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Hazel Calvin

Insurance

How to Prepare Yourself for a Medical Emergency in 2021?

COVID-19 has infected almost 11 million people in India, as of February 12, 2021. In the face of the pandemic, it has become evident that a medical emergency can strike at any time. Apart from the physical and emotional trauma, it can be huge pressure on your finances. So, here are some steps to take to prepare yourself for a medical emergency in 2021.

Start an Emergency Fund

  • Open a savings account only for the purpose of saving for a medical emergency. Opening a savings account online is very easy. Moreover, savings account generates interest, which can help grow your funds.
  • Choose a bank that offers the best interest rates on savings accounts.
  • Regularly deposit money in this account. You can plan your expenses and set aside a small amount monthly, as soon as you receive your salary or any other form of income you may have.
  • Refrain from withdrawing money or conducting transactions from this account for non-medical purposes.
  • Keep track of how your funds fluctuate. This will help you to prioritise replenishing funds if you need to make a withdrawal for any reason.
  • Savings accounts have much higher liquidity than other investments like fixed deposits or mutual funds. This means you can access the funds at any time and don’t need to borrow money or make an overdraft on your investment.

Weigh the Costs

  • Study your family’s medical history and consult a doctor. For example, if you have a family history of heart disease, consult your doctor regarding the steps to prevent it.
  • Make a list of the most common medical emergencies and reach out to a hospital to understand the estimated cost for each. This should give you a rough idea of how much you need to save in your emergency fund. Start eliminating unnecessary expenses so that you can achieve this target quickly before an emergency occurs.
  • Improve your health by eating a balanced diet, exercising regularly and getting enough sleep. Encourage your loved ones to make the necessary lifestyle changes.

Get Health Insurance

  • Health insurance is an excellent option to help you cover most of the costs in case of an emergency. This can be supplemented by your savings.
  • For a low premium each month, health insurance will pay most of your medical expenses.
  • Different health insurance plans cater to different types of emergencies, like accidents, heart disease, general health, etc. Therefore, it is important to consider your family history and your lifestyle before choosing an insurance plan.
  • You can also include your immediate family in your health insurance policy.

Consider Personal Loan as a Backup Option

  • Sometimes, even the best preparation is unable to meet the demands of the situation. In such a scenario, consider taking a personal loan.
  • Check the interest rate and loan tenure and read the loan document carefully before going ahead.

During a medical emergency, you would like to focus on getting better, rather than having to worry about arranging funds. So, take the necessary steps like opening a savings account that offers high interest, and be prepared for any contingencies.

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Insurance

How to renew bike insurance using bike insurance app?

Riding a bike is a truly underrated experience. The feeling of the wind on your face is a freeing experience. Moreover, it is also a practical vehicle. Using a bike to travel, means that you can weave through traffic while others have to be stuck until it clears.

However, for all its great qualities, riding a bike is very dangerous. Even after wearing protective gear, there is a chance that a bike accident can lead to grave injuries. Moreover, unlike a car, a bike is an open vehicle. This means that a single error in judgement while riding a bike can lead to major consequences for you and your two-wheeler. Hence, it is ideally recommended to drive safely. However, there is no harm in being as secure as you can at every step. Hence, to avoid the financial and emotional burden of having your bike damaged, you can get a bike insurance policy.

However, any good thing in life requires effort and care. This applies to bike insurance as well. Once you have bought a policy, you will have to make sure that it performs to the best of your needs.  This includes renewing it on time. However, being the lengthy process that it is, there is a chance that you may miss the due date of your bike insurance renewal.

Missing the renewal due date

A bike insurance is like a subscription. It needs to be renewed each year before a specific date. This renewal is done by paying the right amount of premium before the due date. However, if for some reason you fail to renew your policy before this date, the coverage mentioned in your policy is considered expired.

Once, this coverage is declared expired, you will be given a grace period by the insurance provider. While every insurance provider has a different operational policy, most insurers offer a break-in period of 90 days. During this period of time you can restore your coverage as it was by paying the premium and renewing your policy. Until you do so, you will not have any benefits of the policy to redeem. As a worst-case scenario, if you miss this opportunity as well, your coverage becomes null and void.

At this point, you lose coverage for own damages as well as third party liabilities. This firstly means that in the case of an accident you will be completely unprotected against the financial burden of repairs.  Secondly, you will have to cover for the legal and the financial liabilities for any harm you cause to a third-party or his/her property. The worst part about losing your bike insurance policy is that you cannot legally ride your bike on the roads. If you are caught riding without a valid motor insurance policy, you will have to pay a fine.

Renewal of policy

The purpose of insurance is to make things better and simpler. In that spirit, many insurance providers have launched apps that can offer you a whole host of benefits. However, the best these apps do is give your better control over your policy and everything related to it. This includes policy renewal.

Firstly, you can keep track of the due date of your policy in the app. Knowing what the due date is you can plan your renewal well in advance. This includes taking a look into how much coverage you need, how much you have, and what changes are necessary to bridge the gap. This time can also be used to look into ways that you can lower your premium.

Once the preparation is over, the first thing you have to do is log into the app. After logging in, you have to select the policy renewal option. At this point, the app will require your policy details. Adding the policy details will take you to the step where you can change the coverage of your policy to your liking. With the change of coverage, you will also see a change in the premium. The last step is to make the premium payment. Select a payment mode and complete the payment. Once done, your policy will be instantly renewed and you will receive the new policy documents through email or other digital means.

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Finance

5 things to know before you get a DTH connection

DTH only entered the Indian market a little over a decade ago, but it has managed to shift the norms of television viewing in the country in that period.

In today’s world, India has around 5 DTH operators, but with so many different deals on the market, even that is too much for a new DTH customer.

Things can get a little overwhelming with all the different payment partner choices that offer you a link at a discounted rate.

It’s best to do your homework before being enticed by tempting deals to get the most out of a DTH connection.

Below are five things you must know about a DTH connection in India.

  • Set-Top Box

The quality of channels you will be able to view is largely determined by your set-top box.

However, the type of set-top box you should choose is determined by the type of television you have.

Choose a Standard Definition box if you have a tube TV.

If your television supports 4k resolution, get a 4k DTH connection.

Choose a High Definition box if you have an LCD or LED TV.

Also, keep an eye on the warranty. Most operators give a warranty of one year on the set-top box itself.

  • To Buy or Rent?

If you need a connection for a short time or don’t want to deal with the hassle of buying and maintaining a set-top box, you can rent one from your operator. A few dth operators, such as Sun Direct DTH, have actively recognized this issue and offer more affordable options for renting out a box on both a long and short term basis. (1)

  • Packages, and their Pricing

The majority of people compare the initial cost of STB when deciding whether or not to purchase a DTH connection.

What you should think about are the two points listed below.

  • The package that includes all of the channels you want to watch.
  • The monthly cost of that package.

DTH operators offer basic packages starting at INR 99 and going up to INR 800.

Some operators, such as Sun Direct DTH, even provide basic plans for 49/month for 148 channels, and even free basic packages, that include all Sun channels. So, you can get the Sun Direct recharge done accordingly.

  • Services

 As a DTH subscriber, you will need customer service assistance regularly for issues ranging from account issues to set-top box realignment.

Nobody loves being on hold for hours, do they?

The best way to assess how good a service is to keep track of how quickly they respond to your inquiry.

  • Lastly, Payment

You can still pay each installment in cash the old-fashioned way. You can also your DTH recharge through reputable online platforms such as Airtel Payments Bank.

We’ve double-checked everything. Online payment is safe and convenient because you can get cash back’s and special deals for each transaction.

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Finance

All You Need To Know About Tax Accountants

If you are a student of commerce and are planning to move ahead with pursuing a course in accounting, you should learn about the duties of a tax accountant. There are several titles for the people working at the various posts of the finance departments. However, you need to choose yours according to your place of interest and by considering your skills and strengths.

So Let Us Find Out A Bit About The Tax Accountant And What Role They Play

Tax Accountants

They offer advice to their clients which can typically be an individual, government agency, private companies, or even a non-profit organization that are going through certain financial and tax-related issues. Birmingham tax accountants are extremely skilled persons who can prepare tax documents by following the most appropriate strategies for their clients.

What Are The Responsibilities Of A Tax Accountant?

·        Examine The Financial Statements

Before starting with the complete process of handling taxes, the tax accountants try getting a complete idea about the financial condition of the client. And further, they prepare the tax return documents accordingly. The tax accountants make it a point to give a read to all the statements which are related to the financial position of his client to confirm that those are made by following the tax laws and regulations. And also to make sure that it offers a complete view of his customer’s financial condition in the right way.

·        Create Budget Plans

One of the main roles which these tax accountants play is to suggest to their clients with ideas to cut down their daily expenditure and also to try to increase the income. They also do make their clients stick with a certain budget plan which reduces the rates of confusion related to the financial situation.

·        Organize Financial Records

The Birmingham accountants do not only take care of and prepare the tax return documents of their clients, but they also do help their clients to organize their economical records and statements. And that allows these individuals to store the clients’ info in separate files and use it at a time of emergency when you need to show any such document within short notice.

Conclusion

There are several sectors where these professionals opt to work. From the accounting department to the booking and payroll services industry, the tax accountants can easily change their job as the demand for their services is very high.

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Forex

How Price is Decided in Options Trading

Option is a legal contract between buyer of the option and its seller. Option is transacted in the form of buying and selling securities at an agreed price in a certain period of time. This flexibility is unique feature for options trading. Another unique aspect about options is you do not need demat account opening for options trading. Although for convenience, most traders prefer demat account to keep track in their portfolio.

Options is quite similar to insurance that you pay an amount of money in order that your property is protected by the insurance company. The difference between both of them is minor, based on their mode of operation; option can be traded whereas, insurance policy cannot be transferred or traded. There are two types of option contracts; call options and put options. We can buy call option when we expect the stock price to go up and buy put option when we predict the stock price to drop. We also can anytime sell call option if we predict the security price will drop sharply and vice versa if we want to sell put option. Usually, option is counted by units of contracts – one contract is equal to 100 unit options. 1 unit option protects 1 unit share. So, one contract protects 100 unit shares.

Before starting online trading in options, you must know most important factor that valuates the options. The trading is done based on the strike price.

What is Strike price in Options Trading

Strike price is the value that is agreed by both traders; buyer and seller of the option to deal with. That means if the determined strike price of the call option is 35, seller of this option abides to sell stock at this price to the buyer of this option even if the market price of the stock is higher than prevailing 35 if the buyer exercises the option. Buyer of this option is free to buy stocks with a price that is lower than the market value.

If the current market price is ₹39, the buyer will earn ₹4. If the stock value is lower than the strike price, buyer will try to hold the option and leave the existing option to expire worthless.

For strike price in put option, buyer of the option has the obligation to sell the stock at the strike price to the seller of the option. For example, if the put option strike price is ₹40, seller of this option abides to buy the security at this price from the buyer if he or she executes the option even if the market price is lower than this price. If the market is ₹35, the option buyer will earn ₹5. At first glance, it seems that a lot of transactions are involved; but actually, seller of the option will not purchase a security and sell it to the buyer.

The broker firm will perform all the transactions but the extra money incurred to buy the security has to be reimbursed by the seller. This means, if the seller loss ₹5, the buyer will earn ₹5.

Remember, in some cases, when the stock value equals the strike price, the option has apparently zero value.

This is how price is decided in options trading.

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Finance

Learn about the different types of deductibles in a car insurance policy

Before you take your car out for a spin, you need to have a car insurance policy ready. The Motor Vehicles Act, 1988 in India makes it mandatory for every vehicle owner to have an insurance cover (third-party liability) for them to be legally driving on Indian roads. With road accidents taking place on a daily basis, a car insurance policy will help provide the financial coverage you need.

Now when you are buying a four-wheeler insurance policy, you will come across a term known as “Deductible”. This is nothing but the amount that you would be paying as a policyholder while making a claim. Confused? Let us explain. Let us say you have incurred expenses amounting to a sum of Rs.5000 and the deductible in your car insurance policy is set at Rs.2000. This means that you would have to pay Rs.2000 from your own pocket and the insurance company will pay the remaining amount, which is Rs.3000.

There are two types of deductibles in a motor insurance policy:

  1. Compulsory deductible

This type of deductible is a fixed amount that is set by your insurance company in conformity with the Insurance Regulatory Development Authority of India (IRDAI) guidelines. A compulsory deductible is set after taking into account the engine capacity of your car. As per the Indian Motor Tariff, the standard compulsory deductible rate for private cars are as follows:

If the cubic capacity of the car’s engine is up to 1500CC – Rs.1000

If the cubic capacity of the car’s engine is above 1500CC – Rs.2000

If your car is older, it is quite possible for the insurance company to increase the deductible since it is more likely that you will make a claim. However, the compulsory deductible will not be affecting the premium in any way, be it a car or bike insurance policy.

  1. Voluntary deductible

As the name suggests, you can voluntarily opt for this type of deductible. The limit for the deductible would be chosen by you. A voluntary deductible would have an inversely proportional relationship to the premium of your car insurance policy. If you choose to set a high voluntary deductible as part of your insurance policy, the insurance company will offer you lower premiums.

Let us take a look at the differences between the two types of deductibles:

Compulsory deductible Voluntary deductible
Chosen by the insurer Chosen by the policyholder
Does not affect the premium Does affect the premium
Does not affect savings Helps in long-term savings
When a claim is made, only the compulsory deductible is payable When a claim is made, the compulsory as well as the voluntary deductible are payable

The option of a voluntary deductible is not a commonly preferred one. This is because at the time of making a claim the policyholder would have to pay both the compulsory deductible as well as the voluntary deductible, ultimately reducing the claim amount given by the insurance company. However, this again depends on the preference of each policyholder.

We hope that this article has helped you understand the 2 different types of deductibles in a car insurance policy. All the best!

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Finance

Five Essential Tips for Beginners in Forex Market

Beginners cannot be able to understand the situation as they are not experienced enough. In the trading field, people are required to act practically and learn to take responsibility. When the new investor will get the proper guidelines, he will be able to trade properly. People should not try to allow emotions in the trading process as it is not good for them. If you can be able to increase the cognition level and become up to date with the market, it will be possible to achieve the goal.

Trade Seriously

New investors should fix the goal and work according to this. When the person will be able to take the responsibility of trading, he will make the decision thinking properly. People should not try to blame others for their mistakes as it is not the right thing. The person should remember that he has to decide his trading process. If you countenance the winning or losing streaks, you should bear in mind that you are responsible for this. Traders should give proper attention to trading to get good returns. If you take this as an easy task, you might face failure.

Avoid Shortcut Methods

Traders should avoid shortcut methods as they will not be able to help them. When the person will be able to implement the strategy properly, it will be possible to do better. People face problems because they think that by trading more it is possible to earn more money. Here, investors should invest time in developing a good strategy so that they can be able to overcome the difficulties. Traders should focus on improving the abilities which are necessary for trading. For this reason, they should focus on improving themselves to achieve success. Forex trading is not an easy task. You must know the critical factors that drives the market. And to know this, you can’t look for the shortcut method.

Practicing Regularly

Continuous practice will help to increase performance. When the person will be able to perform properly, he will be able to countenance the winning streak. In Forex market, the investors are required to cope up with the new situation to get the benefits. Newcomers should practice in the virtual field before coming into the real field. Here, the person should practice technical and basic skills for becoming successful. The traders are required to speculate the price movement properly so that they can make profits. The wrong prediction can create problems for traders. So, the person should gather practical knowledge to do well.

Manage the Risk

If you can be able to manage the risk properly, you will be able to increase the account balance. People should use stop-loss and take profit to get a good result. This is really tough to monitor the market all the time as it is stressful. By placing the stop-loss at the right point, the person can be able to do other works. When you become stress-free, you will be able to make the right decision and perform properly. By practicing through the demo account, the investors will be able to improve the risk management skill.

Doing the Proper Analysis

When you will be able to do good research on the market, it will be possible to make the right decision. Investors should know about the situation and the rules of the market. Without doing proper research on the market, it is not possible to develop a good plan. If the new investor cannot recognize the situation, he will not be able to take the right action. For getting the advantages, people should try to develop good knowledge about the market which will help to gain success.

To build a successful career, the investors should try to gain proper knowledge and develop necessary skills. If you do not keep the eye on the market, you might miss the good opportunities.

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Finance

EVEN RETIRED PEOPLE WITH NO LIABILITIES NEED A PLAN

Retirement is usually synonymous for the idea that all your years of hard work and hustle is over. After all these years, you can finally sit back and relax.  It also brings you more options than any time in your life. After retirement, you could choose to sit back at home or you could work as a consultant depending on your profession. Regardless, another thing that comes with retirement is an entire career’s worth of savings.

Naturally, you wouldn’t want to exhaust this money by simply spending it on taking trips and buying things that you always wanted to. The first instinct would be to invest the money somewhere where it can give you returns. However, investing when you are young gives you time to let your investments grow. On the other hand, investing at the age of 60 or 65 may not allow that much time. Hence, to invest effectively, you need an investment plan. Here is how you can do it:

How to divide your money

Since, you are not working anymore, your savings are the only source of money you may have. Hence, you need to divide your money in a way that it benefits you rather than take away the money you already have. Here the important divisions you need to make:

  • Emergency fund

Just because you are retired does not mean that you will not have any expenses. In addition to the regular expenses, you need to have money in case of emergency. For example, increasing age means you are more likely to have health issues. This means you may have to visit the hospital and may need money for treatment. Hence, you need to set some money aside that you can use in any emergency.

  • Investment

The other half of your money should be dedicated to investment in various options. The goal is to use your life savings to generate wealth. This in turn should enable to invest more. Hence, the idea becomes about letting your savings earn for you. However, investment comes with its risks. Hence, you have to make sure you invest in options that have lesser chance of losses.

What you can invest in?

Simply put, one of the best options for you to invest in is mutual funds. While there is nothing wrong with exploring other options, it is better to focus more on mutual funds. Retirement income mostly includes interest payouts and dividends from investments. Hence, it is better to make investments in options that can take inflation into account.

Moreover, there are a long list of options you can get even within mutual funds. This helps you diversify your investment portfolio. The right investment option for your portfolio depends on the amount of risk you are willing to take. Experts recommend taking lesser risk with your life savings. However, if you want higher returns and have the right mutual funds option for it, you can go for a riskier investment option. This is the reason that mutual funds are popular among investors, they allow you to invest in different equity-based options with different risk profiles.

Another option that you go for is debt-based mutual funds. The main reason you should consider this option is the taxation around it. If you put your money in a bank account, you will be taxed on that income based on which tax slab your total income falls under. The highest slab requires you to pay 30.9% as tax. On the contrary, any income from debt funds is only taxable upto 20% if you have held it for three years or more. Happy investing!

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Investment

WHY INVESTORS SHYING AWAY FROM ELSS

Equity-linked Savings Scheme, commonly known as ELSS are a popular investment avenue among investors looking to expose their investments to equities while simultaneously saving on tax. Usually, ELSS investments are the highest during the last three to four months of the financial year as investors rush to earmark their tax-saving investment avenues before the deadline of tax submission. However, this year the number of investors investing in ELSS funds has dwindled.

As per the data released by AMFI (Association of Mutual Funds in India) on 9th April, 2020, the net ELSS inflows in FY 2020 between December 2019 to March 2020 was just Rs 3,834 crore. The net ELSS inflows is around 36% lower than the net ELSS inflows during the same period in FY 2019 and around 55% lower than the net ELSS inflows in FY 2018.

So why are investors shying away from ELSS mutual funds?

There are chances that with increased awareness about SIP investments (Systematic Investment Plan), investors are beginning to invest in mutual funds via SIP in the start of the financial year rather than investing a lumpsum in the end of the financial year. This might result in slower sales in the ELSS category. However, one could argue that the net inflow in ELSS funds in the entire FY 2020 was much lower than that of FY 2019 – Rs 8,187 crore in FY 20 and Rs 12,771 crores in FY 19.

Another reason for investors shying away from the tax saving mutual funds could be market volatility. But again, net inflows in equity jumped around astounding 52% to Rs 24,343 crores between Dec 19 to March 2020. Then, what’s the issue?

Experts believe that the drastic decrease in ELSS investments in FY 2020 could be because of the budget announcements. Budget 2020 includes a new optional tax regime that does not include most of the tax deductions and exemptions, including the ELSS tax saving exemption of Rs 1.5 lac under Section 80C of the IT Act. It must be noted that the taxpayers can continue to choose their old tax regime. Experts believe that the confusion to choose between the old tax regime and the new tax regime might have resulted in a lower net flow of ELSS investments.

Another reason could be the poor performance of these tax-saving mutual funds. Data shows that the returns on ELSS funds dipped from double digits in 2017 and 2018 to single digit returns in 2019 and 2020. Investors looking for the past performance and returns of ELSS mutual funds might not be satisfied and thus discouraged to invest in ELSS funds. This could have also contributed to the investors shying away from ELSS investments.

If you are an existing investor in ELSS funds, you might consider staying invested if you are satisfied with the performance of your fund. On the other hand, if you are a new investor, opt for funds with risk appetite matching yours. Happy investing!

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Investment

Achieving Business Growth Through Strategic Partnerships

Business success and growth can be achieved by impressing clients and improving your company’s performance. As long as you can provide consumers with high-quality products and services, your business will likely survive. Unfortunately, there are moments when your business experiences major setbacks because of a lack of significant resources. This may include a lack of funds, tools, and equipment, or even manpower. When this happens, business processes are disrupted, which eventually leads to inconvenience both to you and your clients. To prevent this, you need to prepare backup strategies or find a strategic partner who can help you deal with possible business challenges.

The Importance of Strategic Partnerships in Business

Some business owners get overwhelmed with challenges in running a company. Aside from building plans to attract more customers, they also need to find time to fix internal processes. This includes hiring competent and reliable employees or investing in advanced tools and equipment. Unfortunately, not all companies have the ability to secure all the resources that are essential in fixing their business processes. Most of them lack funds, while others don’t have the right knowledge and experience to handle certain tasks. Good thing, companies can rely on strategic business partnerships to solve these issues.

Strategic partnerships refer to an agreement of two businesses to combine their efforts and work together to achieve a common goal. This helps companies, especially small businesses, have access to valuable resources essential in improving their performance. Here are some of the remarkable benefits of having strategic business partnerships:

  • Gain knowledge and skills in running a business.
  • Get funding for your future campaigns.
  • Help identify opportunities.
  • Build a team of skilled and talented individuals.

Strategic Partnerships You Need for Your Business

  • Marketing—Partnering with a marketing agency helps increase your chances of building successful campaigns. You can look for companies doing print ads or digital marketing campaigns to help you produce high-quality and effective promotional tools. This helps you improve brand awareness and business visibility, which helps attract more clients to your business.
  • Logistics—If your business heavily relies on delivering goods, you need to find a logistics partner. You have to ensure that your customers can conveniently get their orders on time. Also, you need to reduce the chances of your items getting damaged. Thus, a trusted logistics partner can help you address these concerns. You may also consider partnering with a reverse logistics provider so you won’t have issues dealing with returned goods.
  • Financial management—If you are having trouble looking for a reliable accountant, bookkeeper, and other staff who are money experts, you can rely on other companies to solve the issue. There are software developers who can help you get hold of advanced accounting tools and other resources you might need to improve financial management in your company.
  • Technology Integration—Using advanced tools and equipment requires time and patience. Whenever you invest in the latest tech tools, you have to train employees to use them properly. This ensures that they won’t commit errors and continue staying productive while doing their jobs. To minimize risks and mistakes, you can work with experts in technology integration. These companies assist business owners in onboarding processes and provide useful training programs that employees need to keep up with business processes.

Businesses need strong and reliable connections to survive, especially if you are part of a highly-competitive industry. Thus, you need to find a strategic partner who can help you fulfill your goals and help you achieve your company’s vision. Working with trusted companies can help you significantly improve your business performance. Doing this does not only benefit your company, but it will also give your clients more reasons to keep supporting your brand.

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