A comment on this post caught my attention. Why shouldn’t a medical check-up be mandated prior to buying health or life insurance? What do you think?

Further reading:

1. Tip Tuesdays: How To Spread Your “Risk of Trust” When Buying Term Life Insurance
2. Ask the Readers: PPF and Retirement
3. Ask the Readers: Debt Management Programs
4. Tweets on 2009-12-30
5. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?

In a recent issue of Outlook Money, I came across Debt Doctor — a debt consolidation program. Outside of India, Debt Management Programs are a lucrative business. But given the local psychology, my question is:

Further reading:

1. Ask the Readers: PPF and Retirement
2. Ask The Readers: Can You Make Part Prepayments On Your Car Loan?
3. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?
4. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?
5. Ask The Readers: What Is Your Liability Upon Losing Your Debit Card?

Suppose you start at the age of 30. You save the maximum possible (currently, Rs 70,000) each year for the next 30 years. Then,

Further reading:

1. Tweets on 2010-05-26
2. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?
3. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?
4. Ask The Readers: Can You Make Part Prepayments On Your Car Loan?
5. Investment Strategies: How To Save For Your Child’s Higher Education?

D asked,

I know there are clear-cut rules on your liability and what you should do upon losing your credit card. But what are the rules with respect to debit cards? What’s your liability and what should you do? I’m asking because my debit card doesn’t have my photo on it. Nor does the merchant even attempt to verify my signature. [Nor is it PIN verified.] A transaction on my lost debit card will immediately debit the funds from my account.

I don’t know the answer. It’s especially scary given the fact that many banks have hiked up the daily limits for shopping with your debit card. With a daily shopping limit of over Rs 1.5 lacs, would you even want to carry such a debit card in your wallet?

Coming back, what are the liabilities and lost-card reporting rules for debit cards? Do you know the answer?

Further reading:

1. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?
2. Ask The Readers: Can You Make Part Prepayments On Your Car Loan?
3. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?

I have a question:

In general, is it possible to make part prepayments (towards the outstanding principal) on your car loan? My specific situation: a car loan from Axis Bank that I intend to close by the end of this year.

If the answer to my question is a YES, how do I go about doing it?

Further reading:

1. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?
2. Tip Tuesdays: How to Save for Your Next Car After You Have Cleared the Loan on Your Present Car
3. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?

In response to my post on why you shouldn’t opt for a decrease in your Employee Provident Fund contributions in lieu of an increase in your take home pay, reader Siva commented:

But, in need, it’s always a problem to get back your money from the Government PF office. When a friend wanted to start on his own, he had big troubles while withdrawing the PF money from his previous employments. In fact, it was a nightmarish experience for him at the Government PF office.

I’ve heard similar stories in the past and hence thought I’d open up this question for you to answer. How easy (or difficult) is it to withdraw your EPF balance?

Do you have an experience to share?

Further reading:

1. Tip Tuesdays: Why You Shouldn’t Opt for a Decrease in Your Employee Provident Fund Contributions in Lieu of an Increase in Your Take Home Pay
2. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?

D, had an interesting question to ask.

Suppose I’m unable to collect cash from the ATM cash dispenser within the stipulated time (usually 30 seconds). What happens to such a transaction? Is it automatically reversed? What happens if this situation occurs at a third-party ATM?

I couldn’t find an answer to this question. Have you faced such a situation before? What was your experience?

In response to my post about guidelines on detection and impounding of counterfeit notes at Indian Banks, a reader asks,

Has anyone got a fake currency note through an ATM? What is the process to be followed in such a case? Does the bank keep track of each and every note fed into the ATM?

With most banks outsourcing to a third-party the loading of cash into ATMs, I’m not sure where the accountability and audit trail lies. I’ve never faced such a situation. How about you? If you have, what did you do?

Further reading:

1. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?
2. Ask The Readers: Can You Make Part Prepayments On Your Car Loan?
3. Ask The Readers: What Is Your Liability Upon Losing Your Debit Card?
4. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?

A reader asks,

I have lost my acknowledged (i.e. stamped) income tax returns (form ITR-V) for last year. What is the procedure for obtaining a duplicate?

My opinion: Visit the income tax office in your geography and meet your assessing officer. A requisition letter along with an unacknowledged copy of your income tax returns (Form 16, or ITR-V, or whatever you have) should be handy. You might want to carry your PAN Card along too.

Have you ever been in a similar situation or know someone who was? What do you think this reader should do?

Further reading:

1. Tweets on 2010-07-04 — It’s Time To File Your Income Tax Returns
2. Organizing Your Finances: Do You Have All Your Income Tax Returns Safely Filed and Available?
3. Ask The Readers: What Is Your Liability Upon Losing Your Debit Card?
4. Ask the Readers: How Easy Is It To Withdraw Your Employees Provident Fund Amount?

A reader asks:

I am shopping for a term insurance plan and am a bit confused. Having seen the travails of insurance companies such as AIG et al., I am inclined to go with the Life Insurance Corporation of India (LIC) given their sovereign guarantee. But LIC’s premium for term plans seems to be 40-50% higher than those from private insurance companies. Plus, LIC doesn’t offer any riders (e.g. Accident Death Benefit, Disability, Critical Illness, etc.).

I am also not sure about the claims process of various insurance companies. How easy or difficult is it for survivors to claim insurance benefit from these companies? What use is it having an insurance policy when your loved ones have to run from pillar to post to claim the proceeds? What has been your readers’ experience in this area?

I do not have enough experience with claiming life insurance proceeds. We’ve only claimed life insurance once from LIC — but this was nearly a decade ago and the policy proceeds weren’t substantial to begin with. I’ve tried purchasing a term insurance plan from LIC in the recent past, but the agent and the TPA (Third Party Administrators) managed to royally screw things up and my policy proposal was finally declined with the status “accepted but can’t be issued because the agent’s agency has been terminated.” I’ve resolved to never again use an agent for any financial purpose.

But, what has your experience been? Which life insurance company offers a hassle-free experience?

Further reading:

1. Ask the Readers: What Happens If You Don’t Collect Cash from the ATM Cash Dispenser Within 30 Seconds?
2. Tweets on 2010-02-04