• Right & Duties

  • Principles of Insurance

    Principles of Insurance

    • Law of large numbers
    • Principle of indemnity
    • Uberrimae Fides (Utmost good faith)
    • Insurable Interest

     

    Law Of Large Numbers

    The law of large numbers basically relies on the principle that the larger the pool, the more predictable the amount of losses will be in a given period. Since not all members of the pool are the same age or in the same health condition, we can assume not all of them will be making a claim at the same time.

     

    Principle of Indemnity:

    Insurance is meant to compensate losses. By implication the mechanism of Insurance cannot be used to make profit. This broadly is Principle of indemnity. The amount paid as a claim cannot exceed the amount of loss incurred. Insurance should place the insured in the same financial position after a loss as he enjoyed before it, not better

     

    Uberrimae Fides (latin word for utmost good faith) or Principle of Utmost Good Faith

    Each party must disclose every material fact known to him. Disclose all the facts accurately and fully that can affect the risk on Life Assured. Whether requested or not

    Material Fact - Any fact which influences the judgment of a prudent insurer in fixing the premium or in determining if he will take the risk

     

    Insurable Interest

    Exists when a person stands to lose if the event “insured against” occurs and it must exist at the time of entering into the contract

    Following relationship hold Insurable Interest:

    • A person has unlimited insurable interest on his own life
    • Spouses have insurable interest on each other.
    • Father / Mother have insurable interest on their children
    • Creditor on the life of Debtor to the extent of debt
    • Partners in partnership firm to the extent of their share holding
    • Employer on the Employee (Keyman, Employer-Employee)
  • Tax Information

    INCOME TAX SLAB RATES FOR FINANCIAL YEAR 2017-18

     

    PART I: Income Tax Slab for Individual Tax Payers (Who is less than 60 Years on the last day of previous year), Every HUF/AOP/BOI/Artificial Juridical Person:-

    Income Slab

    Tax Rate

    Income up to Rs 2,50,000*

    No tax

    Income from Rs 2,50,000 – Rs 5,00,000

    5%

    Income from Rs 5,00,000 – 10,00,000

    20%

    Income more than Rs 10,00,000

    30%

    Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

    Cess: 3% on total of income tax + surcharge.

    *Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual , HUF,AOP.BOI,Artificaial Juridical Person

     

    PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men & Women)

    Income Slab

    Tax Rate

    Income up to Rs 3,00,000*

    No tax

    Income from Rs 3,00,000 – Rs 5,00,000

    5%

    Income from Rs 5,00,000 – 10,00,000

    20%

    Income more than Rs 10,00,000

    30%

    Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

    Cess: 3% on total of income tax + surcharge.

    *Income tax exemption limit for FY 2017-1 is up to Rs. 3, 00,000 for Resident Senior Citizen (Who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous years.)

     

    PART III: Income Tax Slab for Senior Citizens (80 Years Old Or More) (Both Men & Women)

    Income Slab

    Tax Rate

    Income up to Rs 5,00,000*

    No tax

    Income from Rs 5,00,000 – Rs 10,00,000

    20%

    Income more than Rs 10,00,000

    30%

    Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

    Cess: 3% on total of income tax + surcharge.

    *Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 for a resident Super Senior Citizen (who is 80 years or more at any time during the Previous years)

     

    Partnership Firms:

    Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%

    Surcharge:-12% of Income tax if Net Income Exceed Rs 1 Crore.

    Education& SHEC - 3% of Income tax and surcharge

     

    Local Authorities:

    Local Authorities are to be taxed at the rate of 30%.

    Surcharge:-12% of Income tax if Net Income Exceed Rs 1 Crore.

    Education& SHEC - 3% of Income tax and surcharge

     

    Domestic Companies:

    Domestic Companies are to be taxed at the rate of 30 %( where gross receipt during the previous year Exceeds 50 Crore) in other cases the tax rate will be 25%.

    Surcharge:-7% of Income tax if Net Income is in the range of Rs 1 Crore –Rs 10 Crore.

    Surcharge:-12% of Income tax if Net Income Exceeds Rs 10 Crore.

    Education& SHEC - 3% of Income tax and surcharge

     

    Income Tax Slab Rate Co-operative Societies

    Income Tax Slab

    Income Tax Slab Rate

    Up to Rs.10,000

    10%Income

    Rs.10,000 to Rs 20,000

    20%Income exceeding Rs. 10,000

    Over Rs. 20,000

    30%Income exceeding Rs. 20,000

    Surcharge: 12% of income tax, where the total income exceeds Rs.1 crore.

    Cess: 3% on total of income tax + surcharge.