EDITORIAL
WATER
SCARCITY
Complaints continue to
pour in from all parts of the city regarding water
shortage. This happens when the summer is yet to show its
severity. In fact, this scarcity had begun to manifest
itself about two months back as indicated by interrupted
evening supply, lack of any time for the morning supply
and pressure variations. It has been deteriorating by the
day so much as that evening supply is now virtually
stopped. As the summer tightens its grip on Jammuites,
there are genuine apprehensions that morning supply would
also be affected. Discreet enquiries made reveal that the
current scarcity is being caused either due to power
interruption .more
CIVIC
AFFAIRS ENCROACHMENTS
One is indeed amused at
the news item that Municipality has launched massive
drive against encroachments once again. The areas
mentioned are Indira Chowk, New Plot, Pacca Danga, Rehari
Chungi, Moti Bazar, Rani Park, Chowk Chabutra,.....more
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The
Inside Truth-III
Admiral
Bhagwats status
reports aroused resentment From
B L Kak
The Prime Minister, Mr Atal Behari Vajpayee, and his
over-active Defence Minister, Mr George Fernandes, will
not...more
Know
thy enemy
By O P Modi
One may hope that after what the Talibans have done to
the historical statues of Lord Buddha in Bamiyan
(Afghanistan)...more
Continue
with privatization
By Bharat Jhunjhunwala
Enron has led to the collapse of the Maharashtra
Electricity Board and may be the State's economy. Yet
that does not mean tha...more
Travel
insurance:
A
guideline
By D K Arora
As many travellers have learned quite painfully, there is
always the risk of accidents, illness and loss of one's
valuables in ....more
|
EDITORIAL
WATER SCARCITY
Complaints continue to
pour in from all parts of the city regarding water
shortage. This happens when the summer is yet to show its
severity. In fact, this scarcity had begun to manifest
itself about two months back as indicated by interrupted
evening supply, lack of any time for the morning supply
and pressure variations. It has been deteriorating by the
day so much as that evening supply is now virtually
stopped. As the summer tightens its grip on Jammuites,
there are genuine apprehensions that morning supply would
also be affected. Discreet enquiries made reveal that the
current scarcity is being caused either due to power
interruption or depleting ground water. This again is
attributed to prolonged dry spell in the absence of
winter rains. There are also reports of failure of pumps
and that usual tug-of-war between the mechanical and
civil wing blaming each other rather than addressing to
the problem in businesslike manner. And that old habit of
holding power managers responsible for burning/damaging
of pumps due to voltage fluctuations refuses to die. Upto
this the problem is understood.
The million dollar
question is what next? Has this Government prepared
itself to meet the potable water demand which is bound to
increase as the mercury begins to shoot up? Going by the
statements and figures reeled out by the concerned
ministers and the officials in the recent past, water
supply is supposed to have been augmented substantially
with the commissioning of new tubewells and filtration
plants. All such schemes carried at huge expense are
supposed to be in place by March 31. The facts however
speak otherwise. The fact is water supply is getting
depleted by the day and water managers have no answer
asto what next. It is certain that Government is not
ready with any contingency plan to quench the thirst of
the people with potable water. Where are the new
tubewells? Where is the large capacity filtration plant?
What has been done to deepen the existing wells if ground
water level has gone down? Why nothing has been done to
plug the leakages galore? Now don't you tell that tanker
supply would be arranged wherever the scarcity is
noticed. That is simply not on as far as old city is
concerned. Augmentation has to be such asto ensure
regular water through pipes. By any reckoning official
machinery and those in the power apparatus should have
taken the situation more seriously. These are the crisis
in the making with trailors already visible in almost all
the localities. One shudders to think of the real scene
which awaits hapless citizens. They already have enough
in terms of acute power supply with curtailment refusing
to end even when snows have started melting. Irrespective
of how much money is needed, augmentation of water supply
needs to be taken up on war footing. The good managers
are those who correctly anticipate the emerging
situation. Bad managers are those who wake up only when
crisis become acute and then they begin patch-work
business, socalled emergency measures full of alibis and
loopholes that refuse to provide any visible relief.
There is a saying that forewarned is forearmed. People
would like to see instant reaction in the ruling
hierarchy and bureaucracy with practical measures to
ensure smooth, adequate and timely supply to the city of
over a million.
One would also like to put
a poser asto what has happened to the Rs. 435 crore
scheme for lifting water from Chenab at Akhnoor to meet
the growing demand of the city of temple. For all one
knows this scheme was mooted during gubernatorial spell,
mentioned off and on by the popular Government but
nothing has moved. It shows apathetic attitude. Had it
been started in right earnest by now the scheme would
have been nearing completion or already pumping water to
the city. It is indeed a case of wrong priorities or
better call it pusillanimous approach. Non-completion of
Burn power receiving station is another example of
ignoring vital needs of the people. Even now usual alibi
of funds shortage is mentioned for non-completion. This
happens when 90% of the works are over and funds
starvation comes when only 10% is left to be completed.
Let it be clearly understood that such schemes must have
priority over frivolous pursuits.
The concerned minister
should see to it that new wells are commissioned
immediately, other deepened and all possible steps taken
forthwith to augment the potable water supply.
CIVIC AFFAIRS -
ENCROACHMENTS
One is indeed amused at
the news item that Municipality has launched massive
drive against encroachments once again. The areas
mentioned are Indira Chowk, New Plot, Pacca Danga, Rehari
Chungi, Moti Bazar, Rani Park, Chowk Chabutra, CPO Chowk,
Kachi Chhawni and Exchange Road. Municipal staff claims
to have removed encroachment from footpaths and
unauthorised display counters (extension of shops towards
roadside). Incidentally, these are the same areas which
have been often mentioned in the past anti-encroachment
drives. One really can't recollect how many times. This
is thus candid admission that earlier drives in the same
areas/localities did not last for more than a day. This
puts a big question mark on the efficacy of the drive and
sincerity of those entrusted with the task. Regular
encroachers surface again and again with more menacing
form. It makes mockery of such drives. They surface
precisely because of the well-known mili-bhagat between
the encroachers and those entrusted with the task of
removing them. Another type of encroachment that
interferes with smooth flow of pedestrian and vehicular
traffic is mushroom growth of unlincensed rehris. They
position the rehris at most pivotal points. It speaks
volumes about those who have miserably failed in removing
this nuisance. There is awful regulation in this sphere.
Even those licensed keep on extending the areas on wheels
with all types of extensions. This is simply not possible
except with the active connivance of the municipal staff.
It is not the question of self-employment. It is the all
important question of interfering with the smooth life
and movement of the citizens. Jammu is not equipped to
allow all Toms, Dicks and Harrys from all over India to
become rehriwalas. No city can afford to be so
'benevolent' whenever drive is launched they are 'made'
to enter side lanes. The moment municipal staff/police
leaves they re-appear. One really doesn't know who is
befooling whom as the nuisance refuses to disappear. In
fact, there is ever increasing number of such rehris
which shows total lack of control/concern. It is not for
any citizen to suggest how the anti-encroachment drive
can yield lasting results. It is upto the municipal
bosses to do it. People want visible results. Results
unfortunately have been conspicuous by their absence
despite repeated and tall claims of many
anti-encroachment drives carried out in the past. How do
you explain encroachments in Purani Mandi area all around
the 'power park' and even inside?
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The
Inside Truth-III
Admiral
Bhagwats status reports aroused
resentment
From B L
Kak
The Prime
Minister, Mr Atal Behari Vajpayee, and
his over-active Defence Minister, Mr
George Fernandes, will not be able to
live down the monstrous wrong they
perpetrated in dismissing Admiral Vishnu
Bhagwat from the post of Chief of Naval
Staff (CNS). True, the dust has fallen on
the Bhagwat episode. But the episode has
again drawn attention of various
individuals and organisations, with the
circulation of the book-Betrayal of
the Defence Forces: The Inside Truth.
The book,
according to its publishers, Manas
Publications, seeks to demonstrate how
the Vajpayee Government violated the
provisions of the Constitution, Navy Act
1957 and Navy Regulations (Statutory) in
what has been termed as "an
unprecedented political act",
against the disciplinary framework of the
Armed Forces, while dismissing Admiral
Vishnu Bhagwat.
Soon after
he had taken over as CNS, Admiral Bhagwat
gave directions to revive a practice he
had instituted as Deputy Chief in
1992-94-that is, to send monthly status
reports on cases pending to the Defence
Secretary and Additional Secretary with a
copy to the Financial Advisor (Defence).
The practice was refined, using a new
computer format, using red papers for
cases over five years old, yellow sheets
for cases pending for over four years,
blue sheets for cases over three years in
the mill, and so on up to six months.
Admiral
Bhagat says in his book: "I began to
send these status reports, every month,
to the Minister, to start with Mr Mulayam
Singh Yadav and later Mr Fernandes. These
status reports aroused resentment and
were perhaps seen as an intrusion and
interference in the working
of the MoD (Ministry of Defence), whereas
any positive, constructive officer would
have regarded them as a sound monitoring
device, to help speed up
decision-making".
"This
is the prevalent culture of the
Ministry", the book regrets. It
says: "The real power, however, lay
in postings, transfers and promotions.
This is where the Ministry excelled in
creating a constituency, encouraging
individuals to tell talks about others,
their seniors, their colleagues and the
system as it operated".
The book
also regretted: "The bureaucrats had
not a clue as to the content of a job,
but even postings of Captains (Colonel
equivalent) in the Navy and Air Force had
to go through the Ministry for
approval and were
approved at the Additional
Secretary level, whereas at the Service
Headquarters they had been approved at
the level of the Chief. To beat it all in
the Army, the Chief of the Army Staff
approved the transfers and postings up to
the level of Brigadiers, though not
promotions".
When Mr
Mulayam Singh Yadav was the Defence
Minister, the Chief of the Air Staff and
the CNS took up with him the case to
delegate the administrative powers to the
Chief in line with the Army. The
bureaucrats, according to Admiral
Bhagwat, put up a stiff resistance.
However, the Minister approved the
Chiefs proposal.
The
bureaucrats in the Ministry of Defence
again put it up noting that elections had
been announced and the Minister might not
find time to apply his mind to this
important matter. The then Defence
Secretary, Mr Ajit Kumar, the book
revealed, wrote the final obituary on the
file stating that the Ministry would lose
all control over the Navy and Air Force,
if this proposal were approved.
The book
has emphasised that the Defence Service
regulations clearly stated that the
Chiefs were responsible to the President,
through the Central Government, for the
operational readiness, preparedness,
training organisation and administration
of the Services. Mr Mulayam Yadav,
finally, signed and approved the file on
March 12, 1998, with the comment that he
was not at all convinced with the logic
of the Ministry of Defence, and the
proposal of the Chief of the Navy Staff
and the Chief of Air Staff on this
subject was approved.
Interestingly,
however, the Defence Minister (Mr Mulayam
Yadav) had forgotten to put the date
under his signature, though the out-diary
number and date (12.3.1998) was clearly
put on the margin of the Ministers
note. Mr Mulayam Yadavs approval
was not honoured, because the new
Government took office on March 19 and mr
Ajit Kumar, according to Admiral Bhagwat,
knew he could simply lock the file away.
After
Mr George Fernandes took over as the
countrys new Defence Minister,
Admiral Bhagwat informed him that his
predecessor (Mr Mulayam Yadav) had
approved the proposal. "The Defence
Minister heard and nodded, grasping the
logic, the Secretary (Mr Ajit Kumar)
pretended not to hear, and the minutes of
the very first meeting failed to record
this point", Admiral Bhagwat says
and adds: "I patiently reminded the
Minister at the next morning meeting in
April and he said he would call for the
file and look into it".
Admiral
Bhagwat and Air Chief dutifully reminded
Mr George Fernandes in every alternate
morning meeting and the response was
always the same. It never seemed to be
happening. And Admiral Bhagwats
confession: "So they won, we lost!
They had mastered the system in spite of
this being my 7th tenure at Naval
Headquarters and now although a Chief the
bureaucracy still won, as it almost
always did".
Admiral
Bhagwats book has an interesting
piece of information: The Air Chief had
once at dinner told the previous Minister
of State, Mr NV Somu, and even Mr George
Fernandes that Pakistan we could take
care of; how do we deal with our
friends in the Ministry who
were always on the other side.
And the
book laments: "This has been the sad
story and it is getting sadder. Most
senior officers of the Services take it,
while away their tenures, and learn to
enjoy other pastimes. The message is
massage the ego of the
civilian. If you can, keep you
spine, if you have any left, away from
the scene".
Admiral
Bhagwat has also placed himself on record
as saying: "If we are lucky we
dont see a war; though I daresay
even the price being paid by the soldier
in several parts of the country where
plain poor governance has alienated the
people, is heavy enough. Who cares, as
long as media management is good
well get by, so look after your
favourite journalists who will report
what you want them to. It never pays to
tell the truth to others. Behead the
messenger who dares tell the
truth".
(To be continued)
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Know
thy enemy
By O P
Modi
One may
hope that after what the Talibans have
done to the historical statues of Lord
Buddha in Bamiyan (Afghanistan) the real
face of Indias enemy would have
become manifest to the NDA government at
the Centre. It is the same mindless
humans face which despite
Indias unilateral cease-fire
continues to march straight into security
forces camps, opens fire and gets killed
in the hope that it would go to the
heaven after killing the
"infidels".
Despite
vehement international outcry and appeals
by the Islamic countries, against the
demonic resolve of the Talibans to
destroy the world heritage of the tallest
statues of Budhha the monstrous regime in
Afghanistan has shamelessly announced
that it has completed the barbaric
assignment entrusted to it by its chief
Mulla Mohammad Omar.
It is this
Pak-US Frankenstein that has entered
J&K in large numbers and is now
spreading its tentacles far and wide
taking advantage of the unilateral
cease-fire. It is he who mutilated the
bodies and gouged the eyes of our valiant
soldiers who had become Pakistans
prisoners of war in Kargil. Let New Delhi
realise that we are up against a most
ruthless, mindless, barbaric and
determined enemy. He does not understand
our language of peace and cease-fire. He
is vicious and cannot be won over by any
sweet talk, compassion and love. He has
to be dealt with firmly and ruthlessly.
Loose
Talk
"Sky
is the limit", said Narasimha Rao
former Prime Minister in respect of
solving Kashmir tangle. " The issue
could be settled within the ambit of Insaniyat",
said Prime Minister Vajpayee. "There
is no cease-fire, it is only a cessation
of combat !", says Indias Home
Minister Advani. Having said this the
Home Minister repeatedly says that the
cease-fire should not be taken as a sign
of weakness! "We are giving a chance
to peace", say the leaders of the
NDA government.
All these
and many more lax statements are off and
on made by some Indian leaders while
referring to the complex Kashmir problem.
And all this is said despite an unanimous
resolution passed by the Indian
parliament declaring whole of Jammu &
Kashmir including PoK and Northern Areas
as integral parts of the Indian Union. Is
there any scope for statements of this
sort when the Prime Minister himself says
that there cannot be any compromise over
the integrity of the country?
In fact
the cease-fire is not proving to be a
chance for peace. However it is turning
to be an opportunity for the militants to
organise themselves, bring in heavy
weapons and establish their bases in the
state. Security forces are being attacked
in their camps. Officers and men are
being killed. Hundreds of civilians have
been done to death and many more have
been rendered home less during the
cease-fire. Migration from even Rajouri
and Poonch has started by both Hindus and
Muslims. Where is the peace then?
Such
dilly-dallying attitude towards the most
consequential problem of Jammu &
Kashmir has not only emboldened the enemy
it is also demoralising the security
forces and confounding the people at
large.
Arjunas
syndrome
The fact
is that the NDA government is suffering
from Arjunas syndrome.The malady
persists. During the last millennium of
abject surrender to the aggressors, the
Indian society has exhibited the same
symptoms which Arjuna displayed when the
Mahabharta war was about to start. On
seeing his kith and kin, gurus, and
friends arrayed on the opposite side,
Arjuna vehemently argued before Lord
Krishna against the war; though it was
precipitated by the Kurus by refusing to
part with the empire which legitimately
belonged to Arjuna and his brothers.
Getting no favourable response from the
Lord he sat down on the seat of his
chariot and abandoning his bow and arrows
said, "Should the sons of
Dhrtarashtra with weapons in hand slay
me, unresisting and unarmed
in the battle, that would indeed be
better for me" ( Gita:I. 46,47.) To
this the Lord said, "Whence
has this unmanly dejection come upon you,
at this juncture, O Arjuna? Yield not, O
Partha, to feebleness. Cast off this
petty faint-heartedness. Wake up, O
vanquisher of foes!" (Gita:1,2 II)
Through
out the discourse in the Gita the Lord
exhorts Arjuna to discharge his duty
fearlessly, selflessly, and without any
attachment for the results. The escapist
mentality is decried and as the death is
inevitable for the one who is born, one
should not be afraid of it. The Indians
failed in their duty to protect their
motherland from aggressors during the
past millennia because the message of
Gita was lost upon them. To face the
growing threat to the sovereignty of
their country from the fundamentalists of
all hues the Indians have to go back to
the teachings of Bhagavad Gita. The
greatest sin, of course, is to lose
freedom and value slavish mentality. The
message of the Gita is clear and is
profoundly applicable now as never
before.
No war,
much less a proxy war, can be won without
firmness in words and deeds. Finding that
at the ground level the unilateral
cease-fire is working to their advantage
it is but natural that Pakistan and its
agents should consider it a sign of
Indias "weakness". The
challenge of a savage and heartless enemy
can be effectively met only when we stop
believing that he is weak and that he can
be won over by pep talk of peace and
friendship.
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Continue
with privatization
By Bharat Jhunjhunwala
Enron has led to
the collapse of the Maharashtra Electricity Board
and may be the State's economy. Yet that does not
mean that the policy of privatization itself is
to blame. Just as one does not abandon the road
due to an accident so also we must not abandon
privatization due to this disaster. The real
difficulty is that the Government machinery is
not willing to pass on the benefits of
privatization to the people and wants to usurp
all of it itself. The people will benefit from
privatization only if the savings from subsidies
are passed on to them.
There has been
many a case of blotched privatization. Writer
activist Arundhati Roy has pointed out that the
Bolivian Government roped in US Engineering giant
Betchel to privatize water supply in the city of
Cochacomba. The first that Betchel did was to
triple the price of water. The consequent public
uproar led to Betchel having to flee. True though
these facts may be, this does not mean that
privatization was wrong. Let us say the cost of
production of water under the public sector was
Rs. 10 per cubic metre but it was being provided
at Rs. 2 with Rs. 8 being the subsidy. It can be
that the private producer brought down the cost
of production from Rs. 10 to Rs. 5, added its
profit of Rs. 1 and sold the water for Rs. 6. The
consumer indeed would have to pay three times the
price. But that does not mean that is bad. The
country would be now saving Rs. 8 in subsidies
while paying only Rs. 4 as additional charges.
The people will nevertheless not buy this, and
correctly so, unless the saving of Rs. 8 in
subsidies is passed on to them in the form of tax
relief. If the Government continues to tax the
the people as previously and imposes additional
burden by tripling the water charges then indeed
there is reason to resist privatization. The
problem lies not in privatization per se. The
problem lies in the Government depriving the
people of the benefits arising therefrom.
But this happy
situation does not mean that private business is
a do-gooder. We know that children as young as
7-8 years were whipped and made to work for up to
16 hours in the textile mills of England. Drug
companies routiney charge exorditant prices for
their life saving products. Our zamindars would
not only pay meager wages but also molest the
womenfolk of the poor. Private doctors will
remove organs of unsuspecting patients and sell
them away. Might it then be that privatization
will land us from the frying pan into the fire?
Indeed this is
possible as the Enron fiasco indicates.
Maharashtra embraced this MNC in the hope of
meeting its needs of power. But it has landed
into a soup. It is not able to buy the power at
the agreed price and is having to pay for not
purchasing the agreed amount of power.
But the public
sector is not better. Russia collapsed under its
weight. Fully protected from competition,
Government officials ran inefficient mills,
produced expensive goods and forced the people to
buy them. Indira Gandhi nationalized the banks in
the sixties leading to the banks squandering away
people's savings through bad loans. The State
Electricity Boards have become institutions of
stealing power for private gain.
The difficulty
then is that, left to itself, neither the private
or the public sector is able to deliver. The
solution to this difficulty lies in friction
between the two. The division between the
Kshatriya and Vaisya in our tradition is a part
of this solution. The primary responsibility of
producing various goods like water, electricity
and banking services lies with the Vaisya. But he
is not to be left free like the British textile
mill owners or the Indian zamindars. Instead the
Kshatriya was to keep on eye on their
performance. The British Government performed
this same function by enacting legislations such
as the Factories Act; and the Indian Government
by regularizing tenancy. The friction between the
private sector provider and the public sector
regulator made the private sector function
properly.
It could be said
that if the Government has the capacity to
regulate then why does it not use that capacity
to provide the services itself? The problem is
tyranny of the State. Theoretically the Russian
Government could have run its industries
efficiently. But it was not able to do so because
there was no agency which could watch its
efficiency. What started off as a pro-people
socialist measure gradually turned into its
opposite. The market is a great instrument for
begetting efficiency.
The separation of
the provider and regulator is one step better. If
Betchel raised the prices of water three times
there was atleast the possibility of protesting
before the Government. If the municipality had
made a similar increase who would not complain
to? If Enron has taken Maharashtra for a ride at
least the people have balked. Separation of the
roles implies that two agencies, not one, have to
degenerate for the system to fail. Just as a
tricycle is more stable than a bicycle similarly
involvement of three agencies --- Government,
business and the consumer --- is more stable than
the involvement of two.
It is nevertheless
possible that the Government regulator can be
bought off by the business. Even if that were the
case it is still not worse than direct provision.
It will always be easier to put a wedge between
the Government and the business than pleading
one's case before either of the agencies singly.
The problem with
Enron lies not in privatization. It was better to
have Enron produce the power and for the the
Government to regulate. But the Government
blotched it by bending backwards to accommodate
each of its demands. There was a failure of
Governance. The Union Government was anxious to
attract Foreign Investment and did not heed the
warning given by its own agencies like the
Central Electricity Authority. The State
Government was probably more interested in the
kickbacks. Enron is reported to have spent Rs. 33
crore in 'educating' the Indian people! This only
means that it was a case of bad privatization. We
must renegotiate with Enron. It does not mean
that the policy of privatization was bad.
Privatization must
go on despite Enron. These are lessons we have to
learn along the way. It is time we recognize that
MNCs come to India not to secure our development
but to extract our wealth. Thus the Government
will have to overcome its infatuation with
dollars for privatization to succeed.
The bigger problem
is that the benefits of privatization have to be
passed to the people. It is clearly nonsensical
to impose tax of Rs. 8 on people to provide them
subsidized water at Rs. 2. But it is worse to
continue to impose the tax of Rs. 8 and also ask
the people to buy water for Rs. 6. If the people
have to be persuaded to pay Rs. 6 for the water,
as they must indeed do, it is also their right to
get relief in the tax. Unfortunately here the
Government is entirely frozen. The Government
establishment wants to continue taxing the
people. It wants to augment its kitty for
corruption and wastage. It would be easier to
sell privatization to the people if it were tied
to specific reductions of taxes. This is what the
Government must do.
|
Travel
insurance: A guideline
By D K Arora
As many travellers
have learned quite painfully, there is always the
risk of accidents, illness and loss of one's
valuables in journeys. The suffering and losses
can be costly, and refunds or other compensation
can be hard to obtain. For these reasons, it is
wise when planning one's trip to know about
various kinds of travel insurance.
Accidents are
unpredictable. So can be illness. Sometimes, the
best emergency aid is close at hand, but often
there is nothing nearby but deep blue water,
snow-capped peaks, dense jungle or a desert.
I am reminded of
an incident in which an adventurous acquaintance
of mine, in his early 30s, was scuba - diving in
the apparent serenity of Caribbean Sea off the
Grenadines. Suddenly, a shark bit off his right
leg. In excruciating pain, he struggled ashore,
where fortunately he found a villager to help
him. But there was no doctor and no nurse. There
was not even a first aid station. Fortunately,
the villager did have access to a two-way radio,
which eventually brought paramedical assistance.
A week and
spending of thousands of dollars later, much of
it on a flying ambulance, my friend was resting
comfortably in a hospital in Philadelphia, USA.
Surgeons there had reattached his leg, and he
hoped to walk unassisted soon. He was especially
grateful that he had the foresight before his
trip to buy enough travel insurance to cover all
of his emergency expenses.
But let us now
think about you - the reader and an avid
traveller. Do you need travel insurance when you
drive to a national park for a week's vacation?
Yes! Do you need it when you sign up for a deluxe
escorted tour of London, Paris and Rome, even
with the excellent physicians and hospitals in
those cities? Yes!
Do you need it on
a bicycle tour of Vermont, hike in the Swiss
Alps, a carefree week at a couples resort in
Jamaica or at Club Med? Yes! Do you need it for a
cruise on a 2,000 passenger superliner that has a
state-of-the-art dispensary on board? Yes!
Of course, there's
a lot of travel insurance out there, and you
don't have to buy everything that's offered. So
before you visit a travel agent or any other
insurance provider, investigate the coverage you
already have.
Suppose you have
an accident in a rented car. Will at least some
of the property or personal injury damage be
covered by the auto insurance on your own car, by
the credit card company to which you charges the
rental, or by other personal insurance? Only if
the answer to all of these questions is 'no',
then you might like to have the collsion - damage
or liability waivers that rental companies try to
sell. Suppose you need emergency medical
assistance in a foreign country or abroad a
cruiseliner. Who pays? Most probably you, unless
you have purchased insurance that specifically
covers it.
Suppose your
baggage is lost en route of valuable jewellery
stolen. If you have homeowner's insurance that
covers losses away from home, you don't need to
buy anything extra. Limited emergency assistance
may be provided through possession of a credit
card. And while travel insurance may protect you
against default of an airline, cruise line or a
tour comany, it won't cover default by any
business, such as a travel agency, for which you
paid directly.
Here, I am
reminded of an incident concerning a friend on a
trip from Washington DC to Chicago on a Greyhound
bus. He had done a good amount of shopping during
his trip and was also carrying some expensive
gifts from India for his friends. His baggage was
mishandled and lost during the trip. You can
imagine his plight. He had not insured his
baggage.
For many
travellers, your most important coverage is for
penalties for interrupting a trip or cancelling
it, shortly before departure. You could lose your
full payment and have the added expense of
getting home from wherever the trip is
interrupted. The cancellation penalities are
stiff, because tour companies, airlines, cruise
lines and resorts are not notably generous when
they suddenly find empty space on their hands
that they can't resell. It used to be easy to buy
this insurance alone, but claims have proved so
costly to companies that they now tend to package
cancellation with health, accident and baggage
coverage that is less costly to them.
There are many
restrictions to this type of coverage, however.
In a typical case, you cannot expect coverage, if
you have prepaid a trip and simply decide not to
go. You probably will be covered in the event of
death or serious illness of a travelling
companion or a close relative at home. But you
usually won't be covered, if a pre-existing
health problem is still present' even a routine
visit to a physician can rule you out, if your
condition is connected to a chronic ailment, even
one that's been inactive for years. The exception
to this rule is that you will be covered, if you
have purchased the insurance within seven or 14
days, depending on the insurance company, and
having paid the initial deposit for the trip
itself.
The insurance can
be costly, but unfortunately, often worth it.
Although you may be shelling out several hundred
non-refundable dollars for insurance, it could
potentially cover unlimited amounts in tour
payments, though actually it may be used for only
$50 in penalities, if you cancel far ahead of
departure. No matter how much cancellation
insurance you buy, it will cover only the amount
that is not refunded by the travel companies. But
if your trip goes off smoothly, you can't get a
refund from the insurance company, and your
coverage could end up costlier than your
potential losses over the trip. Cancellation and
refund policies of major tour companies and
cruise lines vary widely. Obviously, insurers
prefer those offering generous refunds.
They may even
refuse to cover companies with stiff cancellation
policies, such as the long-standing policy of
Renaissance Cruises, which advertises luxury at
bargain fares. For example, Renaissance could not
give any refund, if you cancelled within 120 days
of departure. It charged $1,500 per cabin for
earlier cancellations. At booking time, you paid
a deposit of $750 per persons, with the balance
due no later than 120 days before departure.
After Renaissance adopted these restrictions in
February 1999, major insurers stopped covering
the company. Stung by this and by continuing
stiff criticism from the American Society of
Travel Agents for marketing directly to
consumers, instead of through agents, Renaissance
announced in mid-June its intention to revise the
policies.
One must also be
careful about the total insurance required. One
can easily buy more insurance than the possible
need. For example, while travel insurance may
guarantee payment for medical care wherever you
are, or evacuation to where there are better
facilities, you may already be protected by your
employer's health plan or any other medical or
accident coverage.
...CNF
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