of Irdai. “This policy offers coverage for up to 10 years and includes automatic protection for both the building and its contents, up to 20% of the building’s insured value.,” says Suryanarayanan V, Managing Director at Chola MS General Insurance. “For example, under the Centre’s affordable housing scheme, houses valued between Rs 15 lakh to Rs 25 lakh are automatically covered for general contents like appliances,” he explains. These home insurance policies cover a wide range of risks, including damage from floods, storms, and cyclones. They not only protect against structural damage but also cover additional expenses like repainting due to watermarks from heavy rains. Premiums vary based on factors like location, property type, building age, and construction material. However, in some cases, assessing damage after a flood can be challenging, making claim settlements difficult. “For such situations, an alternative product, parametric flood insurance, has emerged. “Parametric insurance operates on predefined parameters, and when those are met, payouts are triggered immediately,” explains Katiyar. Unlike traditional insurance, which requires assessing the damage after an event, parametric insurance is based on measurable metrics like rainfall levels or wind speed. When these predetermined thresholds are exceeded, the policyholder receives compensation without needing to assess individual losses. “Parametric insurance fills the gap between increasing flood risks and the limits of conventional insurance. Instead of indemnifying the actual loss incurred, parametric products offer payouts when predefined thresholds, such as rainfall or heat index, are exceeded. This makes the claims process faster and more transparent,” says Katiyar. How does parametric insurance work? Parametric insurance operates by using predetermined metrics, like cumulative rainfall or wind speed, to trigger payouts. This method bypasses the need for individual loss assessments, allowing funds to be disbursed quickly. For example, a parametric policy for floods caused by heavy rainfall might be structured around cumulative rainfall data. If the rainfall in a region exceeds a set threshold within a certain timeframe, the insured parties receive compensation. The payout increases with the level of rainfall up to a predefined limit, providing timely financial support without needing to assess physical damage. Relatively new, parametric is available in India. “We have offered our clients the product for excess rainfall. This product was designed to protect against risks of low warehouse occupancy arising out of possible excess or deficient rainfall, impacting agri – output. This initiative covered warehouses spread across 17 states,” Katiyar explains. The growing importance of flood insurance “With climate change accelerating, the frequency and severity of floods have increased worldwide. Cities have expanded into high-hazard flood zones by 184% since 1985, according to the World Bank, exposing more people to flood risks. In India, floods have caused an average of $18 billion in economic losses annually over the past five years,” notes Chowdary. He also points out that businesses need to rethink their risk management strategies. “Property insurance covering flood risks and other disasters is a critical component of comprehensive coverage, helping businesses mitigate financial losses from increasingly unpredictable weather patterns.” Recently, India’s ministry of finance instructed public sector insurance companies to ensure swift claim settlements for those affected by the floods in Andhra Pradesh and Telangana. “The insurance companies have been instructed to ensure swift claim settlements by organising special camps and easing claim processes to provide relief to those affected,” the ministry said in a post on X. In addition, insurance companies have been asked to widely advertise the contact details of nodal officers, making it easier for policyholders to get assistance during this difficult time. Source: Business Standard

Sep 06, 2024 India, with its large and dynamic youth population, faces significant challenges related to fatigue and exhaustion. The survey highlights the urgent need to address factors contributing to this issue and to implement supportive measures to enhance energy and well-being. Conducted by Hansa Research Group, across 10 cities and involving men and women aged 25-45 from NCCS A and B categories, the study represents a population of 20 million. Mumbai: Supradyn, multivitamin brand from Bayer’s Consumer Health division, commissioned the Supradyn Fatigue Survey, a study conducted across 10 cities, revealing that 85 per cent of young Indians wake up tired among other astounding findings. Released in conjunction with National Nutrition Week, the survey aims at raising awareness of the growing nutrition gap and promoting self- care. The findings shed light on the alarming rise in fatigue among India’s working population, with significant regional and demographic variations. India, with its large and dynamic youth population, faces significant challenges related to fatigue and exhaustion. The smvey highlights the urgent need to address factors contributing to this issue and to implement supportive measures to enhance energy and well-being. Conducted by Hansa Research Group, across 10 cities and involving men and women aged 25-45 from NCCS A and B categories, the study represents a population of 20 million. The survey states that 96 per cent of Indians feel they lack essential micronutrients and multivitamins, leading to low energy levels. The survey on fatigue among young urban India in the 25-45 year age group reveals that 83 per cent frequently need breaks due to tiredness, while 74 per cent snuggle with daytime sleepiness or staying alert hampering their productivity. Furthermore, 69 per cent find it difficult to start or complete tasks, and 66 per cent are unable to finish daily activities due to fatigue implying extremely low energy among our working population. Geographically as well, metros like, Pune (57 percent) and Bengaluru (59 per cent) have the highest propoltion of people who feel their diet lacks sufficient micronutrients. Moreover, 78 per cent of those aged 25-35 experience daytime drowsiness, compared to 72 per cent of the 36-45 age group. These findings highlight the significant impact of fatigue on daily life. Sandeep Verma, CountlY Head for India, Bangladesh, Sri Lanka, Bayer Consumer Health Division, commented, “Our Supradyn Fatigue survey reveals significant fatigue among the workforce, which directly impacts their productivity. These findings underscore the urgent need to address the nutritional gaps in our country.” Prof Dr Ketan K Mehta, Sr Consultant Physician, CardioPulmonologist & Diabetologist, Mumbai commented, “Increased tiredness among youth is a growing concern across the country, as noted by many healthcare professionals. It’s crucial for healthcare providers to address this holistically by promoting not just a balanced diet but also the use of multivitamins to bridge nutritional gaps. Food alone can provide up to 70per cent of essential micronutrients, leaving a significant gap. As ahealthcare practitioner, I recommend a healthy diet combined with daily supplements to ensure up to 100 per cent nutrient intake.” Source: Economic Times

Sep 05, 2024 The Ernakulam District Consumer Disputes Redressal Commission has cancelled a decision of the Kerala Water Authority (KWA) to disconnect drinking water supply connection to a family, that includes a pregnant woman, in Thripunithura. The Commission comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N. issued the verdict on a petition filed by Murali K. Menon, a resident near Siva Temple in Kumbalam, against KWA Thripunithura sub division represented by its Assistant Executive Engineer. The complainant moved the petition on Wednesday and the Commission straightaway passed the verdict. The Ernakulam District Consumer Disputes Redressal Commission has cancelled a decision of the Kerala Water Authority (KWA) to disconnect drinking water supply connection to a family, that includes a pregnant woman, in Thripunithura. The Commission comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N. issued the verdict on a petition filed by Murali K. Menon, a resident near Siva Temple in Kumbalam, against KWA Thripunithura sub division represented by its Assistant Executive Engineer. The complainant moved the petition on Wednesday and the Commission straightaway passed the verdict. “The opposite party shall reconnect the water connection of the complainant soon on receipt of a copy of this order without fail,” said the Commission in its verdict. The complainant had time till September 12 to clear outstanding dues of ₹22,242. However, the connection was disconnected a week prior to it without considering the deadline. The right to drinking water is a fundamental right and its unfair denial is unacceptable, the Commission observed while passing the verdict. Considering the emergency nature of the petition, the Commission passed the verdict without hearing the Kerala Water Authority’s counter arguments. The case will be taken up again on September 12 when the opposite party will have to explain its action. Source: The Hindu

Sep 09, 2024 While the Karnataka Electricity Regulatory Commission (KERC) framed the necessary guidelines and rules, it was the responsibility of the electricity supply companies to create awareness among people. “We held public consultations and laid out clearly the standards of performance to be followed by Escoms. There are many conditions laid out and the compensation that can be claimed has also been fixed under close to 17 categories,” a senior KERC official explained.  The rules allow consumers to claim compensation for violating standards of performance under many categories like number of interruptions in supply beyond set limit; time taken for connection, disconnection, reconnection, shifting; time taken for change in consumer category, load; time taken to resolve billing issues, and time taken to resolve voltage related issues. Consumer rights activists say except for newspaper notifications, Bescom has taken hardly any measure to spread the word. “We conducted a survey of nearly 3,000 people in the state and it was clear that nearly 90% of themhad no awareness about this. Escoms had to conduct awareness campaigns and release a booklet with detailed procedure to apply for compensation and the grounds on which it can be applied. However, no such effort has been made,” said Muralidharan Y G, consumer activist working in the area of electricity governance. He said Escoms also failed to introduce remote monitoring and compensation assessment systems. “The software has to be upgraded in such a way that delay in processing services should be remotely monitored and compensation automatically calculated. For instance, the system will record date on which an application for power connection was received. If the application has not been processed with the set number of days, the software should automatically award compensation. But none of these systemic changes have been made,” Muralidharan said. He said Escoms also failed to introduce remote monitoring and compensation assessment systems. “The software has to be upgraded in such a way that delay in processing services should be remotely monitored and compensation automatically calculated. For instance, the system will record date on which an application for power connection was received. If the application has not been processedwith the set number of days, the software should automatically award compensation. But none of these systemic changes have been made,” Muralidharan said. While awareness among people is low, many Bescom officials themselves were clueless about these rules. “It is a specific guideline and only departments handling it may know,” one them said. Source: Deccan Herald

Sep 06, 2024 MUMBAI: Insurance Regulator and Development Authority of India (Irdai) has tightened timelines for various services undertaken by insurance companies, aiming to enhance accountability and customer service. In life insurance, death claims that do not require investigation must be settled within 15 days, down from 30 days earlier. For early death claims that require a probe, the resolution period is now 45 days while earlier it was “not later than 90 days”. Maturity claims, survival benefits, and annuity payments should be settled on their due dates, and policy surrenders or partial withdrawals must be processed within seven days, Irdai said in its master circular on protection of policyholders’ interests. ‘Insurers must allow 30-day free-look for life, health plans’ Insurance companies are also expected to send premium due intimations and information regarding policy payments, such as maturity or survival benefits, at least one month before the due date. The regulator has said that if the companies fail to meet the timelines, customers can approach the ombudsman who has the power to direct insurance companies. For new business proposals, insurance companies are required to process them and request any additional information within seven days. A copy of the policy, along with the proposal form, must be provided to the policyholder within 15 days. In case of health insurance, the regulator has reiterated that cashless claims must be settled within three hours and non-cashless claims within 15 days. New business proposals should be processed within seven days and policy documents issued in a fortnight. For customers exercising their right to free-look cancellation, insurance companies are required to process the refundwithin seven days of receiving the request. Services related to policy loans and alterations in original policy conditions are also bound by a seven-day timeline. In unit-linked insurance policies (ULIPs), services such as switch and top-up requests must be fulfilled within seven days, In cases of customer complaints, the insurer must acknowledge the complaint immediately and initiate action within 14 days. If the issue is not resolved within this period, the insurer must inform the complainant within 14 days of the original complaint date. Key features of the master circular include providing essential information at various stages of the insurance contract and mandating Customer Information Sheets (CIS) with policy details. Additionally, insurers must offer proposal forms and CIS in regional languages and allow a 30-day free-look period for life and health insurance policies. Source: Times of India

Sep 05,2024 Hyderabad: In the wake of the devastation unleashed by the recent floods in Telangana and Andhra Pradesh, insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI) has issued detailed instructions to all insurance companies to ensure that claims arising out of the loss of life, property, businesses, and infrastructure are settled speedily. In a circular issued on Wednesday, IRDAI has directed all insurers to mobilise all their resources, including outsourced functions such as surveyors, loss adjustors, and investigators, to ensure immediate service response so that all the claims are surveyed immediately and payments are disbursed at the earliest. It also said that in cases of claims involving loss of life, where the flood-affected are facing difficulties in getting death certificates due to the inability to recover the dead body, it has instructed insurers to consider claims without insisting on a death certificate if the details of the insured match with the details of the deceased published by the appropriate govt authorities. As part of efforts to expedite claims settlements, all insurance companies have been instructed to nominate a senior executive to act as a nodal claims officer to oversee the claims response. Companies have also been instructed to inform the chief secretaries of the respective states about their appointment. However, districts reporting a large number of claims can be overseen by a designated district claims service head, the insurance watchdog said. “Special claims desks at the district level with adequate delegated claims settlement authorities are recommended to be set up for affected areas to facilitate speedy processing of claims and settlements, including the release of on-account interim payments to assist early reinstatement Of property and businesses,” the IRDAI circular said. IRDAI has directed insurers to immediately engage an adequate number of surveyors and loss adjustors and, if need be, also deploy such resources from neighbouring states. To ensure the final settlement process is expedited, IRDAI has directed insurers to review and streamline claims processing by ensuring they ask only for documentation that is necessary to substantiate the claim quantum. Source: Times of India

Aug 29, 2024 NEW DELHI: Govt will launch a ‘repairability index’ for mobile phones and electronic products by Dec, a move that will help consumers make informed decisions before purchasing them. The initiative aims to address the growing e-waste problem and encourage manufacturers to produce more easily repairable items. Speaking at a workshop on ‘Right to Repair Framework’ organised by the govt, Union consumer affairs secretary Nidhi Khare said after the roll out of the index, the department will come up with a regulatory framework as well. “As India emerges as the third largest economy in the world, we should have a vibrant and tech-savvy repair system,” she said. Top industry players attended the meeting and supported the govt’s move. The ‘repairability index’ is a display or information that manufacturers will have to put on electrical and electronic equipment to inform about their repairability. Sources said once the regulatory framework is notified, manufacturers in India will have to mandatorily display them like in France. The proposed index will rate products on criteria including availability of technical documents, ease of disassembly, spare parts availability and pricing of spare parts. It will assess various elements that determine how easily a product can be repaired and thereby ultimately promoting a circular economy and reducing e-waste. Officials said the repairability index would score products on a scale of 1 to 5. The lowest score of I will be given to products that have increased risk of getting damaged and require dismantling of multiple components to access a single part. Products that offer a compromise, making some components easily accessible while others requiring more complex disassembly will get the score of 3 while items that are easy to repair as they allow direct access to parts like battery or display without unnecessary removal of other components will get the maximum score of 5. In an official statement, the consumer affairs department said that the workshop was aimed at establishing a consensus among industry stakeholders on “key parameters for accessing and evaluating repairability index” besides promoting longevity in product design, and democratising repair information to enhance consumer experiences in reusing the mobile and electronics products they own. HCL Technologies founder Ajai Chowdhry called for legislation to drive the change. “Today, most products are not repairable. We need to design products which can be repaired… Unless we create a law, things will not change,” he said. The govt has launched a SRight to Repair’ portal, with 63 companies onboard, including 23 from the mobile and electronics sector. India is the third largest electronic waste producer globally after China and the US. Source: TOI

Sep 10,2024 The Central Consumer Protection Authority (CCPA) has imposed a Rs 5,00,000 fine on Shankar IAS Academy for misleading advertisements related to the 2022 civil service exam, the regulator said on Sunday. The CCPA, led by Chief Commissioner Nidhi Khare, found that the coaching institute made false claims about its success rate and the nature of courses taken by successful candidates. In its advertisement for the 2022 UPSC Civil Service exam, Shankar IAS Academy claimed “336 selections out of 933 at All India Level”, “40 candidates in Top 100”, and “2 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”. The institute also advertised itself as the “Best IAS Academy in India”. However, the CCPA discovered that Shankar IAS Academy “deliberately concealed” information about the specific courses taken by the successful candidates it advertised for. “This practice consequently attracts consumers into buying paid courses advertised by the coaching institutes,” the CCPA said in a statement. The regulator’s investigation revealed that out of 336 claimed successful candidates, 221 had only taken a free interview guidance program, while others participated in various short-term or specific exam components rather than full courses, it said. The academy also claimed credit for candidates who purchased preliminary exam courses after the 2022 exam had already taken place, likely in preparation for the following year’s test. The CCPA highlighted that over 1 million candidates apply for the prestigious civil services exam annually, making UPSC aspirants a vulnerable consumer class. This action comes as part of a broader crackdown on misleading advertisements by coaching institutes, with the CCPA issuing notices to numerous organisations for similar practices. The regulator emphasised the importance of transparent information about courses taken by successful candidates, enabling consumers to make informed choices when selecting coaching programs. Source: Business Standard

Sep 10,2024 Here is a simple way to protect the bulk of your money if you fall victim to an online scam. You can do it by setting transaction limits on your cards and online banking transactions by evaluating your financial needs on a one-time basis. It will ensure that the amount of money withdrawn from your bank account or on your credit card is only within the limit set by you Fraudsters usually work at luring people to part with their identification details required for fulfilling know-your-customer (KYC) requirements. They also con you into sharing one-time passwords (OTP) through scam calls, or worse, take control of your screen. Basically, fraudsters aim to get all information required to misuse credit or debit cards by luring people to part with details. They do this by frightening people by masquerading as bank officers and threatening to block accounts or credit or debit cards for want of KYC information and then offer to guide them online to comply with the requirements. This is when they dupe people into parting with information that allows them to log into net banking accounts or even share OTPs. How many of us know that limits set for our debit and credit cards and online transactions play a vital role in deciding how much money can be siphoned out of our accounts by fraudsters? The higher the limit, the higher the loss. Let us now understand various limits that can be set. You can set two types of limits: first, on the number of transactions, and second, the amount or size of a transaction.  The first allows you to set the total number of transactions per day based on your usage – for instance, it can be four transactions per day on your debit card.  The second option allows you to set the maximum amount that can be withdrawn or transferred from your card or account daily. Again, this depends on your personal spending pattern. You can set it up at anywhere between Rs25,000 to Rs1 lakh per day. Ideally, you should cap your overall transaction amount at a little higher than your usual payment requirements to provide for unforeseen contingencies.  These limits are not independent but integrated with one another. So, if you have set your limits at Rs1 lakh and four transactions, you can make four transactions of Rs25,000 each or a single transaction of Rs1 lakh or any such combination on any given day. Online banking software also allows us to set further limits and sub-limits also.  To elaborate, if I want to transfer a certain amount to Mr XYZ online – say in a unified payment interface (UPI) or net banking transaction, I can add him as a beneficiary and go on to define whether I want to make a one-time payment to him or plan on a recurring transaction with a cap on the maximum limit of amount that can be transferred.  This is ideal for making payments directly into the accounts of domestic help or transferring allowances to children, parents or dependents who may live in another city or for subscription payments like newspapers, etc.  The same applies to debit and credit cards also. If you have a good credit score and monthly income, banks will try and lure you with a premium card or a gold or platinum card with significantly higher spending limits. While this is flattering, it also exposes you to a higher risk if you are a victim of fraud. So, it is ideal to set your limits based on your spending patterns and will usually be much lower than the default limits set by your card issuer or bank. Most banks allow you to set default limits online. Some banks even facilitate setting a time slot during which no online banking transaction can take place. For example, if my routine starts at 9 in the morning and ends at 10 at night, I can set the time slot for ‘no online banking’ from 9.30pm to 9.30am, ensuring that your card simply cannot be misused while you are sleeping.  Please check the various limits available to you and make it a point to re-set them as a one-time exercise to protect yourself and limit losses in case you become the victim of fraud.  Please note that this is an overall concept and may differ from bank to bank, so you may like to contact your bank for help with the specific features on offer for you.   Needless to add, this is not a guarantee against fraud because fraudsters are ingenious and always find new tricks to dupe people. The transaction limits circumscribe potential losses and establish you as a prudent customer when fighting for redress if the need should arise. Source: Money Life

August 12,2024 In a notable consumer rights case, a fueling mishap at an Indian Oil Corporation station in Warangal, Telangana, resulted in a significant financial settlement. The incident, which occurred on July 30, 2022, involved the incorrect fueling of a woman’s petrol car with diesel, leading to severe mechanical issues and a prolonged legal struggle. Meenakshi Naidu, the vehicle owner, faced immediate problems after the fueling error. Within minutes of leaving the station, her car began to malfunction, producing loud noises from the engine and failing to operate correctly. This prompted an urgent trip to an authorized repair center in Hyderabad, where technicians confirmed the damage was due to diesel being mistakenly pumped into her petrol vehicle. The repair costs were estimated at ₹6,381. After discovering the error, Ms. Naidu lodged a formal complaint against the fuel station operator, claiming that despite clear petrol-only markings on her fuel tank, diesel was dispensed. In her defense, the station argued that any issues should have been immediately reported. Source: Law Trend