N-technology lifts China’s farming BEIJING, July 25 — China has successfully introduced nuclear technology into its strategic agriculture sector to boost production so as to feed the world’s largest population, an official report said today.

Job-hopping in select PSUs
NEW DELHI, July 25 — The government has permitted board level job-hoppers in to be privatised public sector undertakings (PSUs), to look for greener pastures, a top government functionary has said.

Market-making plan for IPOs dropped
NEW DELHI, July 25 — The G.P. Gupta Committee appointed by SEBI has dropped its plans to make it mandatory for initial public offerings to appoint market makers to offer buy and sell quotes.

Orchid growth fastest: ICRA
ICRA has identified the Chennai-based Orchid Chemicals and Pharmaceuticals as the fastest growing drug company in India from the top 31 domestic and multinational firms.

Telco targets Cyprus for Indica exports
MUMBAI, July 25 — Telco will start exporting its small car, Indica, to the European markets —Cyprus and Malta — as well as Sri Lanka by the last quarter of this year.

‘Set up food processing facilities in Punjab’
Tribune News Service

CHANDIGARH, July 25 — The Punjab Government should encourage diversification in agriculture and build up a climate for industrial investment by providing linkages between agriculture and industry, says a paper on “Agriculture Development in Punjab” prepared by the PHDCCI.

It has underlined the need to build up effective backward linkages through contract/captive farming. An amendment to the land ceiling law is required to enable farmers enjoy benefits of large-scale farming.

Punjab has a surplus of wheat and rice and can offer these to the processing industry on a long-term basis. The State also offers a good scope for the fruits and vegetables processing industry, particularly for crops like potato, tomato, chillies, garlic, okra, kinnow, guava etc.

A post-harvest handling system is required to take care of agro products from farm to retail markets. This system would consist of processes of picking, cleaning, storing, grading, pre-cooking, processing, packing and transporting. This would result in reduction of wastage as well as increase in value addition at the farm itself.

At present, large quantities of agricultural produce are exported to other States for processing and the processed products are brought back into the State. It is, therefore, necessary to set up modern food processing facilities in the State. Moreover, measures are required to ensure that the processing plants are not under-utilised given the seasonal character of the agricultural produce. Setting up of multi-purpose processing plants would lend the requisite flexibility to the food processing industry.

Apart from basic infrastructure facilities like good road and rail networks, effective communication facilities, regular power and water supply and human resource management, the food processing industry requires some special facilities like cold chain system due to the fact that the products and raw materials of this industry are perishable.

A cold chain system would include facilities such as pre-cooling, cold storages, refrigerated transportation and refrigerated outlets. Private participation may be invited to build up a system of cold chains. This would address the problems of scarcity of warehouses and cold storages in the State and hence prevent massive wastage of fruits and vegetables and other perishable products.

Since the processed food products are perishable by nature, it is essential to have best quality packaging so as to prolong the shelf life of products. There is a need to make efforts to undertake research and development for sophisticated yet low cost and hygienic packaging technology.

Punjab needs to set up a strong research and development centre for the food industry. Any new process/technology that has been developed by a research organisation within or outside the country has to be rested with respect to raw materials and other inputs available in the State before it could be successfully implemented and commercially exploited. The research centre is also needed to find solutions to day-to-day problems which may be referred to it by the industry. There must be an active and effective coordination among the producers, processors and research and development agencies.

N-technology lifts China’s farming
From Anil K Joseph

BEIJING, July 25 — China has successfully introduced nuclear technology into its strategic agriculture sector to boost production so as to feed the world’s largest population, an official report said today.

China has done the best job in Asia in applying nuclear technology to agriculture development, the China daily business weekly quoted an expert with the China atomic energy authority (CAEA), Zhu Jiang as saying.

Pressed by its mounting population, China is resorting to high and new technologies, especially bio-engineering, to boost grain yields, Zhu said.

China is the world’s most populated country with a population size of 1.25 billion. While supporting over 20 per cent of the world’s population, China has only some seven per cent of the world’s arable lands.

Application of isotopes and radiation in agriculture can help develop new varieties, promote crop and livestock production, enhance the quality, safety and security of food while minimising pollution, he said.

To date, China has bred 513 new varieties of more than 40 plants by using radiation or in combination with other techniques, accounting for one-fourth of the world’s total.

The new varieties have helped increase production of grain, cotton and oil crops by there to four million tonnes per annum with annual economic benefits valued at about 3.3 billion yuan (397 million US. dollars), the report said.

A classic example of how nuclear technology can be applied in agriculture could be seen in the production of garlic, the report said, noting that sprouting garlic had always been a headache for both farmers and consumers. However, with the application of irradiation, garlic no longer sprouts in winter.

China also became the world’s leading producer of irradiated food in 1998, producing 50,000 tonnes compared to 30,000 tonnes in the USA and 20,000 tonnes in France and the Netherlands.

Before 1998, China approved 18 kinds of food for irradiation and the ministry of health okayed six classes of foods for preservation by irradiation, including beans and cereal crop products, frozen meat products, fresh fruits and vegetables, dried flavourings, dried fruits and cooked meat products. Seafood is expected to be approved for irradiation this year. — PTI

Job-hopping in select PSUs

NEW DELHI, July 25 (PTI) — The government has permitted board level job-hoppers in to be privatised public sector undertakings (PSUs), to look for greener pastures, a top government functionary has said.

The two-year restrictions on job- hopping for appointees on the boards of PSUs selected for disinvestment has been waived on the recommendations of the Public Enterprises Selection Board (PESB) by the appointment committee of the cabinet (ACC), outgoing chairman of PESB A.C. Wadhawan told PTI.

“The relaxation will apply only in cases of PSUs where Cabinet approved the disinvestment of the majority government stake,” Wadhawan said a day before handing over charge to Mr T.K.A. Nair.

After months of communication with the government for getting the relaxation, the PESB informed PSUs that the ACC had approved that the decade-long instruction on job-hopping be “rescinded” for those appointed before disinvestment in a PSU was taken.

Wadhawan said that PESB had been alive to what has been happening around and the needs of PSUs and had sought the relaxation in the wake of numerous queries from the top brasses of PSUs which were being identified for privatisation.

There was a genuine concern among PSU executives about their future, particularly after the Disinvestment Commission’s recommendations of outright sale and privatisation through strategic alliances in many PSUs.

As the government has taken privatisation decisions in a few cases, the board-level executives were not that confident of doing well in the new set-up.

An all-time low in gold market
From Rashmi Talwar

AMRITSAR: The adverse effect of the sale of nearly 425 tonnes of gold by a bank of the UK, reflected in the slump in international gold rates, has brought prices to an all-time low. The slide has been severe, especially since April this year.

The expected rise’ in consequent buying has surprisingly been very low. Initially in May when the war hysteria was high many villagers of the border areas who had moved to safer areas used their surplus cash to invest in gold. “In times of war gold is the safest bet, compared to paper money. It is less bulky, safe from fire, tearing, disfigurement and above all, easy to hide and sell, said a jeweller.

As the fear of war declined, buying also exhibited a lower trend. Another jeweller recalls that in the earlier wars of 1965 and 1971, people bought gold for an added reason: the war sealed all borders and smuggled gold was in short supply. As a result the prices of gold shot up and investments fetched high profits.

This time around although there existed a war scenario, the open gold import, policy of the government created no great ripples in the gold market, he added.

Raman Seth, another jeweller, attributes the downward trend of gold buying to the general market slump at this time of the year plus insecurity during the Kargil conflict. “Even the “Savan ” festival has not induced much of a sale this year,” he said. Manjit Singh, yet another jeweller, expects the sale of gold to pick up by September “As by then gold instalments are likely to finish. Besides, the wedding season will commence.”

Baldeep Singh says that the related gems and stones market is the first casualty during weak trends in the gold market as they have very little resale value and are mostly used as embellishments for gold, kundan, Jaipuri meena and diamond settings.

Market-making plan for IPOs dropped

NEW DELHI, July 25 (PTI) — The G.P. Gupta Committee appointed by SEBI has dropped its plans to make it mandatory for initial public offerings (IPOs) to appoint market makers to offer buy and sell quotes.

Instead the committee headed by the IDBI Chairman decided that market making should be optional for IPOs.

“We felt that it would be harsh on the companies to appoint market makers for new issues,” a member in the committee said.

Earlier, a draft report circulated by the committee, had recommended compulsory market making for IPOs for one year.

The committee, which met in Mumbai recently, also came to an agreement that the market makers, who would provide sell and buy quotes on a regular basis at the stock exchanges on illiquid scrips, be appointed by the bourses rather than the companies themselves.

He, however, said the companies will be given the freedom to decide to have or not to have market makers for their companies’ shares aimed at generating liquidity at the secondary market.

Orchid growth fastest: ICRA

ICRA has identified the Chennai-based Orchid Chemicals and Pharmaceuticals as the fastest growing drug company in India from the top 31 domestic and multinational firms.

The company, set up by five entrepreneurs in 1992, is fast emerging as the most sought-after company by foreign institutional investors (FIIs) with the limit on foreign investment in the company almost touching the 24 per cent ceiling.

The ICRA report put the foreign holding in the company at 23.6 per cent, even as independent information indicated that FIIs have approached the management seeking an upward revision on the ceiling.

The company, which has been credited with the highest compounded annual growth rate the in net profit of 163 per cent for the last five years, drew the attention of the international pharmaceutical industry with the recent bagging of a coveted order to supply an important ingredient, Sildenafil Citrate, for the impotency drug Viagra to Pfizer.

The ICRA report also found that orchid chemicals, which has grown from a meagre Rs 90 lakh operating profit in 1994, to Rs 62.9 crore in five years, is also the fastest growing company in terms of operating profit with a compounded growth rate of 191.7 per cent.

Even a pharma major, Ranbaxy Laboratories, has reported only a 30.9 per cent compounded annual growth rate in the net profit and just 22.6 per cent growth in the operating profit.

Hero Honda eyes 40 pc market share

Hero Honda Motors Ltd (HHML) has targeted to capture 40 per cent market share in the motor cycles segment in the next three years by launching new models and expanding its marketing network.

Hero Honda, market leader in the motor cycles segment with a 37.6 per cent market share in the last fiscal, plans to launch two new bike models in the next few years and also plans to expand the number of dealers and service points by about 50 per cent, top company officials told PTI.

The company also aims to increase its share by 1 per cent to 38.6 per cent during the current fiscal.

Hero Honda has decided to increase its dealer network from 350 at present to 450 and plans to enhance the number of authorised service centres from 110 to 200 in the next three years.

It is also concentrating on improving after-sales services and intensify the normal marketing exercises and ad-promotion programmes.  

Thapars to sell cellular venture

Thapar group-held Crompton Greaves has appointed merchant banker ABN Amro as the global adviser to sell its 40.5 per cent stake in its Chennai cellular project, Skycell.

The five-year lock-in period for transferring equity in Skycell will be over by October next.

As per the mandate, ABN Amro would find a buyer for the 40.5 per cent Skycell venture for which the company has invested Rs 25.20 crore since 1994.

With the sudden revival of the sector following the clearance of new telecom package by government early this month, the company is expected to cash in close to Rs 200 crore for its holding.

The company has been looking for a buyer for some time. No deal could be clinched so far as the price offered was not matching with the company’s expectations.

Promoters of Tamil Nadu cellular operator, Srinivas Cellcom, is reported to have offered Rs 70 crore for the 40.5 per cent equity a few years ago, but the Thapars were not ready to part with the equity for that amount.

The bail-out package being signed by telecom operators stipulates a five-year lock-in period from the original date of licence agreement for transfer of equity directly or indirectly or by the holding company.

This lock-in period will be over by October in the case of metro cellular operators as these licences were signed in September, 1994.

Morepen looks for OTC brands

Morepen Laboratories is on the lookout to buy over-the-counter (OTC) brands in line with its plan to expand its OTC range of products.

“We will certainly examine any OTC brands which may be put up for sale,” Manoj Pahwa, General Manager (Sales) and head of Morepen Laboratories newly formed customer care division, told PTI.

Morepen Laboratories was interested in brands with a longer life cycle which could be synergised with the company’s own portfolio.

“We would, however, buy only those brands which have a strong brand equity in the market which can be further developed,” he said.

Morepen is not interested in the muscle relaxant category and was looking at gastro-intestinal and lipid lowering OTC drugs.

Jindal Photo to launch new films

Jindal Photo Films Ltd (JPFL), market leader in photographic films, plans to capture 40 per cent of the market share with the launch of its new extra-sensitive Fujicolor “Crystal” films and has targeted sales to over Rs 400 crore in the current fiscal.

“The photo film market is growing by 8-9 per cent per annum and with the launch of the revolutionary Japanese fourth layer colour sensitive film “Crystal”, we expect to increase our market share substantially to 40 per cent and cross the Rs 400 crore mark,” JPFL Managing Director Vimal Khemka told PTI.

“The market, which is currently in a depressed phase, would pick up with the onset of the festive season by October. That would be the time when we would begin aggressive marketing of Crystal films,” he said.

Buy VSNL and MTNL: Goldman

Premier investment bank Goldman Sachs has said investors worldwide can ride the Internet wave sweeping across Asia by investing in telecommunications firms, including Videsh Sanchar Nigam Ltd (VSNL) and Mahanagar Telephone Nigam Ltd (MTNL).

“Asia’s Internet Wsers are forecast to increase to 64 million by 2003 at the 40 per cent annual growth rate. Investors can ride the Asian Internet wave by investing in telecommunications companies with Internet Service Providers (ISPs) such as SK Telecom, Korea Telecom, VSNL and MTNL,” a report by the investment bank titled “Goldman Sachs Asia Web” has said.

Internet is expected to generate about $ 32 billion in e-commerce sales and help Internet advertising in Asia become a 1.5 billion industry by 2001, it said. — Agencies

Telco targets Cyprus for Indica exports

MUMBAI, July 25 (PTI) — Telco will start exporting its small car, Indica, to the European markets —Cyprus and Malta — as well as Sri Lanka by the last quarter of this year.

“We will export to Cyprus and Malta to test the waters for Europe as a whole. And from April 2000, we will enter the bigger European markets,” senior Telco officials said.

The officials, however, declined to reveal the proposed volumes of export as well as initial investment going into the process.

There are around 10,000 Indicas on the Indian roads now, they said adding the Telco had sold 3,600 cars last month. The company expects to sell 4,000 cars in July and 60,000 cars in the current fiscal.

“We have retained 60,000 of the more than 1,00,000 bookings we received,” the officials said.

Telco is also in the process of upgrading its other models like Sumo, Estate and Sierra. The company was not planning any soft-top version of Sumo.

Telco is also planning to establish assembly lines for its products in South Africa and Malaysia.

Tata-BP, a joint venture between the Tatas and British Petroleum, has launched a new range of engine oils exclusively for Indica.

“Till date we focussed on engine oils and gear oils for Telco trucks. The launch of the Indica special oils signifies Tata-BP’s entry into the passenger car segment,” Tata-BP officials said here.

The company has targeted an ambitious 20 per cent market share in diesel oils in the next three to four years, they said adding it was planning two more manufacturing bases in the country. The locations are yet to be finalised.

Tata-BP has invested Rs 13 crore in its manufacturing facility near Mumbai, with a capacity of 35,000 tonnes per annum.

Archies Greetings

A dominant player in the greeting cards segment, Archies Greetings and Gifts Ltd (Aggl) is engaged in the manufacture and marketing of greeting cards, stationery, gifts, posters, etc. The company enjoys excellent brand loyalty and has emerged as a leader in a market that was once dominated by small unorganised players. It has a collaboration with American Greetings Corporation and Gibson Greetings. The company makes exports to destinations like Sri Lanka, Saudi Arabia, Bhutan, Oman, Nepal, etc.

AGGL manufactures Helpage Cards, the royalty from which is forwarded to Helpage Charities. In May 1997, the company launched the brand “Paper Magic”, which belongs to Portal Publications of the USA. The financial results of the company during the first quarter of the current fiscal year have been very encouraging. The long term prospects of this company thus appear to be fairly promising.

Vesuvius India

A part of the Vesuvius group of the UK, Vesuvius India Ltd (VIL) is a leading manufacturer of continuous castings refractories in India. CCRs are recognised as the fastest growing refractories in the world. The parent company enjoys a 56 per cent stake in the company and is a leader in the world market, with a 70 per cent market share. It has not been all smooth sailing for VIL.

Commencing production in 1994, the company weathered tough times with losses in the early years. Demand for CCRs is expected to increase substantially from the current 3200 tpa to 9600 tpa by AD 2000 because of a shift towards the continuous casting process of steel making and many steel projects coming up by the turn of the century.

VIL could benefit from the decreased import duty on one of its main raw materials. The overseas parent company has applied to the FIPB to increase its stake. Considering its turnaround performance and bright prospects, the long term prospects of this company appear to be fairly satisfactory.

ITC-Agrotech

ITC-Agrotech has undergone a three-year restructuring programme, which has led to its recovery. One of the prime causes of the company’s decline in fortunes in the past was its foray into financial services during the first half of this decade. Owing to heavy erosion in the market value of investments and the stuck-up credit recoveries, the company’s mainstream line of business viz edible oils, took a beating. This resulted in enhanced interest costs.

The ITC management, together with the team of managers from the Mauritius-based joint venture, have tackled the problem effectively, resulting in major changes such as hiving off the integrated oilseeds processing unit and bowing out of financial services. The entry of new global partners into the company has also played a role in the recovery, considering that the company was able to mop up Rs 94 crore through preferential equity issues made at a premium.

During the last financial year, it mopped up round Rs 41 crore by offloading its financial services assets and investments. In fact, over the past few years, as a result of its marketing drive, the company was able to establish a good brand name for its Sundrop sunflower oil. Overall, the prospects of the company appear to be quite satisfactory.

Q. Please comment on the prospects of Duncan Industries?

— P. Eswaran, Chandigarh

Ans: A part of the Duncan-Goenka group, Duncan Industries Ltd (DIL) has diversified interest in the tea and fertilisers segment. The former constitutes 20 per cent of the company’s sales while the latter contributes 80 per cent. The company operates through 12 team gardens. It markets its products under the brand names like Gold Cup, Sargam, Double Diamond, Shakti, Pick Up, Rangeeli, etc. The company’s fertilisers plant functions with a capacity of 675 kilo tonnes of urea. Its fertiliser products are sold under the brand name, Chand Chhap. On the financial front, however, the company’s results depict a far from satisfactory performance. The company is hampered by an increasing debt burden which is providing to be a major cause for concern. The fertiliser division of the company has been hit severely on account of excessive imports. It appears that the company is about to witness a testing period in the coming years.

Q. Kindly comment on the long term prospects of Birla 3M?

— Ghanshyam Khurana, Shimla

Ans: Birla 3M was incorporated in 89 as a trading company and is a joint venture between 3M and Zenith Ltd, an Ashok Birla group company. 3M is a majority shareholder with a 51 per cent stake followed by the Ashok Birla group with a 33 per cent stake. The balance is held by the public. Birla 3M now has one unit in Bangalore and is proposing to set up another at Pune in during the current year. It manufactures speciality tapes, adhesives telecom connectors and autographies at its Bangalore plant. It has a range of over 300 products. The company plans to introduce more products in next few years. 3M has a strong brand equity in any of its products which can be capitalised by Birla 3M. 3M recently received FIPB permission to acquire a further 26 per cent stake in Birla 3M from the Birlas. Overall, the prospects of this company seem quite bright.

Q. Is it worth investing in the shares of Hindustan Powerplus?

— Amarpreet Bedi, Ludhiana

Ans: Hindustan Powerplus was promoted as a joint venture between the C. K. Birla group and Caterpiller Inc., Birla Inc, US. It has 75 per cent of its equity divided equally among the two co-promoters. The company is a producer of diesel engine combustion sets which find application in diesel generator sets, earthmoving sets and compressors which range from 160 KVA to 19 KVA of output. The company has been into this business for about a decade now, and has access to the use of the brand name ‘caterpiller’ for its products. The company is also a source for the foreign co-promoter for the supply of spare parts. It has a manufacturing capacity of upto 2100 sets of diesel engines and is now in the process of raising it to 3800 sets.

In the recent past the company made a rights issue in the ratio of 1:5. The same, offered, at a premium of Rs 75 per share, fetched an aggregate of Rs 45.02 crore, all of which was meant for the expansion of engine sets capacity to 3800 per annum from the present level of 2100 per annum. This project is located near Hosur in Tamil Nadu. It was estimated to involve a capital expenditure of around Rs 66 crore, and the balance funds were to be arranged through lease agreements. The project has the technical backing of Caterpillar Inc, US. It is now progressing as per schedule, and the project is expected to go on stream by the end of the financial year 98-99. Those with a long term perspective could consider investing this scrip at price declines.

Q. Please comment on the prospects of Roofit Industries?

— Mandeep Kaur, Amritsar

Ans: At present, Roofit Industries has the capacity to produce 90,000 tonnes per annum (TPA) of roofing sheet plants. Roofit Industries is expected to add an additional capacity of 45,000 tonne of roofing sheet plant thereto shortly. Its subsidiary, PRPL, has a capacity of 45,000 tonnes of asbestos sheets. Following its proposed merger with the subsidiary, Roofit Industries is set to become a major force to reckon with in the industry. It will match up to competitors like Hyderabad Industries and Eternit Everest. The proposed merger is likely to help Roofit Industries to gain mileage from its brand name in the eastern part of the country. The exercise is expected to effect some cost savings for the company. However, a dampener is the slowdown in the growth of the past two years. This has not only pulled down the growth curve of Roofit Industries but of the asbestos sheets market too. Prices of asbestos sheets and building products have taken a beating. It is setting up a greenfiled plant with a 45,000 tonnes capacity in West Bengal. It is also in the process of expanding its capacity by another 25,000 tonnes. The West Bengal project is expected to be completed shortly. One may thus conclude that the prospects of this company are bright.

Q. Should I hold or sell the shares of LML?

— Jawahar Johri, Nalagarh

Ans: LML is one of the prominent players in the Indian two wheeler industry and is primarily engaged in the manufacture of scooters. Following the liberalisation of the Indian economy, the company embarked on a strategy of segmentation which helped it to enhance its bottomline. The company started manufacturing products which catered to different niche areas. Due to its inhouse R&D efforts the company launched the Select model which was very well received in the market. Later on it introduced the Supremo model. The company has drawn up expansion plans of Rs 204 crore, which will increase its present capacity and enable it to offer a range of vehicles. On the financial front the company’s track record has been satisfactory and its future profitability prospects also appear fairly encouraging. With a good R&D backing and consumer friendly approach LML is emerging as player to reckon with. Considering these factors, existing shareholders could stay invested in the shares of the company, notwithstanding the recent promoter split.

How not to feel sick about mediclaim policy
by Pushpa Girimaji

IN most cases of repudiation of claims under mediclaim policies, insurance companies attribute the rejection to deliberate concealment of relevant information about the health of the policy holder in the proposal form. But when the policy holder does not even fill up the form and the insurance company issues a policy on an almost blank form, where is the question of falsehood?

This was the point raised by the National Commission in a revision petition brought before it by United India Insurance Company. Here, the insurance company had rejected Mr Gurdeep Singh Oberoi’s claim for reimbursement of expenses incurred on a by-pass surgery on the ground that he had concealed information about his suffering myocardial infraction in 1989.

When the case came up before the National Commission, it observed that the proposal form of Mr Oberoi was almost blank. Out of 16 columns in which the proposer had to reply to various queries, only six had been filled up. And even these pertained only to basic information like name and address of the proposer, besides the scheme and the table of benefits opted by him. All the other columns in the form had been left blank, unanswered.

Referring to this, the Commission pointed out that the insurance company had accepted such a form without verification and even issued the policy. It was not now possible to come to the conclusion on the basis of this blank form that the insured had concealed information. Besides, post-insurance investigation pointing to an unsubstantiated allegation of hospitalisation of the complainant four years prior to the period of claim did not stand to reason, the Commission said.

This order of the National Commission (dated May 18, 1999) should really make insurance companies sit up and review their sales practices. Often insurance companies gloss over information required to be collected from the proposer at the time of selling the policy and it is only when a claim is made that they start digging into the medical history of the person, in the hope of coming up with some information that would help them reject the claim.

Fortunately consumer courts have intervened on behalf of consumers in many cases of unfair repudiation of claim and have held that in order to reject a claim on grounds of “suppression of material facts” the insurer has to prove that (a) the insured suffered from the disease prior to taking the policy, (b) that he was aware of the existence of such a disease, (c) that he had deliberately and fraudulently suppressed it and (d) the facts so suppressed or concealed were material to the claim on hand.

In the case of Joseph Ollapally vs New India Assurance Company, for example the insurance company repudiated the claim on the ground that the insured had failed to disclose information about his suffering from hypertension at the time of renewal of the policy. Mr Ollapally, a retired Army officer, has taken an overseas mediclaim policy for himself and his wife when he went to the USA to visit his son. The policy was valid for 75 days, but on his extending his stay there, the policy was also extended by 120 days. Three weeks prior to renewal of the policy, Mr Ollappally was examined by a doctor, who found him to have mild hypertension and prescribed some medicine. Subsequently, after the extension of the policy, Mr Ollapally had an acute stroke lading to paralysis of the right side and was treated in the USA. When he was declared medically stable to undertake the journey, he returned to India, but subsequently died during the pendency of the case.

Here, the Karnataka State Commission held the repudiation by the insurance company unjustified on the ground that the policy holder was required, under the contract of insurance, to divulge serious disorders and not casual ailments. It also quoted the order of the National Commission in the case of LIC vs Sanjeev Mahenderlal Shah in support of this view. The Commission said the policy holder was in good health when he first took the policy. The mild hypertension diagnosed prior to renewal of the policy was a casual ailment at that time and was not serious enough to merit a mention. The insurance company had failed to prove that the policy holder had deliberately concealed facts material to the claim, the Commission held.

If you are taking a mediclaim policy, read the policy document carefully. Claims are also rejected on the ground that the policy does not cover pre-existing diseases. Then there are other exclusion clauses under which the company disclaims liability, like treatment of certain disorders during the first year of the policy. Check all these and fill up the form yourself. Make sure that you have not given any incorrect information or concealed any information asked for. And if at any time claim is rejected arbitrarily, do not hesitate to seek the help of consumers courts.

Inflation rises
NEW DELHI, July 25 (PTI) — After touching a 17-year low in the previous week, the annual rate of inflation rose marginally by 0.02 percentage points to 1.85 per cent for the week ended July 10.

BoI donation
Tribune News Service
CHANDIGARH, July 25 — The Bank of India and its staff have donated Rs 3 crore to the National Defence Fund. A cheque for Rs 3 crore presented to Mr Atal Behari Vajpayee by Mr S. Rajagopal, CMD of the bank, on July 23.