Professional Documents
Culture Documents
Go to content Go to menu
Contact
SANKAR DUTTA CHOWDHURY
SALT LAKE BRANCH
CF-335, SECTOR - I
SALT LAKE CITY
KOLKATA - 700064
9836003890
licaoi.slb@hotmail.com
Mail list
Send
Searching
Search
http://www.licagentsorg.myewebsite.com/
1/10
10/11/2014
Archive
Calendar
<< September / 2014 >>
RSS
Overview of sources
Statistics
Total: 12330
Month: 315
Day: 9
Online: 1
Home
After independence, when many Insurance Companies were closed and/or declined to pay the claim, the Agents community
again started to raise their voice demanding of Central Government for safe-guarding the interest of the policy holders. On the
http://www.licagentsorg.myewebsite.com/
2/10
10/11/2014
other side, the employees of different Insurance Companies, who had lost their jobs/were not getting their salaries, started
agitation for their own interest.
As a result, the government of India thought the necessity of nationalization of Life Insurance Sector to use the deposits from
the policy holders for the sake of nation building.
The staff regulation came into force from 1958, whereas there was no regulation for Agents. The scenario of that time, i.e. the
situational fate of the then Agents were like that if any Agents had raised their voice on any matter, they were
expelled/terminated from LIC with a small letter depicting, Your services are no longer required. Moreover, the first years
commission was reduced to 25% from 35% and 10% was paid as bonus after completing 10 lives. On the contrary, most of the
Agents (about 85% to 90%) were part timer, i.e. they were engaged from other trades, some of them being employees of State
and Central government offices.
On the contrary, the reports from Hanumantaiya Committee, Murarka Committee and Joint Parliamentary Committee, where
Agents interest was given prominence, was not accepted by the Central government. In such situation, few Agents tried to
unite themselves against management in the name of LIAFI in 1964. A joint forum of like minded Agents were again reunited in
1967 in the name of LIC Agents Association with the Presidentship of Sri Indrajit Gupta (later on Home Minister, Government
of India) and Secretaryship of Sri S. L. Nandi. The first achievement of this forum is that they succeeded to convince Sri T. A.
Pai, the then Chairman of LIC in 1971 to form a Regulation for Agents.
In 1978 this LIC Agents Association was compelled to change their name as LIC Agents Organisation due to some
unavoidable circumstances formed by some LIC Agents who acted as underling of the management and got a registration
under the Society Registration Act in the name of Life Insurance Agents Association.
In 1987 the LIC Agents Organisation decided to spread the union throughout India and for that cause the name of that
union was changed to All India LIC Agents Organisation.
ACHIEVEMENTS
The historic achievement of this union under the leadership of Sri Netai Chandra Das was compelling the LIC management to
give and enhance the quantum of Festival Advance as and whenever it would be sanctioned and increased for employees of
LIC through the court case by an order of Honble High Court, Calcutta (Vacation Bench), and it is now enjoyed by all Agents
of LIC all over India.
From 1995 to 1999 the leaders of this organization met several times Central Ministers to protest against the acceptance of
Malhotra Committee Report, IRA Bill and last of all IRDA bill for the sake of LIC and its Agents with the guidance and help
of Sri Basudev Acharia, M.P.
FORMATION OF ALL INDIA ORGANISATION
In 2003 some Branch and Divisional leaders of this union, who were C.M.s Club Member also, shown their eager interest to
spread the name of this union all over India on and the then Central Committee allowed them to do so from their own cost and
http://www.licagentsorg.myewebsite.com/
3/10
10/11/2014
responsibility from C.M.s Club convention held at Indore. Several forums and unions of different parts of India showed their
interest to join All India LIC Agents Organisation and a convention for this purpose was organized on 23rd November, 2003
Subarna Banik Samaj Hall and as a result of that the qst All India Conference was held on 19th and 20th December, 2003 at
Thiruvanantapuram and the LIC Agents Organisation of India was formed with the motto to keep the interest of LIC Agents
through LIC itself under the Presidentship of Sri Basudeb Acharia and Secretary Sri P. G. Dileep. Hence, the slogan of this
union resolved as Save LIC, protect Agents.
Achievements:
In February 2004, the Central leaders of this union met Sri S. B. Mathur, the then Chairman of LIC for discussion about the
demands of Agents.
In August 2007 the Central Secretariat met Sri P. Chidambaram, the then Finance Minister, Union of India, for Central
Government intervention and decision about gratuity, income tax, P.F., welfare fund etc. The achievement was the Finance
Minister agreed not to impose service tax on LICs conventional plans. The Central leaders also met the Speaker and
succeeded to convince him to forward the demand of our Union to the Parliamentary Petition Committee.
In July 2005 the Negotiation Team of the Central Committee met the then Chairman, Sri A. K. Shukla and other M.D., E.D.s and
as a result our gratuity, several advances, group insurance etc. increased with a new pattern.
Problems to be considered and settled by the LIC Management
1.
LIC should send a proposal to the Government of India to sanction welfare fund, pension and mediclaim to all
Agents and their families with I.D. cards facilities because LIC is governed by the LIC Act of 1956.
2.
To amend Gratuity rules LIC should send a proposal to the Government of India to amend Agents Gratuity rule
by taking into account the entire service of the Agent and to take the full commission earned during the service
of the Agent (first commission, bonus commission and the renewal commission). And not to have any ceiling on
it. Also to request the government to give I.T. exemption as it is a retirement benefit.
3.
4.
To give equal rate of commission to all types of policies ands increase the commission for single premium policies.
5.
To introduce G.S.L.I. for Agents, give D.A.B. to group insurance, decrease the group insurance premium
periodically and increase the age limit from 65 to 75 years.
6.
To allow vehicle allowance (conveyance allowance) and to enhance vehicle maintenance allowance periodically.
http://www.licagentsorg.myewebsite.com/
4/10
10/11/2014
7.
H.F.L. and L & HP should entertain purchase of land and house loan to eligible agents at the L & HP interest rate
and the interest should be reduced. Action should be taken to deduct E.M.Is from the commission of the
Agents.
8.
To grant vehicle advance to all eligible Agents equal to their two years full commission (first year + bonus +
renewal commission) at a nominal rate of interest.
9.
To grant maternity allowance of Rs.5,000/- P.M. to all eligible lady Agents for a period of six months.
10.
11.
12.
13.
To constitute immediately consultative committees at all levels and ensure that LIC A.O.Is nominees are
accommodated in the committees. Circulate the minutes of the meeting.
14.
LICAOI should be recognized as the Agents union and circulars concerning LIC Agents to be sent to Central
Committee Office of LICAOI.
15.
16.
17.
18.
Problems related to the Club Members and Prospective Club Member Agents
1.
To withdraw 15% lapse and avoid all types of lapsing criteria for club membership.
2.
To reintroduce the rule regarding the life membership of any Club of Agents.
3.
All club member facilities must be given to both husband and wife club member agents.
4.
To arrange C.M.s club convention for Agents of South India in North India and vice versa.
http://www.licagentsorg.myewebsite.com/
5/10
10/11/2014
5.
Increase club members allowances periodically such as maintenance, out of pocket expenses for attending the
club conventions, in lieu of club conventions, daily allowances, telephone and mobile call charge reimbursement
for both C.M.s and Z.M.s club member Agents and increase number of calls periodically.
6.
7.
To give IInd house loan to the club member Agents who have done premature closing of 1st loan.
To enhance house loan limit to all club member Agents including those who have already availed house
loan.
8. Not to concentrate on ULIP policies because it will adversely affect the contribution to infrastructure development.
Problems to be brought before I.R.D.A.
1.
The retrograde clause of IRDA regulations 2000, which introduced insurance broker systems, bank assurance and
corporate agency system, should be withdrawn.
6/10
10/11/2014
10. Stop the unethical practice of corporate agents brokers and banks, in insurance sector.
Problems to be considered and settled by the Hon. Finance Minister
1.
2.
Amend Agents gratuity rules so as to take into account entire service of the Agents and the full commission
earned during the entire service of the Agent (first commission, bonus commission and renewal commission) and
not to have any ceiling on it. To give income tax exemption as it is a retirement benefit.
3.
Enhance the limit of commission for income tax purpose from Rs.5,000/- to Rs.1,00,000/-.
4.
IRDA and LIC should stop over supporting of corporate Agents and banks.
5.
LIC Agents should be included in the unorganized sector workers Bill because they are service sector people.
6.
Government to instruct LIC to sanction welfare fund, pension and mediclaim for all Agents and their families
because LIC is government by the LIC Act, 1956.
7.
To stop the unethical practice of corporate Agents, brokers and banks in insurance sector.
8.
9.
10.
Ensure all private insurance companies to strictly adhere to the IRDA specification.
11.
The retrograde clause in the IRDA Regulation 2000, which introduced insurance broker system, bank assurance
and corporate agency system, should be withdrawn.
http://www.licagentsorg.myewebsite.com/
7/10
10/11/2014
12.
13.
14.
15.
16.
The age limit of the new Agents should not exceed 45 years.
Thiruvananthapuram
23.7.2007
Sub:
A seven member team led by our Working President Com. S. S. Potti met the LIC Officials and had healthy discussions with
them at the Central office, Mumbai, on 17th July, 2007. The following were present:
From LIC
From LICAOI
The discussions which started at 11-30 A.M. lasted for three hours were cordial.
The following points were favourably considered and agreed by the management:
1.
To raise the gratuity limit from Rs.1 lakh to Rs. 2 lakhs and also examine the revision of gratuity calculation.
2.
Below 3 years
http://www.licagentsorg.myewebsite.com/
Rs.50,000/-
Premium
Rs.120/Annum
8/10
10/11/2014
3 years to 5 years
Rs.1 lakh
Rs.240/Annum
5 years to 10 years
Rs.3 lakhs
Rs.720/Annum
Above 10 years
Rs.5 lakhs
Rs.1200/Annum
3.
To raise the age limit for Group Insurance from 60 years to 65 years.
4.
To distribute within three months the LIC software at a nominal cost to all agents.
5.
Regarding medical check-up through TTL, LIC was of the view that they will observe the working of TTK for two months
and then decide on the next course of action.
The issue of Wealth Managers was discussed. LIC has not given their clear thinking on this issue. However, we have
given our strong opinion against the appointment of Wealth Managers. If the LIC does not listen to our Unions
suggestion, we have to take it up again.
Club convention:
A.
B.
We demanded increase in :-
(a)
(b)
(c)
(d)
In lieu of Convention:
(a) CMs Club from Rs.7,500/- to Rs.15,000/(b) ZMs Club from Rs.3,000/- to Rs.7,000/-
C.
http://www.licagentsorg.myewebsite.com/
9/10
10/11/2014
http://www.licagentsorg.myewebsite.com/
10/10