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
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