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History of Agents’ Movement
Before independence Agents were paid @ 40% of first year’s premium. In 1940 the then Actuaries tried to decrease this percentage to 35%. The Agents of undivided Bengal started movement against this under the leadership of S. S. Ali (Agent of Sunlife, Canada). Those Actuaries were bound to bend down with a compromising attitude by adjusting the 5% to second and third renewal commission by increasing @ 2.5% each year, i.e. from 5% to 7.5%.
After independence, when many Insurance Companies were closed and/or declined to pay the claim, the Agents community again started to raise their voice demanding of Central Government for safe-guarding the interest of the policy holders. On the other side, the employees of different Insurance Companies, who had lost their jobs/were not getting their salaries, started agitation for their own interest.
As a result, the government of India thought the necessity of nationalization of Life Insurance Sector to use the deposits from the policy holders for the sake of   nation building.
The staff regulation came into force from 1958, whereas there was no regulation for Agents. The scenario of that time, i.e. the situational fate of the then Agents were like that if any Agents had raised their voice on any matter, they were expelled/terminated from LIC with a small letter depicting, “Your services are no longer required.” Moreover, the first year’s commission was reduced to 25% from 35% and 10% was paid as bonus after completing 10 lives. On the contrary, most of the Agents (about 85% to 90%) were part timer, i.e. they were engaged from other trades, some of them being employees of State and Central government offices.
On the contrary, the reports from Hanumantaiya Committee, Murarka Committee and Joint Parliamentary Committee, where Agents’ interest was given prominence, was not accepted by the Central government. In such situation, few Agents tried to unite themselves against management in the name of LIAFI in 1964. A joint forum of like minded Agents were again reunited in 1967 in the name of LIC Agents’ Association with the Presidentship of Sri Indrajit Gupta (later on Home Minister, Government of India) and Secretaryship of Sri S. L. Nandi. The first achievement of this forum is that they succeeded to convince Sri T. A. Pai, the then Chairman of LIC in 1971 to form a “Regulation for Agents.”
In 1978 this LIC Agents’ Association was compelled to change their name as “LIC Agents’ Organisation” due to some unavoidable circumstances formed by some LIC Agents who acted as underling of the management and got a registration under the Society Registration Act in the name of “Life Insurance Agents’ Association.
In 1987 the “LIC Agents’ Organisation” decided to spread the union throughout India and for that cause the name of that union was changed to “All India LIC Agents’ Organisation.”                                 
The historic achievement of this union under the leadership of Sri Netai Chandra Das was compelling the LIC management to give and enhance the quantum of ‘Festival Advance” as and whenever it would be sanctioned and increased for employees of LIC through the court case by an order of Hon’ble High Court, Calcutta (Vacation Bench), and it is now enjoyed by all Agents of LIC all over India.
From 1995 to 1999 the leaders of this organization met several times Central Ministers to protest against the acceptance of Malhotra Committee Report, IRA Bill and last of all IRDA bill for the sake of LIC and its Agents with the guidance and help of Sri Basudev Acharia, M.P.                                                          
In 2003 some Branch and Divisional leaders of this union, who were C.M.’s Club Member also, shown their eager interest to spread the name of this union all over India on and the then Central Committee allowed them to do so from their own cost and responsibility from C.M.’s Club convention held at Indore. Several forums and unions of different parts of India showed their interest to join “All India LIC Agents’ Organisation” and a convention for this purpose was organized on 23rd November, 2003 Subarna Banik Samaj Hall and as a result of that the qst All India Conference was held on 19th and 20th December, 2003 at Thiruvanantapuram and the “LIC Agents’ Organisation of India” was formed with the motto to keep the interest of LIC Agents through LIC itself under the Presidentship of Sri Basudeb Acharia and Secretary Sri P. G. Dileep. Hence, the slogan of this union resolved as “Save LIC, protect Agents”. 
In February 2004, the Central leaders of this union met Sri S. B. Mathur, the then Chairman of LIC for discussion about the demands of Agents.
In August 2007 the Central Secretariat met Sri P. Chidambaram, the then Finance Minister, Union of India, for Central Government intervention and decision about gratuity, income tax, P.F., welfare fund etc. The achievement was the Finance Minister agreed not to impose service tax on LIC’s conventional plans. The Central leaders also met the Speaker and succeeded to convince him to forward the demand of our Union to the Parliamentary Petition Committee.
In July 2005 the Negotiation Team of the Central Committee met the then Chairman, Sri A. K. Shukla and other M.D., E.D.s and as a result our gratuity, several advances, group insurance etc. increased with a new pattern.   
 Problems to be considered and settled by the LIC Management
1.                  LIC should send a proposal to the Government of India to sanction welfare fund, pension and mediclaim to all Agents and their families with I.D. cards facilities because LIC is governed by the LIC Act of 1956.
2.                  To amend Gratuity rules – LIC should send a proposal to the Government of India to amend Agents Gratuity rule by taking into account the entire service of the Agent and to take the full commission earned during the service of the Agent (first commission, bonus commission and the renewal commission). And not to have any ceiling on it. Also to request the government to give I.T. exemption as it is a retirement benefit.
3.                  To give Golden Jubilee Year gift to all Agents.
4.                  To give equal rate of commission to all types of policies ands increase the commission for single premium policies.
5.                  To introduce G.S.L.I. for Agents, give D.A.B. to group insurance, decrease the group insurance premium periodically and increase the age limit from 65 to 75 years.
6.                  To allow vehicle allowance (conveyance allowance) and to enhance vehicle maintenance allowance periodically.
7.                  H.F.L. and L & HP should entertain purchase of land and house loan to eligible agents at the L & HP interest rate and the interest should be reduced. Action should be taken to deduct E.M.I’s from the commission of the Agents. 
8.                  To grant vehicle advance to all eligible Agents equal to their two years full commission (first year + bonus + renewal commission) at a nominal rate of interest.
9.                  To grant maternity allowance of Rs.5,000/- P.M. to all eligible lady Agents for a period of six months.
10.              To grant interest free computer/laptop advance for all eligible agents.
11.              Appointment of Development Officers must be done from qualified Agents.
12.              To introduce P.F. for all LIC Agents.
13.              To constitute immediately consultative committees at all levels and ensure that LIC A.O.I’s nominees are accommodated in the committees. Circulate the minutes of the meeting.
14.              LICAOI should be recognized as the Agents union and circulars concerning LIC Agents to be sent to Central Committee Office of LICAOI.
15.              LIC must concentrate on conventional business.
16.              LIC should stop supporting of Corporate Agents and Banks.
17.              LIC should not appoint Financial Service Executives.
18.              Discuss club rules with LICAOI before introducing. 
Problems related to the Club Members and Prospective Club Member Agents 
1.                  To withdraw 15% lapse and avoid all types of lapsing criteria for club membership.
2.                  To reintroduce the rule regarding the life membership of any Club of Agents.
3.                  All club member facilities must be given to both husband and wife club member agents.
4.                  To arrange C.M.s club convention for Agents of South India in North India and vice versa.
5.                  Increase club members allowances periodically such as maintenance, out of pocket expenses for attending the club conventions, in lieu of club conventions, daily allowances, telephone and mobile call charge reimbursement for both C.M’.s and Z.M.’s club member Agents and increase number of calls periodically.
6.                  To give IInd house loan to the club member Agents who have done premature closing of 1st loan. 
7.                  To enhance house loan limit to all club member Agents including those who have already availed house loan.                     
To attract the Policy Holders
  1. Policy requirements must be simplified and liberalized. 
  1. Date back interest to be dropped. 
  1. Revival condition for the lapsed policies to be further simplified. 
  1. Bonus should be declared as per the Malhotra committee Report. 
  1. LIC should persuade the Government of India to restore 100% tax exemption for only LIC premium. 
  1. Full special medical report fees to be reimbursed to the policyholder if the proposal is accepted. 
  1. LIC should stop sponsoring cheap and meaningless TV serials. Instead issue attractive brochures for promoting sales of our products. 
  1. Not to concentrate on ULIP policies because it will adversely affect the contribution to infrastructure development.
Problems to be brought before I.R.D.A. 
1.      The retrograde clause of IRDA regulations 2000, which introduced insurance broker systems, bank assurance and corporate agency system, should be withdrawn.
  1. The retrograde clause of K. P. Narasimhan Committee should not be implemented. 
  1. Age limit of the new Agents should not exceed 45 years. 
  1. Strictly follow the IRDA specifications at the time of agency recruitment. 
  1. LIC Agents also be permitted to sell micro insurance products. 
  1. Withdraw the nativity circular and photographs..
  1. The sub regulations 8(d) of Insurance Agents Regulation 2000 should not be misused. 
  1. Agents Regulation Act, 1972 Sections 16 and 17 must be withdrawn. 
  1. Spouses of employees of Central government, State Governments and Public Sector Undertakings should not be allowed to take LIC agency. 
  1. Stop the unethical practice of corporate agents brokers and banks, in insurance sector. 
Problems to be considered and settled by the Hon. Finance Minister 
1.                  Withdraw the proposal for F.D.I. hike in insurance sector.
2.                  Amend Agents gratuity rules so as to take into account entire service of the Agents and the full commission earned during the entire service of the Agent (first commission, bonus commission and renewal commission) and not to have any ceiling on it. To give income tax exemption as it is a retirement benefit. 
3.                  Enhance the limit of commission for income tax purpose from Rs.5,000/- to Rs.1,00,000/-.
4.                  IRDA and LIC should stop over supporting of corporate Agents and banks.
5.                  LIC Agents should be included in the “unorganized sector workers Bill” because they are service sector people.
6.                  Government to instruct LIC to sanction welfare fund, pension and mediclaim for all Agents and their families because LIC is government by the LIC Act, 1956.
7.                  To stop the unethical practice of corporate Agents, brokers and banks in insurance sector.
8.                  No service tax should be levied on commission less than Rs.4 lakhs.
9.                  LIC Agents should also be permitted to sell Micro Insurance Products.
10.              Ensure all private insurance companies to strictly adhere to the IRDA specification.
11.              The retrograde clause in the IRDA Regulation 2000, which introduced insurance broker system, bank assurance and corporate agency system, should be withdrawn.
12.              The retrograde clause of K. P. Narasimhan Committee Report should not be implemented. 
13.              Do not implement the recommendation of G. K. Raman Committee hastily.
14.              Withdraw the introduction of Co-broking and Sub-broking arrangements.
15.              Withdraw the nativity circular and photos.
16.              The age limit of the new Agents should not exceed 45 years.
Sub:     Discussions with the LIC Chairman and Officials
A seven member team led by our Working President Com. S. S. Potti met the LIC Officials and had healthy discussions with them at the Central office, Mumbai, on 17th July, 2007. The following were present:
From LIC                                                         From LICAOI
1. Mr. T.S.Vijayan (Chairman LIC)                   1. Com. S.S.Potti (Working President)
2. Mr. Sahoo A.K. (Exe.Director Mktg)            2. Com. P. G. Dileep (Gen.Secretary)
3. Mr. Shiv Prabhat (Secy. Mktg.)                     3. Com. Bellarmin M.P. (S.Z.President)
4. Ms. Sadhana Deshpande (Asst.Sec.Mktg)     4. Com. C. A. Joseph (Vice President)
5. Mr. Vinaysah (Chief Mktg.)               5. Com. R.P.Dharadwaj (Vice President)
                                                             6. Com. L. Manjunath (Secretary)
                                                             7. Com. Dilio Kumar Sen Gupta (Sec.)          
The discussions which started at 11-30 A.M. lasted for three hours were cordial.
The following points were favourably considered and agreed by the management:                                              
1.                  To raise the gratuity limit from Rs.1 lakh to Rs. 2 lakhs and also examine the revision of gratuity calculation.
2.                  To increase S.A. for Group Insurance as follows:-
Sun assured                              Premium
Below 3 years                                      Rs.50,000/-                              Rs.120/Annum
3 years to 5 years                                 Rs.1 lakh                                  Rs.240/Annum
5 years to 10 years                               Rs.3 lakhs                                Rs.720/Annum
Above 10 years                                    Rs.5 lakhs                                Rs.1200/Annum
3.                  To raise the age limit for Group Insurance from 60 years to 65 years.
4.                  To distribute within three months the LIC software at a nominal cost to all agents.
5.                  To consider to give maximum weightage to the Agents in the appointment of D.O.s.
Regarding medical check-up through TTL, LIC was of the view that they will observe the working of TTK for two months and then decide on the next course of action.
The issue of Wealth Managers was discussed. LIC has not given their clear thinking on this issue. However, we have given our strong opinion against the appointment of Wealth Managers. If the LIC does not listen to our Union’s suggestion, we have to take it up again.                                                               
Increase in Fringe Benefits
1.               Club convention:           We demanded increase in :-
A.              Out of pocket expenses
(a)                CM’s Club from Rs.2,500/- to Rs.5,000/-
(b)               ZM’s Club from Rs.1,100/- to Rs.3,000/-
(c)                DM’s Club from Rs. 400/- to Rs.1,000/-
(d)               BM’s Club from Rs. 100/-
     B.                In lieu of Convention:
(a)      CM’s Club from Rs.7,500/- to Rs.15,000/-
(b)     ZM’s Club from Rs.3,000/- to Rs.7,000/-
      C.              Training at foreign location:   


                       From Rs.36,000/- to Rs.80,000/-