Press Release by L.I.C of India regarding its Report on Embedded Value

 Source: https://licindia.in/Home-(1)/Customer-Portal

14/07/2022 PANINDIA PRESS RELEASE

Mumbai, July 14, 2022: The Board of Directors of Life Insurance Corporation of India (“LIC”) approved the Report on Indian Embedded Value (IEV) as on March 31, 2022. Below are key highlights of IEV Report results. LIC has engaged M/s Milliman Advisors LLP for determining the IEV of the LIC of India as on March 31, 2022. Today, the Board of LIC, in its meeting, adopted the IEV Report of Milliman Advisors LLP pertaining to the IEV of LIC of India as on March 31, 2022. As mandated under the amended section 24 of LIC Act, 1956, Board of LIC in its meeting held on 8th January, 2022 had approved bifurcation of the single fund into separate Par and Non-Par funds and the effect of such bifurcation has been reflected in the Financials as at 31st March, 2022. As on March 31, 2022, the IEV of LIC of India has been determined to be Rs.5,41,492 Crore (Rs.5,414.9 Bn) as compared to Rs.95,605 Crore (Rs.956 Bn) as on March 31, 2021 and Rs.5,39,686 Crore (Rs.5,397 Bn) on September 30, 2021. The IEV as of September 30, 2021 was significantly higher than the IEV of March 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22. The Value of New Business (VNB) for year ended March 31, 2022 has been determined to be Rs 7,619 Crore (Rs.76.19 Bn) as compared to Rs.4,167 Crore (Rs.41.67 Bn) for the year ended March 31, 2021. Also, the VNB for the six-month period ended September 30, 2021 was Rs.1,583 Crore (Rs.15.83 Bn). The VNB margin, for the year ended March 31, 2022 is 15.1% as compared to VNB margin of 9.9% for the year ended March 31, 2021. The Annualised Premium Equivalent (APE) for year ended March 31, 2022 is Rs. 50,390 Crore (Rs.503.90 Bn). The APE for year ended March 31, 2021 was Rs.45,588 Crore (Rs.455.88 Bn) and the APE considered for arriving at VNB for period ended March 31, 2021 was Rs. 42,170 Crore (Rs. 421.70 Bn). Further for the period ended March 31, 2022, the APE of Individual business and Group business was Rs.35,572 Crore (Rs.3,55.72 Bn) and Rs.14,818 Crore (Rs.148.18 Bn) respectively. Therefore, the Individual Business accounted for 70.59% of APE and Group business accounted for 29.41% of APE. Also, within the individual business, the par business share on APE basis was 92.88%, while the remaining 7.12 % was from the non-par business. The ROEV (Return on embedded value) for March 21, 2022 is 11.9% as compared to 36.9% for March 2021. It is clarified that these calculations take into account the bifurcation impact of the split of single life fund into par and non-par fund during the FY 2021-22 Dated at Mumbai on July 14, 2022. For Further Information please contact: Executive Director (CC) LIC of India, Central Office, Mumbai. Email id: ed_cc@licindia.com Visit us at www.licindia.in We believe that the news contained in this release is of value to your readers. While we would thank you to publish it as soon as possible, we also readily recognize that the decision to do so rests entirely with you

********************************************************************************

Does the above-mentioned Embedded Value of the Corporation as on 31.03.2022 consider the Repudiated Arrears and difference in Statutory Retirement Benefits payable (but not paid) to its resigning ex-employees since 1st August 1997? If not, it is factually incorrect.

In 2007, the Supreme Court had declared the Clause 3 1 b by which the arrears were illegally repudiated by the Corporation; to be 'ultra vires'.

By now all of us long-suffering ex-employees should have been paid our arrears with interest! 

The Government, Finance Ministry and the Managing Board of Directors of L.I.C of India owe us all an explanation. As well as to all the stake-holders!

Kindly initiate and expedite the process of payments to all of us and right the wrongs that have been meted out to us since 25 years!

Thanks in eager anticipation.

Resigning ex-employees of L.I.C of India

L.I.C of India's financial jugglery will put a magician to shame!

 Source: https://www.businesstoday.in/markets/story/lic-plans-to-transfer-nearly-22-bn-to-revive-battered-stock-report-351159-2022-10-28

 LIC plans to transfer nearly $22 bn to revive battered stock: Report

LIC plans to transfer 1.8 trillion Indian rupees ($21.83 billion), a sixth of the 11.57 trillion rupees lying in its non-participating fund, to its shareholders' fund, according to an official aware of the matter. 

Reuters

• Oct 28, 2022,
• Updated Oct 28, 2022, 9:24 PM IST

• Life Insurance Corp of India (LIC) is planning to transfer nearly $22 billion from policy holders' funds into a fund earmarked to pay dividends or issue bonus shares, two sources said on Friday, as the country's largest insurer aims to shore up both its own net worth and investor confidence.

  The state-owned insurer listed on Indian stock exchanges in May, but its stock has since dropped by more than 35%, wiping off nearly 2.23 trillion Indian rupees in investor wealth.

  LIC is now looking at steps to revive its share price, said a government official, who did not want to be named.

  The company plans to transfer 1.8 trillion Indian rupees ($21.83 billion), a sixth of the 11.57 trillion rupees lying in its non-participating fund, to its shareholders' fund, according to an official aware of the matter.

  Life insurance companies primarily sell two types of products: the first are 'participating policies' where profits are shared with customers and second are 'non-participating,' or 'non-par,' policies that have fixed returns. LIC parks the premium it collects from the latter in a non-participating fund.

  Transferring some of that into the shareholders' fund is one way to shore up investor confidence as it would be an indicator of higher dividend payouts in the future, both the officials said.

  The surplus in the non-participating fund is earmarked for shareholders and can be transferred to shareholders fund with approval from LIC's board, which is yet to be sought, they said.

  The transfer, if concluded, would boost LIC's net worth by about 18 times from its current value of about 105 billion rupees and top the net worth chart among insurers, including SBI Life and HDFC Life, both the officials said.

  LIC and finance ministry did not immediately respond to emails from Reuters seeking comment.

  A bigger shareholder fund would draw the attention of new and existing investor as the amount would be used by LIC to transfer dividend or issue bonus shares in future, said Harvinder Singh, a partner at law firm DSK Legal.

  LIC shares were priced at 949 a piece during listing but are currently trading below 600 rupees.

  Seven of nine brokerages covering the stock have 'buy' or 'strong buy' rating, with the median price target of 840 rupees, according to Refinitiv data.

  "The move would increase the book value per share and may help in improving the sentiment around LIC's shares, but could keep the upside limited," said Ankur Wahal, senior vice president at BOB Capital Markets. ($1 = 82.4450 Indian rupees)

   *****************************

  In light of the above-mentioned report, we, the long-suffering, resigning ex-employees of L.I.C of India would like to remind the Corporation of its legal obligation towards us too!

  Kindly show the same financial dexterity and prudence in paying us our legally rightful dues, without much ado!

  You owe us huge unaccounted for amounts (unaccounted by you in your financial statements!) payable as our wage revision arrears' and other allied statutory retirement benefits' differential amounts; since 1997!

  The Government must prod the Corporation to pay us our dues as well as we have put in long years of sincere and loyal service to the Corporation before resigning for personal reasons. The Supreme Court is with the employees in this matter, as is evident by its ruling in 2007 that the Clause 3 I b by which the arrears were repudiated in each Charter since 1997, is Ultra Vires!

  Yet the Corporation and the Government carry on with this illegal repudiation with impunity, flouting our nation's highest court's orders! Blissfully carrying on with Contempt of Court!
  

  Shockingly, if this sorry state of affairs continues, as per the above-mentioned report, all the policy-holders of the Corporation may end up in our shoes, running from pillar to post to get their legally rightful dues; in the near future! God forbid!
  

   

   

 

Vigilance Week - L.I.C of India

 In its message to all the policy-holders regarding observance of Vigilance Week, L.I.C of India states its commitment to ethics. It asks everyone to fight for rooting out corruption and take a pledge to that effect.

We, the long-suffering, resigning ex-employees of L.I.C of India request the Managing Board of Directors to take the same pledge more vigorously this year, as each year passes by without us even hearing (leave alone actually receiving) about payment of our arrears' dues which the Corporation has maliciously, illegally and unjustly repudiated!

NOT PAYING OUR LEGALLY RIGHTFUL DUES, IS CORRUPTION. IN CASE L.I.C OF INDIA DOESN'T KNOW!

EVEN NOT ACCOUNTING FOR THE REPUDIATED AMOUNTS, IS CORRUPTION AND A MALPRACTICE OF THE HIGHEST ORDER.

THUS THE CORPORATION AND  THE GOVERNMENT MUST INDULGE IN SOME SERIOUS SOUL-SEARCHING AND TAKE EFFECTIVE STEPS TO STEM THE ROT...

Hopefully then, in the current Charter this humiliation won't be imposed on the hapless resigning employees!

    In my opinion, it is not enough to just profess the COMMITMENT TO ETHICS without actually practising it. In the course of my RTI struggle to obtain information from LIC, it was amply proved that LIC has no ethics as far as its responsibility towards its resigning ex-employees is concerned.  Consider the following points:

 LIC didn't bother to reply to my registered letter for representation of my case for arrears payments, nor to my subsequent 22 emails sent for follow-up thereafter; for eight months!

LIC's CPIO(WZO) called me up on my mobile from the office number and intimidated me so that I could back off from my RTI case. He  also requested me to treat his call as "off the record". He mocked me and challenged me to file a case against LIC boasting that I would surely lose the case and that the RTI case would also be closed within 3 months.

He lied in front of the IC that he had never spoken with me, to which I retorted that he was lying. He was dumbfounded and the IC reprimanded him to be transparent in his dealings in future.

LIC expects us to approach courts for our legally rightful dues, despite a Supreme Court ruling that declares Clause 3 of the Charter to be ultra vires. This clause repudiates the arrears payable to the resigning employees.

LIC didn't answer a majority of the 21 questions in my RTI appeal. Only three questions were answered incompletely.

LIC hasn't posted my RTI details on its website as is mandated by law.

LIC has wilfully, arbitrarily and illegally deprived its resigning employees of their arrears payments and difference in retirement benefits' payments for nearly 3 decades (from 1997, to be precise!).

LIC is heartless towards its ex-employees who have served it loyally and sincerely.

LIC has avoided paying TDS to the Central Exchequer by repudiation of our wage revision arrears since two decades, thus causing the Exchequer a whopping loss of crores of rupees!

My sincere request to L.I.C of India is to examine which of the following qualities does it possess to proclaim itself as ethical in our case:

Empathy and Ethos
Trustworthiness
Honor and Honesty
Integrity
Core values, Consideration and Conscience
Soul

If even one of these is missing, it needs to do an urgent soul-searching exercise and walk the talk!
If it is indeed ethical and non-corrupt, it will immediately reimburse to all of us, our legally rightful dues.

Gratuity is a Constitutional Right, L.I.C of India!

           Yesterday, I read a newspaper item in which it was reported that teachers of private schools will get Gratuity which had not been paid to them on retirement, w.r.t to those who had retired in 1997. They will get all their dues retrospectively from 1997 till date with interest as per current rates.

Private school teachers to get gratuity with effect from 1997

Dhananjay Mahapatra / TNN / Sep 1, 2022, 03:51 IST

https://timesofindia.indiatimes.com › india › articleshow

 

 

 

 

 

 

 

 

 

 

.

4 days ago — India News: The Supreme Court has upheld a 2009 law entitling private school teachers gratuity, retrospectively from 1997

          Instantly I realized that the case of us resigning ex-employees of L.I.C of India is similar to that of those teachers!

         We are now very hopeful that there is light at the end of the tunnel for us. Even L.I.C started illegally and arbitrarily repudiating the wage revision arrears' payment; as well as forfeited all difference in Statutory Benefits like Gratuity and Provident Fund, w.r.t us resigning ex-employees from 1997.

          The Supreme Court's judgments to pay these payments falls on L.I.C's deaf ears, every Charter!  

           As the wise old adage goes: We can wake up those who are sleeping, but not those who are pretending to sleep!

          Let's all unite and wake up the sleeping giant and hope that realization about its cruel acts dawns on L.I.C of India as well as the Government that is a willing party to this deprivation of our Constitutional Rights. 

         The Managing Board of Directors takes this same illegal decision of repudiation in every Charter since 1997 and the Finance Ministry blindly ratifies it, in utter, wilful 'Contempt of Court' manner. 

                    In 2007, the Supreme Court had declared the Clause 3B ii as Ultra Vires!

                   That Clause was the one that mentioned about repudiation of wage revision arrears to the resigning ex-employees. The judgment of the Supreme Court clearly states that this decision is "over reach" of the Chairman of L.I.C of India. Do read the said judgment on this blog.

           We publicly appeal fervently to the Supreme Court to be a harbinger of justice and equality for us as well. 

           It must immediately order L.I.C of India as well as all public sector insurance companies where this same scenario exists, to pay us our dues with interest as per current, cumulative interest rates.

                         Let this Azaadi ka Amrit Mahotsav be true Azaadi for us as well. 

                                                         Freedom from Injustice!

                                                         SATYAMEVA JAYATE! 

 

Our freedom is at stake! L.I.C of India

         Just yesterday, India celebrated its 75th Anniversary of Independence from colonial rule. As all of us enthusiastically and proudly wished each other "Happy Independence Day", a thought struck me like a bolt from the blue.

          We, the resigning ex-employees of L.I.C of India, illegally treated like 'bonded laborers' by our ex-employer are still not free from bondage. 

          Though we had never signed any contract or agreement that we would compulsorily work for 20 years with the Corporation or forfeit our hard-earned enhanced wages due to retrospective wage-revision, we have all been made to suffer the injustice and cruelty meted out to us by L.I.C of India which has been illegally repudiating the arrears of payment arising due to Wage Revision Charters (belatedly announced by it every 5 years!) since 1st August, 1997.

          So we decry 25 years of injustice and discrimination. Silver Jubilee of high-handed, illegal and arbitrary acts by the Corporation!

         Despite a Supreme Court judgment declaring that such discrimination between 2 classes of employees is not fair and asking L.I.C of India to pay such employees their arrears, the Corporation impudently defies it; making it liable for "Contempt of Court" action.

         Even the Finance Ministry that ratifies this UNJUST AND ARBITRARY decision doesn't ask the Corporation about its impunity.

        IN REPLY TO MY R.T.I APPEALS, L.I.C OF INDIA HAS ADMITTED THAT THERE IS NO REASON ON RECORD FOR REPUDIATING THE ARREARS.

  THIS INJUSTICE IS CARRIED FORWARD IN EACH CHARTER SINCE 25 LONG YEARS!

                                         TRULY, A SORRY STATE OF AFFAIRS!

Hope the Supreme Court steps in and directs L.I.C of India to pay all our rightful dues arising due to wage revision, including difference in P.F. and Gratuity, with interest; as well as compensation for mental torture and costs for litigation/R.T.I. appeals.

Insurance sector as an investment option - Drawbacks

 

If a socially-oriented sector like Insurance is opened up for the public to invest, it is bound to be a disaster, because its embedded value is very volatile and fluctuates with every external event.

Can anyone predict with reasonable accuracy about when or where a natural calamity will strike? How many lives will it claim? How many will be disabled? How much insurance claims' payout will be done by the Corporation? 

The recent global Corona Virus - COVID 19 pandemic is a case in point.

Besides, mortality itself is variable. Actuarial estimates may also vary or be off the mark.

Most important - Why should anyone seek to make money or profit from such a noble initiative as providing insurance cover? 

Beats us! 

It makes us think that announcing L.I.C's  I.P.O was a big mistake, after all. How will the Corporation bear this loss of face, after being touted for decades, as the largest profit-making public sector enterprise in India?

Now its very credibility is at stake.

 

Lossmaking I.P.O of L.I.C of India

 https://www.ndtv.com/business/lic-2-0-flop-wipes-ipo-wealth-of-near-18-billion-more-pain-ahead-3101151

"LIC 2.0" Flop Wipes Over $18 Billion Of IPO Wealth; More Pain Ahead?

LIC IPO losses of over $18 billion is a staggering wealth wipeout.

Edited by Rahul Karunakar Updated: June 26, 2022 10:40 am IST

India's biggest-ever initial public offering (IPO) of Life Insurance Corporation (LIC), which was touted as the next phase of the country's insurance behemoth, "LIC 2.0", has flopped since tepid listing at a discount on benchmark bourses, with losses worth nearly a third in valuation.

LIC's stock fell on Friday to ₹ 661.70, down 3.2 per cent for the day, and over 30 per cent lower from its issue price of ₹ 949 per share, turning it into one of the top destructors of wealth among IPOs this year after experiencing a near $18 billion market value wipeout.

Indeed, to put the magnitude of losses in context, having plunged nearly a third in value since its May 17 debut, LIC IPO now ranks at the top in capitalisation loss since issue, starting with the discounted listing and continuous selling pressure.

That despite a mandatory lock-up period for anchor investors for the first 30 days.

While that regulatory rule was to stop anchor investors from offloading shares immediately after listing, it has not stopped the bleeding in LIC shares.

The mandatory lock-in period for 50 per cent of investments from anchor investors, or the qualified institutional buyer (QIB), ended on June 10. Still, the remaining 50 per cent of their money will be locked-in for 90 days from the listing date.

The government had said it is "concerned" about the temporary blip in LIC's scrip and that the insurer's management will look into these aspects and raise shareholders' value.

"We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and raise the shareholders' value," DIPAM secretary Tuhin Kanta Pandey had said earlier this month.

But what has not helped the country's insurance giant is the disappointing earnings results and a lack of communication from the firm's management on its growth strategy and plans.

Since its flop debut on the stock exchanges, the scrip has touched a new low of ₹ 650 and a high of ₹ 920 a few days after its listing, which is well below its offer price of ₹ 949.

The country's biggest insurer and the largest domestic financial investor's market capitalisation (m-cap) fell to ₹ 4.2 lakh crore on Friday, with over ₹ 1.8 lakh crore wiped out.

At the issue price of ₹ 949, the company's m-cap stood slightly over ₹ 6 lakh crore.

Rising interest rates and global inflation have hurt foreign demand for Indian shares.

With no let-up from global markets sell-off expected anytime soon and India's stock market facing unprecedented selling pressure by foreigners, more pain is in store for LIC shares.

*******************

In the light of the above news-report, what can we, the long-suffering resigning ex-employees of L.I.C of India say, but the same; that we have been repeating all these days: 

L.I.C of India's management officials (read Managing Board of Directors) lack communication skills, transparency, empathy, integrity, expertise, foresight and judgment. 

ABOVE ALL, VALUES!

We can feel the pain of the investors whose hard-earned money has gone down L.I.C's black-hole. Just like our hard-earned arrears and difference (due to wage revision) in statutory retirement benefits.

Appalling state of affairs...

We hope that at least now, the investors will be more vigilant! 

After all, all that glitters is not gold!

 

 

 

International HR Day - Is LIC of India aware of it?

 Dear friends,

      We, request everyone to peruse the blog-post as carried below, to know the extent of the Corporation's malpractices as far as we resigning ex-employees are concerned. To the Corporation, we are persona non-grata!

      Today, we also take a pledge to steadfastly and vigorously pursue our case regarding illegal repudiation of our hard-earned back wages; i.e. arrears and other dues; till its logical conclusion.

      We will walk hand in hand and take a stand that L.I.C of India MUST pay all our dues immediately. We hope and pray that the Government of India supports our stand and proactively helps us in realizing all our hard-earned money with interest at the earliest. Even the prospective investors in L.I.C of India's I.P.O., newly appointed law firms and statutory auditors must stress on the Managing Board of Directors to pay up; clear this long-outstanding, (unaccounted for) liability running into several crores of rupees since August, 1997 (more than two decades!) and clear the Balance Sheet of the Corporation.

      The readers are requested to peruse my earlier blog-post dated 24th January, 2021, concerning the estimate of wage revision arrears repudiated unconstitutionally, unethically and remorselessly by our ex-employer - Life Insurance Corporation of India.  

      Our trust in our ex-employer L.I.C, has been betrayed, not empowered, by none other than L.I.C which needs a crash course in Human Resources Management/Development. Only holding seminars ad nauseum on this topic is redundant if it can't walk the talk and treat its employees fairly and graciously.

                       We finally urge L.I.C of India to walk the talk! (Read "Pay Up") ASAP.

The long-suffering, resigning, ex-employees of L.I.C of India!

SATYAMEVA JAYATE!    

P.S.  We wonder how the officials in the Managing Board of Directors of L.I.C of India even get sound sleep at night, after defrauding scores of resigning ex-employees of their hard-earned dues like arrears arising due to wage revision, difference in Statutory Retirement benefits like Provident Fund and Gratuity; despite the Supreme Court's decision regarding rendering of the repudiation clause as 'ultra vires' and its verdict favoring such employees, in several cases? 

No prick of conscience?

D-Day - L.I.C of India's IPO

 

L.I.C of India is currently celebrating its Golden Jubilee of "Betrayal of the Good Faith of its Resigning Ex-employees". It has been willfully, illegally and unjustly repudiating their wage revision arrears' payments and other allied dues like difference in Statutory Payments like Gratuity, P.F. etc., since 1997. (Despite a Supreme Court judgment in 2007, favoring payments to the resigning ex-employees; the Corporation insists on repudiation! Which means "Wilful Contempt of Court" by L.I.C of India!) 

 

Today, L.I.C of India is offering its I.P.O to the public for subscription.

 

Prospective investors, think very carefully before investing!

 

Do peruse this blog for the details about the R.T.I appeals that I made against L.I.C and my harrowing struggle to get information from the Corporation. Kindly note that the Corporation hasn't answered an overwhelming majority of my well-framed questions for reasons best known to it! This, despite it being a renowned Public Authority and bound to do so under the R.T.I Act.

 

My lone crusade completes 12 long years!

And yet, the said payments are pending....

 

Clearly, L.I.C of India doesn't respect its long-serving employees. So will it respect its new shareholders?

Only time will tell....

 

Meanwhile, "FOREWARNED IS FOREARMED!"

An urgent plea to the Supreme Court of India - Wage Revision Arrears' Payment

 Source: https://timesofindia.indiatimes.com/india/sc-saves-lic-of-huge-financial-burden-ahead-of-ipo/articleshow/91137837.cms

SC saves LIC of huge financial burd ..

Read more at:
http://timesofindia.indiatimes.com/articleshow/91137837.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

      Kindly refer to the above-mentioned news item which reports that L.I.C of India has been saved by the Supreme Court; from regularizing the temporary workers who have been demanding the same through a prolonged legal process.

********************

      We, the long-suffering, resigning ex-employees of L.I.C of India request the Honorable Supreme Court to save us. Kindly step in and ensure that we get our legally rightful dues (repudiated wage revisions arrears' payments and difference in the Statutory Benefits - P.F. and Gratuity) from the Corporation before the I.P.O commences.

       The Corporation doesn't have any reason to repudiate our back-wages. The wages have been consistently repudiated since 1st August 1997, as per the Corporation's submission in reply to my R.T.I appeal. The repudiation itself is totally illegal as rightly observed and analyzed by the Supreme Court in its 2007 judgement; in which it has even stated that such repudiation is beyond the powers of the Chairman of the Corporation. The Chairman has decided a cut-off date for wage revision but shouldn't make a distinction between 2 classes of employees (voluntarily resigning and resigning). All resigning employees are equal in the eyes of the law. Wages are the constitutional right of all employees.

       It's interesting to note that the Corporation is responsible for the delay in implementation of the Charter hence can't make the employees who were on the salary roll of the Corporation from the effective date of wage revision; as the scapegoats in the bargain. 

         We'd like to apprise the Supreme Court that the Corporation, a premier profit-making institution, continues to include the Clause 3B ii which has been declared as Ultra Vires by the Supreme Court in its judgement dated 2007; in all its Charters for Wage Revision thereafter too. This is wilful Contempt of Court. 

                                      JUSTICE DELAYED IS JUSTICE DENIED.

       Not only does it indicate the Corporation's malafide intentions, but also its propensity to cock a snook at the Constitution and the judiciary. If it can't respect its obligations towards the sincere ex-employees who have put in long hours and years of service, how will it ever respect its obligations towards its other stake-holders in future? What's the guarantee?

       The Corporation has consistently betrayed the uberrima fides of its resigning ex-employees for more than two decades (25 years!) 

        My R.T.I Appeal itself is 11 years old! I've been fighting for our rights since 2010. All the details of my lone but determined struggle, along with scanned documents are available on this blog. Several similarly duped ex-employees (including those from the Corporations' sister concerns) have approached me and expressed willingness to join this seemingly unending fight for justice. Their comments/observations/opinions/experiences are also there on this blog, as are various judgements regarding the Corporation's cases.

        So we finally urge the Supreme Court to end our misery once for all by stepping in to grant us our legally rightful dues. It is our only HOPE!

                                                     SATYAMEVA JAYATE!

                        Meanwhile, prospective share-holders of L.I.C of India - BEWARE! 

            Who knows, you could be the next to be duped by the Corporation! God Forbid.

SC saves LIC of huge financial burd ..

Read more at:
http://timesofindia.indiatimes.com/articleshow/91137837.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SC saves LIC of huge financial burd ..

Read more at:
http://timesofindia.indiatimes.com/articleshow/91137837.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Happy Women's Day! Women's Empowerment, the L.I.C Way!

          The topmost echelons of the management of L.I.C of India consist of many women. 

 

 Unfortunately, while they are apparently interested in women's empowerment, (in our opinion,  

 

just talking about it!) their actions belie their attitude. There are some who deliver powerful 

 

lectures on women's empowerment but when it comes to actually walking the talk, develop cold 

 

feet and coolly look the other way!

          

          My tryst with the R.T.I appeal to the organization for getting my arrears and answers to queries; proved the above-mentioned sad truth. If I'd have got all my answers, I'd have also felt empowered, but alas, these ladies have forgotten the very meaning of empowerment, by choosing to be the Devil's Advocate (literally)!
          

          True empowerment can be attained only by supporting others. If ladies deprive other ladies (and men!) of their legally rightful dues and also justify it, it's a matter of concern and shame. Surely, they can use their own sense of judgment, reasoning and logic to make the men in their team aware of their flawed and unjust decisions instead of towing their line and trying to save their jobs and maintaining the status quo!
          

          These ladies have not shown the slightest bit of support to the cause of the resigning employees; arbitrarily and unjustly not being given their arrears and difference in retirement benefits, by the management.

          So one can just conclude that women can be women's best friends and worst foes too!

          Once we get all our dues from the Corporation, I will be filling the form for pledging to do Dehadaan (body-donation). That is my vow. 

          In case of my earlier demise, my family will be donating my organs/body to my chosen hospital or to the nearest hospital.

My R.T.I. queries to L.I.C. of India

 

1.      What is the official reason, because of which my arrears payment and difference in retirement benefits were repudiated during Wage Revision payment in the latest Wage Revision Charter dated 11^th October, 2010?

2.      Kindly provide me a copy of the gazette and official notification, along with information about which specific provisions of the gazette and official notification justify or state that I should not be given the arrears due w.e.f August 2007?

3.      Please furnish me a copy of Names, Addresses, Telephone/Mobile nos., Branch Nos., Branch addresses, D.O. Nos. and D.O. addresses of all the employees of LIC of India, who were denied arrears’ payment under the Charter dated 11^th October, 2010.

4.      Were any of the above employees paid the arrears amount by LIC of India?  If so, why, when and by whom? Names and other details as in (3) above, to be furnished. Documentary proof to be provided by LIC of India. 

5.      Is there any case filed by any such employee, whose arrears’ payment was repudiated by LIC of India, against LIC of India; in respect of any such Charter.  If so, details about the case—Name of the appellant, B.O. and D.O. addresses, residential and official address, telephone/mobile no., Charter Date (in respect of any such charter, including the latest one) and copy of the judgement.

6.      What was the outcome of the case as in (5) above?  Documentary proof to be provided by the LIC of India.

7.      No. of resigning employees all over India and the total amount repudiated (of arrears’ payment by LIC of India) with bifurcation in respect of each such employee; in the Charter dated 11^th October, 2010 applicable w.e.f August 2007.

8.      No. of employees, names, addresses, telephone/mobile nos. and amounts repudiated respectively (in respect of each one) under all the Charters of Wage Revisions (Previous 5 Charters, excluding the latest one) and their Branch Nos., Addresses of Branches, D.O. Nos., Addresses of D.O.s also to be provided.

9.      Since which year or which Charter has LIC of India started repudiating arrears’ payment legitimately due, to its resigning employees; and why?

10.  Details of the exact legal provisions and clauses on the bases of which LIC of India has arrived at its premise of refusing to pay Arrears’ payment and subsequent difference in retirement benefits to its resigning employees.

11.  Who takes this crucial decision to repudiate arrears’ payment to the employees?  The Government of India or LIC of India?  Details to be provided with documentary proof.

12.  The total no. of transactions effected under my S.R. No. 441595 from 1^st August, 2007 to 2^nd July, 2010, the last date of my service in LIC of India.

13.  Copy of the note or letter put up to the Chairman, LIC of India for the final decision regarding my resignation.

14.  Copy of the final approval of my resignation by LIC of India.

15.  Documents pertaining to the Board Meetings of LIC of India wherein this resolution to repudiate arrears of resigning employees; has been taken. Kindly provide Minutes of the Meetings with signatures of all the attending members. 

16.  With reference to my representation letters dated 20-10-2010 (addressed to the Executive Director, Personnel, LIC of India) and 20-11-2010 (addressed to the Chairman, LIC of India), sent through Speed Post and subsequent e-mails dated 22-10-10, 26-10-10, 01-11-10, 08-11-10, 13-11-10, 16-11-10, 20-11-10, 27-11-10, 04-12-2010, 06-12-2010, 09-12-2010, 13-12-2010, 21-12-2010, 24-12-2010, 25-12-2010, 30-12-2010, 04-01-2011, 13-01-2011, 17-01-2011, 28-01-2011, 31-01-2011, 08-02-2011; why were they not replied to immediately?  Why was there an inordinate delay of 8 months for a single line unsatisfactory reply vide letter dated 14-03-2011, received by me on 07-06-2011, that too replied to; not by the addressees of my letters, but by the lower office (Pune Divisional Office No.1)?  Kindly provide an explanation letter. 

17. Copy of the LIC of India, Staff Regulations, 1960 and subsequent modifications/amendments therein, if any.

 18.  Names, phone numbers and official addresses of the current Chairman, Officiating Chairman, Executive Directors, Managing Directors and Sr. Divisional Manager of Pune Divisional Office 1; LIC of India.

19.  Please provide a list of applicants for Wage Revision arrears’ payments in respect of the Charter dated 11^th October, 2010 during the last 16 months, giving names, dates of application and dates on which replies were issued by LIC of India. 

20.   What are the factors due to which the Wage Revision Charter is delayed inordinately, every time that it is legitimately due? 

21.   a) Does the LIC of India, Staff Regulations, 1960 and subsequent modifications/amendments therein, if any, contain any clause wherein it is mentioned that arrears payment after Wage Revision due to a Charter notification, may be denied to an employee on roll of the LIC of India in the period for which the Charter has been announced?

              b) If so, kindly point out the requisite provision or clause with adequate, satisfactory explanation/rationale.

              c) Does this denial of arrears payment and difference in retirement benefits, agree in principle, with the labour laws applicable in India?

*******************************************************************************

The copyright of this write-up is with Mrs. Priya Ramesh Swaminathan. 

 

L.I.C of India gave the answers to only 3 questions, that too half-baked! In the words of the C.P.I.O of the Western Zonal Office of the Corporation, L.I.C didn't want to open a Pandora's box, by replying to my queries. He mockingly and condescendingly told me that asking for answers from the Corporation was like breaking my head against a brick wall and also that the Corporation would never answer my queries. He was also disturbed that I had asked for penalty as per the R.T.I Act to be imposed on him and L.I.C of India for not answering my questions within the mandatory time-frame. With audacity, he told me that my case would be closed in a month's time and nothing would come of it! He challenged me to approach the High Court. Then he asked me to treat his phone call to my mobile number as "Off the Record"! 

 

If this is not intimidation and harassment of an ex-employee, what is? Shame on the Corporation and its officials who treat the hard-working ex-employees who have resigned for reasons beyond their control; like dirt! And we are just asking for our legally rightful dues!

 

But I placed it on record in my First and Second Appeals to the Information Commissioner and even squarely confronted him during the videoconferencing session at N.I.C. He blatantly lied that he had never called me up! I retorted by saying that he was lying. The I.C. took cognizance and then asked him to be more transparent (read - honest in his dealings) in future! 

 

We, the resigning and long-suffering ex-employees of L.I.C of India are still awaiting the remaining answers, with bated breath. And of course, payment of our dues with the requisite accrued interest!

No file notings with L.I.C of India regarding wage revision recommendations

 The following document shows how L.I.C of India, a premier, government run enterprise takes important decisions such as wage revision and repudiation of the resigning ex-employees hard-earned wages which are their constitutional right.

It has submitted the following document in response to my R.T.I query which reveals that it has NO FILE NOTINGS REGARDING WAGE REVISION RECOMMENDATIONS! 

 Note the point in the document that says "File notings regarding wage revision recommendations of LIC do not exist. Hence cannot be provided."

Isn't it absolutely shocking that this insurance behemoth doesn't even consider it necessary to mention/approve/ratify any of its wage revision decisions including the ones that cruelly/ illegally/unjustly deprive its resigning, ex-employees of their due, enhanced, back-wages and ensuing difference in Statutory Retirement Benefits?

Since this repudiation goes way back to 25 years, the Corporation, out of sheer herd mentality and an absolute and pathetic lack of application of mind; keeps on committing the same blunder ad nauseum and to the utter financial loss of its hapless resigning, ex-employees.

Interestingly, even the Finance Ministry, that ratifies the Wage Revision Charter doesn't deem it fit to ask for the same! So the cavalier attitude and approach is replicated at all levels. 

Besides, we wonder with amazement and dismay about what is the criteria for ratification then? If there are no criteria, doesn't the whole exercise become arbitrary, that is unbecoming and just not acceptable for an institution of L.I.C's caliber!

If there are no reasons for repudiation of arrears, how can they even be repudiated, that too since 1997? L.I.C could not give me any reason to repudiate the arrears. 

Surely the Corporation understands that sound reasoning, honesty, transparency, ethics and empathy are required to run the affairs of such a large, public sector enterprise? It can't act like a petulant, recalcitrant kid that makes off with someone's belongings (read - our wages) and doesn't return them at all!

We can only hope and pray that it is better governed and administered in the  days to come or it will not take long for it to plunge into an ABYSS OF NO RETURN OR REDEMPTION.

L.I.C of India admits to "No reason to repudiate arrears".

          In response to my R.T.I Application's Second Appeal, the Chief Information Officer of the Western Zonal Office of L.I.C of India admitted in writing, that there is no reason on record to repudiate the arrears to the resigning ex-employees. That being the case, how can the Corporation repudiate the arrears so blithely? 

          Now, given the fact that L.I.C's I.P.O will be announced soon, it is even more shocking. Imagine an organization of L.I.C of India's stature, taking decisions arbitrarily; that too affecting thousands of ex-employees who have slogged to fill its coffers, enhance its reputation and profitability; and been literally left with a begging bowl! 

          The Corporation refuses to give answers to valid and pertinent queries put forth by the resigning ex-employees, hides/fudges statistics on flimsy, illegal and untenable pretexts, urges the ex-employees to approach courts of law for justice despite clear rulings by the Supreme Court in this regard and keeps adding insult to injury by including the same clause that has been declared as "ultra vires" by the Supreme Court, in every wage revision charter till date.

          This prompts us to believe that L.I.C of India has become too big for its boots as it flouts the Constitution, the Supreme Court's binding orders and thus, the laws of the nation. Now, only the prospective investors, auditors, vigilance agencies, the Supreme Court and our government can cut it to size by demanding the same answers that we have been demanding, to be made public.

          A word of caution to the prospective investors - BEWARE! 

          If L.I.C of India can rob us in broad daylight by depriving us of our legally rightful dues, can't it do the same to you in future?

          For the record, as per the Corporation's response to my R.T.I queries, the wage revision arrears' payments are being willfully repudiated since 1st August, 1997, that is nearly 25 years!

Interestingly, there is no grievance redressal mechanism for ex-employees in the Corporation. 

My emails regarding representation of my case, were ignored 22 times. Later, My R.T.I appeals were shunted from pillar to post. I was intimidated and threatened.  

I PUT IT ON RECORD IN MY R.T.I APPEAL. 

I EVEN CALLED L.I.C'S BLUFF DURING THE VIDEOCONFERENCING SESSION WITH THE C.P.A.I.O AND I.C. THE I.C ADMONISHED THE CONCERNED OFFICIAL.

L.I.C of India believes in insulting our hard work and dedication and is interested only in passing the buck! 

How will this attitude of the Corporation work in light of the proposed I.P.O? 

                                                         Only God can help us now!

L.I.C, remember, I am made of sterner stuff. I will never say die. 

                                                           SATYAMEVA JAYATE!