AIIEA Delegation Meets LIC Management

 ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

Cir. No. 03/2025

January 15, 2025

To, All the Zonal/Divisional/State/Regional Units

Dear Comrades,

A delegation of AIIEA consisting of Comrades Shreekant Mishra, General Secretary; H.I. Bhatt and Dharmaraj Mohapatra, Joint Secretaries and B.S. Ravi, Treasurer met Sri Satpal Bhanoo, Managing Director, LIC in the presence of Sri Anirban Sarkar, Executive Director, (Personnel) at Central Office, Mumbai, yesterday i.e. 14th January 2025. In the discussion spanning over two hours, a range of issues pertaining to the employees and the institution came up for discussion.

The AIIEA delegation expressed its strong disappointment with the management over the absence of any constructive dialogue on issues pertaining to the industry and the employees. The delegation conveyed the unanimous understanding of the AIIEA Working Committee that not only the business model of LIC but also the IR policy of the Corporation had gone for a complete toss in the post IPO situation. The delegation made it clear that LIC management should not be under the impression that they are capable of meeting the future challenges on their own while frittering away all the goodwill of the employees that has been so arduously cultivated over the years! Our delegation observed that the insistence of the management during the wage negotiations not to allow retired employees as a part of the negotiating team, only smacked of this new-found enthusiasm to disown the employees and their representative union. The delegation conveyed the firm resolve of the employees to fight this undemocratic stand of the management and demanded Recognition to AIIEA as the representative union of the employees. Our delegation was also critical of the attitude of some divisional authorities for their discourteous behavior towards the pensioners’ and agents’ struggle. We drew the attention of the management to the unassailable truth that the present edifice of LIC is built upon the foundations of sacrifices made by generations of pensioners. The delegation pointed out that LIC is confronted with humongous challenges in view of the new IRDA mandated surrender norms and the disastrous reforms proposed by the government by way of the Insurance Laws Amendment Bill 2024. The delegation was categorical that synergized efforts of all the stake holders rather than one-upmanship is the need of the hour for meeting the challenges head on.

Taking the discussion forward, the AIIEA delegation expressed deep concern over the fast declining staff strength in LIC in the Class III & IV cadres and underscored the need for immediate recruitment. While decrying the nonchalant approach of the LIC management to this pressing need, the delegation conveyed the deep anguish of the employees on the issue that over 2700 unfilled vacancies of the last recruitment round have still not been filled up despite umpteen reminders from AIIEA. The delegation was particularly critical that there was absolutely no headway on the issue despite several assurances from the management, including at the top most level, to arrive at the vacancies early and go for recruitment at regular intervals. The delegation also took exception to the fact that class IV jobs of permanent nature were being regularly outsourced rather than going for recruitment to this cadre. Given the huge depletion in staff strength all over, the delegation conveyed in no uncertain terms that recruitment was an issue that cannot brook any further delay. Our delegation informed the LIC management about the unanimous decision of the AIIEA Working Committee meeting at Chennai to go for struggles including strike actions in the months of February and March 2025 on these issues.

The LIC management responded by saying that it has never been their intention to shy away from discussions and constructive dialogue on issues pertaining to the industry and the employees. Pointing out that they are seriously exploring the possibilities of recruitment, they requested AIIEA to reconsider its decision of going on strike. Citing the business figures of LIC of the recent period, the management requested AIIEA’s support and co-operation to ensure that LIC regains its preeminent position especially in the non-single segment of individual policies.

The following issues of the employees also came up for discussion apart from what has been stated above:

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  We reiterated our demand that the number of Stagnation Increments in Assistant cadre be enhanced by another 3 or 4 stages and the time span for release of Stagnation Increments for HGA cadre should be brought down from 3 years to 2 years. The delegation also reiterated our long pending demand of giving fixation from stagnation to stagnation stage on promotion.
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  The delegation drew the attention of the management to AIIEA’s letter dated 07.06.2024 on the issue of fixation of pay of Ex-Servicemen employees and reiterated its demand to resolve the issue without further delay. We also drew the attention of the management to the judgment of Honorable High Court of Patna, dated 23.10.2024 and pointed out that this judgment vindicates AIIEA’s stand on the issue. We demanded early resolution of the issue without prolonging the legal issues.
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  The AIIEA delegation demanded that LIC should take up the issue of one final option for Ex­Servicemen employees to join the 1995 Pension Scheme afresh with the Government.
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  The delegation once again reiterated our demand that the employees who were recruited after 1.4.2010 but applied for recruitment for vacancies notified prior to 1.4.2010 or were empaneled prior to 1.4.2010 (like in Hyderabad and Secunderabad Divisions under South Central Zone) should be given an option to join the 1995 Pension Scheme in a manner it was done for Central Government employees. The management informed that the matter was taken up with the government but the government was not positively inclined. AIIEA delegation insisted that the LIC should continue its follow-up with the government till a positive outcome is reached. The management has agreed to pursue the issue.
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  The delegation expressed its resentment over the delay in enhancing the ex-gratia amount to pre-1986 retirees / spouses of the deceased pre-1986 retirees despite positively agreeing to this aspect earlier. We demanded that there should also be a substantial enhancement in the cash medical benefit payable to these sections of retirees. The management agreed to explore the issue with all seriousness.
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  Our delegation expressed its deep anguish over the inordinately long delay in enhancement of Conveyance Allowance to physically challenged employees. It was informed that the amount has not been enhanced after March 2011. The management assured to take up the issue afresh with the government.
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  The delegation of AIIEA took strong exception to the scheme of Ex-Gratia lump sum payment to pensioners and family pensioners and demanded that it should be replaced with a scheme of regular monthly payments applicable to all pensioners irrespective of age, without prejudice to the demand of updation of pension.
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  The delegation expressed its disappointment over the indifferent attitude of the management to the long pending issue of Actuarial Allowance notwithstanding the apparent appreciation of the genuineness of the issue. We demanded an early resolution of the issue.

These issues apart, the AIIEA delegation reiterated our demand for introduction of LTC encashment facility, Tea/Coffee/ Furniture reimbursements for Class III & IV employees, improvement in Leaves benefits, improvements in Group Mediclaim scheme, Vigilance matters, MBA issue of Satna Division and a host of individual issues pertaining to different Zones/ Divisions.

AIIEA assures the employees that all the issues will be followed-up in right earnest till their logical conclusion.

With Greetings,

Comradely yours,

General Secretary.