AIIPA LETTER TO CEO & Managing Director,

CEO & Managing Director, 

LIC of India, Central Office, Mumbai – 400 021.

18.08.2026.

Dear Sir,

We intend to bring to your attention a few very vital issues of the LIC Pensioners that stand represented to the LIC management several times but are waiting settlement till now. The issues are long pending on which discussions were also held with the management. But, no forward movement could be registered yet. The issues are as follows :-

The issue has gained urgency in view of the steeply rising cost of medicines and domiciliary treatment. In our earlier discussions with the LIC management, the latest being on 24th May, 2024 with Executive Director (Personnel), we informed that in Reserve Bank of India a scheme for both hospitalisation and domiciliary treatment along with cash medical allowance is existing for its pensioners. Such benefit can be extended to LIC pensioners also. The management appreciated our submissions and assured that the issue would be examined with a positive approach. But unfortunately, nothing moved in the last more than two years. Similarly, we urged upon the management to introduce preventive health check up for pensioners as is being done in case of in­service staff. The pensioners need it most. But, this matter is also hanging fire.

Our organisation has been demanding the following improvements in the Mediclaim Scheme since long.

• a)
  Increase in Cadre sum insured,
• b)
  Coverage for dental treatment, cost of hearing aids and other age related expenses,
• c)
  Full reimbursement of cost of robotic surgery.

The management assured to consider positively the issue of the cost of robotic surgery and take a composite approach towards health issues. But, things did not move and stand where they were.

We also urged upon the management that the cost of GST on mediclaim premiums should be borne by the LIC of India instead of thrusting it on pensioners.

This is an issue that stands represented to the management umpteen times. We have been urging upon to consider an upward revision of ex-gratia to the above category of retirees who are super seniors and whose number is very minimal, at least in the line of what has been provided to such retirees in analogous institutions. We brought to the notice of the management the increase in ex-gratia made in the Union Bank of India way back from July, 2022. They granted a sum of Rs.10,000/- per month in addition to the ex-gratia being paid to their pre-1986 retirees. Similarly, an advisory was issued by IBA to SBI and other member banks to ensure a minimum payment of Rs.10,000/- a month as ex-gratia to these retirees. Copies of both the relevant circulars were made available to the management by us.

But to our shock and dismay LICI, vide its Circular dt. 06.03.2023, revised the ex-gratia in a manner that provided the increase to a meagre Rs.883.56 per month. This is a cruel joke on these super seniors.

This matter was pursued with Shri. R. Chander, Managing Director early this year again when our delegation met him on 21.01.2026.

We would, therefore, reiterate our demand and request you to grant a sum of Rs.10,000/- in addition to the ex-gratia being paid now to pre-1986 retirees and surviving spouses of such retirees.

This is another long pending vexed issue crying for solution. As far back as November, 2001, LIC Board approved and recommended to the Central Government for full neutralisation in respect of DA for pre-August 1997 pensioners. Unfortunately, the government has been sitting over the issue for more than two decades and a half. It is the responsibility of the LIC management to secure the necessary approval of its Board resolution.

We would, therefore, request you to take up the matter afresh with the government so that the Board resolution of November, 2001 is fully implemented without any further delay.

The most pressing of all issues that confront the pensioners is the issue of periodical revision of basic pension in the wake of the wage revision of the in-service employees as is in vogue in case of Central Government employees. Clause 56 of the LIC Pension Rules, 1995 makes it abundantly clear that these rules were framed on the basis of Central Civil Services (Pension) Rules. But the improvements that came to Central Civil Service Pensioners at the recommendation of the Central Pay Commission providing pension updation, are being denied unjustly to LIC pensioners. Besides, such a pension updation scheme was also extended to the Reserve Bank of India pensioners later. But, despite repeated representations LIC pensioners stand deprived of this benefit. As a result, the basic pension of the LIC pensioners continues to remain stagnant. This has created serious distortion, anomaly and discrimination. LIC management should not take a plea that the matter is sub-judice since it is under adjudication in the Supreme Court. Given a positive approach of the LIC management an out of court settlement on this issue can be made possible.

There are other issues also. But we refrain from burdening you with all those at the moment. We hope and trust, the aforesaid pressing issues will receive your urgent attention and you will be kind enough to intervene so as to reach a satisfactory solution soon. The Central Committee of All India Insurance Pensioners’Association scheduled to meet at Guwahati on 25th & 26th September, 2026, will take a call on these issues and decide ways and means to realise these just demands. We expect that the LIC management will come out with solutions before the said meeting.

Thanking you,

Yours faithfully,

General Secretary.