Re: Policyholders have nothing to lose on account of upgradation of pension
Sri CHM,
Your Note should find its way effectively into the hands of our Counsels , to be presented before the SC next Hearing on Oct 8th. The reason I am stressing this, has to do with the the same old tune of Policy holders being affected, that seems to be deeply entrenched in the minds of the LIC Counsels. If one had observed the casual exchanges between the judges and the LIC Counsel yesterday, as they talked about time being allowed for their às999r9defence, the LIC Counsel who was saying he won't be there on 8th and 9th of Oct., stated in very clear terms that the Policyholders will be deeply affected if such a demand for upgradation of Pension was allowed. He even roped in the judges to say, they were all policyholders of LIC, and that their own interests were vitally on the line. He was heard remarking that those days, only LIC was there, and so all of us had to insure only with LIC, and today this demand will put them all to loss if this is allowed. I get a feeling, this aspect of excess of Mgt Expenses being charged to the Shareholder account, has not been brought to their notice by the Legal Dept of LIC.
Your quoting the Jharkand case where SC ruled Pension as property also comes in very handy. It is important that this is not missed out on Oct 8th/9th as and when our counsels take the podium. This matter did go by default in the Delhi HC years ago and we are paying the price for it now, with so much time passed, and so many pensioners leaving the world.It was a very strong ground for the Demand of Upgradation being denied to us then. Let us plug it now for sure. Regards
D.Krishnan.
2 comments:
LIC/GOI is repeating the nonsense of Upgradation of pension /even pension will affect policy holders/LIC's existence since 1956, when private insurer "Oriental " was paying pension like Imperial Bank/SBI even before Nationalization. In 1956, rules of office routine/manuals pay scales and follow up of state of art Addressograph /Tabulating machine when no institution in India had them except pension was followed "Oriental" except pension. In LIC. Employees who had TU rights under ID Act 1947 not insisted on pension and meekly accepted contributed contributed PF. as superior than pension not only in 1956 followed that mental attitude for decades till 1993 and thereafter. unlike SBI. Then came agitation on pre- computer age Main Frames. GOI in short cut to curtail TU rights introduced sec 48 of LIC ACT in1981 which is ultra vires to constitution after its failure in Bonus case in the court of Great Krishnaiyer. No one tried to restore TU rights by either passive resistance or legal process for more than 4 decades due to which all suffered in many ways. Had not Then chairman of LIC on the eve of great PVN RAO gifted pension to all formal workers challenged that he will not preside over liquidation of LIC just short of Rs.12000 crores, may be 1993 value? Had any employees organization protested his words? Even when promotion rules 1995 were framed no one raised the point of those who retired before 1.1.86 but alive on 1.11.93 should be included who all died in penury without pension. In- Service of all cadres rejected the idea of passive resistance holding banners like RBI asking GOI should reimburse shortfall in pension fund to buy annuities to grant upgradation of pension from its wind fall profit of 7 to 15 lakh crores from LIC, Why? Even now one doubts about the question of windfall profit before the bench at SC on 8.10.25 if not raised earlier. IPO of LIC proved the existence of wind fall profit, the values come from 96.5% share+ Dividends got for 68 years+ Brand value of one lakh crore. GOI already recouped the investment of 5 crores in 1956 with 12% CAGR which is norm in stock market for 78 years by selling 3.5% shares for Rs 21000 crore ie.,6000 crore more than Rs 15000 crores as per the calculation stated. One doesn't know whether Class one federation raised the point in 3 page note or raise this point on 8.10.25 by its senior counsel.
Please read "Pension rules 1995 "instead "promotion rules 1995" For curious persons one should point out that there is no interview from Asst to HGA in 4 General Insurance Companies from inception ,insisting on it made officers choose chamchas who can go up to SDM among Assts whose seniority is fully ignored along with ACR, others had to suffer entry grade job becoming lifelong cadre resulting officers were social boycotted throughout the service. No adverse remarks in ACR were intimated to improve and get promotion. Many stopped attending interviews,. After the introduction of pension few for the sake of increase in Basic pension attended the interview became HGA and retired even without stagnation increment at the fag end of their service. Their TU is happy for this and snatched the power of transfer for class 3 and 4 from management which had to yield for peace is called victory of "CLASS STRUGGLE."
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