Life Insurance Corpn. of India

Life Insurance Corpn. of India

LIAFI-SG/CO-261/09 16 November 2009

The Chairman,

Life Insurance Corpn. Of India,

Central Office,

MUMBAI

Dear Sir,

Sub: Resolutions on Agents Club Rules-ICC Meetings-Amendments to Agents Regulation-1972

We are pleased to inform you that our 14TH General Council concluded successfully at Agra on 9TH November 2009. Around 6000 agents have participated. Shri. Namo Narain Meena, MoS for Finance, Smt. Seema Upadhyaya, Shri. Pinaki Mishra, Shri. Prakash Javedekar and Shri. Rama Shankar Khadelkar, who are Members of Parliament, attended and addressed the delegates.

The Regional Manager (Marketing) NCZ, Shri. P.K. Karmakar and SDM (Agra) Shri. Raghuveer Lal, were present on the first two days. Hope they might have submitted their reports. The meeting discussed thread bare on issues relating to Revision of Agent Club Rules, Informal Consultative Committee and Amendments to Agents Regulation -1972 and passed unanimous resolutions which are enclosed herewith for necessary action.

Thanking you Sir,

For Life Insurance Agents’ Federation of India,

Secretary General

Enclosures: 3 Sheets.

REVISION OF AGENT CLUB RULES

The Management unilaterally released Circular Mktg./A/ZD/29/ 2009 dated 22-10-09 revising Club Rules w.e.f qualifying Financial Year 2010-2011. Whenever Club Rules are revised on previous occasions the respective team of Marketing Dept., used to discuss with us point by point and a consensus used to be evolved. Then only the Revised Rules Circulars were issued. However the Management on this occasion ignored us and released the circular. The meeting resented the attitude of the Management. The following resolution is passed.

“LIC of India unilaterally changed the Club Rules which are not acceptable to the Agents community. This decision should be recalled immediately and invite LIAFI for taking their suggestions. Any forcible imposition will be dealt-with by the Agents in their own style and consequences there on will solely be the responsibility of the Management. “

INFORMAL CONSULTATIVE COMMITTEE MEETING

The age-old practice of mutual consultation is dispensed with since the year 2005. The ICC Meetings used to be helpful for sharing idea and views between LIAFI and Management from the Divisional level onwards. These meetings were conducive for cordial relationship. We thank the Management for having kept the Circular of 2005 in abeyance till the new structure is decided. A resolution is passed as follows.

“The idea of pick and choose system for formation of ICC is to be discarded. The Management should invite LIAFI leaders for discussions at all levels periodically once in every quarter as was done prior to the year 2005. The minutes of the meeting are to be circulated regularly.”

AMENDMENTS TO AGENTS REGULATION -1972

We asked for amending Agents Regulation 1972 and suggested various amendments for recommendations to the Government of India, for past decade and half. The Management promised us that the final draft would be discussed with us before recommending it to GOI for implementation.

The Management chose to ignore all our suggestions and recommended change in MBGunilaterally. The effect of this change will be felt after two years. Though we desire an Agent to become professional the Management thinks otherwise. We always wanted the number of lives to be increased but the amendment introduced a new concept of premium. It did not touch important Rules like Sec.8, 16, 17 & 19 on which various suggestions were made time and again. Hence it is decided as follows.

“LIAFI should be invited for a comprehensive discussion on amendments to 1972 Agents Regulation and recommend the outcome of the discussions to the GOI.”