LIC accepts NOINO's suggestion on Housing Loan

The L&HPF Department of CO has instructed the Zonal Offices on 10^th March 2011 in line with the suggestion of NOINO & NOIW in its letter dated 24^thFebruary 2011 to the MD Shri D.K.Mehrotra on housing-loan problems. The instructions by CO read as follows:

“Dear Sir,

The LIC HFL is now started sending Revised Demand Invoices @ 9% and 9.5% for Direct Loans and Converted Loans respectively. Hence, it has been decided to send the recoveries deducted from the employees / loanees salaries towards housing loans from the salary of January, 2011 and February, 2011 on total loans (i.e. LIC Loans and HFL Loans which includes converted loans also) towards First Unpaid Instalments February, 2011 & March, 2011 respectively which is kept it in Suspense Account by OS Dept of our Divisions.

The balance amount is to be added as subsidy and remitted to HFL immediately. In this regard CO/F&A Circular Ref: CO/F&A/CC/C-202 dated  31^st March, 2010 may be referred wherein under Para-2(c) instructions for payment of amount deducted from salary along with the subsidy to LIC HFL are given. Even after adding the subsidy to the recovered amount if it is not coming up to the total shown in Demand Invoice, the balance amount may also be added by debiting Subsidy (A/C – 112941 & 112942) to make it to the demand of LIC HFL. A separate record in this respect shall be maintained for reconciliation purposes. The amount in addition to eligible Subsidy may be recovered from the loanee wherever applicable and the correction entry is to be passed.

Please note that after sending these remittances to corresponding back offices of LIC HFL by the concerned Nodal Divisional Office of LIC (a copy of Mapping of DO/BO is attached herewith) the reconciliation of the same shall be carried out expeditiously before the closing of accounts in all respects without fail.

Please issue suitable instructions in this regard to all the Nodal Divisions. RM (Legal & HPF) will monitor that the L&HPF Department of Divisions is providing help if any and wherever discrepancy, if any, is noted it will be responsibility of the respective Manager (Legal & HPF) and RM (Legal &HPF) to resolve the issues with the respective Back Offices of LIC HFL.

Chief (Legal &HPF)”

The above letter clearly agrees with our “immediate temporary solution for the subsidy problem” as suggested in our letter to the MD on 24.2.11. Thus the management has accepted our suggestion and brought relief to the employees on housing-loan problems. This is yet another proof that NOINO not only raises issues but also suggests practical solutions to bring relief to the employees. However, we are aware that there are a lot of practical problems yet to be solved. We also want to reassure the employees that we will continue to pursue our demand of bringing back the portfolio of Housing loan from LIC HFL to LIC.