www.nfifwi.com Vol.31 | No.2 JANUARY 2015 Annual Subscription Rs.90/­ Comrade GVS. Mani “Times have changed, situations have changed but the need to fight has not changed” - S.W. Kalwit NFIFWI submits Memorandum on FDI News Bulletin | January 2015 NEWS BULLETIN January 2015 Vol:31 | No.2 | Quarterly Journal of NFIFWI Extreme Impact of the highly improbable! CONTACT The current situation which we are S25/221-8C-3KA, Saraauli Behind Balaji Public School, Varanasi e x p e r i e n c i n g t o d a y , w a s t o t a l l y Uttar Pradesh - 221002 unimagined by anyone and it is of extreme magnitude. No one would have thought Com. G. Nagesh All India President that LIC will be forced to withdraw all its Com. Ashok Patil products and constrained to sell very few All India Vice President Com. Vivek Singh products. This type of situation is of Secretary General extreme rarity. Com. B.Manoharan All India Joint Secretary The irony of the situation is that Com. Arun Kumar the reasons for the lesser business All India Joint Secretary Com. Dhananjay P.Yadav performances of Development Officers Resident Secretary, Mumbai are beyond their control. Apart from non Editorial Board :- Com. Rajesh Kumar Gupta availability of more products, the All India Resident Secretary ( Delhi ) Com. Rajeev Krishna Tripathi continuous upsurge in price rise, All India Treasurer increased bank interest rates, new taxes on Com. Mangapathi Rao C All India Resident Secretary ( IRDA ) LI investments, recession in overall economic growth, dramatic decline in Guidance & Support Com. B.Manoharan house hold savings are few of the many All India Joint Secretary factors responsible for the decline of Coordination business performance not only for Com. S. Anand Zonal Secretary (SZ) Development Officers but for LIC of India as well. The Making of National Federation & MOU on Special Rules-1989 The Government at the centre, is -Comrade GVS. Mani merely watching the languishing of this Impact of The Insurance Laws industry at the hands of IRDA. IRDA's (Amendment) Bill, 2008 In this Issue:- regulations right from the beginning was never consistent. It was more focused on grounding of LIC of India, than to regulate Cover Design & Layout G. Lakshmi Narayanan | T.N. Venkatakrishnan & develop the industry. Governments of developed countries across the world, will From the Secretary General Desk ! patronise private sector over government sector is well known, but they may not go 1 www.nfifwi.com News Bulletin | January 2015 to the extent of totally destroying the basic up as “ the last chance to take popular products entity of a well established and financially in LIC' was a ploy. Making LIC win for a short sound public sector. LIC was not only doing life time and create a feeling in the market that all insurance business but was also a dependable the good products are removed once & for all arm for the Government financial needs. was the game plan. In the disguise of fair play for all in the Rubbing salt on the injury, IRDA after market, IRDA's regulations repeatedly attacked forcing LIC to withdraw more than 60 products, LIC's supremacy in the industry. LIC was came up with another severe restriction of forced to create a huge amount of solvency clearing only 5 products per year. For a margin (for all policies underwritten since 1956) company, to the size of LIC which has spread to which was sliced from the policy holders' the length & breadth of the country, with more account, resulting in drastic decline in bonus than 1.5 lakh employees and 12-14 lakh agents, rates. Even during the Ulip fiasco, where the withdrawal of all products and permitting very misselling by the private insurers was rampant, few products that too without any product for IRDA remained silent, watching the children below 8 years clearly establishes the tarnishing of the creditbility of life insurance motives & designs of IRDA was only to industry. destabilise & ground one of the most strong & financially sound LIC of India, rather than to IRDA never had a consistent policy. It regulate or develop this industry. started with 100 hours training with ofine & online exams for agents, then shifted to 50 hours Inspite of these chaotic & miserable with only option of online. Syllabus was first market conditions, it is quite saddening that designed by Insurance Institute of India, later it the Management failed to respond & address was shifted to CII. London and once again, it our concerns with a sense of urgency. The delay reverted to III. On many matters IRDA in modification of special rules, revision of MAB continuously changed its earlier stand, be it on conditions for agents are of immediate concern standard proposal forms, persistency norms for to be addressed by the Management. agents etc., and at present IRDA has come out In other words, for Development with a draft on agents recruitment. Officers, the situation prevailing today is like IRDA’s final blow on LIC was when the survival of citizens at the border during a the “Product Regulations” was issued during war. Future of the insurance market is February 2 0 1 3 , which i m p o s e d m a n y becoming more unpredictable with more inexplicable restrictions, that many of the life changes in the offing. Even though the situation insurance plans that were quite popular for may not last long, immediate steps to arrest the over a c e n t u r y , s u d d e n l y g o t invalidated. impact on our class should be envisaged. We All the time tested products were withdrawn. need the skills of a accomplished sea men No proper reasons for withdrawal was given. whose expertise is used to save both the ship & the passengers during turbulence & crisis. Extension of time given for withdrawal of products from September to December 2013 Our Organisation has the skills ! was a clear gamble played on LIC by vested interests. The campaign slogan which was put - Editorial board 2 News Bulletin | January 2015 From the Secretary General’s Desk ! Dear Comrades, developments, why no agitation was called to protest Never since the inception of LIC of India (since against the Management. When the former 1956), has seen such an offensive been waged against leadership, could call for Parliament March & the class of Development Officers by multiple Yogakshema March for GOIB, why not for such a corridors of power. Never have been the Development major issue of Job security of the entire class? All the officers, deprived of their basic right of their Job in this above issues started from the year 2009 and went on corporation to this extent. Our class is passing through till December 2013. a very difficult phase. The entire situation is not In Indore FCM, Members elected me as S.G because of today's development. and from then on my only focus was to take all out The severe hardship faced by us because of Special efforts to ensure each and every member is protected Rules 2009 was conceived by the Management in 2008 in this job and to use all our resources to ensure and implemented in 2009. Minimum Business Management reviews special rules 2009 in our Guarantee for the Agents was increased in the year favour. It was not an easy task. The entire 2009. Management introduced the CLIA scheme in the organisation has to work together on this issue. year 2008. IRDA notified new product guidelines in the After a lot of persuasion and follow-up, we year 2013 and LIC withdrew all the policies on 31st were able to break the ice. A meeting with the December 2013. Management only on Review of Special Rules 2009 Since 2009, the working conditions of the was conducted on 11th Sep 2014. It was the first break Development Officers deteriorated. The situation through. Unlike the earlier leadership, which never created frustration and restlessness among members. discussed any issue even with AIP, a collective Internal unrest on security of the Job increased among representation was made before the Management. membership. The process of review of Special Rules started Many members questioned the then leaders, moving. Since then I have been following with CO why there is no agitation against the Special Rules (Marketing Dept., Chief (Mktg), ED (MKtg) and with 2009? Why did the then SG (2009) kept silent when the MD & Chairman) vigorously. As a team, all the CS Management decreased the oor level from 22% to members are putting their best efforts unitedly to get 19%, why the then SG did not react in his entire five full the issue resolved in our favour at the earliest. I am years, when the 50% & 3 years condition was reduced working very hard with all sincerity & seriousness to to 38 % & 2 years in Special rules 2009 and also when bring the result soon. We have made major inroads in many Development Officers were issued show cause convincing the Management on the precarious notices for termination and faced disincentives. situation and the emergency for review. At present the process is in final stage. We are expecting the Why the then leadership was neglecting the issues of management to call us any moment to finalise the the young Development Officers, who were to face review of Special Rules-2009. termination in a matter of two years in the Spl. Rules 2009 for non performance. Why the then SG was silent On the issue of meal coupon & unit meeting, on the issue of MBG for all these years? Why NF has not we have strongly conveyed our anguish to the approached the court of law on CLIA issue then? When Management and pursuing the matter with ED SG, who is a member of IRDA, advisory Board, not (Mktg).