25th March

Don’t blame Nano

The article dismisses the argument that Nano would do nothing but clog the Indian roads like never before. The argument misses the point that it is not the Nano to be blamed but the abysmal public transport and road infrastructure that does the most damage.

Nano is actually a dream come true for every common man in India who aspire for a small, fuel efficient and environment friendly car. They have as equal right to buy the car as much as the urban elite has to buy those big luxury cars that take up significantly more space on roads. However, it is understood that a road full of cars would do significant damage to the urban environment. That is where an efficient public transport helps which has the potential to bring down the use of cars. Reservations about the use of Nano have more to do with poor road infrastructure, improper town planning and sad state of public transport. Even a city like Delhi doesn’t have a public transport that city car owners find worth considering. This precisely leads to increasing number of private vehicles on roads. A good public transport can solve this problem. Besides levies like congestion charges, heavy parking charges, increase in number of footpaths and cycle lanes can encourage public transport. 

Future cities must factor in adequate roads and parking space. Nano deserves the rightful appreciation while it is for the government to address the other issues.

IRDA should follow SEBI

The article insists that IRDA should slash the initial levies on direct investment in insurance policies, just like SEBI has done for mutual funds. The author talks about benefits of this step in increasing returns as well as financial literacy and at the same time the new role of agents.

While a huge chunk of first premium in policies goes towards meeting initial procedural expenses, another huge chunk goes towards the commission of agents. These changes make investors lose significantly if the policy is surrendered within three years. IRDA needs to provide a system where in the investor who goes for direct investment should be spared from these charges, at least the agent’s commission. SEBI has done the same for mutual funds. There is no entry load on direct investments, which can be as high as 2.25% of total investment. IRDA should pen down the cost and commission structure for the investors so that latter can seek better services from agents. After the commission-free investment, the investor should be encouraged to understand the insurance product better in order to be able to invest directly. 

The new found role for agents in this scenario would be to provide genuine advice to investors contrary to what they are doing presently – mis-selling the products i.e. products that fetch them highest commission.

Jaded images

The article talks about the new icon Britons have found in Jade Goody who recently passed away after being diagnosed of cervical cancer. The article finds similarities in the images of late Jade Goody and late Princess Diana and asks whether these images reflect the actual Britain.

There are many similarities in the two ladies like they both died young and in public eye, leaving behind two sons, similar struggles, hurdles they both overcome, their motherly attributes, and a raw deal they got from media and their families. It was after 12 years that Britain was looking for another martyr to cry upon. While the 27-year old single mother gave them the reason, this was it was overwhelming as not only the British PM commented somberly on her passing away just like his predecessor did for Princess Diana but 20% more Britons rushed to hospital to get them screened for cancer.

Although India has icons from sports to business and from politics to entertainment, but committed advocacy is something regarded by general public as rather amusing if not loony. But the question is that does Britain sees its reflection in these women: troubled, out of place, awkward and caught-out but eager to make up and most of all seeking acceptance and love from the fickle world? Is this the reason why each generation in Britain crowns a princess who cash in Britons by her sacrifice?