IMPORTANT ISSUES FACED BY THE OFFICERS’ IN LIC References: Letter AI/2426/comm/38 Dated 30th March, 2026 Letter AI/2426/comm/39 Dated 22nd April 2026

President B.P.Singh Chauhan Chairperson Sujeet Kumar, MP Gen. Secretary S. Rajkumar

AI/2426/comm/42

Dated: 13th May 2026

To Sri R Doraiswamy, CEO & MD, Life Insurance Corporation of India, Central Office, Yogakshema, Jeevan Bima Marg, Mumbai- 400 021

Sir,

We wish to represent the following important issues faced by the officers in LIC which needs your immediate attention and remedial actions.

1.

Promotion Policy: As per the staff rules, promotion of officers has to be done based on seniority, merit and suitability. Merit is ascertained by the confidential reports and this system was going on smoothly, even though there was no transparency in the process. This year LIC Management introduced the concept of interview in all cadres from AO onwards, which we have objected to from the beginning itself, since the process was not well defined and communicated to the officer community, creating a feeling of biased decisions. Weightage assigned to Seniority, CRs and Interview, the method used for normalization since multiple interview committees assessing the performances, are not communicated, making the entire process lacked in transparency. Moreover, an online interview, mostly in English may not reflect the real working culture and attitude of the officer and can go against his selection which actually happened.

Central Committee Office: 5th floor, Industrial Assurance Building, Vir Nariman Road, Near Eros Theatre, Churchgate, Mumbai- 400020. Reg. Office: RG210B, Kochulloor, Medical college P.O., Thiruvanthapuram-695011 e-mail :aicl1fed@gmail.comWebsite: www.licclass1federation.in

It is to be remembered that officers were stagnated in one cadre for nearly 12 years for no fault of them and the Management has done nothing to correct this. For granting scale, seniority and CR should be the only criteria and this was also sabotaged. The Management also assured us that the marking system will be informed in advance which also was not done. The result was total chaos and even SDM (I/C) and Zonal Manager in charges were finding it difficult to explain why the best workers and best performers lost promotion in spite of having excellent CRs and eApar ratings all throughout their service, in addition to All India Rankings in performance parameters set by the organization. We demand that this anomaly should be rectified by issuing an additional list for all cadres, taking in to account seniority and eApar as the deciding factors before 15th May with retrospective effect. We also demand that the process of interview up to DM cadre should be abolished from next year onwards. Board approved Transfer and Mobility Policy (TMP) also not followed in deciding the postings of the officers on promotion / transfer. Officers who reached their place of choice on request transfer during last financial year is moved out of their division and posted to other state or zone on promotion, and the officers who are posted outside their division are not given an opportunity to come back to their home division during the year or their retirement too.

• 2.
  Right to Reversion: Staff rules allows the officer who is on probation to opt for reversion before his/her confirmation. This should be implemented since it is part of Staff Rules.
• 3.
  HR Policy: It is indeed surprising that a legacy-rich organization like LIC with over 70 years of history, still lacks a comprehensive and transparent HR policy. The existing framework heavily relies on outdated staff rules, with the only notable development being the Board Approved TMP, which is not implemented in its true spirit. The TMP is often misinterpreted or misapplied, causing undue hardship to officers. Additionally, there are no clear guidelines regarding working late hours or on holidays, especially during emergencies. The absence of defined protocols for vigilance related cases is also alarming, as such cases remain pending for years, causing undue stress and uncertainty for officers. We demand a Structured and Modern HR policy for LIC, which is the need of the hour, which will be addressing major issues faced by the officer community.
• 4.
  Enhancement of fringe benefits: It is customary that every three year the fringe benefits of Class1 officers are reviewed and modifications are made at least to adjust the inflation factor. This has not been done for the last four years, in spite of our repeated representations. The eligible amount of scheme vi car for marketing officials also not increased in last four years. We demand your immediate intervention in this area.
• 5.
  Updation of Pension: As you are aware we have only DA indexation at present for pension and this has created wide disparity in pension. An officer retired in the cadre of ED in 2007 is now getting pension equivalent to that of the Record Clark retiring now. This makes their life difficult and the plight of family pensioners is even worse. RBI and NABARD have already introduced updation of pension and LIC management also should initiate steps in this direction. It is to be remembered that our pension is paid from the pool of fund created by the employee’s contribution and the Government do not bear any liability for the pension of LIC officers and employees.
• 6.
  Pension based on last drawn basic pay: In the Central Government and most of the public sector undertakings, pension is decided based on last drawn basic pay where as in LIC it is average of the last ten months basic pay is taken which is a big anomaly that deprives eligible pension. The LIC Board has already recommended that this should be based on last drawn basic which is pending with the Ministry of Finance. We demand that the LIC management should approach the DFS for immediate implementation of this.
• 7.
  Full family pension up to age 67: The full family pension in LIC is now available only up to age 65. This was decided when the retirement age was 58. It is normally seven years from retirement age (Previously 58+7=65) and it is a natural consequence to elevate it to age 67, when the retirement age is hiked to age 60. This recommendation is also pending with the DFS which needs to be taken up urgently on priority basis.
• 8.
  Granting increment after 365 days: The honourable Supreme Court in its Judgement in case no WP-19950-2024 has made it clear that increment should be given after 365 days, irrespective of the fact that whether the employee is in service or not. This has not been implemented in LIC and one of our officer, Shri Shailesh Tiwari, who approached the SC got a favourable verdict in case no WP-

Federation of LIC Class-I Officers’ Associations

19950-2024. The LIC management should implement it immediately rather than forcing us to file contempt petition in SC.

We look forward to a prompt and favourable response.

Yours sincerely

S. Rajkumar

General Secretary