Regulations
IRDA brings in paint of vehicle under depreciable part

“In case of painting, the depreciation rate of 50% shall be applied only on the material cost of the total painting charges,” the Insurance Regulatory and Development Authority said in a statement

New Delhi: Insurance Regulatory and Development Authority (IRDA) included vehicle paint under the purview of depreciable part and fixed rate of depreciation for the same, reports PTI.

 

“In case of painting, the depreciation rate of 50% shall be applied only on the material cost of the total painting charges,” IRDA said in a statement.

 

In case of a consolidated bill for painting charges, the material component shall be considered as 25% of painting charges for the purpose of applying the depreciation, it said.

 

The changes have been brought in as it was observed that there were no uniform practices prevailing in the market for depreciation on painting, it said.

 

The change shall be applicable to all motor package policies whose risk inception date falls on or after 1 February 2013, it said.

 

To this effect, IRDA has advised all the insurers writing motor insurance policies to make the proposed changes so that policyholders are made aware and there are minimal grievances/complaints.

 

At the moment, several companies don't deduct the depreciation element from the painting charges, and painting-related claims are fully reimbursed.

 

IRDA is of the view that paint is manufactured from polymer; it should be included in the group of plastic parts.

 

The regulator has fixed 50% rate of depreciation on vehicles older than 10 years.

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Vijay Mallya writes to employees, lists out revival plan

Mallya urged the employees to be careful in their interaction with the media, alleging “negative reporting” by media on the carrier (Kingfisher Airlines)

Mumbai: With employees threatening to move court for closure of the company, Kingfisher Airlines chairman Vijay Mallya finally broke his silence through a letter to his employees saying the management is making every effort to restart operations, reports PTI.

 

At the same time, Mallya urged the employees to be careful in their interaction with the media, alleging “negative reporting” by media on the carrier.

 

The employees of the grounded Kingfisher Airlines, who have not been paid for eight months now, had threatened to file a winding up petition in the court under the Companies Act, if the management did not share its revival plan with them.

 

“We have submitted a detailed restart plan to the DGCA which is in two parts. The first part deals with a limited re-start utilising seven aircraft ramping up to 21 aircraft in four months. The second part is a full scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation,” Mallya informed his employees in the letter.

 

The letter, however, did not mention anything about the payment schedule of dues of the employees, but it said that “both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees.”

 

The airline has not paid to its employees since May last year.

 

Appealing the employees to be ‘careful’ in their interaction with media, Mallya alleged in the letter that the media has continued their negative reporting on Kingfisher.

 

Kingfisher management had promised the employees that their dues till June will be paid by December last year.

 

However, it failed to meet the deadline. The commitment to the employees had come following a two-month strike by its engineers and pilots over non-payment of dues.

 

Earlier Kingfisher had said that while the March salary would be paid within 24 hours, the April salary would be paid by 31st October, May dues before Diwali in mid-November and June salary by December end. The salary dues from July to September would be paid by March next year after recapitalisation of the airline.

 

Kingfisher, whose flying license (Scheduled Operator’s Permit), expired on 31st December last year, had last month submitted a revival plan to the regulator DGCA. The DGCA, however, did not accept it and asked to furnish additional details.

 

Kingfisher is burdened with a loss of Rs8,000 crore and a debt burden of another over Rs7,524 crore, a large part of that has not been serviced since January.

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CWG scam: Court to frame charges against Kalmadi and others on 4th Feb

 Special Central Bureau of Investigation (CBI) judge Ravinder Kaur deferred the framing of charges, saying she needs more time to go through the entire records of the case before passing any order

New Delhi: A Delhi court fixed 4th February for framing charges against sacked Commonwealth Games (CWG) Organising Committee chairman Suresh Kalmadi for allegedly cheating, conspiring and causing a loss of over Rs90 crore to the public exchequer in a Games-related graft case.

 

Special Central Bureau of Investigation (CBI) judge Ravinder Kaur deferred the framing of charges, saying she needs more time to go through the entire records of the case before passing any order.

 

The special judge has taken charge of this court on 2nd January after the earlier judge, who had ordered framing of charges, was transferred. The case was fixed for Thursday for formally framing of charges against all the accused.

 

The court had on 21 December 2012 passed the order on framing of charges under various provisions of the IPC and the Prevention of Corruption (PC) Act against Kalmadi and nine others, including former Organising Committee (OC) Secretary General Lalit Bhanot.

 

Besides cheating and conspiracy, the accused will also be charged with the offences of forgery under the Indian Penal Code (IPC) and criminal misconduct by public servants under the PC Act.

 

“Charges under section 120B (criminal conspiracy), read with 201 (destruction of evidence), 420 (cheating), 467, 468, 471 (relating to forgery), 506 (criminal intimidation) of the IPC and section 13(1) (d) read with section 13(2) (criminal misconduct by public servants) of the PC Act is ordered to be framed against all the accused,” the court had said.

 

The accused have been charge sheeted by the CBI for ‘illegally’ awarding a contract to install Timing, Scoring and Results (TSR) system for the 2010 CWG to Swiss Timing at inflated rates causing a loss of over Rs90 crore to the public exchequer.

 

Besides Kalmadi and Bhanot, the other accused in the case are OC's former director general V K Verma, former Director General (Procurement) Surjit Lal, former Joint Director General (Sports) A S V Prasad and former Treasurer M Jayachandran. They are no more associated with the sporting body.

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