This Blog provides you UpToDate information on life & General insurance dealing mostly with LIC's New Plan Circulars, MillionDollarRoundTable tips on marketing,Financial analysis and INCOME TAX.
All BSNL telephone subscribers in India can now connect to the Internet
There is no need for new connection or special registration to use this service.Just connect your telephone wire to your modem Then on Dial-up connection enter the following....... USERNAME - your phone number -PASSWORD - bsnl10,.. Dial No - 172222. now click DIAL button.Now your computer will connect to Internet.No usage charges but a silly amount of Rs 6 per hour as telephone charge. For more details contact your nearest BSNL telephone exchange.Share it with your friends!
vinay mohanty
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Reliance Life Introduced Two First-Of-Its Kind Initiatives
Life Plaza
Reliance Life has launched new distribution channel by the name ‘Life Plaza’, aimed at creating awareness about life insurance in different locations and creating pool for life insurance products.
Reliance Life is the first company in the country to set up a structured need-based in-branch sales platform in the form of ‘Life Plaza’. Reliance Life Plazas will promote need-based sales, fill service gaps and also offer financial value-added services such as tax and financial planning, Aadhar card registration, PAN card generation, health check-ups and nutrition counseling.
Company believes that this unique distribution model will help it to reach out to customers, understand their needs and provide solutions to them at the venue. Company says that this process of selling will ensure that customer buys what he needs and understand and thus, it will also address the problem of mis-selling.
Company is planning to set up 200 Life Plazas across the country in the current financial year. Company is also planning to hire around 1,000 people under this new distribution channel within current fiscal. For setting up of Life Plazas and recruitment, company will focus on tier II, tier III and tier IV cities.
All Life Plazas will be managed by Reliance Life’s employees, who will handle customer’s queries and process the documentation instantly at the venue, with a view to tap the new customers and service the existing policyholders.
Apart from addressing walk-in customers, the company will also proactively invite customers to the Life Plazas for presentations on the benefit of investment in various financial products, importance of insurance as a life protection tool and Reliance Life’s wide range of products and services.
Reliance Life Plus Club
Reliance Life has begun its post-sales services drive across the country under its ‘Reliance Life Plus Club’ initiative. Reliance Life is the first company in the country to introduce structured post-sales customer service platform.
This initiative is inspired by ‘Zutto Motto’ (forever for service) service at Nippon Life insurance in Japan.
Under this initiative, the company has asked its 1.5 lakh representatives, including staff, advisors and channel partners to meet around 10 % or over one million of its existing customers by the end of current fiscal for services beyond premium collection. At present, Reliance Life has more than nine million policyholders. Company has instructed its 1,200 branches across the country to implement it like sales targets.
The company has made a rule for its entire sales people that they should visit every customer periodically at least once a year. Such visits help in selling new products to existing customers and acquiring new clients.
The company will spend about Rs 12 crores in the current financial year for this initiative.
Reliance Life is 74:26 joint venture between Reliance Capital, a financial services arm of Anil Ambani led Reliance group and Japan based Nippon Life.
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LIC Filed Applications for Two More Online Plans
Country’s largest life insurer, Life Insurance Corporation of India (LIC) has filed applications for two new products with Irda in the online term insurance segment.
Company has already one product online. As soon as two new products will get Insurance Regulatory and Development Authority’s (IRDA) approval, LIC will launch these products.
Meanwhile, LIC is planning to invest around Rs 2-2.2 lakh crores in the markets this year including equity and debt. And of this, in current financial year LIC will invest around Rs 45,000 crores in equities. In last fiscal LIC has invested Rs 1.95 lakh crores in the markets.
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regarding pre comvention at chennai
LIFE INSURANCE AGENTS FEDERATION OF INDIA
Sri HM Jain. Sri N.Gajapathi Rao
President Secretary General
402, Atmaj, opp. Cumballa
Hospital, Golalapalem
K. Marg, Mumbai – 400
036 Visalhapatnam
************************************************************************
To Date.25nd October2012
All the Chairman Club Members
Zonal
Presidents and Secretaries of SCZ, SZ and Eastern Zone
All
the National Office Bearers of LIAFI
Dear Friends,
Congratulations to all the
Chairman’s Club Members of South Central Zone, South Zone and Eastern Zone for
qualifying and retaining the Prestigious Chairman’s Club for agents. We are
extremely happy to inform you all that the LIAFI has made its arrangements to
conduct Pre-Convention
Meeting. The Meeting details are mentioned below.
- DATE
&TIME: - 19-11-2012,
5-00 PM (Evening)
- VENUE:
- INDIAN RED CROSS SOCIETY
32/50, MONTIETH ROAD,
EGMORE
CHENNAI-600008
TAMILNADU
NEXT TO HOTEL AMBASSADOR PALLAVA
PH- 8056011368
- AGENDA:
- Discussion
on:
·
Regulatory Changes
·
Latest Developments in Insurance
Industry
·
Enhancement of Agents Gratuity
·
Mediclaim facility to all Agents
·
Housing Loans for Agents
·
Club Rules
4.
DELEGATION FEE: - Rs /- per Participant to meet the
expenditure
for Meeting and Dinner.
LIAFI have
accepted the responsibility to make necessary
arrangements for the success of above Pre-Convention.
The Pre-Convention Meeting will be presided over by our
National President
Sri Sri HMJain and
Sri NGajapathi aro secretary General, Sri Ganesan SZ president And other National Leaders of LIAFI are going
to address the gathering.
For Further
details and necessary assistance please contact the following LIAFI Leaders.
contact Mr.subramaian -9444013219
Mr.raja 9840215198
Mr armugam 9841001388
Mr ramana 9884065051
All the
Divisional Council Presidents and Gen.Secretaries are hereby requested to
inform
the same to all
Branch Associations of your respective Divisions and ensure maximum
Participation
of CM Club Members in the ensuing Pre-Convention Meeting.
Therefore Once
again all the Chairman’s Club Members, all the Office bearers of LIAFI
and all the Presidents and Gen.Secretaries of
SCZ, SZ and Eastern Zonal Council are
hereby requested
to make it convenient to attend the meeting and
make it a grand
Success.
With Warm
Regards.
General Insurers Seeking Tax Breaks on Premiums
General insurance companies have sought tax breaks to boost demand for their products and improve insurance penetration.
Insurers said that there is a need for a separate dedicated limit (beyond section 80C) to enable customers get tax deductions on the premium paid.
Insurers have also suggested that government should provide tax deductions on the provisions made by the general insurers towards natural calamities such as earthquake.
To give a boost to the general insurance industry, finance minister, P. Chidambaram, is focusing on four main issues – steps needed to improve growth in the general insurance industry, greater penetration, regulatory and tax changes.
Dengue fever remedy, friends mail
I would like to share this interesting discovery from a classmate's son who has just recovered from dengue fever. Apparently, his son was in the critical stage at the ICU when his blood platelet count drops to 15 after 15 liters of blood transfusion.
His father was so worried that he seeks another friend's recommendation and his son was saved. He confessed to me that he gave his son raw juice of the papaya leaves. From a platelet count of 45 after 20 liters of blood transfusion, and after drinking the raw papaya leaf juice, his platelet count jumps instantly to 135. Even the doctors and nurses were surprised. After the second day he was discharged. So he asked me to pass this good news around.
Accordingly it is raw papaya leaves, 2pcs just cleaned and pound and squeeze with filter cloth. You will only get one tablespoon per leaf.. So two tablespoon per serving once a day. Do not boil or cook or rinse with hot water, it will loose its strength. Only the leafy part and no stem or sap. It is very bitter and you have to swallow it like "Won Low Kat". But it works.
*Papaya Juice - Cure for Dengue*
You may have heard this elsewhere but if not I am glad to inform you that papaya juice is a natural cure for dengue fever. As dengue fever is rampant now, I think it's good to share this with all.
A friend of mine had dengue last year.. It was a very serious situation for her as her platelet count had dropped to 28,000 after 3 days in hospital and water has started to fill up her lung. She had difficulty in breathing. She was only 32-year old. Doctor says there's no cure for dengue. We just have to wait for her body immune system to build up resistance against dengue and fight its own battle. She already had 2 blood transfusion and all of us were praying very hard as her platelet continued to drop since the first day she was admitted.
Fortunately her mother-in-law heard that papaya juice would help to reduce the fever and got some papaya leaves, pounded them and squeeze the juice out for her. The next day, her platelet count started to increase, her fever subside. We continued to feed her with papaya juice and she recovered after 3 days!!!
Amazing but it's true. It's believed one's body would be overheated when one is down with dengue and that also caused the patient to have fever papaya juice has cooling effect. Thus, it helps to reduce the level of heat in one's body, thus the fever will go away. I found that it's also good when one is having sore throat or suffering from heat.
Please spread the news about this as lately there are many dengue cases. It's great if such natural cure could help to ease the sufferings of dengue patients.
Furthermore it's so easily available.
Blend them and squeeze the juice! It's simple and miraculously effective!!
LIC’s Vision 2020 ‘Policy in Every Pocket’
Life Insurance Corporation of India (LIC) vision 2020 is to have a policy in every pocket. LIC’s chairman D K Mehrotra, said that journey towards vision 2020 is a relay race-baton will get passed on as years change but run must continue till the goal of ‘policy in every pocket’ was achieved.As per LIC, it is determined to make every Indian feel financially secure and in adequate measure, in terms of life, health insurance and annuity. LIC has vision to reach out to every Indian with these three protections.
Meanwhile, despite a weak economic scenario, LIC has successfully increased its market share. At the end of August 2012, LIC’s market share in terms of new policies increased to 81.25% and 75.95% in terms of new premium.
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20 sales tips for agents
20 Sales Tips For Insurance Agents
- Fluent in more than one language? Take out ads in foreign language newspapers to locate new prospects.
- If you have money in your marketing budget a radio ad can reach a great number of people for much less than the cost of a television commercial.
- Memo pads, magnets, pens and other handy promotional tools keep your name firmly lodged in your client’s memory.
- Don’t pressure your client by asking them if they are ready to sign on the dotted line or make a decision, this will make them less comfortable with you and put them on guard.
- Whether you follow up by phone, email or snail mail, keep the message brief so your client won’t feel overwhelmed or annoyed.
- Set small daily goals to keep yourself on track and motivated.
- Take extensive notes on every interaction with your client. When you talk with them at a future time, you can mention some detail from your last conversation. It shows that you were listening closely and really care.
- Every client that buys from you deserves a handwritten note saying thank you. A little extra effort in showing kindness can go a long way.
- If you have trouble getting your client to relax, don’t think of yourself as a salesman, but as a friend trying to help with their best interests at heart.
- If you don’t sell a particular insurance product, partner up with an agent who does. You can find one through a professional association that you are a member of.
- The more you know, the more you can sell. Having the ability to sell multiple insurance products makes it more convenient for your clients and more profitable for you.
- Use the internet to market yourself. Having a presence on the web is essential to today’s successful insurance agent.
- The best way to warm up a potential client is to ask them about themselves, instead of telling them all about you.
- Join a professional association to create valuable networking opportunities.
- Earn a designation related to your insurance specialty. You’ll add another layer of expertise to your business. Make sure the designation is from a credible source. If it takes more than an hour or a week to earn it, it’s probably credible.
- Keep up to date on current insurance products for constantly evolving markets like group and private health insurance.
- As a trusted advisor, you should be able to ask your clients pertinent questions that will get them thinking about other areas they may need assistance with. A client purchasing a life insurance policy could also be interested in long term care insurance but know very little about it and its benefits.
- Make sure you disclose everything to your client so it doesn’t come back to haunt you later. Being upfront and honest is the best way to gain loyal customers.
- Never stop learning. Put some time into continuing education to keep yourself sharp and as knowledgeable as your competitors.
- Try multiple channels to find insurance leads. Online insurance leads are a great source as more and more people are turning to the internet when shopping for a policy.
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Before and after: Incredible transformation of gunshot victim
Before and after: Incredible transformation of gunshot victim
The University of Maryland released details on the recovery of Richard Lee Norris, the 37-year-old man who received the most extensive full face transplant completed to date seven months ago. Norris, of Hillsville, Virginia, was injured in a 1997 gun accident, losing much of his upper and lower jaws as well as his lips and nose. The transplant surgery, completed on March 20, 2012 at the University of Maryland Medical Center, included replacement of both jaws, teeth, tongue, and skin and underlying nerve and muscle tissue from scalp to neck.
vinay mohanty
if you matured bend your head
vinay mohanty
Review of Escalation Clause., to Hemanthbhargav ED Mktg
LIAFI-SG/CO-150/12 ` 19 October 2012
Shri.
Hemant Bhargava , ED (Mktg)
Agency
Section, III RD Floor
Life
Insurance Corporation of India,
Central
Office, “Yogakshema”
Jeevan Beema
Marg,
MUMBAI-400
021
Dear Sir,
Sub: Review of Escalation Clause.
We noticed that a Circular Mktg./A/21 (R) dated 15/10/2012 was
released on the above subject. Though our email id is given we are yet to
receive a copy. While appreciating your concern to offer some relief on the
subject matter we are not at all happy at the relief given. None of the Club
Members throughout the country are happy.
We recall our meeting with you on 27-09-2012 for discussions on our
grievances and agitational programs. We emphasized the necessity of removing
escalation clause totally. From the discussions we hoped that this clause will
be removed in toto.
We fail to understand why the management is so prestigious about
removal of this clause which is opposed by all Club Members. We are opposing
this clause from its introduction. We
also informed you that removal of this clause will ease the pressure. We once
again request you to review and remove this clause. We hope you will issue another Circular on or
before 29-10-2012 on the day which we are meeting.
Thanking
you,
Sincerely
yours,
For Life insurance Agents’ Federation of India
Secretary General
LIC tracks down clients, settles 89k unclaimed policies
The effort follows a finance ministry directive as part of broader government measure to popularise life insurance. LIC has settled close to 89,000 unclaimed policies, aggregating about Rs 500 crore.
As per industry estimates, the life insurance sector holds about Rs 2,000 crore in unclaimed funds, with the private sector accounting for about 45%.
"We had asked insurers to track down all such policy holders or their beneficiaries. Almost all such policies have been paid for in the case of LIC," a ministry official said.
A senior LIC official said the disbursal amount would be about Rs 500 crore with data from regional offices yet to come in. Sector regulator Irda has also issued new guidelines with regard to orphan policies. The new norms ensure that life insurers can re-allot orphan policies-where premium has not been paid for at least six months-to agents still active with them, from those who have switched jobs.
"This will ensure that even if agents switch jobs, the policyholder does not lose out," an Irda official said. Many investors forget about their policies or stop paying premiums after a while. Such policies become fully paid up after a while, but investors fail to follow up on such policies or surrender them, leaving the insurer with unclaimed amounts.
The finance ministry feels delivering these unclaimed amounts to investors will improve perception about life insurance business. The government is looking at a host of measures, including tax incentives and simplified guidelines, to provide a flip to the life insurance industry.
Among the measures being discussed is quicker clearance for insurance products. The key taxation issues include reduction in service tax and prospective taxation on policies, and separate tax benefit for investment in insurance products.
Earlier, the government had asked PSU banks to make public details of unclaimed deposits aggregating Rs 1,700 crore, a move aimed at encouraging account holders to reclaim funds. The RBI has also made it mandatory for banks to publish on their websites the names of customers whose accounts have been lying inactive for 10 years or more.
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Irda raises agents' commission, cuts minimum guaranteed surrender value for some products
Minimum commission for agents raised from 14% of the premium for the first year to 15%, for 5-yr premium-paying term policies
M Saraswathy & Yogini Joglekar / Mumbai Oct 10, 2012, 00:53 IST ; Business standered
Be prepared to shell out a little more on your insurance premiums and receive less value if you decide to exit your policy before maturity. In its draft norms for traditional products, the Insurance Regulatory and Development Authority (Irda) has proposed an increase in agents’ commissions and a reduction in surrender value of policies.
The draft, however, brings good news for agents. The minimum commission for agents has been raised from 14 per cent of the premium for the first year to 15 per cent, for five-year premium-paying term policies. Besides, the regulator has proposed a specific commission for each year starting from a five-year premium paying term to 12 years plus premium paying term.
Earlier, five to nine years, 10 to 14 years and 15 years and above were classified as one category with a common commission. In the present draft, Irda has specified commission for each year separately and has increased the commission rates.
“Increasing and allocating separate commissions for each year is a step in the right direction. This will curb mis-selling to a great extend and motivate agents as well,” said G N Agarwal, chief actuary at Future Generali Life Insurance.
If the insurance regulator has its way, the surrender value of policies will also come down. In the exposure draft, Irda has proposed 30 per cent for policies that are active for three years, down from 50 per cent.
According to Agarwal, maintaining surrender value for long-term products is going to be more difficult. “This is because when the premium paying term of a policy is longer, the premiums are comparatively much lower, hence insurers may not be able to retain much even in the first two to three years.”
P Nandagopal, managing director and CEO at IndiaFirst Life Insurance, said while putting a cap was good, the reduced surrender value was not fully justified from the customer’s point of view. “It is too low a guarantee and the customers should get value for their money spent. We also found that the expenses in traditional products are more than that in Ulips but the surrender value is lower than in traditional products,” he said.
Irda had said all individual non-linked life insurance and pension products should acquire minimum guaranteed surrender value (GSV). The GSV is a sum of guaranteed surrender value and the surrender value of the any subsisting bonus already attached to the policy. Unit-linked insurance plans already have such a minimum guaranteed surrender value.
“The minimum guaranteed surrender value would be 30 per cent of the total premiums paid less any survival benefits paid, if the policy is surrendered in the second and third year. If surrendered in the fourth year, it would be 70 per cent of the total premiums paid less any survival benefits already paid. If surrendered during the fifth to the seventh policy year, it would be 90 per cent of total premiums paid, less any survival benefits already paid,” the draft norms said.
The insurer need to file the surrender value beyond the seventh year under the ‘file and use’ procedure for clearance.
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Insurance Companies May Have to Pay Only Up To Rs 10 Lakh for Accidents
The amendment, proposed by the, Road Transport and Highways ministry, to the motor vehicle’s act, 1988, suggests the reduction of liability of insurance companies to a maximum of Rs 10 lakh in case of accidents.
Presently, insurance companies compensates those injured or families of victims as per the decision of the claim’s tribunal, on behalf of the owner.
However, the bill for the amendment to the act provides for stringent punishment for various offences including speeding and drink driving.
Currently, the entire compensation is paid by the insurance company. According to the proposed amendment the insurance company will share the liability with the owner and pay compensation only up to Rs 10 lakh. And rest will have to be borne by the owner of the vehicle involved in the accident.
The proposed amendment also omits the provision of immediate compensation. The present law provides for immediate compensation of up to Rs .50, 000 to those injured or to the families of the victims of accidents for treatment or even performing the last rites.
The bill for the amendment was passed by Rajya Sabha in May 2012. And now it is pending for consideration in Lok Sabha.
Value of India’s Global Pension Index Slips
The Melbourne Mercer Global Pension Index value of India has gone down to 42.4 this year from 43.4 in 2011, but India’s global ranking has stayed constant at 18. The index value fell mainly due to the introduction of worldwide governance indicators.
India does not have social security system. A large number of elderly Indian’s are not covered by any pension scheme. Pension reform would not only enhance retirement security of citizens but also help the central and state governments to cut their future liabilities.
The Melbourne Mercer Global Pension Index is produced by Mercer and Australian centre for financial studies and funded by the Victorian State Government. It is now in its fourth year and has grown from 11 to 18 countries. It looks at both the publicly funded and private components of a system as well as personal assets and savings outside the pension system. Each country is given a score between 0 and 100. It is based on more than 40 indicators grouped into three sub-indices: adequacy, sustainability and integrity.
The score of 35-50 shows that the system has some good features, but also has major risks or shortcomings that should be addressed.
Denmark received an index value of 82.9 to be graded ‘A’, removing Netherlands from the top position.
Mercer’s senior partner and the author of the report, David Knox has said that many of the world’s retirement systems are under increasing stress with an aging population, low investment returns and in some cases, significant government debt. Reform is needed to ensure that adequate benefits are provided over the long term in a sustainable manner.
Mercer also notes that the exposure of pension funds across the world to growth assets like property and equities ranges from zero in some countries to more than 70% in Australia. As per Mercer, system can provide better returns if it is diversified. It should not be heavily concentrated on bonds or equities.
India could adopt several measures to enhance retirement benefits for citizens like introducing a minimum support level for the poorest aged individuals, a mechanism to increase the pension age as life expectancy continues to increase and increase contribution in statutory pension scheme.
Weightings used for the index value are: 40% for the adequacy sub-index; 35% for the sustainability sub-index; 25% for the integrity sub-index.
The countries that do well in adequacy have an above average base pension to relieve poverty; a good net replacement rate for the median income earner, a system that requires the benefits to be taken as an income stream, and other desirable features. The countries that do well in sustainability have good pension coverage (through some form of compulsion or auto-enrollment); a high level of pension fund assets compared to GDP; a level of mandatory contributions, and a relatively low level of government debt. Several countries do well with integrity due to the presence of comprehensive regulations ensuring good governance and providing good communication to members.
Finance Ministry Planning to Move an Ordinance to End Woes of Insurers on Third Party
The finance ministry is planning to move an ordinance in parliament for a separate motor vehicle insurance and compensation bill.
At present, the motor vehicle’s (amendment) bill, 2012, prescribes the conditions for insurance in case of death or injury to a third person in a road accident.
The Rajya Sabha has already cleared the motor vehicle’s (amendment) bill administered by the Roads ministry. It is expected to be taken up by the Lok Sabha in next parliament session.
The finance ministry has sought law ministry’s opinion on whether it could introduce an ordinance for a separate legislation soon after the motor vehicle (amendment) bill is passed by parliament.
As long as the motor vehicle’s legislation is there in parliament government cannot introduce their own bill. Once it is cleared by Lok Sabha, government will bring in an ordinance for a separate legislation and when parliament convenes next, government will table the bill.
Third party motor insurance protects the vehicle owner from any financial liability in case of death or injury to a third person.
Insurance companies, which are bound by law to settle the claims with no cap on liability, paid out 45% more than the premium on account of claims under the third party motor pool last year.
The new law is expected to propose a cap on third party motor insurance claims.
Moreover, insurers are not even allowed to hike premiums on such policies. Insurers are asking to de-tariff the premiums. Except Scandinavian countries no other country has it.
The annual liability on account of third party motor insurance is Rs 10,000 crores with average third party claim per accidental death and injury coming to Rs 3 lakh and Rs 1 lakh, respectively.
Public sector General Insurers are hit harder as private insurers avoid writing such policies due to high claim ratios, particularly in the commercial vehicle space.
the NEFT REvolution
There used to be a time not very long ago, when sending money to another account in the same city or another city used to be a cumbersome process. It used to be like eternity before you could actually get the money to move. Today it’s a matter of a few minutes or at the max an hour and you can get the money transferred. The reason: NEFT
What is NEFT?
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NEFT is an acronym for National Electronic Funds Transfer (NEFT). It is a nation-wide system, which helps individuals, firms and corporate to electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country.
Not all bank branches in the country are part of the NEFT funds transfer network, if a bank wants to be a part of the NEFT funds transfer network, a bank branch has to be NEFT-enabled. According to the data released by the RBI 74,680, branches or offices of 101 banks in the country out of around 82,400 bank branches are NEFT-enabled at end-January 2011.
Transfer money even without a bank account!
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Individuals, firms or corporates having accounts with a bank branch can transfer funds using NEFT. It also offers assistance to the ones who do not have a bank account. They can deposit cash at the NEFT-enabled branch with instructions to transfer funds using NEFT. Such customers are given a separate transaction code in the NEFT system and they can transfer their funds to the beneficiaries. Such customers will have to furnish full details including their complete address, telephone number, etc. Thus NEFT helps its remitters to initiate funds transfer transactions even without the need for having a bank account.
Send to Nepal too!
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It also helps in transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. According to this scheme a remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The scheme also offers the beneficiary to receive the money in Nepalese Rupees.
The important feature of NEFT is that there is no limitation on the amount that can be transferred using NEFT, except, for the walk in customers who do not hold accounts as well as those remitting funds under the Indo-Nepal Remittance Facility Scheme; the maximum amount that could be transferred is Rs. 49,999.
How it works
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NEFT works on hourly batches, there are eleven settlements from 9 am to 7 pm on week days and five settlements from 9 am to 1 pm on Saturdays.
The individual or firm who is willing to originate transfer of funds through NEFT has to fill an application form, which asks for the details such as name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number has to be given.
The originating bank branch will prepare a message and send it to NEFT Service Centre, which will then forward the message to the NEFT Clearing Centre operated by National Clearing Cell, Reserve Bank of India, Mumbai, to be included for the next available batch.
The Clearing Centre will then sort the funds transfer transactions destination wise, bank-wise and prepare accounting entries to receive funds from the originating banks and give the funds to the destination banks. The bank-wise remittance messages are then forwarded, to the destination banks through their pooling centre (NEFT Service Centre). The destination banks will receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary accounts.
As soon as these processes are over, the beneficiary will get the amount credited in his account for the first nine batches on weekdays and the first four batches on Saturdays on the same day. For transactions settled in the last two batches on week and the last batch on Saturdays, the beneficiaries will get the credit either on the same day or on the next working day morning.
Pay your card dues too!
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The NEFT system can also be used to pay credit card dues to the card issuing banks. A separate Transaction Code (No. 52) has been allotted in the NEFT system in order to facilitate the payment of credit card dues to card issuing banks. The remitter has to quote the IFSC of the beneficiary card-issuing bank to initiate the bill payment transactions using NEFT.
how to use internet to make money
As long as you have the inclination, a little bit of expertise and some free time, you can earn some money on the Internet from the comfort of your own home. Hitesh Raj Bhagat & Karan Bajaj highlight some popular ways to make that quick extra buck
Self publish books
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If you love writing and want to get a book published, Amazon offers a free service called Kindle Direct Publishing. The service allows anyone to self publish books on the Kindle (electronic) bookstore and earn royalties from sales. There are two plans you can choose from — the 35% royalty works across any book sold in any country) while the 70% royalty plans works if you sell in a few select countries. Indian authors can choose to set prices specifically for the Indian bookstore and receive royalty payments in Indian currency as well.
Make & sell your apps
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With so many smartphones and tablets, app development can be a very lucrative business. You can learn about developing apps online — there are various tutorials available for free. That's the easy part — the hard part is coming up with an idea that 'clicks'. Once you make an app, submit it to the respective app store, set a price and choose whether you want to earn from inapp advertising. Your earnings, after deducting the appropriate fees, will be paid monthly.
Sell your photos Online
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Numerous stock websites like www.shutterstock. com, www.shutterpoint.com and www. istockphoto.com host photographs submitted by members. Depending on the site's policy, you can earn between a 15 to 85% royalty on each sale. The better the quality of photos and the larger your online portfolio, the more you will sell. Usually, each photograph you want to upload will have to be 'selected' by them first — and they usually have strict requirements of what can or cannot go on sale.
Sell old stuff online
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An easy way to earn some money on the
Internet is by selling old stuff that you have around the house. Websites like www.olx.in, www.quickr.com & http://craigslist.co.in provide a free classifieds platform. You need to create an account, enter the product details, location, the expected price along with some photographs — listing usually go live within a couple of hours. Interested buyers can directly contact you and finalise the sale.
Start an online shop
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With some creativity, you can learn to make handicrafts or if you know a wholesale dealer, purchase unique things at low prices. Once you have some stock ready, you can set up an online shop to sell these goods on sites like www.ebay.in or www.indiebazaar.com. Both sites have a simple signup process. After you get verified as a seller, they provide you with a step-by-step wizard to set your online store (how to add photos & details of items you want to sell).
Work online for money
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The internet is full of bogus companies that promise to pay you for work but never will. For instance, all places that offer money to fill surveys or those that require payment up front are scammers. Two popular & reliable places to find work are www. odesk.com and www.elance.com. Both have a similar system: set up a profile and take tests to prove your proficiency in certain areas. Once done, you’ll be listed as a contractor/ freelancer and people can hire you for an hourly rate. You can get paid more by working hard, getting better at what you do and getting good feedback (ratings) from your clients.
E-Tutoring
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If you are fluent in any subject and have some tutoring experience, you can sign up on websites like www.2tion.netor www.tutorvista.com as an online tutor. The sites require you to create a tutor profile with details such as the subjects in which you are fluent, what classes/courses you want to teach, your experience level, preferred timings for tutions and the remuneration expected. After verification, the site lists your profile on their portal where interested students can connect with you for tuitions. You can opt for virtual workspaces with built in teaching aids like live chat and collaborative whiteboards. Once you get better at tutoring, you can increase your monthly earnings by teaching multiple students simultaneously.
Earn from Advertising
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A reliable way to earn money is from Google AdSense on your blog/website or ads on your YouTube channel. To get started, create a Google AdSense account at www. google.com/adsense. You can use the same account with your blog, website or YouTube channel. To maximise earnings from your blog or website, your objective needs to be to get the maximum number of visitors possible. Write about what you know and what you’re passionate about. On YouTube, make sure that your videos are original and interesting. Promote your channel to get more views. Apart from views, your objective should also be to get more people to like/ favourite your video and to subscribe to your channel. The build up will be slow and Google only makes payments once your balance crosses $100, so don’t get disheartened. Persistent efforts pay off in the long run.
Insurers Not Keen to Come Up with IPO
With the cabinet clearing the proposal of 49% Foreign Direct Investment (FDI) in insurance sector, the next logical step should have been the revival of Initial Public Offering (IPO) plans of insurance companies. However, insurers do not seem to be buoyant. Neither private sector insurers nor public sector insurers are keen to come up with IPO in near future.
Though insurers have welcomed the hike in FDI cap and slew of reforms announced by government, but they do not see any significant advancement to IPO timeline for the industry. Before going for IPO insurers are waiting for new business margin that has shrunk in the last years to go up and growth to come back so that they can get right valuation.
Industry experts say that insurance companies will not be looking at IPO, till FDI limit increase in insurance is approved in parliament. Cabinet may have approved hike in FDI cap but still there is lot of uncertainties on whether 49% FDI proposal will be passed by the parliament. Only after the bill is passed by the parliament, will the companies take any call on the IPO issue.
The insurance laws (amendment) bill, 2008, approved by the cabinet provides for raising of capital from markets by public sector general insurance companies and reinsurance companies, with subject to the minimum government shareholding of 51%. But state-owned general insurers do not aspire to raise capital from markets.
Last year Insurance Regulatory and Development Authority (IRDA) had come out with IPO guidelines for life insurance companies and it is expected that IRDA will come out with final IPO guidelines for general insurers in next few weeks.
Finance Ministry Summoned Insurers in Service Tax Evasion Probe
The finance ministry has issued summons to about dozens of insurance companies seeking documents pertaining to sale of insurance policies and commission paid to their field associates as part of its probe into alleged service tax evasion of over Rs 300 crores by insurers.
Firms like ICICI Prudential, HDFC Standard Life, MetLife, Birla Sun Life and Reliance Life among others have been issued summons by Directorate General of Central Excise Intelligence (DGCEI), an intelligence arm under the Finance ministry.
The notices have been sent under Section 14 of the Central Excise Act, 1944. This section empowers a central excise officer to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in inquiry being undertaken by the officer.
Preliminary probe so far has found alleged irregularities including evasion of service tax by misrepresenting the information on accounts book and fudging records related to commission paid to field associates, agents and brokers who were selling the insurance policies.
Insurance Industry Requires $5-6 Billion Capital in Immediate Run: FM
Making a strong case for raising Foreign Direct Investment (FDI) cap in insurance sector, Finance Minister, P. Chidambaram, has said that insurance industry requires $5-6 billion capital in immediate future.
Every company already has 26% FDI, so if FDI cap is raised from 26% to 49%, then there is headroom for them to bring more capital.
The penetration ratio in life insurance sector is 4.4% and 0.76% in the non-life segment; this means vast majority of population does not have insurance at all.
Last week cabinet approved an amendment to the insurance laws (amendment) bill, 2008, to raise the FDI cap in insurance sector to 49% from current 26%. The proposal needs to be cleared by the parliament.
P. Chidambaram said that the government intends to meet Bhartiya Janta Party (BJP) and other parties ahead of winter session of the parliament to seek their support to raise the FDI cap in insurance sector to 49% as sector requires huge amount of capital.
He also said that by and large, the provisions of the insurance bill are along the lines recommended by the standing committee on finance and he does not expect any opposition to the entire bill or the most of its clauses.
He also said that there is disagreement on only one clause –on raising FDI ceiling. And on this clause he is expecting a vigorous debate and hopes to convince the opposition parties even before the winter session of parliament.
Standing committee on finance headed by Yashwant Sinha has recommended retaining FDI ceiling in insurance sector at 26%.
Raising FDI cap has been the long standing demand of insurance companies and IRDA.
The insurance sector was opened for private sector in 2000 after the enactment of Insurance Regulatory and Development Authority act, 1999.
IRDA Identified 18 Product Categories for Standardization
Insurance Regulatory and Development Authority (IRDA) has identified 18 product categories for standardization. This will help insurers to quickly launch their products.
Under the ‘file and use’ mandate, companies are not allowed to launch any product unless it is approved. And product approval takes time. Therefore, IRDA has proposed standardizing some products that can be offered within 15 days of being filed with the IRDA.
As per IRDA, the standard products should be simple, easy to understand and have affordable premium rates. As per proposed system, there should be a ‘standard kit’ which has a standard application form, sales literature and benefit illustrations. However, underwriting, reinsurance and pricing assumptions may have specific ranges, which the insurer can choose based on the target market. This is to enable insurer-specific risk assessment.
IRDA has invited views of Life insurance council on the list of identified products. After the list is finalized, a working group will be constituted to design the products. The product designs may be finalized by the end of November 2012.
In the non-linked products such as life and pension, both participating schemes (which declares the returns in the form of annual bonuses) and non-participating schemes (assured returns) have been identified for standardization.
The other products identified for standardization include money back products (participating and non participating), where the benefits are defined in advance, and term products (with and without return of premium on maturity).
Under linked category, unit-linked life and pension products and variable insurance products (life and pension products), where benefits are linked to any external approved index, have been identified for standardization.
In-group products which are fund-based superannuation products (linked and non-linked), fund-based employee benefit products other than the superannuation products (linked and non-linked), single premium term products (non-linked) and savings product for micro-insurance groups have also been identified.
7 Out of 10 Potential Buyers Change their Minds after Searching Online: Survey
Seven out of ten users change their mind about financial products and brands after they research about the products on the internet, says a study by Google India.
Insurance is the category only next to loans, which is affected most due to online research.
In case of motor insurance as many as 70 prospective insurance buyers change their decisions after thorough research on internet. This is 70% for health insurance and 69% for life insurance.
The report was compiled by Google India by combining the Google search trends in India and an independent research report conducted by TNS Australia on the influence of internet on the purchase decision of financial products by Indian internet users.
According to Google India, given the reach of internet to high-value customers and its influence on the decision making for financial products, it believes that financial services can create significant value by innovating on the digital medium and adopting an ‘online first’ approach to serve the needs of the digitally savvy customers.
According to iCube-IMRB survey for July 2012, India has about 137 million internet users. Of this, 99 million urban Indian users are active on the internet. With users shifting their buying patterns based on online research, financial services need to adopt a new approach to engage and serve the needs of the digitally savvy customers.
The study pointed out that 25 million internet users bought at least one product online. Of this, 15 million do online banking.
Since 2008, banking inquiries have grown 345%, insurance by 265% and investing by 268%.
The BFSI (banking, financial services and insurance) sectors spend about Rs 1,500 crores in advertisement annually. Of this, less than 10% is for digital advertisement. 71% internet users who saw an ad on the TV opt for further research online, and 30% end up buying a product. Whereas, 87% who saw an advertisement on the internet further researched the product on the web and of this 39% end up buying product.
The other significant research of the study is the increasing use of mobile for finding about financial products. One in every ten query comes from mobile phone.
In terms of percentage growth for search queries coming from mobile phones (banking queries grew 85% year-on year, investment queries grew 105% on year-on-year basis and insurance queries grew 75% on year-on-year basis).
akanskhya
GICagents memorandam
MEMORANDUM (SHIMLA)
INSURANCE ADVISORS FORUM (REGD)
Flat No-101, R.G.Complex-1, Sector-14, PrashantVihar, Rohini, Delhi-110085
MEMORANDUM
TO:
1. Hon’ble Sh. NamoNarainMeena, State Minister of Finance, Govt. of India
2. Sh. NSRC Prasad, Chairman GIPSA and CMD, National Insurance Company Ltd.
3. Sh. G. Shrinivasan, CMD, United India Insurance Company Ltd.
4. Sh. A.R.Sekhar, CMD, New India Assurance Company Ltd.
5. Dr. A.K.Saxena, CMD, Oriental Insurance Company Ltd.
EVENT
• CONVENTION OF DEVELOPMENT OFFICERS OF ALL FOUR PSU COMPANIES BEING HELD AT HOTEL HOLIDAY HOME, SHIMLA ON 30.09.2012
DATE:
• 30.09.2012
• RE:
• REDUCTION IN AGENT’S COMMISSIONS
Respected Sir
Since last two months or so we the agents of all four PSU General Insurance Companies have been having a horrible time and sensing the dark future ahead due to the announcement and implementation of policy by four PSU Companies dealing in General Insurance for reducing the agent’s commissions in Mediclaim, Motor and perhaps the other portfolios too.
This is driving the (us) agents to think and find the reasons of such a reduction in our commissions and we are failed to understand the hard look of these companies on the Agent Force which has been their back bone for ages. Looking at the present scenario in General Insurance run by the four PSU Companies, we the agents are forced to unite at this point of time and hence the idea of forming the INSURANCE ADVISORS FORUM.
So through this Memorandum we would like to draw the attention of all those concerned to please have a sincere and serious look closely into the hardships faced by their agents and their uncertain future. Hereunder we are furnishing the details of our concerned grievances and a few suggestions for your reference and consideration:
Contd…….page-2
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1. Circular No- HO/TECH/HIN/12-13/003 DT: 20.7.2012 regarding All Health Insurance Portfolios and Circular No- HO/TECH/MOTOR-TP/OD DT: 09.08.2012 regarding All Motor Insurance Portfolios does not state clearly that the commission of agents is going to be decreased. We respectfully demand clarification on this from your side.
2. If at all the commissions are going to be reduced as per the formulations indicted in the above mentioned circulars, WE STRONGLY OPPOSE AND DO NOT ACKNOWLEDGE THIS MOVE.
3. Why your increased administrative and operative expenses instead are not being controlled? Why these Four PSUS are eyeing the agents’ commissions only? You will agree that AGENTS are and have been the back bone of Insurance Industry. We strongly think that with your decision of reducing the agent’s commissions, you are going to break your back bone only.
4. We through this Memorandum wish to know the LOGIC behind reducing our commissions and why a serious thought is not given of looking at other avenues where expenses could be controlled and curtailed? For your information the products are designed by the companies/actuaries not the agents and at the time of deciding the premium for a particular product, the CTC includes commission part also. Are the premiums being reduced by the same percentage the commissions are reduced? This is high time we become more professional than being orthodox. Are the agents being treated the same way the employees of these four PSU companies are? The employees are getting profit linked incentives (PLI), whereas the agents are being subjected to lesser (reduced) commissions. Do the employees share the losses of a company if any?
5. On the other hand we are surprised to note that the Private Sector Insurance companies are paying handsome commissions/ incentives to their agents although they are also being governed by the same IRDA as in your case. They are showing continuous growth and profits. We are really failed to understand all this. Please explain?
6. It is certain that an agent will take least interest in procuring fresh business when he or she knows that he/she will not be paid adequately for his/her efforts in procuring the business. This will definitely decrease the volume of business done by the respective Insurance Companies. Can you please tell us that in this scenario what shall be the fate of Four PSUS? Will they survive? Is this a very well thought of process of Four PSUS in the company of Finance Ministry to liquidate the Four PSUS and encourage the Private Sector Insurance Companies and shift all the business of Four PSUS to Private Sector Companies ?
7. It is truly on record that our commissions have not been revised to higher percentage since 2007, whereas the inflation has been rising up regularly. Our operative costs range between 4 % to 7 % for selling the policies for our respective Insurers and rendering the after sales services to the insured. We have to work 24x7x365 days in a year and have no back up for us to procure the business for us if we fall ill or have any emergency whatsoever. We the agents have no other business to carry on with other than selling Insurance and meet the expenses required for running a family. Why the axe is falling on our heads?
Contd……..page-3
Page…..3
8. For the majority of agents this Insurance Business was picked up as a career and after more than 15 years into this business and having set our living standards according to the income we generate from selling the Insurance, we suddenly find ourselves staring in dark (due to the reductions in our commissions) and trying to find out the ways to support our dependents and fast approaching retirement age. Please suggest us the alternates we could adopt to meet our expenses and stand in society with some dignity. Have you thought of the after effects of reduction in our commissions? Have you drawn a plan to formulate a policy for the agents and their dependents? Please note that majority of agents are engaged in Insurance Business full time. They are entirely depending upon the income from Insurance Commissions. We are seeing darkness all around us.
9. TPA’s are allowed 6% commissions for merely processing the claims which are always on the higher side. There seem to be healthy relations among TPAs and Hospitals which clearly are resulting in higher cost of medical assistance to the Insured and increasing the percentage of ICR. This is quite evidently eating into the revenues of the Insurance Companies. TPAs of late have become a real irritant factor for the Insurers as well as agents. They are not following the guidelines set by the Insurers and have a variety of excuses while processing the claims. Our suggestion is to have in house processing of claims as was being done prior to appointing the TPAs. This will certainly help reducing the processing cost and could utilize the services of idle work force of Insurance Companies found loitering here and there and not doing any value addition to their employers.
10. Many private sector insurers approve the claims in 4 hours from intimation about the hospitalized insured, whereas, the PSU companies are taking too long a period to process the claim and on top of it the TPAs are icing on the cake. This is a very serious issue and main hindrance for agents to sell the insurance plans of PSU companies. This clearly hits the inward volume of potential business. Guidelines to this effect should be formed and strictly adhered to.
11. Incentives in line with the private sector insurance companies are announced by the PSU companies, but even after meeting the set targets we helplessly keep on waiting to receive the rewards so announced. The authorities in respective offices apply so many undue conditions on us to receive such rewards which do nothing but demoralize us.
12. We suggest that advisor promotional programmes should be organized to encourage the agent community as is done by the private sector insurers. Nothing really is being done to enhance the level of our skills, be it product knowledge or under writing norms or marketing the products or the latest amendments brought out by the PSU companies. No one including those sitting at the helm of affairs seems seriously interested for the progress of the company. This is typical scenario where one is ensured monthly salaries including persiquites and all the raises according to the rising inflation index irrespective of the company they are working for is going into profits or losses. We have no problem with that. But at the same time we request you all to appreciate that same rising inflation index is affecting us too. So why reducing our commissions instead of increasing?
13. A thought could be given to offering direct discounts to the customers. The Premium rates could be enhanced to bring down the ICR. Conventional and orthodox products should be discontinued and new products competitive with the products offered by the private sector companies should be launched.
14. We through this MEMORANDUM request you to please adopt the measures so that the move to reduce the AGENT’S COMMISSIONS is scrapped with immediate effect.
We request your good self to please look into the matter personally and help us to get rid of this nightmare surrounding us. You are also requested to please forward our concern to the concerned higher authorities in Insurance Sector as well as Ministry of Finance.
Thanking you.
vinay mohanty
LAL BAHADUR SASTRI JAYANTHI 2NDOCTOBER
LAL BAHADUR SHASTRI, the second prime minister of India, was a man of Highest Integrity. He was born on 2 October 1904 at Mughal sarai, near Banaras (Varanasi), Seven miles from Kashi in Uttar Pradesh. His father, a clerk in the Revenue office at Allahabad, died when he was hardly a year and a half old. His grandfather brought him up. Though his parents Sharada Prasad and Ramdulari Devi were Srivastavas, Shastri dropped his caste identity in his early years. Later he joined the Kashi Vidyapeeth and earned the epithet 'Shastri' by obtaining a degree on philosophy. In 1921, inspired by Bal Gangadhar Tilak and Gandhi; he cut short his studies to join India's freedom movement.
During the freedom movement he went to prision seven times and spent a total of nine years in the prision. The greatness of Lal Bahadur was that he maintained his self-respect 'even in prison. Once when Shastri was in jail, he received the news that his daughter fell ill. He requested the jailor to release him on parole to attend to his daughter. The jailor granted him 15 days parole. On reaching home, he learnt that his daughter had died. He performed the last rites of his daughter and told his family members that he was going back to the jail. When they reminded him that he was granted 15 days parole, he said, "That was to attend to my sick daughter. But when she is no more, there is no reason for me to take leave." After performing the obsequies he returned to his prison even before the expiry of the period.
A year passed his son was laid up with influenza this time Lal Bahadur was permitted unconditionally to go home for a week. But the fever did not come down in a week. Lal Bahadur got ready to go back to prison. The boy pleaded dumbly with his tearful eyes. In a weak voice he urged his father to stay. For a moment the father's mind was shaken. Tears rolled down from his eyes. But the next moment his decision was made. He bade good bye to all and left his home for prison. His son survived.
He Played a leading role in Indian freedom struggle; Became Parliamentary Secretary of Pandit Govind Vallabh Pant, the then chief minister of Uttar Pradesh; became the Minister of Police and Transport in Cabinet; appointed as the Railways and Transport Minister in the Central Cabinet; also held the portfolios of Transport & Communications, Commerce and Industry, and Home Ministry in the Central cabinet; As minister of Transport and communications after 1957 he started the shipbuilding yard at Visakhapatnam on the east coast in Andhra Pradesh. In 1952, Jawahar Lal Nehru appointed Lal Bahadur Shastri as the Railways and Transport Minister in the Central Cabinet. His contribution in providing more facilities to travelers in third class compartments cannot be forgotten. It was during his time that fans were provided in third class compartments. He reduced the vast disparity between the first class and third class in the Railways. He resigned from Railways in 1956, owning moral responsibility for a railway accident. Jawaharlal Nehru tried to persuade Shastriji but he refused to budge from his stand. By his action he set new standards of morality in public life.
He became the Home Minister in 1961, after the death of Govind Vallabh Pant. As home minister he strengthened the relationship between India and Nepal. He found out a solution to the language problem in Assam by introducing the use of English, Assamese and Bengal languages. He had rented a small house in Allahabad. Whenever he went to Allahabad, he used to stay in that house. After some time, the house owner had let it out to another family. When Shastri resigned as minister, he vacated the Government quarter and he did not have a place to live in. He did not have a house of his own, even when he was the Home Minister and people used to tease him the "Homeless Home Minister". In the 1962 India-China war Shastriji played a key role in maintaining internal security of the country.
After the death of Jawaharlal Nehru in 1964, Lal Bahadur Shastri was unanimously elected as the Prime Minister of India for a short period of 18 months. It was a difficult time and the country was facing huge challenges. There was food shortage in the country and on the security front Pakistan was creating problems. In 1965, Pakistan tried to take advantage of India's vulnerability and attacked India. Mild-mannered Lal Bahadur Shastri rose to the occasion and led the country ably. To enthuse soldiers and farmers he coined the slogan of "Jai Jawan, Jai Kisan". He reminded the nation that dependence on food imports undermined the country's self confidence and self respect and gave the nation a new slogan - Jai Jawan Jai Kisan'. It means Hail the soldier and Hail the farmer. He gave the slogan Jai Jawan Jai Kisan to enthuse the soldiers to defend India and simultaneously cheering farmers to do their best to increase the production of food grains to reduce dependence on import .It became a very popular slogan.
By "Jai Jawan Jai Kissan" Shastri had not only defined India's "Core-Competence" but also has seen the Indians as human being while "Bottom of Pyramids" look at then as consumers alone. When under the PL 480 programme, America was going to send inferior quality of wheat to India, he opposed it. He asked the nation to go hungry once a day than accept poor quality food from US. Before making this announcement he asked his wife not to cook evening meals. He himself followed what he recommended.
He solved many difficult problems with courage and wisdom. He appeared very modest but was a man of steel. An important quality of shastri was his Non controversial nature. He was a genius in striking balances, handling difficult situations, and achieving compromises. He had the ability to take quick decisions. At the same time When Pakistan attacked India in 1965 he hit back. He showed his mettle during the Indo-Pak war, which broke out in 1965. He made it clear to Pakistan and the world that India would not take it lying down, if Pakistan continued to encourage cross-border terrorism. He gave full freedom to the Armed Forces to retaliate and the military bases in Lahore and Sialkot were attacked.
During those tense days, in his address to the nation from Red Fort on Independence Day, he said: "Hathiyaron ka jawab hathiyaron se denge. (Force will be met with force.) Hamara desh rahega to hamara tiranga rahega. (Our flag will survive only if our country does)". Before the war many people laughed at him for his softness but not after the war. After the war, Shastri's name was all over. He came out as a tough hero. Pakistan lost the war and Shastriji's leadership was praised all over the world.
A day before his first press conference after becoming PM one journalist asked Shastriji what will be your message tomorrowHe said: "I'll tell them that during my tenure there will not be any increase in food price and as PM of India I would ask members of the Planning Commission to have one more column in their charts to show me how many jobs will be created after spending thousands of crores of rupees."
He tackled several problems like food shortage, unemployment and poverty. To overcome the acute food shortage, he initially imported food grains and distributed them throughout the country. Later, he drew long-term plans to make the country self-sufficient in food production. On January 10, 1966 Lal Bahadur Shastri died of with heart attack on night.
More than thirty years of dedicated service were behind Lal Bahadur Shastri. In the course of this period, he came to be known as a man of great integrity and competence. Humble, tolerant, with great inner strength and resoluteness, he was a man of the people who understood their language. He was also a man of vision who led the country towards progress. Lal Bahadur Shastri was deeply influenced by the political teachings of Mahatma Gandhi. "Hard work is equal to prayer," he once said, in accents profoundly reminiscent of his Master. In the direct tradition of Mahatma Gandhi, Lal Bahadur Shastri represented the best in Indian culture.
More than thirty years of dedicated service were behind Lal Bahadur Shastri. In the course of this period, he came to be known as a man of great integrity and competence. Humble, tolerant, with great inner strength and resoluteness, he was a man of the people who understood their language. He was also a man of vision who led the country towards progress. Lal Bahadur Shastri was deeply influenced by the political teachings of Mahatma Gandhi. "Hard work is equal to prayer," he once said, in accents profoundly reminiscent of his Master. In the direct tradition of Mahatma Gandhi, Lal Bahadur Shastri represented the best in Indian culture.
Lal Bahadur Shastrinever felt desire for money, a person who was down to earth, a real son of the soil, and stands for austerity, simplicity and consensus. His grounding was from the grassroots level. He was a practical man too. He strongly believed the laws of the land should be changed because the British formed them to rule over India. He did make an attempt by constituting the administrative reforms commission and made Morarji Desai its chairman. But after he died the idea was shelved.
Two qualities, which the leader of any nation must have, are devotion and efficiency. Lal Bahadur had both the qualities in a large measure. He would not swerve from his aim, come what may when the people of India Were fighting for freedom he brushed aside all thought of personal happiness and plunged into the freedom struggle. His daughters death, his son's illness, poverty - none of these made him swerve from his selection path. Even when he became a minister and later, the Prime Minister he was never attracted to a life of luxury and comfort.
The most favourite quote followed by the great the then prime minister is Guru Nanak's quotes in Gurmukhi.
When translated into English they mean -- Be simple and humble like the grass, because when a wild storm attacks, all the big trees get uprooted but the simple grass survives.Simple, but powerful.
Lal Bahadur Shastri was a simple man with great personality He is one and only Indian PM who was from humble family. He led his life with great simplicity and honesty and was a great source of inspiration for all the countrymen. Shastriji who represented a certain value system is more relevant today than before because a majority of us today have no value systems. He was a man concerned about the common man of India. Can these values return to this country? I don't think so.
Although shastri is not with us but his principal and simplicity always show the right way of life. We should follow such principals. Really he is my favorite great leader. His life was noble, loving and mainly in the highest sense! He is my mostfavoriteprime minister.
Let us all pray for a noble soul, a true hero, a leader of masses, and a valiant soldier the Laal of the nation. Jai Jawan Jai Kisan!
--
"Let noble thoughts come to me from all directions"
REGARDS
vinay mohanty
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