BMS efforts pay dividends

BMS EFFORTS START PAYING FRUIT!

        You all are aware that the BMS affiliated unions in LIC, viz; NOIW, NOINO; NOIP & BLIAS are in the midst of a sustained campaign mounted against the nefarious designs of the Central Government bent on killing the golden goose of LIC to benefit the Private Life Insurers & Foreign companies. The Central Government has proposed six amendments in the Insurance Act, 1938 & LIC Act, 1956 the combined effect of which will strangulate LIC. The amendments by the Central government seek to:-

1. Increase FDI in Insurance Industry from 26% to 49%.
2. Reduce bonus to policyholders from 95% of surplus to 90% & at the same time utilize (by the government) the extra 5% for any purpose & in any manner.
3. Divest LIC of its powers of opening of branch or divisional offices.
4. Divest LIC of its powers of recruiting its agents & framing rules/regulations of their service conditions.
5. Remove the sovereign guarantee of the Government from the policies.
6. Increase the capital of the government first from 5 crores to 100 crores & then to any extent by a mere notification (which would be the first step of listing the shares of LIC & throwing open to private & foreign life insurers.

  Sensing trouble, the BMS affiliated unions in LIC began their efforts in earnest three months back. We shot detailed memorandums to all MP’s. We also met Shri Chandan Mitra & Shri Prakash Javadekar, both Rajyasabha MP’s & Shri Nitin Gadkari, President BJP a month back & apprised them of the dangerous consequences of these amendments. All of them promised to help us in this matter. Shri Prakash Javadekarji who is also the President of NOINO took lead in this matter & has talked to Shri Yashwant Sinha who is the chief of the committee to which this Bill has been referred to. We have also conducted educative seminars on this subject in Nagpur on 18^th July 2011 & in Mumbai, Kolkata on 23^rd July 2011. The activists of the BMS affiliated unions in LIC have fanned across the country & conducted whirlwind whistle-stop tours to create awareness among the employees & policyholders alike. We have also planned a massive ‘Maha-Dharna’ on 1^st August 2011 at Delhi in front of Parliament. All this has started having the desired effect.

         We have been informed by reliable sources that the government is on the back-foot regarding the increase in FDI in Insurance Industry whereas the Economic Times of 27^th July 2011 has quoted a government official saying that the Amendment no. 4 & 5 may be held back. While we do not want to jump the gun, & draw hasty conclusions, there are indications that our efforts are starting to pay dividends. However, we will not be off-guard & complacent. Instead we will raise the tempo of this movement to fight back all the proposed amendments. We will keep you posted of the latest developments. We solicit your valued support in this struggle.

Scanned image of the news-item in Economic Times dated 27 July 2011