Apropos ‘Errors of commission’ (January 22). For decades, India’s insurance industry has thrived on opaque, high commissions even as mutual funds and the NPS embraced transparency and low costs. IRDAI’s move to question insurers breaching expense caps is therefore welcome, though overdue. That commissions rose nearly 20 per cent in FY25 while premiums grew barely 7 per cent highlights deep distortions. Excessive, front-loaded payouts fuel mis-selling, customer churn and poor insurance penetration, a concern even flagged by the RBI. Protection products perversely pay more than investments, incentivising false promises to seniors and low-income households. IRDAI must go beyond explanations: cap commissions, curb front-loading, mandate clear disclosures and penalise violations. With new statutory powers, delay would only entrench mistrust.

K Chidanand Kumar

Bengaluru

Mobilising revenues

With reference to ‘Merits of user tax on infra services’ (January 22), the suggestive measures to impose additional cess or surcharge on select goods and services towards improving tax buoyancy appears to be feasible, thanks to the robust demand for these essentials. However, with specific reference to vehicles, in realistic terms, States are already collecting a humongous amount by way of road taxes, apart from GST on vehicles, in spite of poor road infrastructure and maintenance. While it is the primary duty of every taxpayer to support the government towards enhanced revenue generation and economic growth, it would be equally incumbent on the States to ensure welfare of the citizen, and avoid diversion of resources towards freebies to gain political mileage.

Sitaram Popuri

Bengaluru

Smarter power policy

This refers to ‘Proposed electricity policy targets global quality supply to cities’ (January 22). The draft NEP 2026 can be improved through better use of technology. Automatic compensation should depend on smart meters using AI and IoT. This will detect power cuts in real time and give direct bill credits. SERCs need funding and support from technology companies. This will strengthen the policy and ensure simple public dashboards. Renewable efforts should go beyond generation by promoting EV-to-grid systems, decentralised solar, and battery storage with incentives. Educating consumers will help build a strong, consumer-focused power system.

S Balasubramaniyan

Villupuram, TN

Carney’s call at Davos

The advocacy of a Third Path by Canadian PM Mark Carney, is a welcome, though not entirely new, idea. The coming together of post-World War “newly independent” countries of Asia, Africa and Latin America against the bi-polar construct of US vs USSR was made a reality through Non-Aligned Movement, which had a modicum of value-addition in acting as a check against not only economic and military hegemony of the US, but also against aggressive ideological push of the communist regimes of the USSR and China.

Angara Venkata Girija Kumar

Chennai

Published on January 22, 2026