Friday, December 17, 2010


Historic Diamond Jubilee Year Conference of AIIEA

AIIEA is completing diamond jubilee year of its existence in another few months. It is during this period that the 22nd Conference of AIIEA was held at New Delhi.  Hence this was the Diamond Jubilee year Conference and has all the significance attached to it. It was after 36 years that the Conference was being held at New Delhi. Last time when the conference was held at New Delhi in 1974 the Conference was in the background of a historic wage settlement defeating the lock out in LIC and this time too the conference was held at Delhi in the background of a historic wage revision for the public sector insurance employees.

It was a historic conference in more than one sense.  The Conference took place in the background of achieving all the tasks laid down by the 21st
General Conference of AIIEA held at Kanpur.  It had the participation of a record number of delegates and observers.  214 women delegates and observers participated in the conference. This record women presence is a clear indication of the growing participation of women in the decision making of the organization. The level of discussions showed the maturity achieved by the organization and its understanding on events that profoundly impact the entire humanity. The presence and guidance of former office bearers of AIIEA, including the founder leader Com. Chandrasekhar Bose and Com. N.M. Sundaram greatly enthused the delegates and observers.

Impressive Rally precedes the Inaugural Session:
An impressive rally of the insurance employees was taken out on 20th November 2010 preceding the inaugural session.  The rally started from the imposing Jeevan Bharti Building on the Parliament Street to Ramlila Maidan with participation of more than 6000 employees.  The rally gave a glimpse of the unity of the insurance employees across the country as also the commitment of the cadres and members of AIIEA to the issues in the society. Members of various jathas from the Northern Zone which campaigned about the public sector insurance and came from various divisions including the farthest centre of Jammu were felicitated before the start of the rally.

The massive rally reached Ramlila Maidan with clock like precision and exactly at 5.00 pm the AIIEA flag was hoisted by the President of AIIEA. Immediately thereafter the inaugural session began after paying homage to the departed leaders.

Shri M.K. Raina, famous stage and film personality welcomed the gathering on behalf of the Reception Committee.  He said that domestic savings play a very important role in the formation of capital and for investments in the infrastructure.  He appreciated the struggles launched by AIIEA against the FDI gaining control over the savings in the insurance sector.

Shri Manik Sarkar, Hon’ble Chief Minister of Tripura inaugurated the Conference. He detailed the policies of the UPA government which are making the lives of the common people miserable.  He stressed on the need for food security and called upon insurance employees to fight for the demands of the common people while participating in the struggles on their own issues including the protection of the public sector insurance industry.

Com. Tapan Sen, General Secretary, CITU, Com. V.A. N. Namboodiri, President, BSNL Employees’ Union, Com. R. Muthusundaram, General Secretary, All India State Government Employees’ Federation and Com. Pradip Biswas, General Secretary, Bank Employees’ Federation of India greeted the conference and called up on the insurance employees to strengthen the general movement of the working class in fighting the anti-people policies of the government.

Com. K. Venu Gopal, General Secretary, AIIEA said that the Diamond Jubilee Conference of AIIEA was a Conference of Confidence and that the insurance employees would be active partners in the struggle against the neo liberal policies being actively pursued by the Government. 

Delegates Session

Delegates Session commenced in the morning on 21st November 2010. A total 1710 delegates and observers attended this session. On behalf of the Working Committee, General Secretary of AIIEA placed the report of the Working Committee before the Conference for discussion. 

The report dealt with the issues relating to the crisis of the capitalism and resultant impact on the workers.  It has also noted the struggles across the world against the job losses and attacks on pensions.  The report also discussed the UPA government’s love with the neo-liberal policies and the impact on the people of the country in the form of rising prices, job losses and the withdrawal of the government from its responsibility of intervening in favour of the people.  The report also noted the policies of disinvestment being vigorously pursued by the government having the potential to threaten the very economic sovereignty of the nation.  It noted the growing united struggles of the working class including the latest nation wide strike on 7th September 2010 to fight the anti-people and anti-worker policies of the government. In the background of the Government’s continuing faith in the policies of liberalization, the report emphasised the need to strengthen the Left political parties. Report noted with satisfaction the campaign and struggle against further opening up of the insurance sector and the gains made so far in the form of a unanimous report against the provisions of the LIC (Amendment) Bill 2009 and also the fact that the Insurance Laws (Amendment) Bill 2008 could not be taken forward so far. The report also noted the correct political and tactical line of AIIEA in clinching a historic wage revision for the insurance employees.

Fifty one comrades including five women delegates participated in the debate on the report. Com. Chandrasekhar Bose, Com. N.M. Sundaram, Com. R. Govindarajan and other leaders addressed the conference and enthused the delegates and observers.  All the former office-bearers of AIIEA who attended the Diamond Jubilee Conference also addressed the Conference. Com. K.K.N.Kutty, Secretary General of Confederation of Central Government Employees and Workers also addressed the delegates session.

General Secretary of AIIEA while summing up the debate called upon the members and cadres of AIIEA to utilize the victories scored for consolidation of the Organisation.  He called upon the units to oragnise various programmes and observe 1st July 2011 as the culmination of the Diamond Jubilee Year involving the employees and the family members.  He also proposed programmes of action on the various issues of the employees and also on the campaign and struggle to protect the Public Sector Insurance Industry.

The report was unanimously adopted after the clarifications and summing up by the General Secretary. The proposals for various programmes of action were also approved by the Conference.

Team of Office-bearers:
The Conference unanimously elected a working committee with the following office-bearers for the ensuring term.

President:            Com. Amanulla Khan

Vice Presidents: Com. S.R. Urdhwareshe
                              Com. R.N. Patne                        
                         Com. Satanjib Das                                   
                              Com. M. Kunhikrishnan
                              Com. R.C. Sharma
                              Com. B. Rajendra Kumar
                              Com. N.K. Pachauri
                              Com. Shravankumar
                              Com. Priyabrata Bagchee

General Secretary: Com. K. Venu Gopal

Joint Secretaries: Com. B. Sanyal
                              Com. H.I.Bhat
                              Com. Jayanta Mukherjee
                              Com. K. Swaminathan
                              Com. A.K. Bhatnagar
                              Com. V. Ramesh
                              Com. Ashok Tewari
                              Com. Sreekant Mishra
                                Com. J. Gurumurthy

Treasurer:          Com. B.S. Ravi

Asst. Treasurer: Com. K.V.V.S.N. Raju

The names of the members of Working Committee elected at the Conference will be informed separately. The Conference placed on record its appreciation for the services rendered by Com. V.V.R. Shastry and Com. Shyamal Bhattacharjee who stepped down as office-bearers in this Conference

Twenty one resolutions on various issues were discussed and unanimously adopted at the Conference. They include the issues relating to opposing the increase in FDI in insurance sector, demanding merger of four Public Sector General Insurance Companies, recruitment in LIC and GIPSA companies, absorption of temporary employees in LIC, absorption of Part Time employees, improvements in Pension Scheme 1995, demanding recognition of AIIEA in LIC, solution to problems relating to LICHFL loans etc.  List of resolutions will be circulated separately.


The Conference decided on the following programmes of action on the issues of the employees and issues concerning the industry and the people.

1st December 2010                          Anti Disinvestment Day
                                                            (in solidarity with the BSNL employees’ three day                                                                                     strike opposing the disinvestment of BSNL)

21st December 2010                        Demonstrations demanding solution for issues relating to housing loans being sanctioned by HFL. (Lunch hour demonstrations at Divisional Headquarters and submission of memorandum to the officer-in-charge in a committee level deputation)
19th January 2011                             Protect Nationalised Insurance Day (on the day of nationalisation of life insurance)
                                                            Press meet during the day. Candle light procession or any other suitable programme

23rd February 2011                          Workers’ March to Parliament
                                                            Demonstrations during lunch hour at all centres.         
                                                            Conventions at bigger centres in the States as a run up to the March, to campaign on the issues involved in the Workers’ March

15th February 2011 to                      Pamphlet distribution highlighting performance of
28th February 2011                          LIC and four Public Sector General Insurance

13th May 2011                                   General Insurance Nationalisation Day

JANUARY 2011 TO JUNE 2011        Trade Union Classes at all branch centres culminating in a State/Zonal level classes. 

1st July 2011                                       Foundation Day of AIIEA. Flag hoisting and programmes involving the employees and their families. Culmination of Diamond Jubilee year celebrations

January- April 2011                         Campaign on the need to protect the left movement
                                                            (Seminars/conventions at district level and bigger centres)

Around March/April 2011              Programme demanding recruitment and solution to temporary and Part Time employees’ issues (date to be decided by AIIEA)

Trade Union International of Banks, Insurance and Finance Trade Unions (TUI BIFU):
AIIEA is presently affiliated to the TUI (Public and Allied Employees). WFTU decided to organize a separate TUI for the financial sector and held a preparatory meeting in March 2009 at Athens which was attended by the General Secretary of AIIEA.  Now, the first Congress of TUI (BIFU) is being held at New Delhi on 24-25 February 2011.  The 22nd Conference decided that AIIEA will now be affiliated to the TUI (BIFU) and would participate in the first Congress to be held at New Delhi.

AIIPA - partner in struggle with AIIEA:
Com. K. Natarajan, General Secretary, AIIPA attended the Conference and greeted the delegates and observers.  He recalled the achievement of AIIEA in clinching the Pension Scheme and expressed confidence that AIIPA and AIIEA will together work for the desired improvements in the Pension Scheme.  He pledged the support and cooperation of the units of AIIPA in all the struggles of AIIEA in protecting the public sector insurance industry.

Insurance Worker:
The Conference decided to shift publication of Insurance Worker to Bengaluru in a few months time.  Com. Amanulla Khan will be the Editor and Com. N.K. Vedaraj will be the Publisher of Insurance Worker respectively, once the publication is shifted to Bengaluru. The Conference acknowledged the untiring services being rendered by Com. K. David, Com. V.D. Somasundaram and other comrades associated with the publication of the Insurance Worker since the time the publication was shifted to Chennai.

Cultural programmes

Cultural nights were organized by the host units on 22nd and 23rd which gave a glimpse of varied musical and dance formats of the country.

Magnificent work done by the volunteers:
Around three hundred eighty volunteers, majority of them from Delhi and from other divisional units in the zone worked round the clock for the success of the Conference.  Comrades of NZIEA deserve all praise for this success. We convey our congratulations to all these comrades.  A meeting of the volunteers was arranged on 25th November 2010 and the volunteers were felicitated by Com. N.M. Sundaram, Com. Amanulla Khan, Com. K. Venu Gopal, Com. V. Ramesh, Com. R.C. Sharma and Com. Anil Bhatnagar.

Comrades, the 22nd Conference of AIIEA held at Delhi was a Conference of Confidence, a Conference of unity in thought, and a Conference which prepared the organisation to meet the challenges of the future and above all it was a Diamond Jubilee Year Conference of a Diamond in the Indian Trade Union movement.

              Long Live the Diamond Jubilee Year Conference

Designed by : GeeVee, Rajahmundry
Photographs : By Courtesy : Arun Kumar Barua
                        Kharagpur Division Insurance Employees' Association

Monday, December 13, 2010

LIC investments guided by various regulations

High-level committee set up to examine systems, procedures: MD.

LIC has a 73 per cent market share in the life insurance industry. We have nearly 27 crore policy holders. It is not a new company. We are confident that the trust of the public and the nation is with us

Mr Thomas Mathew, Managing Director, LIC of India

Officials of LIC and LIC Housing Finance were among the eight people accused by the CBI in the recent bribe-for loans case. The top management of LIC swung into action immediately, appointing a high-level committee to probe the matter.
The corporation has also launched a major campaign to reassure its employees, agents and policy holders, about the solidity of the corporation. In an interview to Business Line, Mr Thomas Mathew, Managing Director, LIC, said the systems and procedures in both the institutions are foolproof, and that all investments are made according to approved guidelines.
Edited excerpts:
You have set up an internal committee after the CBI arrested your secretary (investments) in the recent alleged bribe-for-loans case. What is the outcome?
We have set up a high-power committee with executive directors, heads of departments. They will look into the systems and procedures. We know it is fool proof, time tested. Still the committee will once again examine whether any tightening here or there is required. That is being studied. The committee will submit the report in a fortnight.
The allegation is that your official had leaked out information on LIC's investments?
That is an allegation. We have nothing to comment on it.
LIC's investments are guided by various regulations and guidelines. We make our investment decisions on the basis on the Insurance Act, IRDA investment regulations, investment policy approved by the board of LIC, investment committee guidelines and our standard operating procedures. All investments to be made or ought to be made are reported every month to the investment committee. Every transaction is reported to them or decided by them. So, in this process, one person alone cannot make any decision in LIC.
Have you stopped investments in companies that were named in the case?
Our investments all along are on the basis of these guidelines I mentioned and also on the basis of the research done by our department. We make investments after looking into the fundamentals of the company and it is on a long term basis. So some happening in the market does not deter our investment philosophy. I am not saying that I am investing or not investing (in these companies).
Our total investments — in equity, Government securities, corporate debt, NCDs, infrastructure — are to the tune of Rs 2 lakh crore. We are continuing with our investments on the basis of our guidelines.
There were news reports that the Finance Ministry has constituted a committee to look into the investments made by LIC from 2007. Any comment?
The Government is our owner. Off and on, they call for a review and inspection.
IRDA conducts inspection. There is a concurrent audit, statutory audit and internal audit. Ministry also calls for the details. We have informed the ministry all the details. The Finance Minister also came out in the open and said that there is no problem in LIC. LIC is a stable and strong organisation. One or two incidents will not affect the working of LIC.
What about reports on losses in the case of some schemes?
It is in three of the very old schemes. LIC's is a pooled account. It has to be seen in totality. It is not at all a cash loss.
Do you think the recent incidents in any way tainted the image of LIC?
LIC has a 73 per cent market share in the life insurance industry. We have nearly 27 crore policy holders. It is not a new company. We are confident that the trust of the public and the nation is with us. Some stray incidents here and there and some media reports will not hamper the confidence and trust of the public in us.

But we are not complacent about it. We have gone very aggressively on a communication campaign. First, internally with our staff. We have 1,15,000 employees and 14 lakh agents. We wanted to tell the truth to them and the public.
What about LIC Housing Finance?
Regarding, HFL, we want to say that there is no systemic failure.
Immediately after hearing from the media (about) this, we have set up an internal committee to look into the processes and procedures over there.
The committee has gone into the details and submitted a report to the board and to the audit committee. We have found that all the loans in the company are performing assets and backed by sufficient security as per our valuation. We have also found that all procedures for sanction of loans, consistent with the board approved guidelines, have been followed. And proper systems are in place for sanction and disbursement. The news that has come about is only about 8 companies initially and the quantum of the outstanding balance in that is only Rs 388 crore. It is a very small amount compared to the total book size and these are also performing assets.
No rules and procedures been violated. After all the news has come, rating agencies have reaffirmed the highest ratings on LIC HF. We also appointed a new CEO immediately.
Any need to change the loan approvals process in LIC HF?
According to our present examination and our committee's investigation, anything drastic is not called for now.
Of course, in the life span of a company, it is an evolutionary process. Depending on the market demand and the market changes and the customer changes, companies keep on changing the procedures and systems to meet the rising expectations.
Any plans for increasing your stake in LIC HF as you can raise it up to 50 per cent and that may help boost investor confidence?
At present, we are at 35 per cent. We would like to take a call on that. We would have to decide on that. That call will have to be taken. We need to go the Government. We will need both Government and IRDA permission to increase our stake.
There were news reports on steep erosion of value in some of the LIC Mutual Fund schemes. Any comment?
Historically, LIC Mutual Fund had a larger portfolio of liquid funds unlike other companies. Therefore, the change in SEBI regulations had a greater impact on our mutual fund company compared to others. Among 40 mutual funds, LIC MF was sixth in the terms of market share. When new regulations came, it affected us. We are taking drastic steps to arrest the erosion. We are going to have a tie up with Nomura Holding. With that, international expertise in fund management and product development and IT capability, will come. I am sure with that getting finalised we will be able to revamp our mutual fund business.
Nomura's investments have come in?
It is almost in the final stage. The MoU has been signed. Other legal formalities like SEBI and RBI permission are over.
Have these developments in any way affected the partnership?
Nothing of this has affected the partnership. It should be finalised soon.
Whatever happened here, we have informed our partner. They are standing by the commitment they made.
We are bringing in Nomura because they have expertise in equity funds. And if you look at LIC MF, we are predominantly in debt funds, that too liquid and liquid plus. So our focus now will be to bring in innovative products under equity. The Chief Investment Officer and head of equity will be from Nomura. Head of debt will be from LIC.
Courtesy: Businessline

Structural Differnece between LIC and Pvt. Cos.

LIC pension funds — IRDA clarification

The recent clarification by Insurance Regulatory and Development Authority Chairman that the Life Insurance Corporation of India did not break any rules and certainly it would not transfer money from one account to another in violation of the existing guidelines had brought cheers to millions, but it left them also wondering. “What is meant by transfer of money from one account to another? Why it is not permitted and does this restriction apply to LIC? To answer these questions, one has to understand the structural difference between LIC and private insurance companies.

In the case of private insurers, the Insurance Act has been amended, giving the shareholders 10 per cent of the profits emerging under participating (with profit) policies and 100 per cent of profits emerging under non-participating (without profit, including unit linked) policies.
This difference in share of surpluses emerging from participating and non-participating policies means that the two surpluses have to be estimated separately. This, in turn, necessitates insulation of funds pertaining to participating policies from funds pertaining to other policies, so that no part of the surplus emerging under participating policies gets transferred to non-participating policies and, from there, to shareholders. So, the new insurance companies have to maintain a minimum of two funds and, naturally, inter-fund transfers are not permitted.
What about LIC? Sec.24 of the LIC Act states “the corporation shall have its own fund and all receipts of the corporation shall be credited thereto and all payments of the corporation shall be made therefrom.'' What this apparently innocuous looking Section implies is important. LIC can have only one fund (known as Life Fund). When there is only one fund, there cannot be any inter-fund transfer. What about intra fund transfers?
The ‘valuation surplus' at the end of each year is to be determined as the difference between the value of assets and the total liability under all policies, as determined by the actuary. The total liability is determined by estimating the liability under each policy and adding up all the liabilities. According to Sec.28, not less than 95 per cent of this surplus shall be allocated to or reserved for participating policyholders.
The surplus will be emerging under some policies (majority of non-linked assurance policies and linked policies) and the deficit under some assurance policies and pension policies. Wherever there is a surplus it increases and, wherever there is a deficit it decreases, the total surplus. It is the final net surplus that matters.
Though LIC has only one fund, this fund is notionally divided into a number of sub-funds corresponding to each class of policies (non-linked, participating, assurance fund and non-linked, non-participating, assurance fund). The assets pertaining to each of these funds are also kept in separate baskets. This is mainly to assess which class of policies is making adequate profits, under which class the profits are inadequate and which class is making loss, study the reasons for the same and take appropriate corrective measures.
At the end of each year, the value of assets in the baskets corresponding to each class of policies is to be made equal to the total liability under that class by appropriate shifting of assets from the surplus baskets to the deficit ones. Since the maintenance of different baskets of assets corresponding to each class of policies and shifting of assets from one basket to another are purely notional, no accounting entries need be passed. So, intra-fund (or inter account) transfers are not necessary.
Why do 95 per cent of all profits go to participating policyholders? The premium paid by a policyholder is made up of many components. In the case of participating policies, there is an additional component known as bonus loading. The premium amount corresponding to this additional component is returned later, with interest, in the form of bonus, final additional bonus and loyalty addition. During the tenure of a policy, it is possible to use a part of this additional amount, temporarily, to create an implicit reserve, which is effectively equivalent to capital. The entire capital of the corporation is thus indirectly and implicitly coming from participating policyholders, who are its real shareholders. So, not less than 95 per cent of the net profits, including those emerging under unit-linked and other non-participating policies, gets allotted to participating policies.
Effectively, the participating policies get a major share of the profits earned and the losses suffered by a life insurance company. Their position is similar to that of equity shareholders of a limited company.
The model adopted by LIC is based on the needs and expectations of policyholders and general public. It looks at the life insurance business in its entirety and keeps clear of the segmented approach. Profits are not its sole driving force. This objective was summarised by Pandit Jawaharlal Nehru on the eve of formation of LIC. “Life insurance becomes one of the major state undertakings of India. Its objectives will be to serve the individual as well as the State. The profit motive goes out of it and the service motive becomes much more dominant.”
Courtesy : The Hindu

LIC's MD writes to LICians...

Managing Director
LIC of India

December 1, 2010
 My Dear LICians,  
The  109th  Division  of  LIC---Thrissur---  was  inaugurated  by  the  Hon’ble  Finance Minister, Govt  of  India, Shri Pranab Mukherjee on 27/11/2010.  In his  address,  the Hon’ble Finance Minister said “LIC is very strong and stable organization……LIC is one of the success stories of the Country’s Public Sector. Encouraging performance of LIC has  proved  that  a  Public  Sector  Institution  can  perform  well  even  under  tight competition  from  national  and  international  firms.”  Referring  to  the  recent  media reports regarding LIC and LIC HFL, Shri Pranab Mukherjee said “There is no cause for any anxiety for the investors as not a single paisa would be lost by them.”

Time and again we have affirmed that trust is the most valuable asset of LIC- Trust of Policy holders’, Trust of employees and agents and Trust of the nation at large. But the recent media  reports  alleging  lapses and  referring  to  investigations by Govt agencies into our investments and into project loans of our housing finance company-LIC HFL-- have created confusion & concern among the public. Friends, the truth is as follows:

LIC HFL is a big sized housing finance company with total loan book size of `44,000/- crore- mainly  in  the  retail  segment.  The Project  loan  is  only  11.87%,  comparatively quite  low.  The  Gross  NPA  in  Project  loan  is  only  0.08%--among  the  best  in  the Industry. All the loans of the company are performing assets and backed by adequate security cover as per valuation. An internal enquiry by a committee has proved that---- all procedures  for  sanction of  loan,  consistent with Board  approved  guidelines, have been  followed  and  that  there  are  proper  systems  in  place  for  sanction  and disbursement.  The  investigation  is  about  8  companies  and  Outstanding  balance  is only `388 crore, a very small amount compared to overall book size and all these are performing assets. There is no systemic failure; nor have any rules or procedures been Media  reported  also  about  investigation  into  LIC’s  investments  in  some  real  estate companies. The  facts…. The  total assets of LIC as on 30/09/2010 are `12  lac crore. LIC’s exposure to real estate is hardly 0.68% of our total assets. LIC’s equity exposure to  realty companies  is  only 0.66% of  our  total equity  and  in  loan only 2.38% of our total corporate  loans. All  these are performing assets  in our books backed by proper security cover.

In  corporate  loan  segment,  Gross  NPA  is  only  0.90%  showing  Standard  Assets  of 99.10% as per regulatory norms. Our Net NPA is only 0.19%-- perhaps the best among financial institutions. LIC has proper systems and procedures for investment of funds.
All  our  investments  are  decided  by/reported  to  the  Investment  Committee  and  no single individual alone can take investment decisions. All  investment decisions are on the  basis  of  Insurance  Act,  IRDA  Investment  Regulations,  Investment  Policy  duly approved  by  the  Board,  Investment  Committee  guidelines  and  Standard  Operating Procedures.  All  investment  proposals  are  backed  by  research  reports  from  Risk Management  &  Research  Dept.  All  these  show  how  foolproof  and  time-tested  our investment practices are. 
The media earlier reported also some valuation deficit of `14,000 crore under three of our  pension  schemes.  But  the  fact  is  that  this  deficit  is  only  notional,  actuarially estimated present value of future liabilities till the last annuitant is paid. It is a deficit which may arise over  future years. This estimated valuation deficit  is provided  for at the  time  of  actuarial  valuation  on  an  year  on  year  basis.  The  notional  deficit  as reported by  the media  is only a small  fraction of  the  total fund size. Chairman, IRDA also has given a ‘clean chit’ to LIC and stated that “there is no violation committed by LIC and  it is  just an actuarial shortage to current estimates, which  is not a real cash shortage.”

Total Assets of LIC are far more than LIC’s Total Liabilities and we have provided for a Solvency  margin  of  154%,  which  is  `46,718  crore  as  at  31/03/2010.  The  total valuation surplus of LIC increased from `10,949 crore in 2002-03 to `23,478 crore in 2009-10  after  providing  for  deficit  in  Pension  business  during  these  years.  Our Balance Sheet  is inherently very strong. With our prudent practices, we have built in mechanisms to manage all kinds of risks on behalf of our Policy Holders’

Shri  R  Ramakrishnan,  eminent  actuary  in  his  article  in  the  “Hindu”  dated 21/11/2010 titled “LIC Pension Fund, The Real Facts” has well clarified the confusion created by some newspapers and stated that “the perceived  loss  into Pension  fund  is only due to lack of understanding of the guiding principle of insurance.”

Friends,  let me assure you  that we are  fundamentally, structurally and  financially a very strong  organization. The nation  trusts LIC. All  attention  and expectation  of  the nation is on us. 
Yes, these are trying times….
but we shall not fall prey to malicious rumours…….
we shall stand united to defend the honour of our dear organization…….
we  shall  reiterate  our  commitment  to  the  nation  with  higher  business
performance and better customer service. 
We shall overcome……. 

Hum honge kamyaab……. 
Best Wishes and regards,
(Thomas Mathew

Sunday, December 12, 2010

The Soldiers of
Can Do Anything
Cadaver Donation --
Felicitation to Com J Gurumurthy heralds yet another initiative & movement

       Senior leader of the Insurance employees’ movement Com J Gurumurthy pledged to donate his body (cadaver donation) for harvesting of organs and for Medical Research.  This was announced by him in the felicitation function got up for him at Chennai on Dec 4 in connection with his retirement from United India Insurance Co after four decades of service.  Com AK Padmanabhan (President, CITU) was the chief guest on the occasion.

Com Gurumurthy was recently re-elected for another term as Joint Secretary of All India Insurance Employees’ Association (AIIEA) & as Secretary of Standing Committee (Gen Ins) in the national conference of the Association held at Delhi during Nov 20-24.

JG is a regular blood donor and he has already pledged for eye donation.
We salute Com.JG for his noble lead.

G Anand,
General Secretary, GIEA,South Zone,


*Comrade Gurumurthy has set an example for others . Convey my congratulation to him and family.
Dusmanta Das, Bhubaneswar

*Wonderful gesture hats off.


*Hats off to Com JG for his noble gesture.
G Jambukeswaran Jt. Secy MRGIPA (Trichy)

*The very thought process has touched my heart.
KC Behra, Cuttack

**Great. Congrats Mr. Gurumurthy. As usual you r an unusual man. Regards and all the best in your retired life.
M. Ramadoss, CMD, New India Assurance Co Ltd

*Kudos to Com GJ and aiiea. Only aiiea can donate such great leaders who can set example for others to follow.
TK Sadasivan, Kochi

**Wish you a very happy and active retired life.  Happy to note u have followed Mr.Jyoti Basu to donate cadaver.
AV Muralidharan, CMD, ECGC

*As a leader of a militant Association u have set an example to be followed by the cadres like us. Thanks.
Goutam Maitra, Kolkata

*Congrats.on your noble initiative.
Dr Rex Sargunam

**Dear Gurumurthy,
Hats off to you. I am simply amazed and speechless. You are a great 'Human Being'. Your decision is unique and unparalleled. May God bless you.
With regards,
K P Brahma & National Parivar (General Manager, National Ins, Kolkata)

*Dear Gurumurthiji, at first, let me wish you a very very happy & peaceful retired life.  Dear Guruji, Mr Arun Goel, who had once been Internal Audit Incharge, RO Delhi had been here at Moradabad on Thursday. He was enquiring about you. Probably, he knows you very well.  Dear Guruji, I honestly believe you have won hearts of so many people. Today, S K Verma rang up to me and he was saying that your image is such that not only AIIEA but whoever knows you personally will feel proud about it.  I personally feel that whenever you came across any genuine request/demand from the employee's side, you joined hands & worked for it from the core of your heart. On hearing of your retirement on 30th Nov morning, for sometime, I had the feeling that I was losing something absolutely very very precious.
Bhola Nath Mishra, Moradabad

*A very noble soul indeed.  Also wishing Mr JG a very active & peaceful retired life.
S.M.Hamesh Kumar, Divl Mgr, DO 12, Chennai

**JG is a true leader who has contributed even his body for the public cause needs salutation.  Pl convey my personal respects. Regards.
G. Anandan, DGM, Oriental, Chennai RO

*My appreciation and compliments. I will insert d news to b followed by others.
Capt Dr MS Singaraja, Chairman, Senior Citizens Bureau

*Commendable decision.  My best wishes.
Murali, AO, Oriental

**You have inspired many into movement. Now inspired for cadaver donation. Red Salute to you beloved comrade.

* It gives me a great pleasure to note that Com. Gurumurthy has escalated to a very great height by his donation announcement. I am recalling my association with Com. Gurumurthy. I had the opportunity of attending the wedding of Com. Gurumurthy, which is still green in my memory. It is still unbelievable for me to reconcile that Com. Gurumurthy, whom I know as an young boy, has retired from the services of United India Insurance Company.

As a close comrade, I wish him a good health and continued activities as Com. Rajappa does now. 
-- D.R. Srinivasan

* When I learnt Shri J.Gurumurthy is demitting office, I became speechless and started wondering whether it is the same Gurumurthy, Southern head of AIIEA or someone in AIIEA. Really we all will be missing his leadership and guidance.  I personally will be missing his valuable advice and guidance as far as TAC is concerned and briefing on other insurance related matters in general.

Bravo.  What a noble gesture on his part to donate his organs for a very good cause.  More than any thing else he has proved that he is a very good human being.

It is heartening to note that Com.J.Gurumurthy has been re-elected as Joint Secretary of AIIEA & Secretary of Standing Committee.
-- K. Rambabu
TAC / IRDA, Hyderabad

** Mr.Gurumurthy has done the greatest sacrifice a human being can think of.
    Best wishes to him in his new innings
--  G SRINIVASAN, CMD, United India Ins Co Ltd

* Congratulations. your life is a message..
-- Prince Gajendrababu, Educationist

* Tussi Great ho  !!!!
You are a real Murthy of GURU !
All the best .......
-- H I Bhatt, Genl Sec.WZIEA & Jt.Sec.AIIEA, Gandhinagar

** Thanks very much for the excellent documents that graphically highlight the purposeful activities of Com Gurumurthy, which I read with deep appreciation of this stalwart soldier and commander of AIIEA. That I am denied the opportunity to be present for the felicitation function is my illuck. A comrade of this calibre deserves not merely recollection of his services to the insurance employees in the Non-Life sector but should enthuse others to emulate his example so that the great fraternity of AIIEA is always never short of brilliant and efficient personalities like Com Gurumurthy.

I know Gurumurthy and he would be the happiest if somebody from amongst the cadres of AIIEA in Non-Life sector excel him through their services to employees and humanity. Such is his selfless nature and concern for others who are associated with TU and people's movement. This man has inexhaustible energy to be always doing some thing good as well as rewarding to society especially the poor and the deprived sections and so I have no doubt that his retirement from employment only makes him freer to pursue the activities of his choice with redoubled vigour.

Your excellent biographical sketch was informative to me. The sum and substance of your write up is to pin point the fact that without being a qualified lawyer he is a legal luminary directly serviceable to employees and others, without being a qualified Management expert he has managed to acquire the acumen and turn it to the advantage of common people especially employees and the public sector industry, without being a professional he has emerged as somebody who a seasoned professional would point to others as one of the best role models for the art or trade, without being a trained media person by his simplicity and ability to marshall the points, he is now somebody the visual media audience in Tamil Nadu look at with admiration, without being some one who passed the tests of literary heights through universities, he has carved for himself a sublime position as a writer as well as speaker both in Tamil and English. The happiest part of all these achievements is that he never wants to be known by these and always thinks of AIIEA as the one and only school or university that taught and moulded him. That he acknowledges willingly and none else.

The man of such potential should play greater roles and our comrades in Tamil Nadu should strive for that. Before closing this letter I must add that Com Gurumurthy has made Com Sathanam the prouder, for he has brought forth to limelight and use the potentialities ever present in Com Gurumurthy.

I convey my great admiration and regards to Com Gurumurthy.

-- Chidambaram S
Actuary, Trivandrum
**  I  recollect  meeting  Com. Gurumurthy at  Kolkatta during the  Silver Jubilee Year Conference of AIIEA in January 1978  for the first time.   We were not knowing each other except exchanging smiles.  Only in 80s, when he started accompanying Coms R.Santhanam and T.Raja Rao to Mumbai, we started talking to each other.  Those days Com.Raja Rao was leading the South team for any talks /  discussions with GIC.  One day, at LIC's Metropolitan Guest House where their stay was arranged, we were having a meeting.   Com.Raja Rao told me  “this boy (pointing to Com Guru) has a lot of potential and would be very useful to the Organisation and would raise to newer heights if he is properly groomed.”   I recall his 'ASARIRI' like words today and looking back,we are convinced that we did utlilise him well and he proved himself to be one among the best leaders AIIEA has produced.  It is not that easy to rise to the level of an all India leader but for his unstinted involvement and untiring trade union  work.  My best wishes.                                                                                                        -- KSC Natarajan, Mumbai
 ** I send him three prayers of mine selected from our old texts::
 That is full, this is full, from the full emanates the full;
If the full is taken out of the full, yet the full abides. (Opening verse of Ishavashopnishad)
Whatever is moving in this changing world is to be regarded as the dwelling place of the lord; whatever the lord gives (you) enjoy. Don't covet, for whose indeed is the wealth? (1st stanza of the Ishavashopnishad)
One ought to (zestfully) desire to live for a hundred years by being solely engaged in discharging one's duties. This is the ordainment for you and there is none other. Nor does action (performed as indicated in this verse) cling to you. (2nd verse of the same).
I do not believe in any lord / god, and lord here means for me "the common".
I will continue to learn from him and receive love and blessings.
-- SC Jain, Jaipur
** Com Gurumurthy still looks young and energetic.  When we were organizing KSGIEU, the support we received from Coms Santhanam and Gurumurthy cannot be explained in words.  Com Gurumurthy was always prompt in attending to the problems of employees and received admiration from all irrespective of union affiliation.  I am glad Com Gurumurthy will continue to function as Joint Secretary of AIIEA and in charge of General Insurance wing.         -- NK Kannan Menon, USA