The LIC (Amendment) Bill, 2011 – our efforts & our views

• JOINT EFFORTS YIELD RESULTS!!!

• JOB ONLY HALF COMPLETED—STERNER BATTLE AHEAD!!!

        The LIC (Amendment) Bill, 2009 was passed in Loksabha on 12.12.11 with modifications as (mostly) desired by us. The modified bill, now called “The Life Insurance Corporation (Amendment) Bill, 2011”, also stands passed by Rajya Sabha on 14.12.2011. You are aware that the BMS affiliated unions in LIC viz., NOINO (Class I), NOIW (Class III/IV), NOIP (Pensioners) & BLIAS (Agents) carried out a sustained campaign against the proposed amendments in the Insurance Act, 1938 & the LIC Act, 1956.

 Following is the current position of the amendments as passed in Lok Sabha & Rajya Sabha:--

1. PROPOSED: To raise the minimum capital of LIC from 5 crores to 100 crores that can be further enhanced by notification.

CURRENT STATUS: - The minimum capital has been raised to 100 crores but the further provision of enhancing it by mere notification has been removed & it would require Parliamentary approval.

2. PROPOSED: To vest powers of opening of branch offices/divisional offices with IRDA instead of the prevalent regulation of vesting this power with the respective Zonal Manager.

CURRENT STATUS: -Instead of ‘Zonal Manager’ the clause has been substituted by ‘decided by the Corporation in accordance to the guidelines by IRDA’

3. PROPOSED: - To distribute 90% of the valuation surplus to the policyholders instead of the existing 95% of the valuation surplus. 5% of the valuation surplus to be credited to a separate account which the Central Government may utilize for any purpose or in any manner that it thinks fit. The remaining 5% will be paid as dividend to the Government.

CURRENT STATUS: - The percentage has indeed changed from 95% to 90%. However, it would be with prospective effect instead of retrospective effect. It has also been clarified that the surplus over & above 90% would be given back to LIC for contingency reserve/solvency margins.

4. PROPOSED:-  Instead of full sovereign guarantee by the Central Government to all LIC policies, the words ‘to the extent, the Central Government, may determine from time to time’ will be substituted

CURRENT STATUS: - This amendment was not accepted & the sovereign guarantee will remain as it is.

We have succeeded to a large extent due to the consistent efforts taken by us. Following is the reminder of our efforts:-

1. As per the clarion call given by BMS to oppose the proposed amendments
2. Met various dignitaries such as Shri Nitin Gadkari, President, BJP; Shri Chandan Mitra, Shri Prakash Javadekar (both Rajyasabha MP’s) & putting our view-point across them. All of them assured that they would help us in this matter.
3. NOINO/NOIW/NOIP/BLIAS jointly conducted various branch-meetings to create awareness among employees.
4. NOINO/NOIW/NOIP/BLIAS jointly conducted seminars on 18^th & 23^rd July in Mumbai, Nagpur & Kolkata on this issue.
5. Conducted press conference in Delhi on 28^th July 2011. Prakash Javadekar, President, NOINO addressed it.
6. Joint Delegation of NOINO/NOIW/NOIP/BLIAS called on Dr. Murali Manohar Joshi, BJP MP & Chairman, Standing Committee on Finance, on 29.07.2011at Delhi and reiterated our opposition to the proposed amendments.  He informed us that the standing committee was also of the same view & would do everything to stall the bill. There-after Shri Yashwant Sinha was appointed as the Chairman of the committee. Shri Prakash Javadekar, President, NOINO talked to Shri Sinha at length on this issue & reiterated our opposition to these proposed amendments. The Standing committee later rejected all the proposed amendments.
7. NOINO/NOIW/NOIP/BLIAS jointly met Sumitra Mahajan, Bhagatsingh Koshiary(BJP MP’s) ; Sharad Yadav (JD-U MP); Dr. Bharatkumar Raut(Shivsena MP) on 30.7.2011 to express our views on the subject. All assured active support.
8. NOINO/NOIW/NOIP/BLIAS jointly conducted a massive Dharna at Jantar-Mantar in Delhi on 1^st August 2011.
9. NOINO/NOIW/NOIP/BLIAS jointly submitted a memorandum in this regard to the Prime Minister, Finance Minister & the Speaker of Loksabha on 1^st August 2011.
10.  On our request, Dr. Bharatkumar Raut (Shivsena MP), raised the issue in Rajyasabha through a special mention on 25.8.2011.
11. Today also i.e. on 14.12.2011 NOINO President Shri Prakash Javadekar & other BJP MP’s and also Shiv Sena MP Shri Bharatkumar Raut debated fiercely against the unwanted amendments; which were ultimately accepted by the house.

The joint efforts have paid dividends. As expected, the race for taking credit has begun. However, no single organization can claim the credit for the success we have achieved. It is the result of the joint efforts of the organizations in LIC.

We appeal to the employees of LIC to be ready for a sterner struggle to fight the move to raise the FDI in Insurance from 26% to 49%.

(Video-clips of discussions on the issue in Rajya Sabha on 14.12.2011 are available at: http://www.youtube.com/noinocentral/ )