* CHRONICLE - PENSIONERS CONVERGE HERE, DISCUSS ISSUES OF THEIR CHOICE * CHRONICLE - WHERE EVEN THE CHAT COLUMN PRODUCES GREAT DISCUSSIONS * CHRONICLE - WHERE THE MUSIC IS RISING IN CRESCENDO !

               
                                   

Tuesday, April 21, 2015

VS PRAKASA RAO

                        
Dear Mr. Editor 


I have just seen
the amusing anonymous letter of
4th April. Hats off to your
Democratic Values and Journalistic
Standards. Kindly permit me
to interact with the new correspondent
through your columns. I may
bring to your kind notice that this
gentleman is silent on the Board
Resolution and 100% D/R
neutralization to pre Aug.97 retirees.


Dear Anonymous self styled well-wisher of the corporation and its Policy Holders. Congratulations for creating a great flutter in the Chronicle by your seemingly forthright comments against the pensioners’ cause in general and against some persons in particular. I think when you want to remain anonymous it does not behove well of you to talk about the thinking and actions of the persons named by you.

Let us take up the matter of the welfare of the stake holders of  L.I.C our esteemed Policy Holders. The pensioners can take legitimate pride in rendering world class services to our valued customers. You cannot deny the fact that the pensioners are the proud partners in building the great Financial Gaint the L.I.C. Then who is acting against interests of our esteemed customers. Who reduced the Bonus Rates after opening up of the insurance. Why the much needed conventional insurance products which highlighted the Security were neglected and who promoted the Unit Linked policies promising very high returns on the investment. The myth of this investment returns was exposed. Who benefited in the process. The Private Insurers. What is the Role of the Regulator the I.R.D.A. in protecting the policy holders. No doubt the Govt. Of India should be blamed for all this globalization.

Coming  to the welfare of the great financial institution L.I.C. What is L.I.C – THE PEOPLE associated with it the SALES AND THE SERVICING personnel who worked day in and day out for its growth and made it the Goliath in the Life Insurance. Do you know the amounts paid by L.I.C to Govt. every year as Dividend apart from the Income Tax and the Service Tax. What about the Investments made by the L.I.C in the Development of the Nation apart from administering the Social Security Schemes of the Govt.  Ultimately the L.I.C became a stooge of the Finance Ministry.  Do you know how the shares of the O.N.G.C were purchased in the last minute by a phone call from M.O.F.  


As a result of the globalization the market share of the L.I.C came down to 73%. Whom to blame for this? Why the L.I.C can not expand its global operations? Why the L.I.C diversify into Banking when banks are allowed to do life insurance business. The policy holders will be a good customer base and the policy proceeds would be good source for the finance of the Banking Division. L.I.C with its net work in the remote rural areas can easily flourish in Banking. L.I.C need additional staff to take up this task. More recruitment means more amounts added to the pension fund. But L.I.C has no such vision and the G.O.I do not have interest in the growth of L.I.C for it is very much satisfied with present position in L.I.C. So why blame the pensioners as waiting for the dooms day of L.I.C. It is very unwarranted and uncharitable remark against the pensioners which you will regret, I hope. By the by what is your opinion of the recent action of the G.O.I in enhancing the F.D.I in Insurance. What is the impact of this on L.I.C.

Coming to the legal battle, ho is responsible, undoubtedly the L.I.C. The resolution dt. 24-11-2001 was passed by the L.I.C Board to set right the matters on the pension. The then U.P.A-1 Govt. which survived on the crutches of the Left Parties was well aware of this matter. As per Rule 55(A) the G.O.I was duty bound to O.K the resolution. So much so the matter was taken up with judiciary. Your opinion on Rule 56 is not correct. The decision to update the pension was taken by the G.O.I and is being implemented from 1996. The State Govts. also followed to extend the benefit to their pensioners despite huge deficit budget. The Railways and the Ports are also offering the benefit to their pensioners. The Apex Court order on OROP recently clarified the matter.

Rules are created for implementation especially when they relate to the welfare of the recipients lest it amounts to flouting the Rules for which one must reap the consequences. Further your opinion on Case Law is not correct. Judge-made law is also law. Precedent is valid in dispensation of Justice.So the High Courts applied and accepted the points in Nakara Case.Any way the matter is before the Apex Court and will be decided taking in to account the facts and the matters of law, constitutional provisions etc. but not as per the whims and fancies of an anonymous person unless he impleads as party to the case to strengthen the hands of the L.I.C / G.O.I combine to defeat the pensioners cause which is declared justified by three High Courts and which decision is not stayed by the Apex Court.

Coming to your comments on the 9700 crores,  burden is on L.I.C. for your clarification. The burden is not 9700 crores but much less. Further you quoted the Court Ruling that L.I.C can not wish away from its duty in the name of financial burden. But I am sure that your prediction on L.I.C doomsday will not be materialized even when the pensioners win their case hands down very much to your dislike. I wish you all the best as well-wisher of L.I.C.

With regards

V.S.PRAKASARAO 


 VISAKHAPATNAM.