08 Friday Apr 2016
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Public Sector LIC is once again in the news for its earning through investment in shares of other PSUs etc. It is reported that it had earned Rs. 11,000 crores in 2015-16 in investing in shares and then monetising it.
Congratulations to LIC Management and the employees as also to AIIEA, the dominant union in LIC!
07 Monday Sep 2015
Posted in Uncategorized
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The LIC Group Insurance Scheme for BSNL employees was started in August 2005. It is the biggest Group Insurance Scheme in the world. The Scheme has benefited the BSNL employees as also the LIC, since its market share has increased due to this scheme. The scheme was brought in to operation after detailed discussion between LIC, BSNL and BSNL Employees Union. All India Insurance Employees Association(AIIEA) also helped in clinching the agreement. The double accident benefit with 7.5% extra premium etc. were specially added.
The scheme in 2005 includes three level Insurance, the non-executives for one lakh, the lower executives for Rs.3 lakh and the next higher level for Rs. 5 lakh. Ten years are over now and after the wage revision w.e.f. 2007, the wages have increased and the present wages are substantially higher. In such a case, there is full justification for increasing the insurance amount and the premium accordingly. This was taken up earlier, but the LIC had its reservation due to the high risk and increased % of death rate in BSNL. However, that can not be a reason not to increase the insurance amount.
At least the insurance amount should be increased from Rs. 0ne lakh, three lakh and five lakh to Rs. 3 lakh, 5 lakh and 7 lakh respectively, if not more. The premium also can be raised accordingly.
In this connection, it is also to be noted that the single largest leave encashment scheme of LIC with 2,81,000 BSNL employees were implemented in 2010. BSNL has transferred the Liability of Leave encashment of Rs 4,852.91 crore to LIC under LIC’s Group Leave Encashment Cash Accumulation Scheme (GLES).
BSNL is the biggest customer of LIC. Hence LIC should not shrink away from increasing the insurance amount for the BSNL employees. The issue need to be taken with the BSNL Management for re-negotiating with the LIC.
01 Tuesday Sep 2015
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On this 59th anniversary of the Life Insurance Corporation of India, we extend hearty Congratulations and Greetings to LIC and the workers, who have magnificently charted its course for better service and strong financial viability. It is only with the committed and dedicated service of the LIC employees, Agents, Management and all concerned that the company has grown and became the one of the best PSU in the country.
1st September 1956 is a red letter day for the nation. It was on this day that the private Insurance companies were taken over by the government and LIC was formed. Now, looking back we can realise that it was a wise decision. There is no Life Insurance Company in the world with a better serve record.
Keep up LIC! The nation is with you!
23 Monday Feb 2015
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The aggressive disinvestment policy of Modi Government has encouraged the corporates to demand disinvestment of further PSUs. Deepak Parekh, Chairman HDFC and top industrialist has demanded that BSNL, Air India and LIC be disinvested, as per a report in the TOI. He has also mentioned that despite some committees appointed by the government, in which he was a member, had recommended disinvestment of BSNL, due to strong opposition from the unions, it could not be implemented. Now, he wants the disinvestment of these PSUs, which according to him will get lakhs of crores of rupees for the government.
BSNL, LIC, Air India etc. are some of the biggest and flagships of the PSUs. This new attack by the industry is calculated. The unprecedented growth of LIC, the recovery being made by both Air India and BSNL through concerted united efforts of the workers did not go well with the corporates, who want them to slow down which will enable them either to take over or closure.
The Danger is real. The workers in these PSUs have to immediately start fighting back these offensive against PSUs. BSNL workers are already in a serious campaign of SAVE BSNL, SAVE NATION.
We can not allow these PSUs to be destroyed. We shall fight back and defend them to survive and grow.
14 Thursday Aug 2014
Posted in PSU
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The BJP Government had no other go but to send the Insurance (Amendment) Bill to the Select Committee due to the strong opposition of Left and other parties. What stand the congress members in the committee will take? It was they who brought the bill earlier. Anyway, there is some time before any final decision is taken. A very strong movement has to be built up against the bill, which is intended to weaken the PSU LIC and favour the foreign private insurers.The time has to be effectively used.
02 Thursday Jan 2014
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Life Insurance Corporation (LIC), the Public Sector Insurance company, is far ahead of its competitors in the volume of business, subscriber satisfaction, % of settled cases and so on. This has once again been proved from the latest statistics of the regulator.
The Insurance Regulatory and Development Authority (IRDA) in its latest Annual Report has confirmed this. LIC had higher claim settlement, fewer lapses and no penalty at all. In the volume of business it continues to hold the first position with more than 74% market share.
The claim settlement ratio in LIC increased from 97.42% to 97.73% in 2012-13 from 2011-12. The rejection of claims were reduced from 1.30% to 1.12%.
In the case of private companies, the claim settlement is from 89.34% to 88.65% in the same period. The rejection of claims increased from the earlier 7.82% to 7.85%.
The policy lapse in LIC is 5.6% while in the private companies, it is as high as 17% to 42%.
There are other parameters also in most of which, LIC is far above the private insurance companies.
My Hearty Congratulations to the LIC Management and the workers who have sustained the growth of the PSU and given the best service to its policy holders! I also congratulate the All India Insurance Employees Association (AIIEA) which had always been spearheading the movement for a better service to the Nation!
VAN Namboodiri's Blog 