ALL
INDIA
INSURANCE EMPLOYEES’ ASSOCIATION
LIC BUILDING SECRETARIAT ROAD HYDERABAD 500063
Cir.
No.11/2011
23rd November 2011
To all the
Zonal/Divisional/State/Regional Units:
Dear Comrades,
AIIEA SECRETARIAT
DECIDES
- Strike actions against Insurance Reforms Bills
- Constitutes Charter Sub-Committee
- Demands immediate solutions to the problems relating to
Housing Loan and the E
Feap
The Secretariat of
AIIEA met on the 19th November 2011 At New Delhi as scheduled. Com. Amanulla Khan, President, AIIEA,
presided over the meeting of the Secretariat.
The Secretariat
reviewed the struggle against privatisation, including the latest campaign by
the units of general sector on the issue of merger of four companies, amidst the
government moves to speed up the process of reforms. The Government has listed
the LIC Act (Amendment) Bill 2009 and PFRDA Bill for discussion and passage in
the winter session of Parliament. This is a serious situation warranting a
matching action from the organisation.
It may be recalled
that the Parliamentary Standing Committee (Finance) in its unanimous report
submitted to the Parliament on 12th March 2010 said that while
increase in the Capital from Rs.5 crores to Rs.100 crores may be allowed, any
further raise in the Capital in excess of Rs.100 crore, if and when required,
may be provided by moving an amendment to this effect in the Principal Act
governing LIC through parliamentary appropriations. As can be seen, the
Standing Committee rejected the proposal for future hike in the Capital through
government notification.
The report also ruled
out any change in the pattern of surplus distribution and recommended the
retention of existing pattern of 95% surplus to policyholders and 5% to the
government. Further, the report also noted that as sovereign guarantee is the key
to LIC’s pre-eminent position in life insurance business, the considered view
of the Committee was that this stature bestowed on LIC by Parliament should not
be diluted in any manner under the pretext of providing a level playing field
in the insurance sector.
AIIEA in its Circular
10/2010 of 14th March 2010 while congratulating the employees on this
development had cautioned that:
“The
Report of the Standing Committee has vindicated the stand of the AIIEA. We expect that the Government would accept
the suggestions and recommendations of the Committee in the best traditions of
democracy. But our experience suggests that the Government may not stick to
democratic norms when it is inconvenient for them. Therefore, we need to keep our vigilance and
continue our campaign against the further liberalization of insurance sector
without any let up”.
It now
appears that our assessment of the character of the government is absolutely
correct. According to the informed sources, the government is unlikely to
accept the recommendations of the standing committee and is determined to push
through the legislation without much change.
This clearly indicates the democratic deficit in the governance and its overriding
commitment to neo-liberalism and privatisation.
This Bill, we hold the opinion is the first step towards privatisation
of LIC and therefore demands a strong response from the organisation. Hence,
the Secretariat reiterated the decision of the Diamond Jubilee Conference of
AIIEA that the LIC employees would observe a flash one day strike in the
event of the passing of the Bill in the Parliament to the detriment of the
policyholders’ interests and public sector LIC.
This
democratic deficit is also seen in the PFRDA Bill as approved by the Cabinet
for passing in the Parliament. While
clearing the bill for passing, the Cabinet set aside all the major
recommendations of the Standing Committee, viz.,
1)
that the return on investment should be
guaranteed
2)
FDI limit should be specified in the Act so
that any proposal for increase should be brought before the Parliament
3)
Multiple withdrawals should be allowed to
suit the needs of the employee/worker
Government
did not want to guarantee any minimum return, FDI limit in the Pension Sector
can be increased through an executive notification and withdrawal can only be
once under very pressing circumstances. The Secretariat decided to support the
planned struggle of the government employees on the PFRDA Bill and decided to
hold protest demonstrations in case the Bill is passed by the Parliament.
Similarly, the
government is also in a hurry to pass the Insurance Laws (Amendment) Bill which
aims at increasing the FDI limit to 49% and to allow disinvestment of the PS
General Insurance Companies. The Standing Committee is being coerced to submit
the Report on this legislation early. In
the meanwhile the multinational corporations have also been impressing the
Prime Minister to speed up the hike in foreign equity in insurance.
In a letter dated 15th
November 2011, Insurers’ Associations from USA, UK, Canada, Europe, Japan and Australia
urged Prime Minister Manmohan Singh “to take into account the relevant short
and long term benefits of raising the FDI limit and permitting the
establishment of branches by foreign reinsures and act accordingly”. A government totally committed to
neo-liberalism is too willing to oblige. In this context, the Insurance employees
should be ready to meet the challenge. The Secretariat decided that in the
event of the Bill being passed the insurance employees, both in life and
general sector, should respond with a powerful strike action and bring it
to the notice of the people of the country the intentions of the government to
privatise the hard earned savings of the people.
The Secretariat
decided that in all offices of LIC and PS general insurance companies there
shall be powerful demonstrations during lunch recess on 22nd
November 2011, the first day of the winter session of the Parliament, opposing
the government’s moves. This programme
was successfully implemented across the country. Press releases issued by
various units were widely covered in the news papers taking this activity to
the people.
PROBLMES RELATING TO HOUSING LOAN AND e-FEAP
The Secretariat
demanded LIC management that the issues relating to Housing Loan particularly
in regard to calculation of EMI and subsidy should be resolved without further
delay so that the benefit of the improvements are passed on to the
employees.
The issues relating
to eFEAP were also discussed. While
AIIEA appreciated the need for modifying the present feap to meet the
organisational needs in tune with the heavy increase in the number of policies,
AIIEA demanded that the problems thrown up in the process of introduction of
eFEAP should be resolved on day to day basis without inconveniencing the
policyholders and the agents. For this, the CO or ZO can take control of the
systems in the divisions during the phase of introduction so that day to day
progress can be directly accessed. Secondly, training for the programmers and
the users in the departments also should be upgraded with the inputs secured from
various branches. The minimum check list
for the programmers and the users in the departments should also be made out.
CHARTER SUB-COMMITTEE
CONSTITUTED
The Secretariat also
noted that the next wage revision falls due on 01-08-2012. The Secretariat decided to submit a Charter
of Demands reflecting the aspirations of the employees at the appropriate time. With this understanding, the Secretariat constituted
a Charter Sub Committee with Com. V. Ramesh, Joint Secretary, AIIEA as the
Convener, and the Secretary, Standing Committee (GI) and the General
Secretaries of Zonal Units in life sector as the members. The President and
General Secretary of AIIEA will be ex-officio members of the sub-committee.
The
Secretariat also reiterated its earlier decision that the issues relating to
pension should be focussed, if necessary, through a direct action of the
employees.
The Secretariat of
AIIEA also noted the possibility of a joint campaign on the common issues with
the unions in insurance and banking sectors.
The
Secretariat was unanimous in its understanding that the present situation is
favourable to the struggles of the working class. The working class is uniting and launching
struggles across the world against neo-liberalism and barbarities of capitalism.
The “Occupy Wall Street” movement in the USA and protests in nearly a 100
countries in all continents is an indicator of the people’s anger against the
neo liberal policies emanating from the very country where capitalism was
regarded as the only alternative. The very same media which initially termed
these demonstrations as anarchic has now to sit up and take notice because of
participation of large number of people in these movements.
The Secretariat noted
that the call for Jail Bharo on 8th November 2011 given by the
Workers’ Convention held at Delhi
was a massive success with several lakhs of workers courting arrest demanding
attention of the government and solution to their demands. The Secretariat
expressed confidence that with a large unity developing in India among all the
Trade Unions, the voice of protest against the policies of privatisation, price
rise, unemployment and others is definitely going to become stronger in the
days to come. The Secretariat called
upon the insurance employees to be rightful and proud partners in the struggles
chalked out jointly by the Trade unions in protecting their industry and in
fighting on the people’s issues. Let us embrace the struggles with confidence
in the fact that the future belongs to the workers.
Comradely yours,
Sd.. K.Venugopal
General Secretary.
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