LIC officers strike over wage issue

The Federation of LIC class-I officers' Association has gone on a nation-wide strike on Thursday to protest against non-acceptance of their demands on the wage revision by the management of the Life Insurance Corporation.

Some officials had also gone on a hunger strike on Wednesday in Hyderabad and were forced to end it on police intervention.

"Except Mumbai, the strike has been successful in the rest of the country," claimed R Gunasagar, president of the Federation.

Prominent Congress leader Oscar Fernades is the chairman of the federation. Gunasagar said while the government is insisting 17% rise in the wage, the Federation is demanding the same hike as sixth pay commission.

"Our own management is even refusing to send our demands to the ministry of finance and is insisting that we should accept 17% hike like the banking industry did, That is not clearly acceptable to us," he said.

Gunanasagar said LIC only incurred 2.33% as administrative expenses and pays currently pay Rs 1000 crore as dividend to the government on its Rs five crore investment in 1956.

Gunansagar said the the wage package of employees of the LIC cannot be compared with that of the banking industry as latter has been given pension benifits over the 17% salary hike.

LIC looks to mop up Rs 18,000 cr from new Ulip plan

The country’s largest life insurer, Life Insurance Corporation of India (LIC), is aiming to collect Rs 18,000 crore through its new close-ended unit linked insurance plan (Ulip) — its highest target since it launched the Jeevan Astha scheme in December 2008.
Hoping to cash in on the demand for tax-saving options ahead of the close of the financial year, LIC has launched Wealth Plus, a Ulip guaranteeing returns equal to the highest net asset value (NAV) during seven years, while the policy term is eight years. It is available in two premium payment options — a term of three years and single premium.
“This product is available for a limited period and we will close it after the target is met,” said LIC Managing Director DK Mehrotra.
The life insurer had set itself an ambitious target of Rs 25,000 crore for its close-ended scheme Jeevan Astha launched last year. However, collections fell short of expectations, as LIC only managed to collect Rs 10,000 crore.
Insurance companies do around 40 per cent of their total annual business in the last three months of a financial year. “We were waiting for the stock market to correct. Keeping in view the volatility in the market, we have launched this product which guarantees the highest NAV of seven years,” added Mehrotra.
Life insurance companies have revised their existing product structures and lowered charges from January 1, as mandated by the insurance regulator. They have also come up with NAV-guaranteed products in the current financial year.
“With LIC coming up with such a product, many insurance companies will see a decline in the estimated new business,” said a senior executive of a life insurance company.
Wealth Plus is a close-ended product with minimum age of entry being 10 years and the maximum 65 years. While the policy term is eight years, the premium paying term of the policy is three years. While the minimum premium is Rs 20,000, there is no cap on the maximum premium. Premium allocation charge for single premium up to Rs 4 lakh is 5 per cent, and above Rs 4 lakh, it is 4.5 per cent. For regular premium, allocation charges are 12 per cent for premium from Rs 20,000 to Rs 2 lakh, and thereafter it is 2.5 per cent. The fund management charge is 1 per cent, which is capped at 1.25 per cent by the regulator.

LIC staff seek hike in tune with profit growth
Functioning of LIC offices across the State was affected on Thursday due to the strike by employees demanding improved offer in the wage revision due from August 1, 2007.
Employees of the LIC in the twin cities gathered in front of the Divisional Office near the Secretariat. Speaking at the protest meet, general secretary of All India Insurance Employees’ Association alleged apathy on part of the management in implementation of wage revision. The wage revision should be in proportion to the growth of the institution. They threatened to intensify stir if the management failed to offer improved wage revision soon.
Strike hits work at LIC offices, claims AIIEA
LIC employees today went on a day-long strike in the country demanding an early and fair wage revision.The strike was called by All India Insurance Employees' Association (AIIEA) and other unions.AIIEA President Amanulla Khan claimed in a release the strike evoked good response and the work in LIC was paralysed with staff members in over 2,500 branch offices keepig off work.''The strike was total in all major cities. Mumbai, Delhi, Hyderabad, Bangalore, Chennai, Kolkata, Kanpur and Patna observed complete strike, he claimed.''The employees held rallies in front of all offices of LIC across the country,'' Mr Khan claimed.The AIIEA had demanded 40 per cent wage increase. Even after two years, no serious efforts had been made by the government in this direction.Since the last wage revision, LIC had improved its performance with three-fold jump in premium collection. But the government was not heeding to the just demands of the employees, he claimed.

One-day strike by LIC employees
Employees of JAC of Life Insurance Corporation of India Karimnagar division participated in a one-day strike demanding wage revision at the division office here on Thursday. The Insurance Corporation Employees union general secretary K. Venugopal and BMS general secretary Madishetty Gopal and others participated in the meeting and demanded that the government take up wage revision immediately in view of profits being earned by the LIC.