Solutions suggested to Sodexo meal-coupon problems

Further to our letter dated 19.12.2011 enumerating the problems being faced by LIC employees in using Sodexo meal-coupons, NOINO today wrote to ED(OS/SBU/Estates) suggesting solutions to the problems. The letter is reproduced below:

20.12.2011.

The Executive Director (OS/SBU/Estates),

L.I.C. of India.

Dear Sir,

Re: Practical solution to problems in encashment of Sodexo coupons

          Please refer our earlier letter dated 19.12.2011 on the issue of problems in encashment of sodexo coupons. We had requested you to find a solution to the problems listed in the letter. Based on the feedbacks of our members, we would like to offer 3 practical solutions to this whole issue:-

1. Actually cash equivalent to the coupon amount can be given to the employees every month. However, this may lead to proportionate income-tax deduction.
2. Hence, instead of meal voucher, a meal card can be given to all the employees which can be recharged every month based on the file sent by our offices. Such meal-cards are presently offered by many private banks like Axis bank, HDFC bank (Food Plus card), ICICI bank. Following would be the advantages over the meal coupons if such cards are issued:-

1. The reach is many times more. E.g. the meal card of Axis bank is accepted at more than 40000 merchant outlets in India as compared to only about 4000 outlets in just 70 cities for Meal Vouchers. The ICICI Bank meal card has access to more than 50000 merchant establishments across India.
2. One time distribution of Cards & monthly reload through an upload as compared to Physical distribution & reconciliation every month which is a cumbersome job. A lot of time & energy would be saved.

3. We would like to add further that because we are never in favour of having any alliance with or getting services from any Private Institution; we suggest that our own “LIC Credit Card Services Limited” should evolve such meal-cards for our employees.

   There are many more advantages of switching over to meal cards besides those quoted in the 2^nd option above. However, according to us, the above two advantages as quoted in the 2^nd option above are enough to switch over to these meal cards issued either by LIC or these institutions instead of the Sodexo coupons. These will solve all problems of non-acceptability & it will reduce the operational difficulties to a great extent. Of course, our emphasis is on the 1^st & 3^rd option.

We expect you to take a positive decision in this regard at the earliest.

Yours faithfully,

Ganesh Kamath

      GS, NOINO