If you live in India, you woke up on Oct 1, 2020, to a host of revisions (some major ones too) in Government regulations that are sure to have an impact on you. 9 times out of 10, though, you won’t find anyone around you who knows about a single one of them. At OneInsure, we believe it’s always good to stay on top of things! With that in mind, let’s check out 7 of the most important ones in this piece.
Let’s start with the ones most apt to you.
I – You no longer need to carry physical documents related to Driving Licence and RC Book while driving
Indians are now allowed to carry electronic versions of documents like Driving Licence, RC Book, and so on inside their DigiLocker or m-Parivahan app instead of carrying the physical copies. The e-copies are considered valid and no enforcement agency can deny accepting them as proof. Further, the details of Driving Licences disqualified or revoked by the Licensing Authority are recorded chronologically in the portal and such records will reflect on a regular basis on the portal. Naturally, this has the second benefit of maintaining an electronic record of driver behaviour.
II – Use of hand-held communications devices while driving
In a move that has been hailed by industry players and end users alike, the Government has okayed the use of hand-held communications devices while driving on the strict condition that it be solely used for route navigation and in a manner that does not disturb the concentration of the driver.
III – Wide positive changes in health insurance!
- Decision on a claim within 30 days – IRDAI has mandated insurance companies to either settle or reject a claim not more than 30 days from the date of receipt, under certain conditions.
- Delay means interest – In case an insurer fails to decide on a claim within 30 days, it will be required to pay interest at a rate of 2% above the applicable bank rate on the dues to the policyholder.
- No rejection after 8 years – IRDAI has mandated insurance companies not to reject a genuine claim after a policyholder completes eight years of paying premium. Insurers won’t be permitted to re-evaluate a policy for which the customer has paid.
- Applicable to old and new policies – According to IRDAI, all existing health insurance plans not in compliance with the new guidelines will be modified. This includes plans renewed during this financial year (from April 1, 2020).
IV – No more discounts for credit card users at fuel pumps
The Government has discontinued discounts for credit card payments made to buy fuel. However, discounts on debit cards and other digital payment modes will continue.
V – New credit/debit card rules
In light of guidance received from RBI, banks will give international facilities to new credit/debit cards of customers only on a request basis and not by default on opening accounts, as they were provided earlier. The customer will have the option to opt-in or opt-out from such services. They will also have a say on spend limits and other services for online transactions, international transactions and contactless transactions.
VI – TCS on remittances
TCS on the Liberalized Remittances Scheme will be levied over and above the remittance amount of Rs 7 lakhs by a customer in a financial year.
VII – 5% tax on foreign fund transfers
Any amount of money sent abroad for buying foreign tour packages will attract 5% tax. Also, foreign remittance in the amount of above Rs 7 lakhs will attract tax-collected-at source (TCS) unless tax has already been deducted at source (TDS) for that amount.
VIII – Sweet sellers will need to display “best before date” prominently
Sweet shop owners, by law, have to declare the “best before date” of non-packaged or loose sweets available in their shops. This FSSAI-mandated protocol is a boon with Diwali looming.
We look forward to assisting you and your family in these challenging times.
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