Citizens' Issues
Indian nuclear insurance pool still in unclear waters
The much-awaited nuclear insurance pool to provide insurance cover to the Nuclear Power Corporation of India Ltd (NPCIL) against public liability is yet to take off with the atomic power plant operator wanting the insurers to change the terms, a top industry official said.
"The insurers have designed the policy and the IRDAI (Insurance Regulatory and Development Authority of India) has also approved this. However, NPCIL wants some conditions to be changed and the matter is under discussion," G.Srinivasan, chairman-cum-managing director, New India Insurance Company Ltd, told IANS.
According to him, the insurance policy is yet to come into effect. In June, industry officials told IANS that it would come into effect from July.
Sources in the know told IANS that for a premium of around Rs.70 crore ($10.5 million), a consortium of insurers would provide cover up to Rs.1,500 crore per incident and per year.
The proposed policy would cover the liability towards the public as a consequence of any nuclear accident in the plants covered under the policy and also the right of recourse of NPCIL against equipment suppliers.
"It's like a floater cover (insurance cover will be for all of NPCIL's plants). When a nuclear accident happens and the Rs.1,500 crore cover is exhausted, then there will not be any insurance cover for subsequent accidents that might occur during that policy year," an industry source told IANS.
While NPCIL wants the risk cover to be reinstated at the same cost, the insurers are reluctant as this would wipe out their balance sheet.
"Insurers do not want to take another risk cover of Rs.1,500 crore for a paltry sum of around Rs.70 crore," the official said.
According to him, NPCIL is not willing to pay a higher premium as it thinks even Rs.70 crore is on the higher side.
He said reinsurers want higher deductibles (NPCIL to bear claims up to Rs.600 crore).
Industry experts say the principle of insurance is spreading the risks of a few over many.
"In the case of other insurance covers, thr sum insured is reinstated on payment of premium as the risk could be spread over thousands of insured. In the case of nuclear insurance there is only NPCIL now," he said.
He said the BHAVINI fast breeder reactor company is also toeing the NPCIL line.
The government-owned Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI) is setting up the country's first indigenously-designed 500 MW prototype fast breeder reactor (PFBR) at Kalpakkam.
A breeder reactor is one that breeds more material for a nuclear fission reaction than it consumes.
India's research reactors will not be covered under the nuclear insurance policy as they are owned by the union government. And governments do not generally take out an insurance policy on their properties.
The Mumbai-based Bhabha Atomic Research Centre (BARC) and the Indira Gandhi Centre for Atomic Research located at Kalpakkam, around 80 km from here, operate the research reactors.
The central government announced in June the setting up of the Rs.1,500-crore India Nuclear Insurance Pool to be managed by national reinsurer GIC Re.
The GIC Re, four government-owned general insurers and also some private general insurers, have provided the capacity to insure the risks up to around Rs.1,000 crore, with the balance Rs.500 crore being obtained from the British Nuclear Insurance Pool.
The losses or profits in the pool would be shared by the insurers in the ratio of their agreed risk capacity.
Foreign nuclear plant suppliers were reluctant to sell to India, citing the provisions of the Civil Liability for Nuclear Damage Act (CLND) 2010 that provides the right of recourse to NPCIL against the vendors under certain circumstances for compensation in case of an accident.
The insurance pool was formed as a risk transfer mode for the suppliers and also NPCIL.
All the 21 operating nuclear power plants in India owned and operated by NPCIL are expected to come under public liability insurance cover, which will also extend to the 1,000 MW plant at Kudankulam in Tamil Nadu built with Russian equipment.
Insurers would like to issue a single policy covering all the 21 units, including the one in Kudankulam. The premium will be paid by NPCIL and the policy will be issued in its name.
Officials of NPCIL were not available for comment despite attempts by IANS.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.



It is young to die at 82, re…

Death from the eyes of an 89 year old best friend


Many had gathered in the morning for the funeral of an elderly lady in our society. Death happened suddenly last night, while she was recuperating in the hospital for the past week. So, many did not know of it as yet. As a 35-year-old something lady was passing, she wondered as to for whom was the crowd assembled. This was the conversation between her and the one waiting for the body to be brought down from the second floor apartment.

“She passed away.”
“Mr Murthy’s mother. That good natured Aunty, so well dressed always, ever-smiling. The one who used to walk around the society, morning and evening.”
“Oh, Oh my God, how?”
“She was detected with Brain Cancer, a fortnight ago and it all got over in 15 days.”
“Oh, so one good thing is she did not have to suffer undergoing radiation, chemotherapy…by the way, how old was she?”
“82 years.” 
“Oh, she had a fulfilling life plus no suffering at the end of her life. Better to go this way. You know how that other Aunty, bed-ridden for so many months…”
And then a heart-tugging wail could be heard amidst the crowd. It was Phadnis Aunty, all of 89 years, with a crutch in one hand and her other arm resting on her ‘bai’. Slightly bent and unstable in her gait, she kept moving forward. Someone offered her a chair. She sat down, looking around in a daze.
I walked towards her. She held my hand and cried, “Oh, how can I live without Malati, my best friend. She had promised me that she would be the first one to come to me if I die, even before my son reaches me. She had assured me, no she had assured me. No, she can’t go like this.’ Malu, you had promised naa…then how could you go?”
Tears welled in my eyes.
I sat beside her. Phadnis Aunty continued, “I am 89 years and she, 82 years – much younger than me. Every evening we chatted for hours. I could call her even at midnight if I felt any discomfort. She used to tell me what to eat and what not to; give me tips for recovering, if I fell sick. And how can this then happen to her…Cancer and all that. And they hid this all from me. They just told me few days back. No, no, it is not possible to live without her. You may give me many reasons to live without her, but no, I cannot.’’
Phadnis Aunty had called up her son, who lived about 5kms from where she stayed. She told me, “I have told Rajesh…I have informed him. I don’t know whether I spoke properly to him and whether he understood what I was telling him. And now I have left the mobile at home.” 
We got the mobile for her. She called up again. “I am waiting below. They have not yet got the body down. I want to just tell you.” He seemed to have said, okay, fine. 
She turned to me, “When my daughter-in-law (my son’s wife) died and I informed Malu, she did not know my son’s house, but she insisted that she must attend the funeral and she was amongst the first one to land there. I am not going to insist, but thought he should have been here.” I could see a deep pain in her eyes.
Then the body came down, bedecked with a rich grey and golden chanderi saree. Phadnis Aunty stood up…I led her to facilitate her to pay the last respects. She put her hand into the plastic bag of flowers… she showered a couple of them and broke down once again. The flowers though slipped to the ground. She asked me to get a few more flowers. She bent down deeper and properly placed them at her neck.
As the body was lifted into the ambulance, Phadnis Aunty sobbed. Then she asked, “She’s gone?” I nodded.
Eighty-five-year-old Mishra Aunty, not really very close to Malu Aunty, came towards Phadnis Aunty, seeing that she was still distressed and said, “Usme rona kya, we are all in the queue. Malu has jumped the queue – hum toh sab age piche hai.”
Phadnis Aunty nodded her head. She took the support of her `bai’ and started walking towards her ground floor flat.
I too came away, realising even more the worth of a true friendship, where it is always too young to die. 
(All names mentioned above are changed)



MG Warrier

10 months ago

Whatever be the 'moral of the story' Ms Deshmukh intended to convey, there is always a heaviness in the heart of elders when 'younger' ones leave. I am 71. I remember, in 1959/60 when my mother's youger sister passed away in a village 200 km away and a person travelled all the way to convey the sad news, my mother an I were sitting in the verandah. When the person conveyed the news, my mother broke down and when she got over the shock, the question she asked was "How can I tell this to mother?" Whatever be the age, the elder person will find it tough to reconcile with loss of younger ones.

76% Indian adults financially illiterate: Survey
Over three-fourth Indian adults do not adequately understand key financial concepts, including risk diversification, inflation and compound interest, finds a global survey carried out by S&P 
Rating agency Standard & Poor's (S&P) has said that 76% of Indian adults do not adequately understand key financial concepts, including risk diversification, inflation and compound interest. This is lower than the worldwide average of financial literacy, but roughly in line with other BRICS and South Asian nations, the ratings agency found out in its Global Financial Literacy Survey.
The survey results come from interviews of more than 150,000 adults across over 140 countries. Individuals were tested on their knowledge of four basic financial concepts: numeracy, risk diversification, inflation, compound interest (saving and debt).
S&P said, "Only 14% of Indian adults correctly answered the question on risk diversification. Conversely, 56% answered the inflation -question correctly. About 39% of adults who have a formal loan are financially literate, while more than a quarter (27%) of formal borrowers was found to be not financially literate. Only about half of the participants (51%) understood compound interest. 
S&P's Global Survey also shows a material gap between men and women in almost every country. Worldwide, there is a five-point gender gap, with 65% of men not being financially literate compared with 70% of women. In India, the gap was wider with 73% of men and 80% of women not being financially literate, the survey shows. 
Additional key findings on India from the S&P Global FinLit Survey:
  1. In India, 26% of adults in the richest 60% of households are financially literate, compared to 20% of adults in the poorest 40% of households. Worldwide, 36% of adults in relatively richer households and 27% of adults in relatively poorer households are financially literate.
  2. India's income gap deepens when broken down by topic. Poor adults are 21%age points less likely than richer adults to correctly answer the compound interest topic correctly. With regard to interest, the gap is 11%age points.
  3. 38% of adults with tertiary education are financially literate; compared to 30% of adults with secondary education, and 18% of adults with primary education.
  4. The survey also uncovered information about consumers' familiarity with the financial products they utilise. While the array of financial products available in Asia continues to grow rapidly, S&P's FinLit Survey suggests that most consumers lack a general understanding of credit, compound interest and other key concepts. Research increasingly shows that saving money is better for development than credit. Yet, just 14% of adults in India save at a formal financial institution - and their weak financial skills raise questions as to whether they're getting the most out of their money.




Subramani P K

10 months ago

Over the years financial system has become so complicated people refuse to make an attempt to know anything. Besides, for a population over 700 crores in the world survey done with 1.5 lakhs people is not representative. All countries should simplify the financial system & make it a regular teaching subject in the school instead of unwanted history etc. to create awareness from now on atleast. If necessity comes even elders will learn just like cell & computer operation has become common with every one young & old.


10 months ago

76% Indian adults financially illiterate: Survey./because they do not have such SAVINGS and do not have time to enalige such complicationsns some even after cheated by the institutions like UTI , IDBI

Ashwin Mehta

10 months ago

Out of 1250000000 people the sample size is just 0.0001%. Such surveys are meaningless and hardly represents correct picture. Agreed that people here may not seem smart as western thinks of themselves,but they manage pretty well their affairs.

Ganesh Kamat

10 months ago

1) For Big Tax collections
take 1% Tax from 20 Taxpayers
than 20% Tax from one Taxpayer.

2) Simple Tax of 1% on Receipt /Transaction /Interest /Sale /Gift /Loan /Benefit /Salary /Dividends /Rent /Custom.....
any & all inward cash, Cheque etc.

3) Average say on Rs 30 L Receipt,
Pay Rs. 0.3 Lac Tax per year.
If Taxpayers = 60 Cr.
Tax collection will be 18 L- Cr.

4) Simple Tax means more Taxpayers, more collection & No refund Problem.

5) At present, we have say @ 3 Cr Taxpayers,
with Collection of say @ 3.5L-Cr,

6) So with 1℅ Tax, the Taxpayers will work to improve Business / Goods Services/ R. & D. / Social work.
So more Employment, make in India, less Farmer Suicide & Peace of mind to the people.

7) Bank Account number is your mobile number.

8) Tax payment by your mobile number @ RBI a/c,
In bank transaction, the Bank will deposit your 1℅ Tax by your mobile number @ RBI a/c directly.

9) For cash Transaction pay similar to Post paid Mobile charges,
to your mobile number @ RBI a/c.
Most will pay if the Tax is 1% & simple to pay.

10) Your Bank Account Number should be mobile number & connected to PAN/ AADHAAR /Passport/ Election Card etc. For Simplicity.

11) Tax collection will be distributed to State & Local bodies, say 10% each, from the place of collection.

12) Also add 1% more (L.P.F.)
Less Privilege Fund,
similar to PPF for,
social / self benefit,
to give Power to the people for Social Cause / in your bad days.

13) In short Pay Rs. 20- for every Rs. 1,000- Received.

i) Rs. 10- as tax to RBI
ii) Rs. 10- in your (L. P. F.) a/c. Could be use for social cause/ for your bad days.

14) L. P. F. (Less Privilege Fund)
of 18 L- Cr, with 60 Cr voters, will reduce dependency on the Government for the Social development. Fund will be used for the Social cause / in your bad days.

15) Keep faith in 60 Cr voters, as they will take care of their neighbours, in need.
Also most will pay, if Tax is 1℅ & Simple to pay.
Only Indian can make better India.

16) Can consider more tax for Higher Receipt, say above 0.5 Cr per year, payable at the year ending.

17) All Transactions are Traceable as mobile number is once Bank a/c number & connected to PAN/ AADHAAR / Election card.....
So, No Corruption & Black Money Problem.

18) Babus Harassing the youth,
Traders,Farmers, Voters.. who wants to work.
Babus are ruthless as they
pay "Protection Money" to......?
for Posting/ Promotion/ Permit...
Administrations Reform is a Must,
For getting Votes too!!

19) Farmers suicide can get reduced, by encouraging them to sell their farm products on Railways to commuter & roads to motorists, also we need more Passenger Train, to help farmers to sell farm products, to nearby Towns.

20) Expecting Feedback on How to make India Peaceful Place by Refined, Simple Laws.
No blame game please.
Media/ Babus /Netas /Judicial Role is Eminent along with People.

For "Sare Jaha Se Achha Hindustan Hamara." forward this message.
[email protected]


10 months ago

Less they understand better for the cheaters.


10 months ago

S&P doesn't seem to be aware about five kinds of Financial Illiteracy discovered in India . . .

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