Is it legal to pay insurance premium of father, mother by son using his credit card?

[avikrish]

Can I pay insurance premiums of LIC , Tata AIA using credit card for my father, mother.

Will there be any problem if we pay like the above. I have been heard that insurance companies will check source from which payments are made and reject the claim, is this true ?

 

[Zacobite]

Can I pay insurance premiums of LIC , Tata AIA using credit card for my father, mother.

Will there be any problem if we pay like the above. I have been heard that insurance companies will check source from which payments are made and reject the claim, is this true ?

no.. u can pay..but u cannot claim any tax benefits.. keeping a simple document from parents can help as well.. if you are a nominee and in case of early claim ( god forbid) they may ask Qs.

 

[sxchzy]

No, it is illegal
Under Section 32 A of SARAFESI ACT paying premium of family members is illegal and can lead to jail for up to 6 months and or 10000 INR Fine

 

[Zacobite]

No, it is illegal
Under Section 32 A of SARAFESI ACT paying premium of family members is illegal and can lead to jail for up to 6 months and or 10000 INR Fine

Sarafesi act.. seriously? It is not illegal.. pls chk

 

[SSV]

Sarafesi act.. seriously? It is not illegal.. pls chk

He is joking mate !!

 

[Zacobite]

He is joking mate !!

sarcasm is overflowing on TF I still haven't gotten the knack of identifying it

 

[SSV]

sarcasm is overflowing on TF I still haven't gotten the knack of identifying it

You will get there, once you are actively part of it ..

 

[Riya]

Can I pay insurance premiums of LIC , Tata AIA using credit card for my father, mother.

Will there be any problem if we pay like the above. I have been heard that insurance companies will check source from which payments are made and reject the claim, is this true ?

You can pay for whomsoever you want, as long as he had also paid you back... If the person hasn't even paid then he can't claim any deductions in ITR... as simple as that...

Parents pay premiums for their minor children and vice versa... Does it mean they'll go to jail...

 

[Vasuki]

I pay insurance premiums of LIC , Tata AIA using credit card for my father, mother.

I pay my mother term insurance from my cc ( auto debit ) will there be a problem ...
What kinda question is that ..
One can pay from any source .

If amount is high u need deduction & all ..
So whoever wants to claim deduction should pay from their cc or dc or direct ... doesn't matter

 

[Riya]

many people don't have internet banking facility or don't understand it properly... so usually they ask a third person (it could be a friend, relative or even CA) to pay that amount online and later issue a cheque for same amount....

 

[Deleted member 27665]

There will not be any problem as long as it is a non-kaala dhan.

 

[Vasuki]

There will not be any problem as long as it is a non-kaala dhan.

Cc is always gora dhan . 😂

 

[Deleted member 27665]

Cc is always gora dhan . 😂

Payment can be made via kaala dhan currency notes in branch 😅

 

[Vasuki]

Payment can be made via kaala dhan currency notes in branch 😅

Policy bazaar ... M option he nhi h ..
I miss kala dhan system

 

[abhiver]

If parents are dependent then obviously you have to pay for their premium.

Problem might occur during IT claim filing, if they are not dependent

 

[That_average_guy]

There was one instance some days back (can't find the link for now) where person paid the premium to the agent in cash and agent paid that rom his side. At the time of claim, company denied the claim stating that premiium was not paid by insured person and by some other person.
It might be different for family members and it might be ok to pay for family member's premium. But this area needs to be cleared out surely.

 

[Sriim]

Insurance companies are not allowing credit cards without insured or proposers name on the credit card when paying offline. They say that they have such instructions to prevent money rotation. Online they don't mind.

 

[niks]

Insurance companies are not allowing credit cards without insured or proposers name on the credit card when paying offline. They say that they have such instructions to prevent money rotation. Online they don't mind.

How does Add-on cards work in this case? Original card will be in somebody’s name and add-on card will be in relative’s name

 

[bsc0008]

A quick search returned below forms from HDFC Life & ICICI Pru, where they provide additional forms to be submitted when paying premium by someone other than the insured / proposer. So I think this is definitely not illegal but still it's better to check once with your insurer to confirm.

https://www.hdfclife.com/content/da...ow-Your-Customer-Addendum-Third-Party-KYC.pdf

https://www.iciciprulife.com/conten...ymentForms/Third_Party_Declaration_Format.pdf

 

[techt]

Cc is always gora dhan . 😂

Goda 🐎 dhaan ?
You mean Ashwamedha Yaga ?
CCs ke liye, kitna kuch karna pad raha hain aaj kal.