LIC agents to strike work

Insurance agents working for public sector insurance firm Life Insurance Corporation of India (LIC) have launched a nationwide agitation, which may hit the insurance behemoth where it hurts the most.

The agitation, which was launched on September 1, could drastically lessen LIC's business for the period. President of Divisional Council of Agents, PC Agrawal said that the agents had many issues with the corporation.

However, matters came to a head when LIC issued a controversial circular in May this year, which effectively placed the authority of deciding who will represent the agents body in the Insurance Consultative Committee (ICC) with itself.

Till now, the agents used to decide the person who represented them at the ICC and intimate the same to the LIC.

"They wish to select agents on their own. This is the last straw and we have no other option but to launch an agitation," Agrawal said.

Agents observed the first week of September as "black week" and have been holding demonstrations before branches. This week is actually celebrated as Insurance Week by the LIC.

Giving details of the agitation, Agrawal said that agents will demonstrate in front of branch offices across the country on October 17. No new business will be done on the last day of any month and the day will be observed as "Agents Rest Day".

Agents will stop working on the crucial days from March 25-31, the last week of the financial year when about 20 per cent of the year's business comes in as people try and reduce tax liability.

All meetings called by branch managers and divisional managers will be boycotted till the controversial circular is withdrawn.

Agrawal said that agents had many demands but were plodding on till the circular was introduced. "This is dictatorial. We cannot accept it," he said.

In case of policy lapses of 15 per cent or more, LIC used to cancel the membership of the agents from various clubs. The agents have demanded that the practice of be done away with.

"It takes four years and a lot of hard work on the part of an agent to get membership of an achievement club. Once removed, one has to start afresh. Policies lapse because policy holders are unable to pay premiums and not due to any fault of the agents," he argued.

Agrawal said that under the Insurance Agents Act, 1972, it was decided that gratuity of agents should be at par with that of the LIC employees. It was now almost three years that gratuity of the semployees was hiked to Rs 3.5 lakh, while that of agents is only Rs 1 lakh. This should also be hiked, he maintained.

He said, agents were also fighting for pension benefits and welfare funds, a facility presently being offered only to employees. All demands had been forwarded to the LIC management, he claimed.