LETTERFROM THE

EDITOR

We don’t pay much attention to our car insurance. As a Moneylife survey reveals,

most people hardly pay any attention to it. But you can save money there too, as our Cover Story this time reveals. It is another comprehensive and first-of-its-kind analysis on insurance, the least-understood aspect of personal finance. It also tells you about the enormous changes that are likely to come. Today, cars are being insured; it will also become insurance for drivers. After all, drivers cause accidents and not the vehicles. Today, good drivers pay for bad drivers. But this will change. Be ready to take advantage of it.

Why does Mumbai, one of the world’s biggest cities, come to a grinding halt for a few days every year? Because the exits for rainwater are clogged with garbage. We bring you the story of an NGO which has been trying to improve sanitation and put in a waste-management system—doing the work that our civic authorities are paid for from our taxpayers’ funds.

I am really overwhelmed by the quantity and quality of responses that we have been receiving on our website www.moneylife.in. Beginning with this issue, we bring you a section which will bring you the best of reader responses from our portal.

Small enterprises can have the biggest of ideas. And these ideas draw capital funding from private equity. The Enterprise section in the Moneylife issue you are about to read will tell you about one such successful entrepreneurial effort which started off with a need that was sorely waiting to be fulfilled—and it just proves that the best of efforts never go unrewarded.

Our Earning Curve section will help you to understand your requirements in your twilight years and ensure that inflation does not destroy your nest-egg. Travel with us to Washington (the US state, not the capital) and explore a few wonders of America which are not manmade, but shaped by nature.

For those of you who could not attend the Moneylife Foundation session on managing your credit history, we have a report. And very soon we will be in a position to at least bring you some of the essential parts of these programmes. Our video vertical is taking shape rapidly. Become a Foundation member, if you already have not.

Debashis Basu

Drive Your Rates Down

I S S U E C O N T E N T S

22 September 2011

Disclaimer: Moneylife has a policy of not allowing its editorial staff to buy and sell stocks that are written about in the magazine. All personal transactions in individual stocks are subjected to internal disclosure rules.

Your Interest13

Pharmas reap profits from harmful combo drugs; Fewer doctors for Indians; Rickshaw body chief attacked on licences; IMEI of your mobile: It helps; Resolve complaints in a month: SEBI

Your Money14

Life insurance premium dips 22%; JPMorgan’s NFOs; SEBI: More disclosures in ads needed; Wealth management: RBI steps in; Only 0.60 million service-tax payers file returns; IndusInd Bank launches IndusMobile; ICICI Bank improves online mobile payment service; India to have 46 million mobile Web users

Current Account16

– Politically backed companies have performed badly and repelled investors

– Even if the Act is passed, the NPS is full of holes– WikiLeaks is leaking—and a mole could be causing the trouble

LOOSE CHANGE19

Moneylife Quiz; Soundbites

Save on Your Car InsuranceThe insurance channel from where you buy, your vehicle, and your personal profile can reduce your car premium rates. An exhaustive analysis of car insurance by Raj Pradhan

Cover Story28

MONEYLIFE | 22 September 2011 | 10

52 Beyond Anna

India possibly has the largest number of laws. But what about their effective implementation?

LEGALLY SPEAKING

58 Retirement Fund

How much is enough?

SAVING AND INVESTING

I S S U E C O N T E N T S

22 September 2011Never be-Sahara: The group is a strange entity—high profile & shadowy; Regulatory Reforms: When were they transparent? Lawyers & accountants (caught) breaking their silence

20

DEPARTMENTSLetters ............................ 4

Book Review ....................56

Living .............................59

Money Facts ....................63

CONTENTS

Corporate Bonds24

The rush of NCDs, especially of NBFCs, is fraught with risks

SMART MONEY

People’s Wrath22

The public is disgusted and angry over rampant corruption. Will politicians listen?

DIFFERENT STROKES

The herd has done a U-turn

New Consensus40

WHICH WAY

53 Credit History & Credit Score

Mohan Jayaraman, COO, Experian Credit Information, addressed a workshop on credit information records and credit scores which influence bank decisions in sanctioning loans

ML FOUNDATION EVENTS

50 A Click in Time

What can you do if you are faced with a medical emergency that requires immediate treatment from a super-specialist? MediAngels marries medicine with technology—to deliver a doctor on call via the Internet, reports Disha Shah

ENTERPRISE

46 Insurance Trends

Life Insurance: Why do customers let life policies lapse? “There is more awareness of life insurance than medical insurance, thanks to LIC” — Max Bupa Health Insurance Fine Print: Mediclaim for Seniors; Small Car Premiums May Rise

INSURANCE

The New Maruti Swift: More of the Same48

The interiors have been altered, but its headlights and tubeless tyres need some modification, says Veeresh Malik

AUTO

STOCKGRADER 41MomentumRenuka Sugars rose 11% and Balkrishna Industries climbed 7%, while Dish TV fell 1%

Medium TermDabur jumped 8% and Shoppers Stop rose 6%, while 3M India declined 5%

Long TermTitan gained 7%, Berger Paints added 1%, while Godrej Consumer Products fell 1%

66 Waste to Wealth

Garbage Concern tackles the problem of rubbish and imparts knowledge on the matter of filth, finds Shukti Sarma

BEYOND MONEY

25 FundPointers

FUNDS

37 StreetBeat

Vivimed Labs: Expansion of facilities & new projects will ensure growth; SML Isuzu: Strong financials and good growth prospects

STOCKS

Jaideep Mukerji visits an iconic state in the US which offers grand landscapes and endless opportunities to visit historic and scenic locations

Washington: Rainforests & Volcanoes60

TRAVEL

– Hybrid schemes post hybrid returns– Which schemes are best placed to ride up?– Capital-protection funds’ poor returns