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If India’s insurance regulator’s plans fructify, households across the country could soon be able to get an affordable single policy that covers health, life, property and accident, get their claims settled within hours, and even secure value-added services at the time of buying a policy.
In an ambitious bid to expand the poor insurance penetration in the country, the Insurance Regulatory and Development Authority (IRDA) is devising a new affordable bundled product to give citizens protection against multiple risks, and seeking to expedite claim settlements by linking death registries onto a common industry platform.
These initiatives are part of a broader overhaul — including legislative amendments to attract more investments through differentiated licences for niche players similar to the banking sector — with an eye on making insurance “available, affordable and accessible” to all citizens with a “gram panchayat- to district- to State-level’ approach.
The regulator believes these changes could double the number of jobs in the sector to 1.2 crore.
IRDA chief Debasish Panda said on Thursday that they are striving to create an “UPI-like moment” in insurance through a plan worked out with general and life insurance firms that he termed “Bima Trinity”.
China constructing model villages opposite the LAC (Page no. 1)
(GS Paper 3, Internal Security)
China is continuing to expand the network of model villages, or Xiaokang (moderately prosperous) villages, opposite the Line of Actual Control (LAC) in the Middle and Eastern sectors, according to official sources.
In addition, they say, new posts are coming up six or seven km from the LAC in the Middle Sector, and, in some areas, the frequency of patrolling has gone up significantly.
Opposite Barahoti, the Chinese are building villages at a rapid pace, sometimes 300 to 400 houses within 90 to 100 days. People’s Liberation Army patrols have been observed every 15 days or so as against once in a season earlier.
Small patrols are being seen in the Mana, Neeti and Thangla areas. “Construction of a likely border settlement village was seen northwest of Tholing; a military complex is under construction close by. Superstructures of buildings in both locations are complete.
In Arunachal Pradesh, opposite the Kameng area, two villages have come up in Cuna country consisting of 41 dwelling units and there are about 200 inhabitants from the Menba ethnic community.
There is a military complex adjacent to the village consisting of multi-storey buildings secured by a perimeter wall with CCTVs and watch towers, the source added.
Editorial
An ordinance, its constitutionality, and scrutiny (Page no. 8)
(GS Paper 3, Economy)
On May 19, 2023, the President of India exercised legislative power under Article 123 of the Constitution, during the period Parliament was in recess, to promulgate “The Government of National Capital Territory of Delhi (Amendment) Ordinance, 2023” (Ordinance).
The ordinance negates a Constitution Bench judgment of the Supreme Court of India, which was delivered on May 11, that brought “services” under the Government of National Capital Territory of Delhi (NCTD).
There are two issues here that require analysis: first, the scope of the Court’s verdict. Second, the constitutionality of the ordinance.
While interpreting Article 239AA(3)(a), the Court ruled, inter alia, that these were the points: The Legislative Assembly of the NCTD has competence over entries in List II and List III, except for expressly excluded entries of List II (entries 1, 2, 18 are excluded); the executive power of NCTD is co-extensive with its legislative power, that is, it shall extend to all matters with respect to which it has power to legislate; the Union of India has executive power only over three entries in List II over which the NCTD does not have legislative competence (entries 1, 2, 18).
Thus, essentially, the Court interpreted that out of the 66 entries in List II (the State list), while the executive power of the Government of NCTD covers 63 entries, that of the Union of India is restricted to the remaining three: public order (entry 1), police (entry 2) and land (entry 18).
Consequently, executive power over “services” (entry 41) can be exercised exclusively by the Government of the NCTD. This interpretation of the Court is consistent with the wordings in Article 239AA(3)(a).
But this interpretation was negated by the Union of India, acting through its Council of Ministers under Article 74, by triggering extraordinary legislative power of the President under Article 123 in the promulgation of an ordinance on May 19.
What the ordinance did was to read/insert entry 41 of List II (State list) into Article 239AA(3)(a), thereby expanding the scope of excepted matter from three (1, 2, 18) to four (1, 2, 18, 41).
Economics that looks at the lower half of the pyramid (Page no. 8)
(GS Paper 3, Economy)
The numbers of Indians left behind by the growth of the economy now exceeds 50%, with reservations in employment for “economically weaker” sections of Indian citizens regardless of caste and religion now necessary. Most Indians, whatever their religion or caste, have a felt need for a new paradigm of economics.
The theme at the Global Solutions Summit in Berlin on May 15 and 16 this year, was a new paradigm for the economy. Its backdrop was the rising tensions in the east between the United States and China, and the war in the west between the North Atlantic Treaty Organization (NATO) and Russia.
Military wars are being couched as wars between democracy and autocracy. The G-7, representing 15% of the world’s citizens, who are ostensibly on the side of democracy, are autocratically and undemocratically twisting the arms of other governments (representing 85% of the people) to take their side.
The think tanks of the G-20 and other countries at the summit called attention to global problems of climate change, increasing economic inequalities within and among countries, and the effects of the financial and trade sanctions imposed by the most powerful nation, which are affecting the other 85% most of all.
Divisions among the economic “haves” and “have nots” are shaking up politics around the world, and forces on both the left and right of the political spectrum have gained strength in all countries.
The extreme left wants revolutionary change in both economic and social power structures. The extreme right, fearing instability with threats from the left, wants to protect established social and economic systems.
Economic liberals in the middle are muddled. They fear a concentration of political power, but allow a concentration of wealth.
Opinion
Should States revert to the Old Pension Scheme? (Page no. 9)
(GS Paper 2, Governance)
The National Pension Scheme (NPS) was launched in 2004. While the older pension scheme offered defined benefits to all government employees without any contribution on their part, the NPS requires employees to contribute a sum throughout their working years.
Almost two decades after the NPS came into effect, several States are switching back to the Old Pension Scheme (OPS). Earlier this year, the Central government set up a committee under the leadership of the Finance Secretary to review the working of the NPS and evolve an approach that addresses the needs of government employees while maintaining fiscal prudence.
It is important to understand that this change of pension scheme was a bipartisan effort. It was initiated under the Atal Bihari Vajpayee government and carried forward by the Manmohan Singh government.
The important change is what it did to the fiscal situation of States. It was generally felt that the defined benefit — which was a guaranteed benefit of 50% of the last-drawn pay, subject to inflation, as the pension amount — under the OPS was fiscally costly for the States.
Hence, there was a switch made to have a contribution from government servants throughout their career, which would then add up to what they would receive as pension once they retire, reducing the burden on the States.
The primary bone of contention is that the NPS does not guarantee a certain amount. That’s a justifiable peeve.
This has to do with the fact that there is no guaranteed pension. In the OPS, you had a fixed amount, which was 50% of your last salary drawn, with inflation indexed as well.
Explainer
Why do judges recuse themselves? (Page no. 10)
(GS Paper 2, Judiciary)
Last week former Supreme Court judge Justice M.R. Shah refused to recuse himself from hearing a plea by former Indian Police Service (IPS) officer Sanjiv Bhatt to submit additional evidence to back his Gujarat High Court appeal against his conviction in a 1990 custodial death case.
Mr. Bhatt contended that there was a reasonable apprehension of bias as Justice Shah, as a High Court judge, passed strictures against him while hearing his plea linked to the same FIR.
However, Justice Shah dismissed the plea as an attempt to indulge in ‘bench hunting’. Similarly, a few weeks ago, the Chief Justice of India D.Y Chandrachud rejected an application seeking his recusal from hearing petitions seeking legal recognition of same-sex marriages.
Whenever there is a potential conflict of interest, a judge can withdraw from a case to prevent the perception that the judge was biased while deciding a case.
This conflict of interest can arise in many ways — from holding shares in a litigant company to having a prior or personal association with a party.
Another common reason is when an appeal is filed in the Supreme Court against a High Court judgment delivered by the concerned judge before his elevation.
The practice stems from the cardinal principle of due process of law — nemo judex in sua causa, that is, no person shall be a judge in his own case.
Another principle guiding judicial recusals is ‘justice must not only be done but must also be seen to be done’ propounded in 1924 in Rex v. Sussex Justices by the then Lord Chief Justice of England.
By taking the oath of office, judges promise to perform their duties, ‘without fear or favour, affection or ill-will’, in accordance with the Third Schedule of the Constitution. Furthermore, the Restatement of the Values of Judicial Life adopted by the Supreme Court forbids a judge from deciding a case involving any entity where he holds pecuniary interest unless the concerned parties clarify that they have no objections.
News
Evidence thin on govt.’s claims about the sceptre (Page no. 12)
(GS Paper 3, Economy)
A day after Union Home Minister Amit Shah addressed a press conference in Delhi explaining the importance of the sceptre (sengol) to be installed in the new Parliament building, Union Finance Minister Nirmala Sitharaman addressed presspersons in Chennai on Thursday, explaining how it is a matter of pride for Tamil Nadu.
She reiterated that it was the ritual of handing over of this sceptre, made by the Thiruvavaduthurai Adheenam (math head) in Tamil Nadu, to India’s first Prime Minister Jawaharlal Nehru on the eve of Independence that actually symbolised and sanctified the “transfer of power” from the British to India.
The government’s assertion is that Lord Mountbatten, the last Viceroy of India, asked the first Prime Minister of India, Jawaharlal Nehru if there was any procedure to signify transfer of power. Nehru in turn consulted C. Rajagopalachari, the last Governor-General of India, who in turn had the Thiruvavaduthurai Adheenam prepare the sceptre, and flew the delegation in a special plane to Delhi.
There is ample evidence that a delegation sent by Sri la Sri Ambalavana Pandarasannadhi Swamigal, the head of the Adheenam, presented the sceptre to Nehru, accompanied by the recital of hymns from Thevaram.
However, evidence is thin on the government’s claim that this presenting of sceptre was treated by the leaders and the then government as the symbolic transfer of power.
When asked about documentary evidence, Ms. Sitharaman said there were “as many documentary proof” as one wanted in the docket given to presspersons at the end of the press conference.
A perusal of these documents, however, did not establish the claims of the government. The evidence included references from books, articles, and reports in the media. It also included social media and blog posts.
World
Chinese hackers attacking infrastructure, warns U.S. (Page no. 15)
(GS Paper 2, International Relation)
State-sponsored Chinese hackers have infiltrated critical U.S. infrastructure networks, Washington, its Western allies and Microsoft said on Wednesday while warning that similar espionage attacks could be occurring globally.
Microsoft highlighted Guam, a U.S. territory in the Pacific Ocean with a vital military outpost, as one of the targets, but said “malicious” activity had also been detected elsewhere in the U.S.
The stealthy attack — carried out by a China-sponsored actor dubbed ‘Volt Typhoon’ since mid-2021 — enabled long-term espionage and was likely aimed at hampering the U.S. if there was conflict in the region.
Microsoft assesses with moderate confidence that this Volt Typhoon campaign is pursuing development of capabilities that could disrupt critical communications infrastructure between the United States and Asia region during future crises.
In this campaign, the affected organisations span the communications, manufacturing, utility, transportation, construction, maritime, government, information technology, and education sectors.
Microsoft’s statement coincided with an advisory released by U.S., Australian, Canadian, New Zealand and U.K. authorities warning that the hacking was likely occurring globally.
This activity affects networks across U.S. critical infrastructure sectors, and the authoring agencies believe the actor could apply the same techniques against these and other sectors worldwide.