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| Tuesday, 24 August 2004 |
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It seems that the private bus fares may go high in the very recent future, due to the recent increase in diesel prices. As it is in the speculations the minimum bus fare Rs. 3.00 would also be increased. Fares ending in 50 cents (Such as Rs. 4.50) are also likely to be avoided in bus fare hike as the commuters complaint that the conductors do not return the balance 50 cts in any case. Whatever it is, this fare hike is inevitable. However this minimum bus fare Rs. 3.00 should not be increased under any circumstances considering that it is for a very short run as to the close by fair, to the nearest Railway Station to continue one's daily journey for his toil, to the nearest school of the poor children etc. The authorities concerned may take this matter into their consideration to give some relief to the commuters please. WALTER WIJENAYAKE, Pohaddaramulla Regulators need to keep distance from auditors In the context of conflict of interest a partner of an audit firm has suggested that the auditors should not take loans from banking clients. Probably what is required is a disclosure of such transactions in financial statements of listed companies and not a prohibition. Such disclosure requirements should extend to regulatory bodies and not restricted to the Auditors. Recognizing the importance of the independence of the Auditor, the Securities and Exchange Commission recommends restriction of immediate family members of Auditors being employed by the listed company audited. An aspect that had not been addressed is the employment of persons closely connected to regulatory bodies by listed companies and the auditors of listed companies. Whilst it is necessary for auditors to keep a distance from listed companies to uphold professional independence, it is also equally important for statutory bodies not to have a conflict of interest with both listed companies and the auditors of listed companies. Listed companies should be required to disclose the names and the relationship of employees of the company and that of the auditors of the company, with any employees of regulatory bodies. In the case of listed financial institutions Central Bank should also be considered as a regulatory body. Hopefully the SEC appointed stakeholders committee would address these issues in the interest of small investors who are not represented in the old boys club of listed companies. With proactive initiatives Sri Lanka can set an example to other countries on transparency and good corporate governance in listed companies. S. J., Seeduwa Our late Prof. Milroy Paul used to relate this during one of his surgery lectures. That during the 1st world war, the allies sent raw surgeons to the war front and kept the better surgeons at home. But during the 2nd world war, they sent the best surgeons to the war front, thus saving a many lives and limbs. He went on to say that is why we appointed a senior surgeon to be in charge of accident service, because early and prompt surgery will save a lot of limbs and lives. After the recent unfortunate death of an ENT surgeon, we hope the authorities will appoint a senior surgeon to be in charge of the accident service at National Hospital. It might be good idea also to give added remuneration for this job, as most senior surgeons do not like to do this work. DR. JEYAM SAMUEL, Talawakelle I would like to point out the disastrous state of our roads especially in Colombo, the Commercial and Administrative capital of our country. No proper road maintenance is being done by the authorities. They just come and fill up the pot holes with some tar and cover it up and that's it. Next time it rains the situation is back to square one. I can't understand the reason because due to some rain occasionally pot holes appear. In countries like Singapore, Hong Kong roads are maintained regularly and properly. The authorities can be liable for negligence if roads are not maintained and that is why people pay the Municipal Council taxes. I think that no proper layer is being used under the surface to withstand the weight and heat. Even in countries like India concrete is used to lay up the roads. If we can't afford 100 per cent concrete lets use 50/50. All this causes traffic jams as well. Next thing is the traffic congestion in our roads. it's horrible. I believe that the Moratuwa University was studying a proposal to make some of our roads. One way, it's a good idea. Why not try it and if it works for the better? As it is, we are unable to widen our roads due to lack of space and would cause inconvenience to the public. The proposal should be that roads that are not more than 50 feet wide should be made One Way depending on the area. In this way we can reduce traffic jams and accidents. The amount of time and fuel wasted can be reduced thus saving foreign exchange. So I think the Ministry and the Police should seriously do something about this. Even in countries like Singapore and Hong Kong etc. most of the roads are One Way. M. RAJA, Colombo 13 Identity cards to be made compulsory for voting Reference above news item it is stated that the Cabinet of Ministers has decided to amend the parliamentary election and other local government election laws. The amendment will make the ID compulsory. The main intention is to prevent vote rigging and other malpractices. The documents that could be accepted it says are national identity card, driving licence, passport. My point is it does not say that Elders' Identity Cards (Yellow Card) issued by the Divisional Secretary of the area could be accepted. The elder's ID gives all particulars given in the national identity card including national ID number. It is issued by the Div. Sec. for a nominal sum with photo and is valid for use in health service and transport, drawing pension, bank services, police and legal advice and other official work. It is issued to anyone above 60 years of age and the holder needs not stand in the queue. The national ID issued years ago for instance my one issued on 16.2.1974 is 30 years old and the photo is of a quite young man and the identification is very difficult, whereas in the elders' ID issued recently everything is clear and very easy to identify. Besides if the National ID as admitted by the Cabinet of Ministers could be snatched by vote rigging gangs and it will be extremely difficult to obtain a new one, quite a big problem as you have to go through so many procedures. Whereas elders ID could be obtained same day as I did. So accepting the elders' card from elders and birth certificate with a recent photo is more advantageous to both parties. Copy of BC, if lost, could be obtained leisurely as it is not required for day-to-day transactions. I would request to consider these two suggestions. V. K. B. RAMANAYAKE, Maharagama Total loss settlement of partial loss motor insurance claims Some local insurers seem to be offering all manner of options to attract customers, but how about offering to exercise the option of taking over a vehicle that has been subject to a partial loss in an accident, on payment of the insured value of the vehicle, whose market value, according to the insurers themselves is higher than the insured value? Would not be against the concept that no person can make a profit from an insurance - far from an insurer - virtually converting the insurance to be a gamble, or a wagering contract? That would appear to be a ploy on the part of the insurer to compel insured to declare a higher value on a vehicle in order to pocket more premium with no benefit to the insured. Whatever the insured value is, the insurer will pay nothing more than the insured value for a vehicle in case of a total loss. I understand, on reliable authority, that an insurer, after charging the appropriate premium on the insured value declared by the insured, the latter is entitled to indemnity within that value. It is only if repairs to such a vehicle are uneconomical that an insurer may opt to offer to settle a claim on a total loss basis. To cite my own experience, I insured a 1995 model used Toyota Corsa, which I bought in 1999 for Rs. 600,000. I insured it for the purchase value, and continued to do so until the year 2002. In August, 2003, it met with an accident, and the insured value, by then, had been reduced to Rs. 400,000 on account of depreciation with use. The cost of repairs approved by the insurers was Rs. 39,750. On having the repairs effected and I claimed reimbursement from the insurers, they imposed an arbitrary penalty of 38% on my claim. On my repeated protests, they brought it down, in two stages to 10%. When I still refused to accept it, the insurers offered to take over the car, as an option, by paying me Rs. 400,000, the insured value, as against their own valuation of the vehicle of Rs. 650,000 to 700,000. That seems to be new paradigm in modern insurance. Insurance is believed to be based on the principle of utmost good faith (uberrimae fidei) - not just bona fide (good faith), and that should apply to both insurer and insured alike. One would consider the arbitrary practice adopted by the insurer concerned to be nothing short of downright fraud. WALTER, Colombo 8 |
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