Private Circulation for LIC Pensioners only

( A monthly e-Magazine of LIC Retired Class I Officers’ Association, Kolkata )

March, 2014 (Vol. 1 : 2 issues) Vol. 2 Issue - 3

Chief Editor :

Basudeb Das

Editorial Board : S.K. Mazumder

A.K. Goswami

S.K. Chakraborty

S.K. Ghosh

D.K. Ghosh

T.K. Sanyal

A.K. Mahato

IN THIS ISSUE:

Editorial

Legal News

Assn News

LIC News

Health Tips

Of Importance

Jokes

Praises by Readers

EDITORIAL :

When entire community of LIC pensioners of the country irrespective of

their affiliation was expecting contempt order against LIC in view of Jaipur

Bench day to day proceedings, their expectation all in sudden reached a

cross road. SBJ Chauhan’s judgement is very clear, Asthana’s self pleading

cannot be ruled out. Then who did the sabotage? Who suffered in the

process? Many Dussera, Diwali, New Year celebrations passed in last

few years raising hopes of LIC pensioners and is this the result expected ?

Now pensioners all over the country , who supported Asthana financially

in his legal battle over a decade, have the legitimate right to know the

details what happened in the court proceedings? What was the original

contempt petition and what was its deficiency ? Because the contempt

case in the Supreme Court also ended earlier almost in the same fashion

by way of withdrawal. Without clearing apprehensions and doubts in the

minds of pensioners, emphasis is now given for the next course of action.

This is to hold hands of political leaders. LIC pensioners are not military

soldiers or bank employees where political intervention will be so easy

due to their very nature of jobs. It needs long persuasion. Why it was not

thought earlier instead of rejoicing the court proceedings from time to

time? What about Rajiv Takru’s favourable move to yield a

“breakthrough” ? It will not be out of context if somebody feels that

leaders of pensioners has no fundamental right to involve distressed

pensioners of LIC to play ducks and drakes over the years.

From our heritage, we know how judicial orders are obeyed in our

country, the largest democracy of the world. Self proclaimed power

centres and political rulers, even the state powers, ride roughshod the

justice if it goes against their vested interest. Indian citizen in every nook

and corner of the country is witnessing this dilution of justice every

moment. Is really Zaminderism abolished after passing legislation?

Certainly not. It is working in diferrent formats under the umbrella of

political/financia/antisocial network. People witnessed notonly judicial

orders is allowed to be byepassed, but even Govt is also influenced

unconstitutionally by unauthorised dictates for political interests

whatever political party it might be. Now LIC pensioners’ dream is

vanishing in the blue and God knows how to get rid of it and by whom?

NEWS IN BRIEF:

LEGAL NEWS : ORDER OF SBJ CHAUHAN ON 13.02.2014

“I AM SENDING HEREWITH THE ORDER DATED 13 2014. THIS IS A WRONG ORDER FOR PURPOSES OF

CLARIFICATION, IF ANY. THE CONTEMPT PETITION COULD NOT HAVE BEEN

DISMISSED BUT KEPT PENDING TILL THEN. FURTHERMORE, I HAVE NO LOCUS TO WITHDRAW THE

CONTEMPT PETITION NOR COULD IT HAVE BEEN DISMISSED EVEN ON MY REQUEST. FOR IT IS A

MATTER BETWEEN THE COURT AND THE CONTEMNORS AND IT IS FOR THE COURT TO ENSURE

WHETHER ANY CONTEMPT HAS BEEN MADE OUT OR NOT AND THERE IS NO OBSERVATION IN THIS

REGARD NOR THERE IS ANY REFERENCE TO MY APPLICATIONS WHICH I HAVE FILED ON DIFFERENT

DATES FROM 14/8/2013 AND ALSO COUNTER AFFIDAVIT FILED ON 7/2/14.

ANYWAY, THERE IS NOTHING TO WORRY SINCE OUR JUDGMENTS ARE INTACT AND THIS COURT

ONLY WILL HAVE TO GET THE SAME COMPLIED WITH. KINDLY WAIT FOR MY FURTHER INFORMATION

ABOUT THE ACTIONS TO BE TAKEN FOR IMPLEMENTATION OF THE JUDGMENTS - THEY CANNOT GO

TO DUSTBIN” ….. ASTHANA

HK AGGARWAL WRITES:

Proceedings of CCP 760/2010 in the RAJASTHAN HC,JAIPUR, were dramatic particularly in the months

of Jan-Feb,2014, as the Hon'ble Judge had adjourned the case at short intervals a number of times

arousing Hope & Anxiety amongst all the pensioners. Finally on 13-2-2014 the court has passed a

confusing order thereby shattering all expectations., and Mr.Sreenivasa has rightly expressed that :-

" In light of the Mr Asthana insists that he never withdrew his petition and therefore the Order was

wrong. He is as much intrigued as anyone else about the content of the Order. Let’s leave it there.

The need arises now, more than ever before, for the interested parties like all other pensioners, to

stand by him in his continuing crusade before the appropriate higher judicial forums. He is on the job

of evaluating various options before him. Best legal advice is being sought and the matter will be

pursued to its logical end"

Friends I fully agree with Sh Sreenivasa to stand by Sh Asthana in his continuing crusade and for that

he & AIRIEF will need more funds and renewed support. Please also go thru Sh Asthana's views

expressed by him in his mail dated 23.2.14 to Sh CH Mahadevan:-

"Sir,

There is no liberty of filing the application. The judgment of Justice Bhandari is clear and crystal and if

I go there and he adds a single word therein it will bring us to O level, because it will open pandoras

box for LIC. They will challenge the judgment in DB appeals here and then in SLP because they are

fond of extending and prolonging the litigation and we will have to face the music as if we are filing

the writ petition for the first time. It is another thing that such clarification will take some year’s time.

The Contempt of Courts Act says that the order has to be seen and not even the reasonings. The

Contempt is essentially initiated for effective implementation of an order. The judgment consists of

the reasons for arriving at the decision as such it is difficult to comprehend how there can be

disobedience to a process of reasoning, as has been held by the SC.In this perspective what the

Contempt Court has to see as to what was the order. “The writ petition is allowed”. For this the

prayer in the writ petition has to be seen and in my counter affidavit filed on 7/2/2014 I have quoted

this. Therefore, there remains nothing to be clarified at Justice Bhandari. The judge has not given

what clarification he wants?

In the writ petition No. 654/2007 the Board Resolution was not the subject matter and when the

pension is to be revised on the basis of revised pay scales, where is the necessity of bringing the Board

Resolution into picture. The pension has to be revised on the basis of pay scale as is standing on the

date of payment of pension. Further the DR question will be eaten up by ‘prospective date’ then what

will be the gain, it has to be envisaged. Since in that case we will loose revision on 1/8/1997, 1/8/2002

and 1/8/2007 and so on so forth. For one pie we are ready to loose Rupee?

In such a case the Board Resolution has become redundant since it does not provide for further

revisions even on 1/8/1997. What the LIC is doing is combining the DR as paid as on 31/7/1997 and

adding to it the Basic pension becomes the revised pension. No neutralisation, no 11.25% weightage.

If that is implemented then our pensions will reduce instead of increase and those retired after

1/8/1997 what about them? LIC is not doing that as stated above. The alleged revision is being given

from 1/8/1997. Here Board Resolution has no role to play and the retirees after 31/7/1997 will have

no benefit. The case has come to an end on 8/8/2013 and the order dated 30/9/2013 has nothing to

do. The SC has held that it was not open for a party to take a plea that in earlier proceeding certain

issues were decidedly collaterally or incidentally. Such an attempt to belittle the judgments and

orders of the Court would amount to gross contempt.

In substance disobedience will take place when there is a non-compliance of an order made by a

court. The order has to be complied with in letter and spirit, notional compliance is not enough.

Again, mere pretence of compliance of the direction will not persuade the court to refrain from

exercising the contempt power, particularly when it appears that the contemnors have committed a

fraud on the court under the guise of compliance.

Here it is pertinent to mention that in our cases LIC has played on the Court at the time of first stay,

second stay and now before this court. LIC has not even complied with the order dated 22/1/2014.

Whether there is violation or not has to be tested against the order only. The Court can punish by

imposition of a maximum fine of Rs. 2000=00 or in severe cases to simple imprisonment of two

months.

I hope I have made the position clear. There should remain no ambiguity about the future course of

action which I have set up.

KML Asthana."

CH MAHADEVAN TO GN SRIDHARAN:

Dear Mr Sridharan,

I recall that in the General Council Meeting of our Federation held at Mumbai on 2nd

December 2013, you had informed the delegates through your report that a legal notice

has been served on LIC to implement the Delhi High Court Order dt 30th January 2013.

Recently I learnt from a copy of the mail received from our President, Mr S.K.Kapahi your

proposal to file a petition in the Supreme Court and I had expressed my view that the

views of the EC members should be taken on the proposal.

Presently, as all of us are aware, the Contempt Petition filed by Mr Asthana has been

dismissed as withdrawn vide the Jaipur HC Bench Order dated 13/2/2014 with a liberty

provided to the petitioner to submit an application in the Court seeking clarifications on

the Jaipur SJB Order dt 12/1/2010.

Be that as it may, as LIC does not seem to have responded positively to the Legal Notice

of our Federation so far, I feel that we should seek legal remedy for implementation of the

order dt 30/1/2013 of the Delhi High Court by LIC Management by approaching the Delhi

High Court in whatever manner you deem appropriate--either by a writ application for

mandamus or a contempt petition-- for enforcement of the Delhi HC Order on which the

Supreme Court has clearly stated that there will be no stay by its order dated 17th

October 2013.

While taking up the matter with the said High Court, we need to emphasize that as the

Court has relied on the Jaipur Single Judge Bench Order dt 12/1/2010, the benefits that

will flow from the judgment to the pensioners in rem, will include not only the revision of

pension by removal of DR anomaly ,equitable neutralisation and upgradation of pension(

with weightage) for pre-August 1997 retirees as at 1/8/1997, but also revision of pension

for all pensioners - -pre-August 1997 & post July 1997 retirees-- on the subsequent wage

revision dates 1/8/2002 & 1/8/2007 on the same basis.

For your information and perusal , I am attaching a note prepared by me on the salient

features of the Jaipur SJB Order dt 12/1/2010, as I have understood.

Incidentally, one other legal opinion I have come across is that as the Delhi HC Order dt

30th January 2013 makes the applicability of the benefits of the order in rem any

individual member can move the Court for implementation of the said Court Order

independent of any petition filed by the Federation. So we cannot rule out approach to

the Court by any retired Class I Officer who is covered by the Jaipur judgment in his/her

individual capacity.

As a legal expert yourself with a considerably long experience through practice, I am

sure you will be able to pitch upon the appropriate legal steps to be taken at this

juncture.

Kind regards.

C H Mahadevan

GN SRIDHARAN TO CH MAHADEVAN:

Dear Shri Mahadevan, I read your mail of yesterday. Kindly note the following... In view of the importance of the matter, I had duly consulted not only our counsels at Delhi but also some of my senior colleagues in the bar here. Their view is that only on the contempt issue we can go to HC, which would be not only time consuming but also be not useful in directly achieving our objectives. The bitter experience of contempt proceeding in different courts with repeated filings has troubled me a lot and is lingering in the minds of the disappointed pensioners. You are aware that I have been sounding note of caution from the day one against its unfruitfulness, and it received scant attention from the most who were aspiring for instantaneous results; and such a caution note was

not received well including your goodself . Meanwhile many our colleagues have closed their eyes without seeing any benefit whatsoever. I did consult our President and the other office bearers besides others on the matter. Necessarily, I have also to take into account what our legal coordinator in Delhi thinks the best in the circumstances there. He too has been consulting the legal fraternity close to him. As things stand now, the SC option is found preferable and advantageous. Our aim is get the Board Resolution implemented. This apart, praying for early hearing of the Appeal in the SC is not going to have the desired effect as such a petition could be found premature because the appeals are now in notice stage after numbering. We are however still open to this possibility also at an appropriate point of time. What we are now doing is a follow up action in the pending litigation and action in tune with already decided policy and we shall of course keep the EC members and others appraised of our steps. Regards, GN Sridharan, GENL SECRETARY, AIRCOF

AGGARWAL’S PRESS RELEASE

Over 40,000 LIC pensioners, many of whom are in their seventies and eighties and their families, have

been the victims of denial & indifference of LIC and the Union Government in respect of payment of

fair pension they are entitled to. Their basic pensions remained unchanged for 20 years ever since

1/11/1993 from which date Pension Rules, 1995 came into being..The issue remained unresolved for

over 15 years as LIC and the Government have remained a spectator and unmindful while

scores(ABOUT 40%) of hapless victims have died or dying every moment & year.

It is a matter of great pain and distress that LIC management is not honoring the Hon’ble Supreme

court/ Hon’ble High Courts of Rajasthan, Jaipur, Punjab & Haryana, Chandigarh & Delhi orders to

implement Rajasthan High Court orders passed by the learned single Judge vide order dated

12.01.2010, in S.B.CWP No.6676 of 1998 and S.B.CWP No. 654 of 2007, vide which the Hon’ble Judge

allowed both the Writs and LIC has ALSO been directed to implement LIC’s own Board Resolution No.

492 passed on 24.11.2001 - which provide relief to all the retired employees of LIC (ie. Pensioners) on

two long pending demands AS MENTIONED ABOVE.

1. Up gradation of pension consequent upon revision of pay scales of in-service employees from

time to time ie. 1997,2002, 2007 and subsequent revisions as and when take place.

It would be pertinent to mention that Central and State Govts revise the pension also as and when

pay scales of their employees is revised on the recommendations of successive Pay Commissions.

2. To remove glaring anomaly with regard to payment of DA to pensioners who retired on or before

1.8.1997 as they are getting 50% neutralization whereas who retired after this date get 100%.

LIC filed SLPs in the Supreme Court which too were dismissed. Though the revised SLPs filed by LIC

were converted into Civil Writs, the Hon’ble Supreme Court passed the following orders on 19.8.13,

30.9.13 & 8.10.2013 while disposing off SLPs filed by LIC against the orders of three High Courts:

“There shall be no stay of the directions given by the learned single Judge vide order dated

12.01.2010 passed in S.B.CWP No.6676 of 1998 and connected matter.”( connected matter means

CWP No.654 of 2007 regarding up gradation of pension).

LIC IS UNDER LEGAL OBLIGATION TO OBEY COURT ORDERS BUR LIC HAS ( PROBABY AT THE BEHEST

OF THE Ministry Of Finance, GOVT. OF INDIA) PREFERED NOT TO HONOR COURT ORDERS., AND ARE

FACING CONTEMPT PETITION IN RAJASTHAN HIGH COURT ,JAIPUR.

FURTHER LIC & MOF DID NOT CARE FOR ITS OWN GOVT. LITIGATION POLICY OF NOT TO PREFER

APPEALS IN SUPREME COURT IN MATTERS RELATING TO PENSIONERS/SENIORS - WHO ARE

UNNECESSARILY BEING DRAGGED IN PROLONGED LEGAL FIGHT AT COST OF THEIR HEALTH AND

MEAGER FINANCIAL RESOURCES. THOUSANDS OF LIC PENSIONERS-SENIOR CITIZENS HAVE ALREADY

DIED AND MANY ARE IN DECEMBER OF THEIR LIFE FIGHTING FOR THEIR LIVING IN THESE DAYS OF

UNCONTROLLABLE PRICE RISE AND HIGH COST MEDICAL TREATMENT AS MOST OF US ARE NOW IN

THE AGE GROUP OF 75-85.

RECENTLY GOVT.OF INDIA AT THE SUGGESTION OF SH RAHUL GANDHI HAS AGREED TO THE LONG

STANDING DEMAND OF OROP (ONE RANK ONE PENSION) AND ON THE SAME PRINCIPLE LIC

PENSIONERS DEMAND HAS BEEN ALLOWED BY COURTS BUT LIC IS NOT IMPLEMENTING. PERHAPS LIC

IS WAITING FOR FINANCE MINISTERS YES. JUSTICE3 DELAYED IS JUSTICE DENIED. WE APPEAL TO ALL

CONCERNED TO HELP THE OLD SENIORS.

H K AGGARWAL, (Convener)

LIC PENSIONER, 556, SECTOR-54, MOHALI, CHANDIGARH-160055, O9855002556.

PS: SRI AGGARWAL SENT MAIL IN THE SAME LINE TO ALL MPs INCLUDING RAHUL GANDHI.

GS/AIREF SENT SYNOPSIS AND NOTE IN THE SAME LINE TO RAHUL GANDHI.

ASSOCIATION NEWS:

Every LIC pensioner was eagerly looking forward to the outcome of Rajasthan HIGH COURT in the

matter of contempt petition no CCP 760 of 2010 despite one adjournment after another. But the

Rajasthan HC’s decision to dismiss the petition on application for withdrawal of the petition by the

petitioner’s counsel has came as a shock for the pensioners notwithstanding Sri Asthana’s denial of

his counsel’s withdrawal application stating "I HAVE NO LOCUS TO WITHDRAW THE CONTEMPT

PETITION NOR COULD IT HAVE BEEN DISMISSED EVEN ON MY REQUEST FOR IT IS A MATTER BETWEEN

THE COURT AND THE CONTEMNORS."

Different views on HC order were expressed by different respected persons. Some of them expressed

it as “Wrong Order”. Someone assured of Sri Asthanaji’s taking all efforts to rectify the wrong order

and requested not to worry as the main won Case remains intact.

Another respected pensioner expressed “Something has gone terribly wrong. And there is a wide

communication gap”.

We have come across different opinions from different persons after the HC order dt

13/02/2014.Absence of any clarification from the concerned persons in respect of the order gives rise

to speculations, rumours, misgivings, and stories built out of own wishful thinking. With this backdrop

the Gwalior unit of AIREF have called upon for an out of court settlement.

We have to wait patiently till Asthanaji breaks his silence and speaks about his future plans and

strategy.

Recently Indian National Congress vice-president Sri Rahul Gandhi lent his support to the long-

standing demand and dream of 30 long years of ex-servicemen for “one rank, one pension” (OROP)

which was granted by the Central Govt, during the presentation of interim union budget by Hon’ble

Finance minister.

This happening has come as an opportunity of an avenue for approaching

Sri Rahul Gandhi seeking his intervention in our case. AIREF has taken initiatives in approaching him.

Let all available resources be utilized for realisation of our just dues.

Our Federation have received formal notice from SUPREME COURT in LIC’s appeal (SP (Civil) CC no

17726 of 2013 (LIC vs Fedn. Of Retd. LIC Class-I Officers’ Associations) against Delhi HC order. Issuance

of this notice does not mean that the appeals will be listed immediately. Probably the Respondents in

the other two “clubbed” appeals (Civil Appeal no 8959to 8962 of 2013-LIC vs KML Asthana), And (Civil

Appeal no 6995 of 2013-LIC vs Madan al Gandhi) against the judgment PB & Haryana HC.) also have

received notices.

OTHER NEWS:

MEDI CLAIM—Sri G N Sridharan’s circular dt 16/02/14

“It is learnt that LIC has decided comprehensively on (1) optional limits and (2) floater limits (family

limits)”. Members have been expressing often on inadequate limits that were existing. It is our

Federation to voice for the first time the concept of floater cover (that is, overall limits for the family

as a whole instead of limits for each individual) in our Ernakulam GC Meeting two years ago. Since

then, we have been demanding its introduction right from that time. We do hope the increased limits

in different categories

will be a great relief to us. According to our information the floater (family) cover limits range from 3

lacs onwards. The maximum optional cover is increased to 20 lacs. Subsidy on premium will continue

to be available on basic limits as at present. The shape of implementation of the decision with regard

to pensioners will be clear when the Central Office issues instructions. We will await details.”

RETIREMENT AGE OF CENTRAL GOVERNING EMPLOYEES: A parliamentary panel has urged the Centre

to raise the retirement age to 65 years, noting that growing lifespan was adding to the need for

“productive ageing”. The recommendation for increase in retirement age comes with a reminder that

senior citizens would form 12.4% of the total population in 2026 from 7.5% in 2001.

“The committee feels that with the increase in life expectancy and relatively better state of health of

people, the government needs to look at continuity of employment up to 65 years,” said the report of

standing committee of Parliament on social justice and empowerment tabled on Friday, 7th

Feb’14.

From: bhasinvk@hotmail.com Subject: SUCCESSFUL DHARNA ON 24TH FEB, 2014 Date: Mon, 24 Feb 2014 09:42:26 To All Pensioners, Dharna called by Bharat Pensioners Samaj on 24th Feb. 2014 We on behalf of General Insurance Pensioners participated in Dharna organised by Bharat Pensioners Samaj at Jantar Mantar, New Delhi. I had addressed the Leadership of Bharat Pensioners as well as thousands of Pensioners on Dharna about the issues faced by General Insurance Pensioners all over India with regard to Pension Updation, Family Pension Revision, Addl. Old Pension, Non-existent Grievance Machinery and other issues in particular and Financial Sector Institutions like Banks & LIC in general. The Meeting was also addressed by BJP Spokesman Shri Parkash Jagvelkar who promised to resolve Pensioners issues once they come into power after Elections. I also briefed various Media Channels about General Insurance Pensioners issues including LIC and Banks in Financial Sector. Please watch the news on Channels like A2Z, Khabar Fast, etc. etc. Together we will win the war against Injustice to Pensioners. With regards VK BHASIN, CHAIRMAN GENERAL INSURANCE PENSIONERS’ ASSOCIATION

LIC NEWS: PERFORMANCE OF LIC AND PRIVATE INUSURERS IN 2012-2013

LIC PRIVATE INSURERS

Total premium Income:

( in crores and figures in bracket

shows growth over previous

year)

208803.58

(+2.92)

78398.91

(-6.87)

Market Share

(premium income)

72.70% 27.30%

New Policies issued (in lakhs) 367.82(+2.88) 74.05(-12.28)

(figures in bracket shows growth

over previous year)

Grievances reported to IRDA 73,034 2,67,978

% of total grievances 21.71% 78.59%

Operating Expense Ratio

(ratio of expenses to premium

underwritten by Insurers)

8.00% 18.95%

Death Claim settled 97.73% 88.65%

Claim repudiated 1.12% 7.85%

Total Claim settled 99.54% 87.76%

No. of individual agents 11,72,983 9,49,774 Source: IRDA Annual Reports 2012-2013.

CHAIRMAN’S SPEECH FOR INFORMATION SHARING SESSION

WITH UNIONS ON 13TH FEBRUARY 2014

I extend a warm and hearty welcome to each one of you present here for this

Information Sharing Session. This is the first session in the current year. I wish to take

this opportunity to thank you for your support during the year and share with you my

concern on the present status of financial sector in India, more specifically how it

affects LIC.

Economic Environment:

Friends, we are in the era of Globalization. The economies and the financial policies of

a country are intricately linked with what is going round at the global level. Earlier to

succeed as a financial institution we had to keep our policies in tune with the national

economic scenario only but today such an approach does not succeed. Speculations

about the withdrawal of stimulus from US economy have resulted into significant

erosion in the value of currencies of developing world. A sliding Indian rupee though

has boosted the growth of export but at the same time it has fostered flight of FDI.

This compounded with high inflation rates has severely affected the stock markets. As

RBI increases the interest rates to tame inflation it severely restricts the scope of

growth for the industry. Needless to add that an economy which was cruising at a

growth rate of 8+ percent some years back is struggling to match these indices.

Friends, for the service industry it’s a double whammy. A stunted growth of economy

results in shrinking of the customer base and at the same time it severely adds to its

establishment expenses. However, inflation seems to be waning and RBI Governors’

recent statement to bring down inflation to 8 % level by January 2015 and below 6 %

level by January 2016 should augur well for the industry.

Of late the economy has shown signs of recovery with significant reduction in the

current account deficit (from 4.8 % Last year to 2.5 % of GDP this year), resumption of

capital inflow, expectation of a strong Rabi crop and moderation of inflation. A strong

Rabi crop will bring the food inflation down and provide the central bankers enough

elbow room to ease the monetary squeeze and initiate growth again. As we move

along we should see our growth increasing from the subdued level to acceptable

levels.

Insurance Sector and LIC – With the maturity of Insurance market in our country the level of

competition is

mounting. Companies which were struggling to get a foothold in the market earlier

have started to show profits. Significant consolidation has taken place with marginal

and insolvent companies getting amalgamated into the bigger ones. And above all

they have learnt how to do business here.

Our response to the competition has been stupendous. We continue to be numero

uno in the field. Friends, while we bask in the glory of leadership, we cannot be

complacent about our future endeavors. We need to re-invent our self every day to

retain this leadership. Technological innovations have greatly reduced the advantage

enjoyed by us by way of our long history and wide market presence. We need to be

innovative in product design, pricing and service delivery. With newer technologies all

these are changing significantly. We need to be innovative, flexible and agile to retain

leadership.

Our knowledgeable staff and field force are a great strength. But we have to protect

them from obsolescence. We need to constantly upgrade their knowledge, their skills

and their availability to the customer. With the industry aspiring to operate at the global

standards, we as a leader have to lead this change. To meet the expectations

technology has to be leveraged and adequate geographical distribution is to be

ensured. Gone are the days when a customer used to travel miles to get in touch with

our service points (Branches). To be able to cater to today’s customer we need to

have small and effective points of contacts as well as flexible timings to cater to their

demands. For an effective achievement of this we will have to greatly upgrade our

technology and redefine our manpower distribution practices. Over the years, as the

new business practices have evolved, an asymmetry in manpower distribution has

cropped up. Though we have adequate manpower, there is asymmetry in its

distribution. This needs to be corrected. Friends an organization can be valuable to its

internal customers only when it is of value to the society. And to create value for the

society we need to have processes and practices which are more conducive to

efficient disposal of business.

Insurance Regulator & Insurance Industry:

The Regulator has a difficult job in a developing country with global outlook. While it

has to ensure the growth of the industry, it also has to meet the global standards in

terms of business practices and accounting standards. With many privately held

companies allowed to operate in the market it is pertinent to ensure that the

companies adhere to the healthy and ethical business practices. As multinationals

flock around to have their share of the pie, business governance of the highest

standards only can ensure protection of the policy holder’s money.

Of late there has been much talk about the over reach by the regulators. But friends,

before complaining about it just look around and you will find numerous examples

where the developing world has suffered significantly due to inadequacies or

ineffectiveness of their regulatory mechanism. Any loophole in the regulatory

framework may be taken advantage of by unscrupulous persons, leading to a

catastrophic financial loss for the people and to a loss of faith in the financial system.

So, instead of complaining about the new regulations, we should take these in the

right spirit. And as we look forward to enhance our global foot print, exposure to such

stringent norms would be a great asset in our endeavors to grow and expand.

Recently, IRDA product regulations have in one go led to the scrapping of all non

linked individual life insurance products which were not compliant. And among those

some were our bread and butter like Endowment, Money Back etc. New products

have to be designed with the new pricing norms and new features. Some of the key

features of our old products are no longer there. Our employees and the field force

need to adapt to these changes for effective sales and servicing. In the days to come

new products will be a way to retain market focus. Some products will have to be

repositioned to remain relevant. And all this would require immense flexibility and

adaptability on the part of our people to be achieved successfully.

Although we have pioneered the service industry with Citizen Charter and rural

coverage, recent IRDA directive to underwrite 25 % policy in rural sector will hot up

the competition in the rural areas. We need to further fine tune our methodology to

reach to the rural masses to retain our dominance there. Proposal to have product

specific citizen charter is another step in the same direction. By way of regulatory

intervention, the areas which were our exclusive domain are getting the attention of

other players. We need to remain alert and vigilant to safeguard our leadership in

these areas.

With IRDA adopting persistency ratio as one of the key indicator of the insurers’

health, we need to revisit our servicing and sales practices. On the service front we

shall have to reinforce our renewal premium collection mechanism and at the sales

level we shall have to ensure that the right product has been offered to the customer.

Dematerialization of Policy is another such measure from IRDA which will lead to

significant changes in how policies are sold and serviced. While we are confident that

our team will be comfortably be able to adapt to these changes, nevertheless the

process of readjustment and reorientation has to be endured by all.

Of Late, IRDA has been striving hard to induce banks to play a larger role in the

distribution of Insurance products. Though it will definitely lead to the growth of the

market, it will also enable our competitors to penetrate deep into the rural market with

very little cost. Friends in future also, the regulators will keep coming with the new

initiatives which will not only tighten the compliance norms, but it will also foster

competition in the areas which used to be our exclusive domain.

Our performance:

In the current fiscal year, as on 31st December 2013, we secured 2.98 crore policies

with a growth rate of 34.93% and achieved the target up to 73.80%. Like wise, we

secured First Premium Income of Rs. 26,33,351/- lakhs with 47.48% growth rate and

achieved 79.80% in Premium budget. Our market share as on 31st December 2013 for

First Year Premium is 77.63% and in Number of Policies is 87.23%.

P&GS department has also shown an excellent performance by achieving NBPI

Budget of Rs. 28800 crore. The market share of P&GS as on 31st December 2013

under New Business Premium Income is 84.02%.

Friends, there is an old saying. “Winners do not do different things, they do things

differently.” So what could have been a crisis for us has been converted to a great

opportunity. Yes you are right. I am talking about the withdrawal of products

consequent upon IRDA’s Product Regulations. Among the products being withdrawn,

some were our oldest and most successful products like Endowment and Money Back

and some where the most innovative ones like Jeevan Anand. And above all, all these

products had struck a chord with the customers for more than one generation. It won’t

be wrong to state that some of these products were iconic and a brand by themselves.

Kudos to you all that in place of throwing your hands in despair, all of you have

converted the challenge into an opportunity and have created history.

Friends, the same zeal and ingenuity will be required to establish the new products in

the market. We already have launched 8 products this year and many more are in the

offing. However we shall retain our focus on the conventional rather than Unit linked

ones as it’s the former which strike a chord with the masses and we already have

revamped our ULIP products portfolio earlier. These new products have very different

basic features than their predecessors and all of us shall have to realign your

knowledge to service them effectively.

Friends, technological innovations have greatly reduced the service delivery time and

cost. New methods like digitization of policy, or collection of premium through

franchisee arrangement have been tested successfully. 41 % of our premium

transactions are through alternate channel and more than 40 Crore policies have been

digitized. We are currently settling 150 SB/Maturity claims every minute. All this is

possible through effectively harnessing IT as well as unstinted support of the people

behind these. In the days to come as the volumes increase manifold, these will be

core strength of our organization to adequately respond to the challenges.

Mini Offices:

Friends, let us revisit the core values envisaged at the time of our creation. It was with

a vision to provide financial inclusion to the rural masses and to pool their resources

into the nation building. Working with these ethos it will be illogical to ignore the rural

masses. Keeping this in mind, we were among the first few institutions to decide about

opening offices in every town with a population of 10,000 or more. Out of the 1800

targeted we already have opened 1191 mini offices as on date. These Offices are

offering the facilities like Collection of premium, Collection of proposal deposits,

entertain such Policy servicing requests, etc. as decided from time to time. We have

also initiated the process of appointments of ex-employees of the Corporation at Mini

Offices. The servicing functions which can be provided in the Mini Offices by the

official deputed are Change of address, Capturing NEFT details, Change of

nomination, RFM functions, Status reports and quotations for various policy services

like surrender, loan and Policy Payment enquiry option. In the course of time these

offices will be centre of growth and development.

New initiatives:

Friends, currently our marketing is largely dependent on a tied field force. Although

this has served us very well this far but there are some inherent weaknesses also.

Distribution cost, vacant pockets and lack of institutional sales are some of those.

Moreover as the economy progresses and labor cost increases, the cost of marketing

through tied channel only may become prohibitive. Keeping this in view different

business verticals like Direct Marketing, Bancassurance, corporate agency have been

established. Coming years shall see these channels reaching a stage of maturity and

contributing significantly to our growth.

On the servicing front we continue to focus on 100 % policy payments through NEFT

only. To make things easier, CRM has already started NEFT data capture through

portal as well as through empowered agents also.

Friends, we are proud to have a very knowledgeable workforce. A workforce who

thoroughly understands the market scenario and the products we deliver. It is very

well aware of the customer expectations and our business practices. In order to fully

harness their knowledge we have started the “Idea Box”. I urge you all to contribute

generously through this module so that we may further fine tune our activities to meet

our objectives.

Areas of concern:

The areas of concern which all of us have to address at present are –

_ Market Share Retention by demonstrating higher growth

_ Enhance business profitability by widening customer base

_ Right Business Mix

_ Committed and Professional distribution channel – with long term stake

_ Service differential – to match rising expectations of customers

_ The Cost Efficiency Ratio (i.e. management expenses excluding commission)

is steadily increasing year after year. It stands at 8.01% as on 31/3/2013.

_ Ensuring persistency of policies by arresting lapsation and encouraging

revivals etc.

Besides, RTI Act puts us under the glare of public scrutiny with aggressive media

watching and reporting not only our every move but also our present and future

strategies.

It is a fact that the demands and expectations of the employees cannot be seen in

isolation. While meeting these, the interest of other stakeholders will also have to be

kept in mind. The need of hour is on improving efficiency and office discipline. As

such, we have to address the following issues to ensure the sustainable growth of our

Organization:-

(1) Code of conduct: It is expected that:-

(a) Union work shall be done only after office hours.

(b) Holding any kind of meeting, demonstration, slogan shouting,

announcement during office hours and/or inside the office premises shall

not be resorted to by the Unions and employees.

(c) Ground Rules already displayed in Jeevan Sanchar are adhered to in

letter and spirit.

(2) Installation of Biometrics:

Presently, Concurrencia Module is in operation. We are considering an

advanced option replacing the same i.e. Biometrics. The basic advantage of

Biometrics is that it is easy and speedy in operation. It will ensure that large

number of Disciplinary cases where frauds have happened because of misuse

of password will be eliminated.

(3) Improvement in Productivity, Redeployment and Mobility of Workforce:

Taking into account the exigencies of the office and the directions from CVC,

the employees shall be liable to transfer and/or inter-change of duties, either

within the station or outside. Unions shall suggest how such transfers or

changes, may be implemented in line with other institutions in the Financial

sector. We also want to take steps to encourage staff to undertake and pass

examinations of Insurance Institute of India. This will also involve mobility of

staff.

Why mobility:

To prepare employee for future corporate goals vis-à-vis their career

To enhance capabilities

To equip all the offices with adequate staff

To rationalize the work flow

It is important to arrive at clear cut guidelines on Mobility.

(4) Adaptation and Upgradation of technology:

Introduction of e-Feap module, policy and other payments only through NEFT,

alternate channels for payment of premium are radical changes. This also helps

in integrating customer services across all our offices. EDMS project is leading

in a new era of servicing. What we need is not only rapid and successful

implementation of changes but quick and continuous up-gradation and adoption

of Information Technology to take care of customer’s expectations.

(5) Office Ambience:

In order to maintain cleanliness in Office, efforts shall be made and

Unions also will cooperate in this regard.

Any pasting of posters or defacing of office premises and buildings both

inside and outside shall not be resorted to by the Unions and employees.

(6) Customer Orientation:

In order to ensure greater customer care, the Corporation will introduce

customer friendly measures and implement the same with the co-operation of

the Unions. In the light of customer oriented market conditions, initially we

propose to introduce the following customer friendly measures:

Extension of cash hours by one hour

Opening of Mini Offices

(7) Submission of Returns of Property:

As you are aware, Regulation 35-A requires submission of Property returns by

the employees. All employees in the category of Class-I, Class-II and Class- III

are required to submit once in a year return of assets and liabilities. Presently,

only Class-I Officers are submitting property returns. Henceforth, Class-II and

Class-III employees of the Corporation shall also submit property returns. as

per the mandatory provision of Central Government.

Employee benefits:

Friends, we remain committed to the philosophy that we should be “the employer by

choice”. And for me to achieve this we need to provide for wholesome development of

our people. Though wages are a major factor of employee satisfaction, but they are

not the only one. Opportunities of personal development and the possibilities of career

furtherance too are significant factors.

As we go for recruitment to fill the manpower gaps in our organization, a wide age

difference between the new recruits and the existing people has emerged. Sometimes

it is wide enough to qualify as generation gap. We need to find ways and means for

re-integrating these senior people into the main stream of our institutional activities. I

shall urge upon you to deliberate in detail and to come up with a viable solution which

addresses the aspiration of these people and at the same time furthers the institution

objective.

The details of various employee benefits introduced/upgraded of late have already

been detailed in our Managing Director’s address. However, I take this opportunity to

re-assure you all that there will not be any let up in our commitment to strive for the

well being of our employees. Our endeavor with all vigor is there to provide the best

possible remuneration to all our employees in the form of wage revision. But while

proposing the enhancements we shall be extremely careful that every rupee spent

from the Corporation’s coffers which is the policy holder’s money should translate into

enhanced value in servicing and returns to our policyholders, whose trust we hold.

Announcements :

1.Limits of Medi-claim coverage are under revision as per GIPSA pattern.

2. Limits of reimbursement under High Cost Protracted Treatment are under

revision where upon the restriction of two chances is likely to be removed and

an employee can claim 90% of the expenses incurred over and above that

reimbursed under mediclaim for any of the specified diseases for

himself/herself or his family members as defined under mediclaim.

3. The Insurance coverage under Group Personal Accident Policy is being

revised. While it was Rs.5 lacs for all cadres would now be revised to a

structured risk cover ranging between Rs.10 lacs to Rs. 25 lacs.

I once again sincerely thank you for the co-operation and contribution you have

extended during all these years. I am sure that it will be continued in future as well.

Thank you. (CHAIRMAN, LIC)

HEALTH TIPS: BLOOD TEST -- KNOW THE PARAMETERS (For Pensioners’ guide)

Glucose : Clinical Adult Range: 70-115 mg/dL Optimal Adult Range: 85-100 mg/dL Red Flag

Range <50 or >250 mg/Dl Sodium : Clinical Adult Range: 135-145 Optimal Adult Range: 140-144 Red Flag Range <125 or >155 mmol/L Potassium : Clinical Adult Range: 3.5-5.0 Optimal Adult Range: 4.0-4.6 Red Flag Range <3.0 or >6.0 mmol/L Magnesium : Clinical Adult Range: 1.7-2.4 Optimal Adult Range: 2.2-2.6 Red Flag Range <1.2 mg/dL Chloride : Clinical Adult Range: 96-110 mmol/L Optimal Adult Range: 100-106 mmol/L Red

Flag Range <90 or >115 mmol/L Blood Urea Nitrogen (BUN) : Clinical Adult Range: 10-26 mg/dL Optimal Adult Range: 13-18 mg/dL Red Flag Range <5 or >50 mg/dL

Creatinine : Clinical Adult Range: 0.7-1.5 mg/dL Optimal Adult Range: 0.7-1.0 mg/dL Red Flag

Range >1.6 mg/dL BUN/Creatinine Ratio : Clinical Adult Range: 6-10 Optimal Adult Range: 10-16 Red Flag Range

<5 or >30

Uric Acid : Clinical Female Range: 2.4-6.0 mg/dL Clinical Male Range: 3.4-7.0 mg/dL Optimal

Female Range: 3.0-5.5 mg/dL Optimal Male Adult Range: 3.5-5.9 mg/dL Red Flag Range <2 mg/dL or >9.0 mg/dL

Phosphorus : Clinical Adult Range: 2.5-4.5 Optimal Adult Range: 3.2-3.9 Red Flag Range <2.0 mg/dL or >5.0 mg/dL

Calcium : Clinical Adult Range: 8.5-10.8 Optimal Adult Range: 9.7-10.1 Red Flag Range <7.0 mg/dL or >12.0 mg/dL

Albumin : Clinical Adult Range: 3.0-5.5 Optimal Adult Range: 4.0-4.4 Red Flag Range <4.0 g/dL

Calcium Albumin Ratio : Elevated in malnutrition or visceral protein loss. Levels higher than 2.7 is one of the four OMINOUS signs

Globulin : Clinical Adult Range: 2.0-4.0 Optimal Adult Range: 2.8-3.5 Red Flag Range <2.0 g/dL or >3.5 g/100ml

A/G Ratio : Clinical Adult Range: 1.1-2.5 Optimal Adult Range:1.2-1.5 Red Flag Range <1.0

Alkaline Phosphorus : Clinical Adult Range: 30-115 Optimal Adult Range: 60-80 Red Flag

Range <30U/L or >Laboratory range

SGOT/AST and SGPT/ALT : Clinical Adult Range: 0-41 Optimal Adult Range: 18-26 Red Flag

Range >100 U/L

GGT : Clinical Adult Range: 0-55U/L Optimal Adult Range: 10-30U/L Red Flag Range >90U/L

LDH : Clinical Adult Range: 60-225U/L Optimal Adult Range: 140-200U/L Red Flag Range

>250U/L

Total Protein : Clinical Adult Range: 6.0-8.5g/dL Optimal Adult Range: 7.1-7.6g/dL Red Flag

Range <5.9g/dL or > 8.5g/dL

Iron : Clinical Adult Range: 40-150ug/ml Optimal Adult Range: 50-100ug/ml Red Flag Range

<25ug/ml or >200ug/ml

Ferritin : Clinical Male Adult Range: 33-236ng/mL Clinical Female Adult Range (before

menopause): 11-122ng/mL Clinical Female Adult Range (after menopause): 12-263ng/mL Optimal Male Adult Range: 20-200ng/mL Optimal Female Adult Range (before menopause): 10-

110ng/mL Optimal Female Adult Range(after menopause): 20-200ng/mL Red Flag Range

<8ng/mL or >500ng/mL

Triglycerides : Clinical Adult Range: 50-150mg/dL Optimal Adult Range: 70-110mg/dL Red

Flag Range <35mg/dL or >350mg/dL

Cholesterol : Clinical Adult Range: 120-200mg/dL Optimal Adult Range: 150-180mg/dL Red

Flag Range <50mg/dL or >400mg/dL

LDL Cholesterol : Clinical Adult Range: <130mg/dL Optimal Adult Range: <120mg/dL Red Flag

Range >180mg/dL

HDL Cholesterol : Clinical Adult Males Range: >50mg/dL Clinical Adult Female Range:

>55mg/dL Optimal Adult Male Range: >55mg/dL Optimal Adult Male Range: >60mg/dL Red

Flag Range <35mg/dL

Cholesterol/HDL Ratio : Cholesterol/HDL ratio: this ratio is an important marker for cardiovascular health. A ratio <4.0 is considered adequate. A ratio <3.1 is ideal.

CO2 : Clinical Adult Range: 24-32mmol/L Optimal Adult Range: 26-30mmol/L Red Flag Range

<18mmol/L or >38mmol/L

White Blood Cell Count : Clinical Adult Range: 4,500-11,000cu.mm Optimal Adult Range:

5,000-8,000cu.mm Red Flag Range <3,000cu.mm or >13,000cu.mm

Neutrophils : Clinical Adult Range: 35-65 percent of total WBC Optimal Adult Range: 40-60 percent of total WBC Red Flag Range <30 percent of total WBC or >80 percent of total WBC

Monocytes : Clinical Adult Range: 0-10 percent of total WBC Optimal Adult Range: <7 percent of total WBC Red Flag Range >15 percent of total WBC

Lymphocytes : Clinical Adult Range: 20-40 percent of total WBC Optimal Adult Range: 25-40 percent of total WBC Red Flag Range <20 percent of total WBC or >55 percent of total WBC

Eosinophils : Clinical Adult Range: 0-7 percent of total WBC Optimal Adult Range: 0-3 percent of total WBC Red Flag Range <20 percent of total WBC or >55 percent of total WBC

Basophils : Clinical Adult Range: 0-2 percent of total WBC Optimal Adult Range: 0-1 percent of total WBC Red Flag Range <5 percent of total WBC

Red Blood Cells : Clinical Adult Male Range: 4.60-6.0 million cu/mm Clinical Adult Female

Range: 3.90-5.50 million cu/mm Optimal Adult Male Range: 4.20-4.90 million cu/mm Optimal

Adult Female Range: 3.90-4.50 million cu/mm Red Flag Range for Men <3.90 or >6.00 million cu/mm Red Flag Range for Women <3.50 or >5.00 million cu/mm

Hemoglobin : Clinical Adult Male Range: 13.5-18.0g/dL Clinical Adult Female Range: 12.5-16.0g/dL Optimal Adult Male Range: 14.0-15.0g/dL Optimal Adult Female Range: 13.5-14.5g/dL Red Flag Range <10.0 or >17g/dL

Hematocrit : Clinical Adult Male Range: 40.0-52.0 percent Clinical Adult Female Range: 36.0-47.0 percent Optimal Adult Male Range: 40.0-48.0 percent Optimal Adult Female Range: 37.0-44.0 percent Red Flag Range <32.0 or >55 percent

Platelets : Clinical Adult Range: 150,000-450,000cu.mm Optimal Adult Range: 200,000-300,000cu.mm Red Flag Range <50,000 or >600,000cu.mm

Reticulocyte Count : Clinical Adult Range: 0.5-1.5% Optimal Adult Range: same as clinical range Red Flag Range >2.0%

MCV : Clinical Adult Range: 81.0-99.0cu.microns Optimal Adult Range: 82.0-89.9cu.microns Red Flag Range <78.0 or >95.0cu.microns MCH : Clinical Adult Range: 26.0-33.0micro-micro grams Optimal Adult Range: 27.0-31.9micro-micro grams Red Flag Range <24.0 or >34.0micro-micro grams

T3 : Clinical Adult Range: 22-33% Optimal Adult Range: 26-30%

T4 : Clinical Adult Range: 4.0-12.0mcg/dL Optimal Adult Range: 7.0-8.5mcg/dL

T7 : Clinical Adult Range: 4.0-12.0mcg/dL, Optimal Adult Range: 7.0-8.5mcg/dL

T3 Uptake : Clinical Adult Range: 22-36% Optimal Adult Range: 27-37% Red Flag Range <20 percent of uptake or >39 percent of uptake

TSH : Clinical Adult Range: 0.4-4.4mlU/L Optimal Adult Range: 2.0-4.0mlU/L Red Flag Range

<0.3mlU/L or >10.0mlU/L

Erythrocyte Sedimentation Rate (ESR) : Clinical Adult Male <50 Range: 0-15mm/hour Clinical Adult Male >50 Range: 0-20mm/hour Clinical Adult Male <50 Range: 0-25mm/hour Clinical Adult Female >50 Range: 0-30mm/hour Optimal Adult Male Range: <5mm/hour Optimal Adult Female Range: <10mm/hour Red Flag Range >45 mm/hour

(Source: How to Quickly and Easily Understand Your Blood Tests Without A Medical Degree. The Simplified Patient

Reference Guide By Ronald J. Grisanti D.C. www.YourMedicalDetective.com

OF IMPORTANCE:

CHIEF EDITOR/”EASTERN NEWS” REQUESTS ITS READERS TO GO THROUGH THE SITE “LIC

CHRONICLE” REGULARLY, MAINTAINED SINGLEHANDED BY SRI PG GANGADHARAN, EDITOR,

DISPLAYING VARIOUS LATEST DEVELOPMENTS AND DAILY UPDATES OF INTEREST TO LIC

PENSIONERS. THE SITE : http://licpensionerscalicut.blogspot.in/

JOKES: ORANGE JUICE

(1) A pastor baptized Fred and dipped his head in water three times. After the third time, the pastor

said: “ You are now baptized. You are a new creation now. Your old creation is gone. No more

drinking alcohol. Your new name is “David.”

David went back home and headed straight for the fridge. He took a Bandweiser wine bottle, dipped

it in water three times and said: “ you are now a new creation. Your old creation is gone. Your new

name is “Orange Juice!”

(2)

Praises by Readers:

I have liked February 14 issue….. Dayal Sharan

Kindly accept my heartiest congratulation on a wonderful n knowledgeable informatory Eastern

News Bulletin. My salutations to you n LIC Retired Officer’s Association, Kolkata too for an appreciable

work, certainly it will give dividends to fellow brothers n sisters n to an organization. I must accept the

bulletin is of high standard wherein no word of criticism for any body has a place, it is motivated for a

strong unity, thanx.

Anand Tyagi, Ex Secretary General, NFIFWI of Class II/LIC.

I thank you for sending the e magazine. I have gone through the same and find it very informative,

educative and useful. I congratulate you for this effort…..RK Sahni

Accept my thanks and regards. Congrats to the entire editorial board. You are doing an excellent job.

Undoubtedly, the activities have taken a new and vibrant shape…..Chanchal K Chakraborty

I went through the feb issu of eastern news. The issue is most informative. It covers not only

pensioners issues but other topics of interest. Keep it up. Waiting for the next issue…..Naagrajayya

Thanks for regular mailing of EASTERN NEWS (E-magzine). At the first look “Eastern News” appear to

be regional news. But I take it as “Sunrise News” for the whole country because Sun always rises from

the East. So I suggest you to change the name to “Sunrise News” or any other appropriate name

which may look universal.

With best wishes and regards…….H K Aggarwal

NOTE : Write Ups/Information/Readers’ Views/Request for soft copy of e-Magazine free of

cost may please be sent to following e-mail IDs :

AMAR KUMAR GOSWAMI : amarkumar1951@gmail.com

SUBIR KUMAR MAZUMDAR : eskayem@gmail.com

LIC RETIRED OFFICERS’ ASSOCIATION : licretiredofficers@gmail.com

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