19TH January INSURANCE BUSINESS NATIONALISATION DAY

19^TH January INSURANCE BUSINESS NATIONALISATION DAY

LIC – INSURING INDIA & ENSURING PROGRESS

STRENGTHEN LIC

19^th January is an important day for LIC in particular and the nation in general.  It was on this day in 1956, the government promulgated an ordinance nationalizing the life insurance business by amalgamating 245 private insurance companies into a single monolithic corporation i.e. Life Insurance Corporation of India. Thus LIC came into existence on 1^st of September 1956.  Since then, the Public Sector LIC has grown from strength to strength and today it has become the “Pride of India”. During the last 56 years LIC has countered many challenging situations. LIC could deftly meet these challenges and could convert them into opportunities for its progress. Thus, LIC’s glorious history has been a saga of success with progress.  LIC has today emerged as the largest and most successful premier public sector financial institution.   LIC today has become the biggest insurer “insuring India & ensuring progress.”

Today, when we observe LIC nationalization day, we as members of AIIEA must feel proud and happy that the relentless and sustained campaign and struggle which was undertaken by AIIEA forced the government to retreat on the issue of privatization of LIC. AIIEA had placed its scientific and logical arguments before the Standing Committee to convince them on the dangers of the LIC Amendment Bill 2009 if passed. The Standing Committee upheld the arguments of AIIEA and gave a unanimous report recommending the parliament to drop most of the proposals of the union cabinet which otherwise would have been detrimental to the interests of LIC. Moreover, our campaign and struggle on the issue of FDI hike had its effect with the Standing Committee on Finance rejecting the government proposal to increase FDI limits in insurance sector. In a situation where the government day-in and day-out is trying to liberalize the insurance sector, our victory and advancement is by no means a meager one. Our movement has scaled greater heights to record significant gains. This has to be consolidated and it is the responsibility of each and every one of us to be vigilant and step up the campaign to mobilize public opinion in favor of our struggle. Strengthening the public sector LIC on all fronts must be our continuous endeavor.

The Public Sector LIC has met the challenges of competition in the industry successfully and retained its supremacy as an undoubted market leader.  As at 30^th November 2011, LIC has a market share of 79.37% in terms of No. of Policies and 73.30% in terms of Premium Income.   As at 31^st December 2011, LIC has sold 21660145 policies and mobilized an amount of Rs.17130.56 Crores as First Premium Income.  As at 31^st March 2011, LIC has a total Life Fund of Rs.1151200.58 Crores and

total assets worth Rs.1317416.10 Crores. LIC has invested more than Rs.7.5 lakh crores in government securities for development of infrastructure in our country.  Apart from this, during the 11^th Five Year Plan, LIC has contributed an amount of Rs.5,28,390 during the first four years and is expected to contribute further more during the last year of the Plan. It is a matter of great pride that 25% of Government’s internal borrowings come from LIC alone. LIC settles 98.53% of the claims reported and during the year ending 31^st March 2011, LIC has settled over 183 lakh claims amounting over Rs.52160 Crores. It is an astonishing fact that LIC settles more than 2 claims per second. It is a matter of great pride and satisfaction to us that IRDA in its recently released annual report for the year 2010-2011 said “LIC IS BETTER THAN PRIVATE FIRMS IN CLAIM SETTLEMENTS”. It also said that the claim settlement ratio of LIC increased to 97.03% when compared to 96.54% during the previous year. It also revealed that the ratio of repudiations to total reported claims declined from 1.21% to 1% in the year 2010-2011. It further said that compared to LIC, the private insurers rejected large number of claims i.e violating the basic concept of insurance. Irony is that in spite of the sterling performance of the LIC, the government is hell bent on weakening public sector LIC. This must be exposed through our campaign.

We are extremely happy that since the time of our Zonal conference held in October 2011, innovative activities have been undertaken at all centers in our Zone to spread the message of AIIEA to garner public support to our cause. More than 111 such activities have been carried out across our zone in a short span of three months. We also appreciate the efforts of Raichur & Hyderabad divisional units for floating new business competitions for agents during this period to help LIC’s business to grow. This gesture, has earned lot of good will for our organization from all quarters. We congratulate all our comrades for organizing various forms of campaign and activities to strengthen LIC.

Comrades, in fine, having contributed for the growth of Public Sector LIC and being successful in thwarting attempts to privatize LIC, it is our collective responsibility to contribute for further strengthening the LIC. 19^th January 2012 should be observed by all our units as “STRENGTHEN PUBLIC SECTOR LIC DAY”.  We suggest all our units to have badge wearing, hold gate meetings/ candle light processions/human chain programmes/press meets/pamphlet distribution and other innovative mass contact programme. On that day, we suggest all our units to devise activities to give wide publicity to the role of LIC in nation-building activities   The occasion should also be used as a tool to prepare the employees for the ensuing one day strike on 28^th February 2012, as per the call of Central Trade Unions against the neo-liberal policies of the ruling classes.

Let us rededicate ourselves to the cause of public sector insurance and pledge to defeat the nefarious designs of the government to weaken public sector insurance.  Let us also join with our units in general insurance in campaigning for the merger of Public Sector General insurance Companies.

LONG LIVE

INSURANCE BUSINESS

 NATIONALISATION DAY