Wednesday, July 23, 2014

59th Anniversary of BMS

Today is the 59th Anniversary of Bharateeya Mazdoor Sangh (BMS), the Central Trade Union to which NOINO is affiliated. BMS was formed by Shraddheya Dattopant Thengadji on 23rd July 1955 in Bhopal. It is interesting to note that the National Committee of BMS was formed 12 years later, i.e. in 1967!!. Till then, the activists worked without any formal posts!! Today, when in all fields, we see people clinging to money & posts, the difference is stark.

We will continue to be inspired by Late Thengadiji's principles of "Ideals, not individuals" & "Work is Worship". We will also not forget that the Nation comes first, then the Industry & then the individual employee. Only when the Nation prospers, will the Industry grow, & only when Industry prospers, the employee will prosper.

Today, BMS is the largest Central Trade Union in India. We are proud to be associated with it.

BMS Zindabad!!
NOINO Zindabad!!

(by Shri Ganesh Kamath, Chief Advisor, NOINO)

NOINO writes to Chairman on wage-revision & pension-option

NOINO today wrote to the Chairman, LIC of India for wage-revision and one more pension-option. The letter is reproduced below:

The Chairman,
L.I.C. of India.

Respected Sir,

Re:  Wage revision & pension option

The wage-revision of LIC employees is due since 1st August 2012. National Organization of Insurance Officers (NOINO) submitted its Charter of demands on 23rd July 2012.  However, till now the talks on wage-revision have not commenced. The employees are restless due to this.

The 22nd All India Executive Committee Meeting of NOINO was held on 9th and 10th June 2014, wherein EC members across the country were present. The assembly expressed its concern over the delay in the talks.

The employees were expecting that some offer would be coming on wage-revision in the Information Sharing Meeting on 13th & 14th February 2014. We were   disappointed to find that there was no offer forthwith. However, in that meeting, an assurance was given by the management that the unions would be invited again very shortly with some concrete offer on wage-revision. We are again disappointed to find that till date that has not happened. There is also no information forthcoming from the management as to what steps are being taken for an early & satisfactory settlement.

We were given to understand that the LIC management is making efforts for one more (final) option for pension before & outside the wage-revision. Nothing has materialized even in this regard.

These two issues are of utmost importance. However, the delay in settling both these issues has given rise to resentment.

We, therefore, demand that the management should immediately invite the unions for talks on wage-revision as well as other pending issues.

Yours faithfully,
Anagha Sant
      GS, NOINO

Wednesday, July 16, 2014


An unfortunate incident happened in Warangal. An ABM(S) committed suicide citing harassment from senior officials of LIC. This has caused a lot of consternation, worry & unrest among the ranks of the officers. This gives rise to the following points:-

If indeed the suicide was due to the harassment & humiliation by senior officials, the management at the highest level, should sit up & take serious note of it. This should not be & cannot be dismissed as a one-off extreme case. No leniency should be shown to the officials alleged to have driven the person to take such an extreme step.

No attempt should be made to brush the follies of anybody under the carpet. The management should come out with a statement in this matter to clear the air. It should also specify what exact action is being taken in this matter.

As it is, Class I Officers are feeling frustrated. They are working under immense pressure. The outdated & hackneyed system of extracting work by harassment & humiliation should go lock, stock & barrel.  Just consider the impediments with which a Class I Officer works:-
a.    No recruitment in Class III & IV. They have to perform non-supervisory functions.
b.    No overtime or compensation for continuous late sitting.
c.     No security for working after office-hours especially female officers.
d.    Inadequate promotion opportunities.
e.    Inconvenient postings on promotion, if any.
f.      No progress on wage-revision front for last 2 years.
g.    Withdrawal of LTC benefits.
h.    Withdrawal of mementoes distributed in conferences for AAO’s & AO’s.

Only the other day, an officer deputed from HRD-OD of CO came to the WZO & demanded (from all classes of employees) as to what jobs they were doing. The officer then noted everything. This is absolutely ridiculous & insulting.  Suddenly we got a feeling that we were being watched & on a tight leash. This big-brotherly attitude & treating the officers like criminals should go. Is this the ideal environment for the growth of the Corporation? Where are we leading to?

A section of MM’s & SDM’s feel that only through humiliation & pressure, would the marketing officials perform. They should understand that the frustration & anger in the officers is building up & should mend their ways immediately to prevent a snowballing of the crisis. The practice of calling the officers on Sundays & holidays should stop forthwith.
On one hand, marketing officials are being pressurised. On the other hand some divisions have reported that the Divisional authorities are forcing the officers in administrative side to perform marketing activities. As it is, the officers are having their hands full.

The officers should also think over the following:-

Whether it is worth to take so much pressure? Is it worth to put our neck on the guillotine? Only when one has the courage to say a big “NO” at the point one feels that one can’t take the stress, the troubles will recede. Heavens will not fall if we say no. NOINO has been at the fore-front on bringing to the fore all these issues. The officers should rally round it.

The management at the highest level should also introspect on the following issues:-

What is the frequency of Information Sharing meetings? Whether Information Sharing meetings are held at Zonal & divisional levels If there is no vent for pent-up feelings & no free exchange of thoughts it will stymie the growth of the institution.

Why is that we are not doing well? Is it because of wrong strategies? If so, how can we blame the marketing officials? We have only a few plans in the market? Is it because the IRDA is stalling our proposals? Or is it because we have not pushed for enough plans?

Whether we are taking officers at all levels into confidence while taking policy decisions or are we just dictating them?

A relaxed person gives more output than a disturbed & a pressurised one. The sooner we realise this, the better. An overwhelming majority of our officers are matured & responsible enough to understand the responsibilities they shoulder. They don’t expect the senior officials to mollycoddle them. But then neither do they expect that they should be humiliated & pressurised.

Lastly, an appeal to all. We all are very concerned about this issue. But let this concern not be a short-lived one. Let the concern not be confined to mere lip-service. Let us come together.  Remember what Swami Vivekanand said:-

Be not afraid of anything. The moment you fear, you are nobody. It is fear that is the greatest cause of Misery in the world. It is fear that is the greatest of superstitions. It is fear that is the cause of our woes, and it is fearlessness that brings Heaven even in a moment. Therefore, “Arise, Awake, and stop not until the goal is reached

And the goal is definitely not to get humiliated, pressurized and disturbed. Our goal is to live an honourable, peaceful and social life.

Please cultivate the habit of saying a firm “NO” before the water starts flowing above your head…!!!

Friday, July 11, 2014

Why NOINO is opposing raise in FDI in Insurance


  1. Such a hike is nothing but a ruse to accommodate the Multinational Insurance companies who are bent upon filling their own coffers with little or no concern for the nation. A simple logic is that a person(in this case a foreign partner) contributing 49 out of 100 Rupees will henceforth take away 49 Rupees as profit instead of 26 Rupees earlier.
  2. The track record of the private players doesn’t enthuse any confidence. The cumulative losses of these private players have run into the tune of 18000 crores.
  3. While the ratio of premium income to the GDP increased from 2.15% in 2001 to 3.4% in 2011, it is interesting to note that a  mere 34.3% of such increase came from 22 private players, while 65.7% of the increase came from LIC. Has the introduction of FDI really helped?
  4. The private players are usually tom-tomming about their so-called efficiency. It is shocking to note that private players repudiate 10% of their death claims while LIC doesn’t repudiate even 1% of its death claims.
  5. Since the private players entered the fray, the canvass of the LIFE Insurance business has changed. Earlier, the maximum thrust was on non-unit-linked business. LIC was not allowed to invest even 10% of its funds in equities. After privatization, the rules were changed ostensibly to pamper the private players. About 80% of the business transacted by the private players was unit-linked. If a substantial part of the business is Unit-linked or even single premium, it cannot be termed as Insurance in the strictest terms. It is more of an Investment rather than Insurance. Thus, the objective of Insurance penetration is not achieved.
  6. Life Insurance has traditionally been a long term business. It has been converted into a short term one with this type of trend which has nothing but disastrous consequences.
  7. LIC has always been in the fore-front & acting as a stabilizing factor in a volatile market. It has been contributing tremendously in the infrastructure of the nation. E.g. in the FY 2011-2012, it invested 8.20 lakh crores in Government & social sector. Pumping in more & more FDI would mean trying to cover up the inefficiency of private players at the cost of LIC & at the cost of nation. It would be like “robbing Peter to pay Paul”!!
  8. It is pertinent to note that the Parliamentary Standing committee, headed by Shri Yashwant Sinha had rejected the proposed hike in FDI.
  9. The government opened the insurance sector in order to accelerate the rate of growth of premium income as well as insurance penetration in the country. But, there is only deceleration in premium growth and stagnancy in insurance penetration.
  10.  The private life insurance companies deployed 40000 crores as capital & acquired a total premium of only 80000 crores out of which 30000 crores was towards First Year Premium. In sharp contrast, LIC didn’t deploy any capital. In fact, it generated a solvency reserve of 60000 crores in the same period(from 2000-01 to 2013-14) from internal resources.

Dr S B Sharan

Thursday, July 10, 2014

FDI hike in Insurance – proposed by FM in Budget

Dear Brothers & Sisters,

We learn that the Union Finance Minister, Shri Arun Jaitley, has proposed a hike in FDI in Insurance from 26% to 49% in today’s General Budget.  We strongly protest this move.

You may recall that NOINO was in the forefront along with other BMS affiliated unions in LIC in the agitation against the proposed hike during the UPA-II tenure. Our stand of opposition to this hike remains unchanged. We call upon the employees to be ready for any struggle against such move.

Dr. S B Sharan