LIAFI-SG/GOI-062/14 23
July 2014
Shri. Arun Jaitely,
Minister of Finance,
134, North Block,
NEW DELHI-110 001
Respected Sir,
Sub: Wasteful
Expenditure in L.I.C of India.
We congratulate you for presenting the maiden budget of this Government,
which is largely appreciated. You are
aware that L.I.C. is a gigantic financial organization supporting Central and
State Governments, Municipal Corporations and Local Bodies. All this is possible because of the faith
reposed by the policyholders in LIC. This
confidence is gradually eroding because of the meager returns they are receiving on their investment (policies) in
buying the products. We feel that LIC should control and avoid wasteful
expenditure there by regaining confidence of policyholders. We would like to bring the following few
areas to substantiate our claim.
1. The
GOI is trying to administrate with less Ministers and Officers. It is done in
view of better administration with less expenditure. LIC is doing the other way. LIC
increased number of departments after the year 2006. There are Four Managing
Directors’ posts and Twenty Five Executive Directors besides Chiefs for its
subsidiary organization like LIC HFL, Mutual Funds, and Credit Cards etc. Though LIC is modernized, there is no pruning
of personnel. We feel that there is excess work
force.
2. On
the instructions of Shri. P. Chidambaram,
previous Minister of Finance a concept of “MINI OFFICES” introduced by spending
Crores of rupees. This concept is nothing but to rehabilitate retired LIC
personnel and deputing existing personnel.
LIC also
introduced a scheme of “EMPOWERED AGENTS” who can collect premia. We are
requesting LIC to give more empowerment as is given to Mini Offices. This will
not only reduce expenditure on LIC but also improve status of an Agent.
3. LIC
introduced a scheme of providing Meal Coupons to its Officers / Employees, from 01-09-2010 onwards incurring around Rs. 262 Crores annually that might
have gone up to Rs. 350 Cr. The idea behind the scheme is that the
personnel must attend and leave as per their Standing Orders. We feel it is
nothing but bribing the personnel. Meal Coupons are misused by procuring Ration
and other commodities. This is possible because of nexus between the LIC
personnel and designated Malls
We raised these issues several times with
our Management without any results. Nearly Rs. 1000/- Cr., can be saved if proper
steps are taken, which in turn can be untilled for increasing the Bonus to policyholders.
We request you to enquire in to the above points and help the policyholders.
Thanking you,
Sincerely yours,
For Life Insurance Agents Federation of India
Sd.
Secretary
General
vinay mohanty
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