Human Rights Day - Let's press for our fundamental right to our arrears' payment!

           History has a way of making its presence felt! Whoever has ignored History (read the past blunders of humanity) has had to bite dust! 

          Those who don't learn their lessons from mistakes committed in the past, continue to make the same mistakes, ad nauseum; and invite the wrath of Mother Nature! The ultimate leveler!

          L.I.C of India's insistence on including the vexed and unconstitutional Clause 3 1 B or ii) in the Wage revision Charter, twice after the Supreme Court's judgment declaring it to be ultra vires, is a case in point.

          The Corporation, a huge public sector undertaking doesn't bat an eyelid while trampling upon the human rights of its resigning ex-employees who had worked for long years sincerely and contributed towards its success and glory.

          In response to my Second RTI Appeal, it admitted that its decision to repudiate the arrears was arbitrary. "There is  no reason on record to repudiate arrears". To say that I was stunned would be an understatement!

          How dare a premier organization of L.I.C of India's stature, arbitrarily take such a huge decision that unjustly and illegally deprives its ex-employees of their legally rightful dues?

          Please note the salient points from the Supreme Court's judgment in 2007 as follows:

          The petitioner has a constitutional right to get his pay including the revision in the pay scale and it is settled by law that the fundamental rights can neither be waived off nor bartered away.

          It has come in the supplementary affidavit filed on behalf of respondent No. 2 that the wage revision of the employees of the nationalized insurance companies follows a periodicity of five years, i.e. 1^st August 1987, 1^st August 1992, 1^st August 1997 and 1^st August 2002. Thus, it is evident that in normal circumstances wage revision should have taken place in the year 2002 instead of 2005.

          Classification made by the employer on the basis of seeking premature retirement on the basis of two sets of retirement schemes is not sustainable being irrational and discriminatory.

          The object sought to be achieved by the issuance of the Notification dated 21^st December 2005 was to give the revised pay scales which were due in 2002. In fact, this has been done by giving retrospective effect vide Notification dated 21^st December 2005. It is, thus, held that classification created on the basis of insertion of sub-clauses (a) and (b) in second proviso of Para 3 is violative of Articles 14 and 16 of the Constitution of India.

         The respondent No.2 being the “State” within the meaning of Article 12 of the Constitution of India its actions are subject to the constitutional limits and the same are to be judged in the light of the fundamental rights granted by Part-III of the Constitution. The action of an instrumentality or the agency of the State must be in conformity with Article 14 of the Constitution. The option given by the petitioner cannot bind him as it is violative of Article 14 of the Constitution of India and it also runs against the public policy. The action of the respondents is not supported by any rational basis or intelligible differentia.

The ratio of the judgment of (2006) 3 SCC 708 cited by Mr. Ashwani Sharma is not applicable to the facts of the present case for the simple reason that in the present case the petitioner was in fact in employment as on 1^st August 2002, the date from which the Notification (Annexure P-4) dated 21^st December 2005 has been made applicable.

Consequently, in view of the observations made above, send proviso of Para 3 of the Notification dated 21^st December 2005 is struck sown being ultra vires to the extent it deprives the petitioner and other similarly situated persons to get the benefit of revised pay scale with effect from 1^st August 2002 after applying the principle of severability.

According, the petition is allowed. The petitioner is held entitled to get the revised pay scale corresponding to his post he was occupying as on 1^st August 2002 till 15^th March 2004. The respondents are directed to work out the arrears etc. within six weeks from today.

December 3, 2007                                                                                      (Rajiv Sharma), J.

(Source: Supreme Court and High Court judgments relating to Insurance.)

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  Thus wage revision arrears' payments with accrued interest (compounding) as per nationalized bank rates, as on actual date of payment, must be made immediately to all the affected resigning ex-employees, by all the nationalized insurance companies!

    The corresponding difference in Statutory Retirement Benefits like Provident Fund, Gratuity, etc. must also be paid simultaneously.

  We hope the Government of India is listening and will take prompt and appropriate action.

    Let's together rewrite History!

L.I.C of India needs more transparency

Source: https://www.licindia.in/Top-Links/About-Us/Information-Technology-And-LIC 

Information Technology And LIC

LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years.

1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990’s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.
 

FRONT END OPERATIONS

With a view to enhancing customer responsiveness and services , in July 1995, LIC started a drive of On Line Service to Policyholders and Agents through Computer. This on line service enabled policyholders to receive immediate policy status report , prompt acceptance of their premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of address can be done on line. Quicker completion of proposals and dispatch of policy documents have become a reality. All our 2048 branches across the country have been covered under front-end operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch computerisation. New payment related Modules pertaining to both ordinary & SSS policies have been added to the Front End Package catering to Loan, Claims and Development Officers’ Appraisal. All these modules help to reduce time-lag and ensure accuracy.

METRO AREA NETWORK

A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The System has been working successfully. More than 10,000 transactions are carried out over this Network on any given working day. Such Networks have been implemented in other cities also.

WIDE AREA NETWORK

All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network (WAN). This will enable a customer to view his policy data and pay premium from any branch of any MAN city. As at November 2005, we have 91 centers in India with more than 2035 branches networked under WAN.

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Dear friends,

Despite being so tech-savvy and constant (read daily), connection and communication between all the offices of the Corporation, L.I.C of India failed to give me answers to my basic questions regarding number of employees whose arrears' payments have been repudiated, their details, the amounts repudiated, individually and totally; questions put forth by me through my RTI appeal!

I insisted before the Information Commissioner (I.C.) that all my questions can be answered by the Corporation as all the details are maintained and updated in their Central Server.

Having been an Assistant Administrative Officer (A.A.O) myself, I very well know how records are updated daily.

Yet,  the Corporation's officials said that they don't have all the information asked for by me and that I should approach each and every branch for getting the details! The IC too repeated their statement and asked me to write letters to them. When I pointed out that the Corporation's officials were being evasive as they didn't want to reveal details, the IC told me that the CPIO of the Corporation is not a postman to go and get my details from each and every office and that I must only approach the offices for details.

Horror of horrors, the CPIO's replies stated that the information asked by me is not needed to be maintained as it is not necessary for their day to day functioning and is not a record! I pointed it out to the IC that even a small kirana (grocery) shop owner maintains all records of his employees, so how could the Corporation not do so?

I wonder whether the IC understood what a humongous and needless task it would be, if I had to approach all the 2035 branches of the Corporation, or even the 7 Zonal offices! Getting answers from only the Western Zone took me four years! I pointed it out that all the CPIO has to do is click a button on his own office computer.

Besides, I had spent lots of money on postage, photocopying and traveling to and from post-offices, LIC's offices and the National Informatics Center; not to mention the mental harassment and tension that severely took a toll on my health!

As I again reminded the IC in the final hearing of my Second Appeal, there is absolutely no need for the CPIO to go anywhere, when all the information that I have asked for is available in the Central Server of the Corporation. (Interestingly, the Western Zonal Office and the Central Office of the Corporation and located in the same building in Mumbai.) 

But of course, if there is no will how can there ever be a way?

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Just some days ago, there was a fire at a Branch office of the Corporation in Aurangabad, and the officials proudly informed the media that all the data of the policy-holders was safe as they are stored in the Central Server of L.I.C of India.

My take is, so are employee details stored in the same server! So why couldn't the Corporation share the details as asked for, by me?

L.I.C of India clearly has lots to hide! Revealing the data that I had asked for would have thrown open its 'Pandora's Box'! Crores of unaccounted for and unpaid arrears since August 1997! Have these arrears at least been calculated? If so, does the Balance Sheet show them as Liabilities? If they have not been shown as liabilities why was it so? Why does the Corporation blatantly flout the Supreme Court's mandate on the issue of arrears' payments? Only L.I.C. can answer!

The CPIO of the Western Zonal Office even boasted to me that LIC would never give me the details as it didn't want to open the proverbial Pandora's Box! In his opinion, asking for information from the Corporation is like banging my head against a brick wall. He point-blank asked me to approach the Courts for my legally rightful dues.

It's downright shameful that the Government of India even thinks about announcing an IPO for such an organization which systematically and regularly deprives its resigning ex-employees of their hard-earned, legally rightful dues, despite a Supreme Court judgment that stipulates payment!

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When L.I.C of India. a huge public sector behemoth, is not transparent in its replies, has faulty accounting practices, doesn't respect its own employees, acts with impunity and without integrity; will it respect its shareholders and other stakeholders? Will their money be safe? This is the question that all the prospective investors must ask the Managing Board of Directors of L.I.C of India and the Government of India.

Vigilance Week observance in LIC of India

 Dear friends,

If anyone really deserves the award for hypocrisy, it has to be LIC of India! Its advertisement in The Times of India states proudly - Vigilant India. Prosperous India. The four things listed here are corruption, criminality, dishonesty and fraud.

I would like to draw the attention of the readers of this blog to the following facts brought out due to my RTI appeal for information from LIC of India:

LIC of India does not have information about 18 questions asked me out of my 21 questions posed to it, Even the three answered by them were incomplete and incorrect.

*LIC of India stated that the decision to repudiate arrears payment to us ex-employees who resigned before completion of 20 years of service, was taken by the Government of India.

This decision is actually taken by the Managing Board of Directors of the Corporation and the Government of India only ratifies it. (Of course, erroneously as it goes against the Supreme Court's judgment on this issue!)

I brought this fact to the notice of the Information Commissioner who agreed.

LIC of India is an autonomous body that takes its own decisions and reports them to the Government of India.

*LIC of India said that it doesn't have all the information that I asked for as the information is spread all over its offices and that I should approach each and every of the more than 2000 offices of the Corporation for my answers! Even the Information Commissioner sympathized with it and asked me to file separate appeals. 

I informed the Information Commissioner that LIC of India has all the details asked for me in its central server. It just doesn't want to divulge the information, hence is making this excuse of not having the requisite information at one place.

The height of making a false statement by the Corporation was that it didn't need these records as asked by me for its regular functioning and getting it and providing it to me would stress its resources! The Information Commissioner supported LIC's incorrect stand.

If the Corporation can ask me as an individual with meager resources; to make more than 2000 appeals and file court cases to get my dues, why can't it with so much man power at its disposal and as mandated by the RTI Act do the needful? Besides, it is lying through its teeth that it doesn't have the information. 

I will have to take 2000 and more rebirths to get answers from LIC of India to get all my answers at the rate at which LIC responds! 

It took 22 emails from me and later, an email that I would be sending a lawyer's notice that made LIC give a terse reply at last that I wouldn't be paid as per rules! 

Which rules was it talking about? The fraudulent Clause 3 1B that even the Supreme Court had long ago in 2007 struck down as ultra vires!

LIC of India has not accounted for the repudiated arrears' sums running into several crores of rupees in its Books of Accounts! What could be more fraudulent, dishonest, criminal and corrupt than this act?

If it had accounted for it, it would have divulged the information regarding number of employees who have been denied the payments and the total amounts repudiated till date from 1st August 1997.

The CPIO (Western Zonal Office) called me up from the Zonal Office's landline number and intimidated me and mockingly said that I wouldn't get any answers from LIC of India. I quote him "Asking for answers from LIC of India is like breaking your head against a brick wall. LIC will not answer any of your questions as it doesn't want to open Pandora's Box! You can file a case against the Corporation but even if you file a court case against LIC of India, you will lose the case. This RTI appeal of yours will be closed in a month!" 

He even asked me why I had asked the Information Commissioner to impose a penalty on him and LIC of India for not answering my queries within the stipulated time, as mandated by the RTI Act.

To say that his reprehensible statements were presumptuous and shocking, would be an understatement.

To add insult to injury, when I appraised the IC at the hearing about his remarks, he brazenly asked me "Have I ever spoken to you?" to which I immediately retorted, "You are lying".

The IC then asked him to be transparent in his dealings in future.

I wonder how the officials in the Managing Board of Directors of LIC 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 verdict favoring such employees, in several cases? No prick of conscience?

Ironically, they will even take an oath of acting ethically, in their dealings as office-bearers of the Corporation, during the currently ongoing Vigilance Week! And keep including the illegal Clause in the Wage Revision Charter, every time that it is published; stipulating that such arrears are to be repudiated. By the way, this Clause was included in the 2010 and 2016 Wage Revision Charters, even after the 2007 judgement of the Supreme Court! And even approved by the Government of India!

A clear case of 'Contempt of Court'.

The Supreme court has ruled in its 2007 judgment that this offending Clause is "Ultra Vires" i.e. beyond the reach of power, of the Chairman of LIC of India.

May we persuade these officials to look up the dictionary for the equivalent of 'ethics'?

Even walk the talk? But probably that is too tall an order!

However, rest assured dear friends, the truth will ultimately prevail. We will definitely get our dues in the near future. Didn't India win her freedom after decades, nay, a century of struggle? Even if none of us is around, our descendants will reap the benefits of our crusade against LIC's injustice.

Satyameva Jayate!

Priya

Source:  http://www.rtifoundationofindia.com/information-respect-ex-employees-lic-who-were-deni

RTI Foundation of India

Information in respect of ex-employees of LIC who were denied salary arrears under wage revision Rule-2010 etc. was sought - CIC: Collating & compiling of information on all India basis would disproportionately divert the resources of the public authority 30 Apr, 2015 ORDER 1. The appellant, Shri Sunny Chhabra, submitted RTI application dated 12.10.2013 Central Public Information Officer (CPIO), LIC of India, New Delhi seeking information in respect of ex-employees of LIC of India who have been denied salary arrears under wage revision Rule-2010, among all those employees, how many employees were in the court against the order of denial and how many ex-employees have been reimbursed their claim after appeal in any court or by any other way. 2. The CPIO vide letter dated 21.10.2013 informed the appellant that no ex-employee of Northern Zonal Office had been denied salary arrears under Wage Revision 2010. The information relating to employees of LIC of India working in all India (under all the 2048 branches, 113 Divisions and other 7 Zonal Offices) was not available. Therefore, collecting and collating this information from all the CPIOs would divert the resources of the public authority and hence could not be provided as allowed u/s 7(9) of the RTI Act. Dissatisfied with the reply of the CPIO, the appellant preferred an appeal on 17.11.2013 before the FAA. The FAA vide his order dated 28.11.2013 concurred with the reply of the CPIO. 3. Thereafter the appellant filed second appeal before the Commission. 4. The matter was heard by the Commission. The appellant did not attend the hearing inspite of a written notice having been sent to him. The respondents stated that as per instructions for implementation of the LIC of India Development Officers (Revision of Terms and Conditions of Service) Amendment Rules, 2010 issued by LIC of India, Central Office, Mumbai dated 11.10.2010, the employees whose resignation had been accepted on or before the date of notification irrespective of whether they are relieved or not or whose services had been terminated under LIC of India during the period between 1.8.2007 and 8.10.2010 (both days inclusive) shall not be eligible for the arrears on account of this revision. They added that they had provided information about the Northern Zonal Office and collecting and collating information from 17 Divisions of Northern Zone, 113 Divisions all over the country will result in disproportionate diversion of resources, particularly when each division had its independent CPIO. 5. Having considered the submissions of the parties and on perusing the relevant documents on file, the Commission holds that information pertaining to LIC of India, Northern Zonal Office had been provided to the appellant. Collating and compiling of information pertaining to employees of LIC of India on all India basis would disproportionately divert the resources of the public authority and attract the provisions of Section 7(9) of the RTI Act. The appellant did not attend the hearing to point-out any deficiencies in the information provided by the respondents. The appeal is disposed of.   (Manjula Prasher) Information Commissioner Citation: Shri Sunny Chhabra v. LIC of India in Appeal: No. CIC/MP/A/2014/000433
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I had a feeling of dejavu after reading this judgment by the same judge who had dismissed off my Second RTI Appeal on similar grounds even after I had pointed out that LIC of India has all information in its Central Office's server. It doesn't have to go anywhere to get any information. Only a click of the button would yield the answers that we appellants wanted.

 In vain!

It's appalling that LIC of India could get away so easily by misleading the Honorable Judge!

It would be interesting to note that all information is centralized in LIC of India through its highly efficient digital network. LIC is merely evading the questions as it has a lot to answer for!

This comment made to me by the Western Zonal Office's CPIO, is itself telling. He had phoned me from the Western Zonal Office, through its landline number. I quote him as follows:

"Madam, LIC will not answer any of your questions. Asking for answers from LIC is like banging your head against a brick wall. Your head will only break. LIC doesn't want to open a Pandora's Box by answering any of your questions. You will lose the case (RTI appeal) and this case will be closed within a month! You may approach the Courts for your dues but you will lose the case!"

He was disturbed and peeved that I had asked the Information commissioner to impose the mandatory fine on him and LIC of India for not giving replies to my RTI queries within the stipulated time, as per the RTI Act's rules.

When I confronted him during the videoconferencing session of the appeal's hearing, he blatantly lied that he had never spoken to me. I immediately retorted that he was lying. Then the Information Commissioner warned him to be transparent (honest) in his dealings in future.

So what can we expect from an organization that cheats its ex-employees of their hard-earned dues under false pretexts, arbitrarily, illegally and unjustly? Despite a Supreme Court's order declaring the said clause 3 1 B or ii) vide which repudiation has been effected, to be ultra vires!

Only the Government can intervene and help us to get back all our dues with interest.

Clean up LIC of India's Balance Sheet for its IPO!

 Source: https://www.hindustantimes.com/business-news/india-to-hire-deloitte-sbi-caps-to-help-lic-prepare-for-ipo/

India to hire Deloitte, SBI caps to help LIC prepare for IPO

The coronavirus pandemic has prompted the administration to boost market borrowing as revenue slumped following a nationwide lockdown.

BUSINESS Updated: Aug 22, 2020 09:59 IST

Bloomberg| Posted by Susmita Pakrasi

Bloomberg
The government will soon invite bids seeking firms to value LIC, the people said asking not to be identified citing rules on speaking to the media.(REUTERS)

India is poised to hire Deloitte Touche Tohmatsu India Ltd. and SBI Capital Markets Ltd. to help Life Insurance Corp. of India prepare for an initial share sale, people with knowledge of the matter said.

The advisers will help evaluate the capital structure of India’s biggest insurer as well as aid the company in reworking its financial statement, according to a tender document issued in June. The government will soon invite bids seeking firms to value LIC, the people said asking not to be identified citing rules on speaking to the media.

Prime Minister Narendra Modi’s government is keen to go ahead with the initial public offering -- potentially India’s biggest -- to help plug a widening budget gap. The coronavirus pandemic has prompted the administration to boost market borrowing as revenue slumped following a nationwide lockdown.

A spokesperson for the Ministry of Finance couldn’t immediately be reached outside business hours.

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In light of the above-mentioned report, we, the resigning ex-employees would like to appeal to the external auditors to examine whether LIC of India accounts for the amounts it repudiates in respect of the Wage Revision Arrears, as well as the difference in Statutory Retirement Benefits payable like Provident Fund and Gratuity; in its Balance Sheet; every time that a wage revision takes place in the Corporation. 

LIC of India repudiates these payments through insertion of a Clause 31B in the Wage Revision Charter. This clause has been declared to be 'Ultra vires' by the Supreme Court in its judgment in 2007, yet LIC of India, in gross CONTEMPT OF COURT, keeps including it in all its Wage Revision Charters!

An Accounts Officer in the Corporation had nonchalantly told me that since these amounts aren't payable, as per the Charter, they are not at all accounted for, in the Statements of Accounts of the Corporation! 

This is a clear case of omission and commission!

For LIC of India, it is a matter of 'Out of sight, out of mind and out of the Books of Accounts too!' as far as the resigning ex-employees are concerned!

This means that the repudiated amounts of several crores of rupees have conveniently been omitted in the Liabilities section of the Balance Sheet of the Corporation since 1st August, 1997, more than two decades, since when LIC of India has been illegally repudiating the arrears payments.

In effect, the Assets would appear to be wrongly inflated. This skewed Balance Sheet will not give a true picture of the finances of the Corporation, if provisions have not been made for these liabilities.

Interestingly, LIC of India didn't give me any information regarding the amounts repudiated or the number of employees who have been unjustly and illegally deprived of their dues; in response to my RTI appeal.

Had LIC of India accounted for it, it could have given me the information! 

A thorough investigation is needed before the IPO of LIC of India is announced.

The repudiated dues must be paid with interest to all of us at the earliest.

LIC of India commits the same blunder impudently defying Supreme Court judgments!

Arrears repudiated by LIC of India again, despite a Supreme Court judgment in 2007, declaring the said clause of repudiation to be 'ultra vires'!

Excerpt from the Gazette Notification

 MINISTRY OF FINANCE (Department of Financial Services) (INSURANCE DIVISION) NOTIFICATION New Delhi, the 14th January, 2016 G.S.R. 28(E).—

In exercise of the powers conferred by section 48 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Central Government hereby makes the following rules further to amend the Life Insurance Corporation of India, Class I Officers (Revision of Terms and Conditions of Service) Rules, 1985, namely: ─ 1. (1) These rules may be called the Life Insurance Corporation of India, Class I Officers (Revision of Terms and Conditions of Service) Amendment Rules, 2016. (2) Save as otherwise provided in these rules, these rules shall be deemed to have come into force on the 1st day of August, 2012. (3) These rules shall be applicable to those Class I Officers who were in the whole-time salaried service in the permanent establishment of the Corporation on or after the 1st August, 2012: Provided that where any Class I Officer gives a notice in writing to the Corporation, within a period as specified by the Corporation, expressing his option to be governed by the provisions of these rules from a date not earlier than the date on which the said rules come into force and not later than the date of publication of this notification in the Official Gazette, then the Corporation may, by order, permit such Officer to be governed by the said rules with effect from the said date and no arrears for the period prior to the date so opted shall be payable to such officer: 6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] Provided further that the officers whose resignations had been accepted or whose services had been terminated under rule 39 of Life Insurance Corporation of India (Staff) Rules, 1960 during the period from the 1st August, 2012 to the date of publication of this notification in the Official Gazette, shall not be eligible for the arrears on account of revision. 

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Kindly note that the same clause was there in the Wage Revision Charter of 2010 also, wherein my arrears were illegally repudiated, along with that of scores of other resigning employees like me. In 2012, I had filed an RTI appeal against the Corporation. LIC of India has not given me the full statistics regarding number of ex-employees whose dues have been repudiated since 1997, amounts involved, etc. All the details of my RTI crusade are available on this blog.

Is the Finance Ministry and LIC of India in perpetual limbo? Don't they refer to the Supreme Court's judgments on this issue? Do they think that they are above the laws of this land?

I have been pointing out the Supreme Court's judgment in this blog since 2014! All the judgments on this issue are available easily on the internet. Both, LIC of India and the Government of India are tech-savvy, so it is impossible that they don't know about this judgment and its ramifications!

Is this the right way forward for DIGITAL INDIA? Or even for talented, hard-working and sincere employees like us; to be so unjustly deprived of our legally rightful, hard-earned dues?

Would the Honorable Prime Minister of India please intervene on our behalf and resolve this issue at the earliest, so that all of us long-suffering ex-employees could gracefully get our dues?

All of us would be highly obliged!

LIC of India is a trustee of policyholders' money, not its owner!

Source: https://www.newsclick.in/how-govt-milking-cash-cow-lic-endangering-indias-most-trusted-life-insurer

Govt. is repeatedly turning to LIC for its disinvestment agenda. The insurer’s NPAs have doubled since the Modi regime took over, and now there is the possibility of it bailing out debt-ridden IL & FS.

Praneta Jha 29 Oct 2018

                                              EXCERPT from this article

In any case, LIC chairman VK Sharma has said that IL&FS would not be allowed to collapse and that all options were on the table.

However, the question remains as to why LIC — entrusted with insurance and pension funds of millions of policyholders — should come to the rescue of a disaster that is a case of cronyism, mismanagement, fraud and near-complete lack of accountability and transparency?

Meanwhile, there have already been calls from the industry to privatise LIC, even as it continues to rule the roost in the life insurance market, even after private companies were allowed to enter the business of life insurance in 1999-2000.

Speaking to Newsclick, Amanulla Khan, president of All India Insurance Employees’ Association, said, “LIC goes for long-term investments and does it prudently, and so it usually earns good returns. It is a strong company, but if the present trend continues, it does not bode well for the company’s future.”

He said the union was not too concerned about the IDBI bank deal because LIC had wanted a bank of its own, since “all major banks have their own insurance company and cannot act as our agent.”

But, he said, the business of always being made to bail out troubled companies was not good for LIC’s long-term health and financial stability.

“The government must allow functional autonomy to LIC and let it make its own investment decisions. The government should not interfere or force us. LIC is trustee to its policyholders, after all, and while their money is safe (since it carries government guarantee), the immediate question is, what is going to happen to the future returns on the policyholders’ investments? Is this the wisest way to invest the hard-earned money of the people who have taken life insurance from LIC? What will happen to LIC’s future?”

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Kindly read this interesting article fully at the link given above.