4 LETERS from LIAFI For nationwide agitation

1.  LIAFI-SG/GL-106/12                                                                                    23-Jul-2012
LIAFI Office bearers,
Zonal Office bearers,
LIAFI EC members,
Divisional President / Divisional Secretaries,

Dear Sirs,
Sub: Agitational Programme From 1st September to 31st December 2012.
As per the decision of the 68th EC meeting held at Cuttack the following Agitational programme is finalised. The letter sent to Chairman LIC about our grievances was sent to all the Zonal Presidents and Secretaries. It is also exhibited in our website www.liafi.in.  A letter addressed to finance minister is also enclosed on which you have to gather the signatures of policyholders as per the table. Each Division should gather at least 5000 signatures. The badges with main demands will be supplied at later date. I request all of you to make this Agitational programme successful. Involve local Member of Parliament in demonstrations.
AGITATIONAL PROGRAMME      from1ST September to December 2012
1        Boycott all official meetings from Branch level to Corporate level except Club Conventions.
2        Badges with main demands to be worn at all club conventions and at demonstrations.
3        Letters from Policyholders to Government of India for enhancement in bonus.
4        Lunch hour slogans at Branch Offices on every Friday from September to December. 
5        15th October 2012: Full day demonstration at Branch offices.
6         9th November 2012: Full day demonstration at Divisional Offices.
7        19th December 2012 Demonstration at Central Office.
8        Agents’ Rest Day on 15th and last day of Sept., Oct., Nov., and December.  
Thanking you,
Sincerely yours
N. Gajapathi Rao
The Finance Minister,
Government of India,

Honourable Sir,

Sub: Enhancement of Bonus- Requesting of.

I the under signed would like to bring to your notice that I am a policyholder of LIC.  I am not happy with the Bonus declared from time to time. I feel when other Savings Institutions are giving more returns why one should look at LIC. I request you to instruct LIC to declare higher Bonus every year.

Thanking you sir,

Yours faithfully

S. No
Policy Number

LIAFI-SG/CO-085/11                                                                                    21 July 2012
The Chairman,
L.I.C. of India, Central Office,
“Yogakshema”, Jeevan Bima Marg,
P.B. NO-19953,
MUMBAI-400 021

Dear Sir,

Sub: Redressal of Grievances

Our All India Executive Committee Meeting was held at Cuttack on 24th & 25th June 2012. Various issues were discussed especially the house expressed concern at the low bonus rates declared from time to time. The members are not at all happy at the deteriorating services in Branch and Divisional Offices. They are worried at the attitude of Management in addressing our issues. We are listing the following important issues for immediate attention.

1        Issues of Policyholders:

a) Bonus: The policyholders are unhappy with the rate of bonus declared from time to time. There is lot of scope to satisfy the customers by reducing Corporate Expenses.

b) Final Additional Bonus: The policyholders perturbed at the sudden decrease in final additional bonus. An enquiry is to be conducted in the entire gamut of bonuses. 
c) Service Tax:  The levying of Service Tax for new policies is unpalatable to policyholders. Management should pay service tax as is done for the existing policies.


d) Increase in rate of interest under various financial transactions for the financial year 2012-13 is another decision taken against policyholders.  This circular is to be withdrawn forthwith.

Our main interest is only a satisfied Customer but not statistics. Our Executive Committee Meeting has decided to make this point as popular issue. The house opined that the management is more interested in their personnel than the key Policyholders and Agents. We demand good returns to Policyholders

2        Deteriorating Services: The Members expressed their anguish at the deteriorating services at Branch and Divisional Offices. A random check by the higher authorities will confirm our view. The Agents are getting disheartened for continuing as Agent. There is urgent need to develop servicing to every ones satisfaction. 
a)     Punctuality became casualty despite of introducing the scheme of providing meal coupons by spending around Rs. 350 Cr. annually.
b)     Closed Circuit Cameras to be arranged in Branch Offices.
c)      Citizens Charter should be prominently displayed and to be strictly observed.
d)     Accountability to be fixed for the dereliction of duties.
e)     Acknowledgement to be given for all documents deposited by policyholders and Agents.
f)       Registration of Claims should be done on the same day.
g)     Decentralization of NEFT to Branch Offices

Our motto should be “service with a smile” which is eluding policyholders. We demand immediate improvement of Services.

3        Agent Related Issues: It is the unanimous opinion of the house that the Agents’ are neglected lot. Even petty issues are not addressed quickly. Many letters written by LIAFI are unheeded. Similar issues pertinent to LIC personnel are immediately attended with benevolent views. The same affection is lacking towards Agents.

a)     Enhancement of Housing Loan.
b)     Enhancement of Gratuity.
c)      Enhancement of Group Insurance coverage up to the age of 75 years.
d)     Amendments to Club Rules.
i.         Escalation Clause to be removed.
ii.       Entry conditions to be lowered.
iii.     Discrepancy in calculation of Office Allowance to be removed.
iv.     Out of Pocket Expenditure to be increased.
v.       Daily Allowance of Club member to enhance.
vi.      Club Membership to awarded without interviews.
vii.   The recent enhancement in Mediclaim and Group Insurance coverage for club members is meager and it should be further enhanced
e)     Creating Agents' Welfare Fund
f)       Strengthening Empowered Agents.
g)     Improvement in CLIA Scheme.
h)     Misuse of Section 16 & 19 of Agent Regulations 1972.
i)       Contribution for samvardhan pension scheme.
j)       Strengthening of Direct and Career Agents.

Many detailed letters were addressed to you and concerned departments.  The house expressed its impatience at delay in getting redressal. We demand immediate redressal of our issues.

4        Consultative Committee Meetings: Due importance is not given for information sharing and grievance redressal at Branch, Division and Zonal levels. Even at corporate level the concerned departmental heads are not attending these meetings. Due to this many issues are repetitive for years. It is unfortunate that the healthy and effective practice of presence of all departments’ heads in the Consultative Committee Meeting is diluted completely. Added to this the Agents’ representation is restricted to 5 Members. Despite of several restrictions many Divisions and Zones are not conducting these meetings. Many letters were addressed and a number of discussions took place for restoring to the old practice without any results.

We demand reverting back to the old practice of inviting one representative from each zone besides President and Secretary General of our Federation. We also demand conducting these meetings in all Divisions and Zones with reasonable participation of Agent representatives. The periodicity shall be at least once in four months with minutes and Action Taken Report circulated.  

To impress upon the Management about the gravity of the situation it is unanimously decided to start peaceful agitation from 1st September 2012 culminating in to a demonstration at Central Office in the month of December 2012.

Thanking you,
Sincerely yours,
For Life Insurance Agents Federation of India

Secretary General

LIAFI-SG/IRDA-105/12                                                                   21 July 2012                                                
Shri. J. Hari Narayan,
Chairman, IRDA
3rd Floor, Parisrama Bhavan,
Basheer Bagh

Dear Sir,

Sub: Meeting with LiAFI on 19-07-2012 -reg

We thank you for patient hearing of our views regarding a few important subjects. The following is the gist of the discussions held.

1     Re-filing of all existing products: When a news item on this subject was shown to you, you spontaneously said that the news is incorrect, and no need to panic. When we explained the chaos that developed due to this news and requested you to issue a statement to dispel the doubts you spoke in affirmative. We are eagerly waiting for it.

2     Reduction in the Rate of Commission:   When we further referred to the news item of reduction in commission you clarified that no such move is in the mind of IRDA and it will follow the Insurance Act.

3     Senior Agency System: We welcome your positive outlook on introduction of Senior Agency System in the insurance industry. Our President Shri. H. M. Jain has already submitted his views in writing which we again explained to you personally. We request you to expedite the introduction of Senior Agency System.

4     Agents’ Welfare:  IRDA is collecting Crores of rupees through licence and renewal fees. We requested you to apportion some amount towards the welfare of Agents in line with Bar-council of India, Indian Medical Association and various other All India bodies. We are grateful for your assurance to do something for the welfare of Agents.  


5     Recruitment of Agents:  We narrated the troubles being faced in recruitment of Agents. You said that since some discipline is seen in recruitment because of the latest procedures, it should not be disturbed.

6     Meeting with our Representatives: We requested you to interact with our leaders from eight zones of LIC for which you readily accepted. Kindly indicate a date at your convenience at the earliest.        

7     Representative from LIAFI in IRDA Advisory Committee: We requested you to induct one representative from LIAFI in the advisory committee of IRDA. Shri. H.M. Jain is in the committee in his personal capacity and nobody is representing LIAFI.

We impressed on you to take us in to confidence before any proposals for brining changes in subjects related to Agents and Policyholders. We hope you will take steps to implement assurances given at the earliest.        

Thanking you,
Sincerely yours,
For Life Insurance Agents’ Federation of India

Secretary General