FAQ for General Insurance for office

SFSP

Many people do Standard Fire and Special Perils (SFSP) Policy for their office, without understanding the implication. This is only for the beginners. SFP is an insurance contract that safeguards the insured against unforeseen contingency caused by accidental fire, lightning, explosion/implosion, destruction or damage caused by aerial devices, man made perils in the form of riots, strike etc, natural calamities like storm, cyclone, flood etc, damage caused by impact by a rail or a road vehicle, damage cased by landslide or subsidence, peril caused by pollution and contamination, bursting and/or overflowing of water tanks, apparatus and pipes, missile testing operations, leakage from automatic sprinkler installations and bush fire.

SFSP Policy is a package insurance which covers the following set of perils :

Perils Covered:

1. Fire
2. Lightning
3. Explosion / Implosion
4. Aircraft damage
5. Riot, Strike, Malicious damage (RSMD Perils)
6. Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado. (STFI)
7. Impact by any Rail/ Road vehicle or animal belonging to third parties
8. Subsidence / Landslide including rockslide.
9. Bursting and / or overflowing of water tanks, apparatus.
10. Leakage form Automatic Sprinkler Installation.
11. Missile Testing Operation.
12. Pollution or contamination resulting from any of the above perils
13. Any insured peril resulting from pollution and contamination.
14. Bush Fire

Out of these point no. 5 and 6  i.e. STFI and RSMD perils can be deleted at the inception of the policy for which suitable reduction in premium rate is allowed. If you want to reduce the premium , then you can ask STFI to be excluded from SFSP.

Please note Burglary, Cash in Transit , Theft is a separate policy and has nothing to do with SFSP.

Significant Exclusions from SFSP are :

        Losses/ Expenses not covered:

1. Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind.
2. 
   
3. Perils not covered:
4. 
   
5. Riot, Strike or Malicious Damage losses arising out of:
1. total or partial cessation of work
2. Permanent or temporary dispossession resulting from order of the Government.
3. Permanent or temporary dispossession resulting from the unlawful occupation by any person.
4. Theft, larceny or omission by any person, in a malicious act.
5. 
   
6. Following are the add on covers with additional premium and not part of SFSP :
7. 
   
8. Earthquake (Fire and Shock)
9. Terrorism
10. Loss of rent.
11. Insurance of additional expenses of rent for alternative accommodation.
12. Start up Expenses
13. 
    
14. Sum Insured:
15. 
    
16. # Property can be insured on depreciated cost (market value) or replacement (or reinstatement) cost basis.
17. 
    
18. # In order to get better protection, insurance on reinstatement (replacement) basis is recommended. The sum insured selected should be adequate for reinstatement.
19. source: orientalinsurance.org.in and economictimes.indiatimes.com

MOTOR VEHICLES

There are 2 types of covers available :

A.Liability Only cover - insures you against any legal liability following an accident involving your vehicle. It does not cover any damage to Own vehicle.

It is often referred to as Act i.e. Motor Vehicles Act. Third-party insurance is compulsory for all vehicle-owners as per the Motor Vehicles Act , without this Motor vehicles cannot ply.Third party cover does not pay for repair of damage to your car or if you suffer any car-related injuries. 

The policy covers the following risks only :

1. Injury or Death of Third Party - It covers only your legal liability for the damage you may cause to a third party - bodily injury, death and damage to third party property - while using your vehicle. 
2. Third party Property Damage (TPPD upto Rs. 7.5 Lacs)

# Various Add on Covers on extra premium , Accidental Loss of or damage to the Vehicle , Personal Accident cover to  owner-driver

B. Package cover - 

i) Insures all liabilities, as per the Motor Vehicles Act, AS MENTIONED ABOVE, AND

ii) Own damages or Accidental damage caused to your vehicle - It is the non-compulsory ‘own-damages cover’ part of the comprehensive motor policy that actually pays you in case of damage to or theft of your car It is, therefore, important to understand its scope in detail. 

The package policy is better and also known as  Comprehensive Motor Insurance policy (or 

Passengers Carrying Package Policy)  as it provides both third party coverage and damages/loss to one's own vehicle, co-passengers or self.

The policy covers Own Damage to the Insured vehicle caused by:-

1. Accident by External Means : Fire, Explosion, Self Ignition and Lightning
2. Transit by Road, Rail, Inland Waterway, Air, Lift
3. Burglary, House breaking or Theft
4. Terrorism, Riots, Strikes or Malicious Acts (RSMD)

     Earthquake, Flood, Storm, Landslide, Rockslide

Any transport vehicle /car /omnibus whose unladen weight is more than 7,500 kgms or is used for carrying goods/ passengers is classified as Commercial Vehicle. 

On paying extra premium the policy may be extended to cover liabilities to the employees who may be travelling in the vehicle,but is not a paid driver ;Legal liabilities to the person employed in connection with the operation & maintenance of the vehicle.

Exclusions that can be included by paying extra premium:

There are many risks/expenses other than the permanent exclusions , that are normally not covered under a standard comprehensive plan but can be included within the scope of the policy by paying extra premium. These include:

1. Gradual Wear and Tear: Loss due to normal wear and tear of the car is not covered under a standard plan. This is the reason why at the time of policy renewal .the insured value (technically called the Insured Declared Value (IDV) of your car is revised downward to adjust for depreciation. By doing this the insurance company is excluding the loss in value that your car has already suffered due to the normal wear and tear in the previous years. 

However, adding a Zero Depreciation cover ensures that value of damaged parts is not depreciated before reimbursement and you get full reimbursement for cost of parts replaced. This cover extends to the repairing/replacement cost of fibre glass, rubber parts and plastic. Though, opting for a Zero Depreciation Policy will result in slightly higher premium it is worth considering , especially if your car is less than 5 years old. 

2. Mechanical or electrical breakdowns are not covered under a regular motor policy. Meaning, the most valuable part of the car, your engine is not covered for non-accidental failures or malfunctions. Now, imagine a situation where the engine of the car is submerged in a waterlogged area. Starting the car in such a scenario can result in the engine seizing. This will not be covered under regular insurance. Here, adding an engine protector cover will insure the car for all non-accidental exclusions related to your engine. It is highly recommended for luxury cars. Also, consider buying if you plan to take your car off-road and it has a low ground clearance. 

3. Extended Accident Cover: A basic personal accident cover for the owner-driver is compulsory provided the owner holds a valid driving licence and is able to drive the car. However, the passengers or a hired driver are not covered under personal accident insurance. There is an optional add-on personal accident cover for the passengers of your car as well as separately for your paid driver.

Third party cover does not include cover for your legal liability towards your paid driver. Therefore, if your car is not self-driven you need to buy a cover for your driver, under the Workmen Compensation Act. The size and premium for this cover are both fixed-- Rs 2 lakh coverage for a nominal price of Rs 50 (excluding service tax). 

4. The standard motor cover is applicable only in India. However, the geographical area of motor policies may be extended to include Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka and Maldives for a flat additional premium of Rs 500 per vehicle, irrespective of the class of vehicle. 

Ref : Website of Oriental Insurance and Economic Times

FAQ / All you want to know about Land and its terminology in West Bengal

1. What is the meaning of “Danga or Bastu (or Vastu land)” in West Bengal ?

It is the classification of lands : Danga, Bastu, Dahola, Sali etc .

Literally Danga is an non agricultural high land. It is the land just beside a Pond. For constructing house, the nature must be converted from Danga to Bastu ( or Vastu).

If you want to convert these lands to a specific category of land ( as per Govt  classification list of lands  ), whether  the land is really convertible or not, as per extant / existing rules  ,  you have to apply for ‘conversation' to the office of the Land and Land Reform Office (e.g. BLRO upto a certain limit ) under your jurisdiction.

2. What is the meaning of Sali or Shali or Danga land in West Bengal ?

"Sali" land, means agricultural land  mentioned in the Land Record or Porcha  . Houses are built on Bastu land and not on Shali land. Shali land is 2 crops land. Sona land is more than 2 crops land.


3. Nine-fold Classification of Land in West Bengal

1. Net sown area (or area actually under cultivation) is 63%

2. Current Fallow land - unculturable land and pastures (in West Bengal it is very low)

3. Fallow, other than current fallows,

4. Culturable waste land,

5. Permanent pasture and other grazing land and

6. Barren and unculturable land

7. Land put to non agricultural use – 19%

8  Forest -13%

9. Misc tree crops and Groves

http://www.wbagrimarketingboard.gov.in/Ninefold/100.html

4. F. A. Q:

1. What is land conversion ?

Permission is necessary for change in land use - which is called Land Conversion; say from Sali to Bastu

2.Whom should I approach for my land conversion and how should I apply ?

An enterprise desirous of making any change in the area, character or utilization of any land under its ownership may apply to the ADM(LR) and DLLRO i.e. District Land and Land Reforms Officer (for above 1 acre of land) ; SDLLRO i.e. Sub District or Divisional Land & Land Reforms Officer (for above 10 decimal to 1 acre of land); BLLRO i.e. Block Land & Land Reforms Officer (for land up to 10 decimal) of the concerned District/ Sub District or Division / Block for permission in the prescribed format.

3.   When should I apply for land conversion ?

 An enterprise may apply for land conversion, after mutation of the land.

4.   What are the documents required for application for land conversion ?

      It is guided by section 4C of WB Land Reforms Act 1955 read with section 5A of The West Bengal Land Reform Rules 1965.

i. An application in Prescribed Format
ii. with requisite payment of process Fee for Conversion in court fee affixed on it or in cash,
iii.a copy of the registered deed of transfer,
iv. copy of the Rent Receipt showing the payment of upto date revenue of the land in question,
v. copy of the Mutation Certificate,
vi. EM-I /IEM acknowledgement,
vii. copies of map of the said plot of land along with adjacent plots of land and
viii. any other documents that may be required for disposal.

5. Is NOC from the adjacent plot holders required ?

No, the system of obtaining NOC from the adjacent plot holders has been discontinued. Instead adjacent plot holders may be called for hearing.

6. What is the procedure of land conversion ?

An enquiry will be made by the field officer.

7. What is survey ?

Survey means Measurement .Whenever there is any dispute, Court orders Lawyers who has passed Surveryorship exam to report on the land with map. The person does the survey are called Amin. There are 4 types of Survey : Bakbastu survey, Cadastral Survey, Revenue Survey and Revisional Survey/ Settlement or RS (it means old maps are corrected and revised )

As per section 51 of West Bengal Land Reforms Act, to make a revision in Khatian you need to use Cadastral or Traversal survey by using Theodolite machine

https://www.youtube.com/watch?v=zcRs3KTQzN0

8. When is mutation required and what is the meaning of mutation ?

Mutation means change. As per section 50 of West Bengal Land and Land Reforms Act, Mutation is required after purchase/Gift of land or exchange of land or getting a land as per inheritance. Mutation comes under State Law. Whereas Registration comes under Central Act ie Registration Act 1908. Before mutation registration is a must.

9. What is Raiyat ?

As per definition-al section 2 of The West Bengal Land Reforms Acs, 1955, "raiyat" means a person or an institution holding land for any purposes whatsoever  . They cannot change the nature of land without conversion.
For conversion of nature of land, section 5A of The West Bengal Estates Acquisition Act, 1953 is applicable. (http://www.bareactslive.com). Under the WB Estate Acquistion Act 1953 one should not hold more than 25 acres. This is per person. 
However as per West Bengal Land Reforms Act  1955 it is 25 acres non agricultural land : per family of 5 people. If the family size is less then 5, then maximum permissible limit is less than 25 acres.  As such the formula is 1.4 non Agricultural land = 1 agricultural land.

As per wikipedia Ryot (alternatives: raiyat, rait or ravat) was a general economic term used throughout India for peasant cultivators. While zamindars were landlords, raiyats were tenants and cultivators, and served as hired labour. A raiyat was defined as someone who has acquired a right to hold land for the purpose of cultivating it, whether alone or by members of his family, hired servants, or partners. It also referred to succession rights. Ryot originates from Arabic word ra`īyah, translated as "flock" or "peasants".

10. How much is Hectare or Acre or Cottah or Satak or Chittak ?

1 Chittak or Chhatak = 45 sq ft (or half of 10 ft by 10 ft room)
1 Decimal =10 Chittak = 450 Sq ft
1 Acre  = 100 Decimal
1 Cottah or Kattah = 1.66 Decimal = 16 Chittak = 1.66/100 Acre i.e. 1/60 Acre = 720 Sq ft (45x16)
20 Cottah = 1 Bigha
1 Acre = 3.025 Bigha or 3 Bigha 0 Cottah 8 Chittak
1 Hectare = 2.47 Acre = 7.5  (= 2.47 x 3.025 ) Bigha = 150 (=7.5x20) Cottah

11. What is Jot / Jotdar ?

Jot or Holding is land under Tenant and Jotdar is owner of agricultural land

12. What is Bargadar ?

The farmers work with Barga. That is the genesis of Bargadar. "Bargadar" means a person who cultivates the land of another person on condition of delivering a share of produce of such land to that person. Operation Barga was a land reform movement throughout rural West Bengal for recording the names of sharecroppers (bargadars) in official records. It bestowed on the bargadars, the legal protection against eviction by the landlords, and entitled them to the due share of the produce. Operation Barga was launched in 1978 and concluded by the mid-1980s.  Whereas Tebhaga movement means establishing the right that  2/3rd  of the produce, will go to the farmers from 1/3rd which was the norm.

12 What are the consequences of abolition of Zamindari system ?

Zamindars cannot hold more than 50 Bigha of land.

13. What is Dag no. ?

Dag numbers are  plot numbers. Every Plot or Dag has a particular number. So if you buy any agricultural land, it has to start with :

Mouza: Tara Hadia, JL No. 40, RS or LR Dag No. 895 , LR or RS  Khatian no. 3289, Area of Land 120 Shatak , description : Shali. Previously Britisher used to equate a land with Police Station or Tauzi . It has been done away with. So if you mention Tauzi it has no significance.

14. What are the different divisions in a State ?

i. State 
ii. Many Districts or Zila or Jela make a State 
iii. Many Sub Districts or Sub Division or Mahakumas make a District
iv. Many Blocks make a Sub Districts or Mahakuma
v. Many Mouzas (or village or villages) make a Block
vi Many Dag or Plots make a Block

## Khatian is a page of a ledger in Land Reforms office. So the concept is one man one Khatian. Khatian is obviously unique. One can have number of plots or Dag in a Khatian. Obviously Plot is also unique.

## Every block has a Block Land and Land Reform Officer or BLLRO . If you enquire in BLRO office then you will get information about Dag/Plot , Khatian, Shatak (100 Decimal) Land area

## JL = Jurisdictional List. There are number of JL under a PS.

### Every land today has been "settled" , so description of Land should start with RS (or LR , same meaning) or Revisional settlement. Without RS it is not possible to identify any land.

15. What is Patta or Porcha ?

Porcha is Record of Rights or ownership rights. Under section 49 of West Bengal Land Reforms Act when a land and agricultural rights are given to a poor man, from land vested with Government, it is called Patta.

16. What is conversion ?

Section 4, 4A,4B,4C 4D of WB Land Reform Act 1955 dictates how the land is to be used and how it is controlled by Land and Land Reforms officers. Whenever a land is used for purposes other than prescribed then land of the raiyat will be vested with Government. If the land is not used for 3 years or more then also land may vest with Govt.

Where-ever there is Development authority or Planning authority, there land use is guided by West Bengal Town Planing and Country (Planning  and Development) Act 1979 . The roles of Development Authority and Planning Authority is guided by this Act.

But for conversion of Land nature you have to apply to Collector/ BLRO. e.g. HIDCO is a developer as well as Planner in New Town.  Where there is no Planning or Development authority, BLRO will take their own decision at the time of conversion. If any land falls under Planning area or Project area of HIDCO then Collector/ BLRO may consult with HIDCO. In other words, The Collector/BLRO while considering conversion under section  4C of WB Land Reforms Act 1955, also consult with Development and Town Planner under section 46 of West Bengal Town Planing and Country (Planning  and Development) Act 1979 . In Kolkata Metropolitan this power has been vested with Municipality and Zilla Parishad.

HIDCO however does not have the power to give NOC for Land conversion. If an RTI comes to HIDCO, then it can only write to the applicant, whether it falls under Plan area or not. Then Collector/BLRO will take a call to talk to HIDCO.

However NOC of HIDCO is required if a construction is made HIDCO Plan area and building height is more than 15 metres and land exceeds 1 Hectare. For LUDCP or land use website of HIDCO should be referred to.

So in Panchayat area Collector will consult with Panchayat Pradhan.

There are 6 Development Authority (e.g ADDA, SJDA, KMDA, NKDA), 22 Municipal Corpoation, 114 Municipalities (under WB Municipality Act) , 9270 Panchayats (WB Panchayat Act 1973) . 

17. What are the officers under WBLR Act 1955 ?

i.  Collector
ii. District Land and Land Reform Officer (DLLRO)
iii. Deputy Land and Land Reform Officer  
iv. Sub-District Land and Land Reform Officer (SDLLRO)
v.  Block Land and Land Reform Officer (BLLRO)
vi. Special Land and Land Revenue Officer Gr II
vii. Land Reform Officer - Gr II




https://www.myenterprisewb.in

 The main sources of new demand for land at present are from industry, housing, urban spaces and infrastructure. The provision of land for each of these purposes will require the conversion of land from other uses.

The factors to be considered when land is converted to any of these uses from other current use include the following :

1. The current use to which land is being put and the social costs of land conversion. Where land is agricultural, the factors to be considered are the number of crops grown on the land, irrigation facilities current levels of employment and income generation and the productive potential of land.

2. The impact of land conversion on the present users of the land, particularly when they belong to the working poor. Full and just compensation must be provided for any land that is converted to alternative purposes. This is a matter of the people’s entitlement.

3. The benefits from the alternative uses to which the land will be put, particularly with regard to employment and income generation.

4. Environmental considerations, particularly with respect to fragile or endangered ecological zones.

5. Identify vacant land first. As stated, the Govt. has initiated action to create an inventory of land that is not currently in use.

Enhance Agricultural Productivity

The demand for land for industrialization and urbanization creates a special responsibility with respect to agriculture for the Government. The State can afford to convert land to non agricultural purposes only if it is able to enhance agricultural productivity, and to implement an agricultural policy that will  

# protect and extend the achievements of the Stage with regard to rice production, thereby contributing to the food and nutrition security of the people of West Bengal.

# improve productivity in food production, thus releasing a significant proportion of cropped area in the Stage for the diversification of crop production, and, in particular, the production of oil seeds, pulses, fruit, vegetables and flowers and other non-food crops; l

# protect bio-diversity in West Bengal and develop agriculture and related activities – and, in general, plan land use – in an ecologically sustainable way; and

# ensure that the development of agriculture and related activities is a key instrument of employment-generation, income-enhancement and, in general, qualitative improvement in the living standards of the working people of the countryside.



https://en.wikipedia.org/wiki/Cities_and_towns_in_West_Bengal
https://wbxpress.com/wp-content/uploads/2013/02/WB-Town-Country-Act-1979.pdf

http://rcwb.in/rcwb/wp-content/uploads/2012/07/23.-Land-in-West-Bengal-at-a-Glance.pdf

https://www.theigc.org/wp-content/uploads/2014/08/Maitreesh-Ghatak-Agriculture-GW2012.pdf

https://wbxpress.com/wp-content/uploads/2015/04/WBLR-Manual.pdf

7-basic-real-estate-terminologies-to-know

Retirement Planning - how much is enough ?

source : economictimes.indiatimes.com


By Dhirendra Kumar 

A few weeks ago, I wrote about how conventional wisdom on retirement savings is condemning Indian savers to old-age poverty. During decades of retired life, inflation destroys the value of your savings relentlessly. Many people find that their savings are not enough. Eventually, at some point, they realise that they are running out of money. Nothing is worse than a long period of old age, where an old couple gradually loses prosperity and then faces poverty. Yet, all around us, we can see many senior citizens in a similar situation. 

                                                                                           How can you prevent this from happening to you? 

   

                                                                                            The first half, which I have written about in detail earlier, is about saving enough during one’s working life and investing this money in equity-backed mutual funds. It sets the stage for a financially comfortable old age. 

 

Miles to go before I sleep !

  

The second part, which is the outcome, is deriving income from these savings once retired life begins. If you have appreciated what I’ve been saying about inflation, then this should be self-evident: you must spend, at most, only that part of your investment returns which exceed inflation rate. 

    

This is another way of saying that you must preserve the value of your principal. However, you must preserve the real, inflation-adjusted value of your money, not just the nominal face value. Please read the preceding paragraph again, carefully. It’s possibly the single most important input to having a financially comfortable old age. So how do you do this?   

Suppose you retire today with a Rs 1 crore corpus. If you put the money in a bank fixed deposit, a year later, it will be worth Rs 1.07 crore. So you would have earned Rs 7 lakh, which you can spend, right? Not really. 

Assuming a realistic inflation rate of 5%, if you want to preserve the real value of your principal, you must leave Rs 1.05 crore in the bank. That leaves you with Rs 2 lakh to withdraw and spend over a year, which is Rs 16,666 a month. 

   

   

  

                 

                                              

Is that enough?  

For a middle class person, surely not. It could be a little worse with some banks, and it could be a little better with, say, the Post Office Monthly Income Scheme, but basically, this is roughly the calculation.  

It’s important to understand that with fixed deposits (and similar investments), this calculation does not change even when interest rates rise because inflation and interest track each other closely. The real (inflation-adjusted) interest rate is not going to be more than 1.5-2% at best. 

If you need Rs 50,000 a month, you need about Rs 3 crore. Of course, at that level of income, tax also has to be paid. So, about Rs 30,000 a year will go as tax. This is the best case scenario. In practice, it’s often worse, as there have been times in the past when the interest rate has been below the real inflation rate. 

Moreover, income tax on deposits has to be paid whether you realise the returns or not. There can be a situation when the interest rate barely exceeds the inflation rate and the income tax on the interest is effectively reducing the real value of money. 

The situation is very different in equity-backed mutual funds. Unlike deposits, these are high-earning, but volatile. 

In any given year, the returns could be high or low, but over five to to seven years, or more, these comfortably exceed inflation by 6-7%, even more. 

For example, over the past five years, a majority of equity funds have given returns exceeding 17%, with about a fourth crossing 20%. The returns may have fluctuated, but that’s something the saver has to put up with for getting rid of fear of old-age poverty. 

In such funds, one can happily withdraw 4% a year  and still have a big safety margin. Besides, there is no income tax and the capital gains tax is 10% on actual withdrawals. Effectively, for a given monthly expenditure through equity funds, you need just half the investment that you would in deposits. So, for a monthly income of Rs 50,000 a month (or Rs 6 Lakh per annum), Rs 1.5 crore (4% of 1.5 Crore is Rs 6 lakh per annum) will suffice. 

Even now, only a small (but growing) number of people have begun to understand and appreciate this idea, and started implementing it. They tend to be those who have used equity funds as their savings vehicle anyway and are used to ignoring short-term volatility in the interest of long-term gains.  

El Dorado

Unfortunately, most retired people are still looking  for the non-existent safety that fixed deposits provide and end up facing hardships as they grow older.                                         

Notes by me : This Rs 1.5 Crore is for a person retiring today in 2018. If your are retiring after 10 years, then multiply this figure by 2 (assuming 7% inflation, the expenditure will be double by after 10 years)