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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make...

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make sure you have at least six months of living expenses saved in a bank fixed deposit or a debt mutual fund. This reserve will serve as your emergency fund for unforeseen situations and ensures you are prepared for any rainy days. Review Your Asset Allocation Revisit your investments to ensure they align with your goals. For short-term goals within three years, bank fixed deposits, recurring deposits, or debt mutual funds are appropriate. For long-term goals beyond three years, a diversified combination of hybrid/equity mutual funds, direct equities, and gold should be preferred. Do Sufficient SIPs Systematic Investment Plans (SIPs) are the backbone of disciplined investing. At least 25-30 percent of your in-hand monthly income should ideally be invested through SIPs in mutual funds, equities, and gold. This consistent approach will steadily build wealth over time. Make Lumpsum Investments Along with SIPs, voluntary lumpsum contributions into long-term assets whenever you have surplus funds can accelerate wealth creation. Even occasional lumpsum additions make a significant difference to the overall corpus. Increase Your SIPs Annually As your income increases, make sure your investments grow as well. Increasing your SIP amounts every year helps your wealth stay in line with inflation and your rising lifestyle needs. Increase your SIPs yearly and anchor them to at least 30 percent of your monthly income. Stay Invested Remain invested until your financial goals are achieved. Avoid redeeming investments unnecessarily. Frequent withdrawals disrupt compounding. If liquidity is required, consider taking an overdraft loan against your investments rather than breaking them prematurely. Health Insurance Safeguard your family with adequate health insurance. Opt for a minimum cover of 25 lakhs per family member with comprehensive features. Remember that relying only on employer-provided insurance is risky. Independent health insurance is essential. Term Life Insurance Protect your loved ones with a pure term life insurance policy. Ensure a cover of at least ten times your annual income, along with provisions for any outstanding loans. Stay away from mixing insurance with investments. A simple term plan is the most effective solution. Consult a Financial Advisor A full-time, well-qualified financial advisor can simplify your financial journey. Professional guidance ensures disciplined planning, correct product selection, and proper execution of your financial strategy. May this festive season bring abundance and lasting financial peace. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

The Dali Case

Nov 14, 2024
3 min read

Updated: Nov 15, 2024

Dali Case

On 26th March 2024, a 9900 TEU (twenty-foot equivalent unit) container ship DALI, sailing with 21 Indian crew, allided with the Baltimore Bridge, causing significant structural damage to the 1972 built Francis Scott Key (FSK) Bridge.


The collapse of the bridge tragically resulted in the loss of six workers who fell into the river while on duty. This disaster has also severely disrupted Baltimore’s port operations, cargo movement, businesses, and social life.


While the ship owner and ship management company managing the vessel DALI have claimed for limiting their liability to about US$ 43 million as per an 1851 act, however, two US Congressmen are sponsoring a bill, “Justice for Victims of Foreign Vessels Act,” to increase the liability for foreign-flagged ships up to 10 times the value of the ship. If passed, the law would apply retroactively from 25th March 2024, which is a day before DALI’s allision with the bridge.


What went wrong with vessel DALI and what caused the incident is still under investigation by NTSB (US Marine Investigation Agency) and the FBI. The initial reports suggest a failure of the ship’s propulsion machinery to restart promptly from a state of blackout.


DALI’s incident should be seen as the last straw that broke the camel’s back of an outdated and strained ISM Code (International Safety Management Code), the bible of the shipping industry. “Established in 1998 by the IMO (International Maritime Organization), the 26-year-old code is not in sync with the 21st-century complexities of the shipping industry. The ship owner controls the operational expenses but cleverly shifts the responsibility for the vessel’s safe management and operation to a ship management company. It is like the ship owner who owns a gun, but the license is in the name of the ship management company. Thus, by using the shoulder of the ship management company, the ship owner fires the budgetary cuts, at the cost of the safety of the crew, vessel, and cargo. This practice has flourished over the past 20 to 25 years due to intense competition in the ship management industry. Furthermore, by transferring the management and operation of the vessel to a ship management company, the ship owner absolves themselves of responsibility due to a lack of privity or knowledge.


In the past centuries, ships sank more because of nature’s fury; however, in the 21st century, more ships are floundering due to ‘depleting management system standards and practices’ under a flawed ISM code.


Indian ship owners, such as SCI and Great Eastern predominantly, spend quality resources and money to manage the operation of their vessels, however, in the charter market, ship owners may lose out since the operational cost of a ship by a ship-owner who pass their vessel to a ship management company, is far less, with ship safety, crew wages and wellbeing taking the hit.. This highlights the need for the DG of Shipping (India) to propose these changes that create a level playing field.

1. Shipowners must appoint a Designated Owners representative (DOR) to monitor vessel activities, ensuring owner accountability for safety and operations.

2. The Chief Engineer must be given the authority to stop a vessel from sailing or divert the vessel to carry out urgent safety repairs.

3. Shipowners must be aware of the vessel’s condition, including any machinery or equipment issues.

4. Charterers must be notified if the vessel is in poor condition and requires urgent repairs.

5.Seafarer contracts should be limited to six months to improve performance and well-being.

6.Shipping companies must annually assess how much they have benefitted from implementing quality and safety practices.


The deadline for filing claims in U.S. courts for the DALI incident was September 24. Various parties, including the Maryland state government, the city mayor, and affected individuals, have filed claims, along with the insurance company covering the bridge for $300 million. However, the estimated cost of a new bridge exceeds $2 billion, and it may take years to resolve these claims, with neither side likely to receive everything requested. If regulators fail to address the shortcomings in the ISM code and ignore the lessons from the DALI incident, the shipping industry will bear the greatest cost, by compromising ‘safer ships and cleaner oceans’.


(The author is a Marine and Shipping Consultant. Views personal)

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