NFIFWI/48/2018-20 Date-16-03-2019

To,

All The Members of NFIFWI

The Scheduled meeting of the Information Sharing Session, including wage revision, with all trade

unions was held with the management on 12th at World Trade Centre, Mumbai.

The LIC was represented by Shri Hemant Bhargava, Chairman-in-Charge, Shri B. Venugopal, M.D, Smt.

Sunita Sharma, M.D, Shri Sharad Srivastava, Executive Director (Personnel) Shri Mukesh Kumar Gupta,

Addl. Executive Director (Personnel), Shri G.S. Chawla, Executive Director (IT/BPR), Shri.Mahendra

Kumar (ED-IT.S.D) Shri G.S. Wanwar, Chief (Personnel) Smt. Aruna Seth, Secretary (Personnel)

Shri.P.Kumaresan (Chief Marketing) and other senior officials of Personnel Department.

NFIFWI was represented in the Joint session by AIP Shri.M.Vinay Babu, S.G Shri.Vivek Singh and

Charter Committee Chairman Shri.Gautam Sengupta.

Management has given data regarding the increase in I.B to the Development Officers and other

business data. We had immediately objected to this with the Chief Marketing for sharing the

information which was not warranted during this Information Sharing Session.

After welcoming the representatives of the unions a power point presentation was made by

Shri.Mukesh Kumar Gupta (Additional E.D Personnel) about the performance of LIC and also the

improvements made in the Employee benefits.

Shri.G.S.Chawla, E.D (IT/BPR) made power point presentation on the I.T initiatives of the Corporation.

He explained that LIC will be moving to “Efeap Next” and the delivery, installation and commissioning of

it will be completed before September 2019. Latest hardware and software will deliver efeap services to

customers at superfast speed. Customer portal will have online service requests like Change of Address,

which is being done as pilot project at Mumbai and Pune Divisions. Service Requests for PAN

Registration, Mode Alteration, Fund Switch, Change of Nomination and NEFT Registration are under

discussion / in progress.

Smt. Sunita Sharma, M.D, Shri B. Venugopal, M.D and Shri Hemant Bhargava, Chairman-in-Charge

addressed the Joint Session. They appreciated the contributions of the employees to the growth of LIC

and gave a detailed account of the benefits given to employees in the last two years. They expressed

serious concern at the downfall in the business and growth of the private insurance companies. They

sought the co-operation of all the unions to meet the challenges faced by the Corporation and solicited

the help and cooperation of the employees for furthering the interests of the organization.

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Shri Hemant Bhargava, Chairman-in-Charge, addressed the joint session and said that LIC business

performance in the current year is not something to cheer about. He expressed his concern over the fact

that LIC’s growth is much less than that of our peers in the private sector. He pointed out that some areas

like persistency ratio and increase in surrenders required our urgent attention. He also emphasized his

concern over the decline in the growth of number of policies and the consequent increase in cost of policy

servicing. He also said that Management Expenses are increasing at 9% P.A. and Total Income growth is

only 1.6%. Salary Expenses as a percentage of total Management expenses is also increasing. He informed

that LIC is developing some new products keeping the flavour of the market in mind and exuded

confidence that this would help the organization in meeting the challenges of the competitive market. He

made an appeal to act as Team and work towards improving business growth, claims settlement standards

and business conservation, while fulfilling customer expectations and reducing customer complaints. An

appeal was made to strive hard in crucial month of March.

Chairman offered 10% increase in the wages as on 1st

August 2017.

Replying to the offer in the Joint Session, S.G Shri.Vivek Singh thanked the management for the initial offer

and appealed for a reasonable pay hike as per the demand given in the charter. The undersigned strongly

objected for the information given in the Information Sharing Session by the marketing department. It was

brought to the notice of the Chairman and M.Ds that it was unwarranted and not in tune with the purpose

of the meeting. The performance of the Development Officers is drastically increasing, after the positive

modifications in the GOIB Scheme. The record number of MDRT agents produced this year inspite of no

closing of plans speaks about the hard work done by the D.O’s. The other points expressed by the

undersigned are,

1.) Impact of the Wage revision and relaxations to be given to the Development Officers for

disincentives, Promotion, Eligibility for Car, Stagnation Increment etc.

2.) 100% cost free arrears, till the date of notification.

3.) 3% transitional concession to be provided in the Gazette for three years.

4.) GST Impact and removal of GST.

5.) Impact of Election Duty for Development Officers.

6.) CLIA – Diversion of business.

7.) Ease of doing business.

The undersigned not accepting the increase of 10% wage offer, requested for sizeable increase in the

wages.

After the Joint Session team NFIFWI went to C.O and pursued our Issues. Before our Individual discussions,

the next day, we had raised the following points,

1) 7 to 10 years cases.

2) Easing of process of recruitment of Agents.

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3) Mandatory Online training at Insurance Institute to be removed and made optional.

4) Training available in only two languages (English & Hindi) at present. More languages to be

included.

5) As D.O’s recruitment with 25% reservations for agents is being proposed, Compensatory allotment,

including all club members, if an agent of D.O is selected.

6) Not to post more than 15 D.O’s in branches and option to D.O’s posted in S.O’s to shift to main

branch.

7) ABM Notification – Only one year condition of prescribed cost ratio and option to apply for D.O’s of

other zones if sufficient D.O’s of the particular zone do not apply. The vacant posts should be filled

up by D.O’s only, from other zones.

8) Recycling and any where submission of business.

9) CLIA - Spouse agency and reinstatement.

10) Meal Coupons for PDO’s and Meals Coupon on touring days.

11) Graduation allowance for terminated D.O’s appointed as Assistants.

12) Election Duty.

13) FCA – Allowance to be tax free and petrol coupons.

14) Review of MTA rates.

15) Leads generated by LIC should be given to D.O’s Transfer of agency from private companies

Meeting of Joint Front of Major Trade Unions: -

The leaders of Federation of LIC - Class I Officers Associations, NFIFWI and AIIEA met in the night and

reviewed the offer on wage revision and also expressed its concern about the decline in the market share

of LIC and the increased level of competition in the market. The Joint front expressed its deep concern in

the increase of Surrender of policies and drastic rise in the complaints. The need for business growth,

claims settlement standards, business conservation and improvements in fulfilling customer satisfaction

and thereby reducing complaints is felt. The meeting decided to give a joint appeal to all the employees

to contribute their best in the remaining period of this financial year to improve on the servicing of

customer needs and also end on a positive note on premium income, policies and Market share.

Individual Discussions on 13th

March 2019: -

The LIC was represented by Ms.S.S.Dikhale, Executive Director (Marketing) Shri Sharad Srivastava,

Executive Director (Personnel) Shri Mukesh Kumar Gupta, Addl. Executive Director (Personnel), Shri G.S.

Wanwar, Chief (Personnel) Smt. Aruna Seth, Secretary (Personnel) and Shri.P.Kumaresan (Chief

Marketing).

NFIFWI was represented by AIP Shri.M.Vinay Babu, S.G Shri.Vivek Singh, Charter Committee Chairman

Shri.Gautam Sengupta, Shri.Ashok Patil, AIVP and Shri.Sumit Baran Ray, Z.S, E.Z.

The following points were discussed,

1-

NFIFWI, Objected for the presentation of the data of D.O’s in the information sharing session. The

increase in I.B should be compared with the 2000 I.B Scheme and not with the GOIB 2015 Scheme.

The overall I.B ratio to TFPI of 2000 should be compared with the ratio of I.B with the TFPI of 2018-

19. Still there is a shortfall of Rs.600 to Rs.800 crores in the I.B, which is loss of the Development

Officers from 2004. More than 50% are still non I.B earners and many are getting disincentives. It

was assured by the management that it will not happen in future.

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2- Impact of the Wage revision and relaxations to be given to the Development Officers for

disincentives, Promotion, Eligibility for Car, Stagnation Increment etc. If a D.O is affected and

attracting penalties, the cost should be calculated on pre-revised wage revision, for three years.

3- 100% cost free arrears, till the date of notification.

4- 3% transitional concession to be provided in the Gazette for three years.

5- 7 to 10 years cases to be settled immediately.

6- Running scale of pay for Development Officers.

7- Recycling of Business and submission of business anywhere in the operational area on top priority

8- Graduation allowance for terminated D.O’s appointed as Assistants.

9- GST Impact and removal of GST. We informed that we approached Government and GST council

but LIC management has never appeared before the council. We requested them to appear before

GST council and request for removal of GST. Management said they approached GST council

through Life Council.

10- Impact of Election Duty for Development Officers. We demanded that cost should be waived.

Management informed that after our representation, they have taken up the matter with the

Government.

11- CLIA – Diversion of business or credit of business done by CLIA

12- ABM Notification – Only one year condition of prescribed cost ratio and option to apply for D.O’s

of other zones if sufficient D.O’s of the particular zone do not apply. The vacant posts should be

filled up by D.O’s only, from other zones.

13- Promotion of Development officers, working below 5%, directly as Branch Manager.

14- Ease of doing business.

15- Satellite branches problems and D.O’s space problems along with servicing difficulties. The D.O’s

posted in S.O should be given option to take transfer to the main branch, when ever recruitment

of D.O’s is done

16- Stagnation increments to be increased to 5 and after every two years.

17- Cash medical benefit as per basic or age

18- Option to include parents and in-laws in Group Mediclaim.

19- Agency period of the agents to be counted for pension.

20- Supply of pension book to all retired employees.

21- The service spent in the Armed forces to be counted for Qualifying Service for eligibility of

Pension. (Rule 25 of LIC of India (Employees) Pension Rules 1995 States that an employee who

has served in military and drawing military pension too will not be eligible for his military

Services to be counted for qualifying service for pension.) There are Development Officers who

have served in the armed forces but are not getting military pension. For those D.O’s/Employees

who are not getting military pension can be given the benefit of adding the service in the Armed

Forces for qualifying service for pension in LIC of India.

22- MTA to be delinked for Meals Coupon, as the DA paid to the D.O for tour is taken to cost. No. of

Lives to be reduced.

23- Car Advance to D.O’s – Perks Tax to be paid by the Corporation, as the vehicle is used wholly,

necessarily and exclusively in the performance of duties or should be modified like Scheme VI.

24- MBA/FII Allowance to be allowed to D.O’s. News paper and Magazine allowance to be given.

25- PDO's to be included for Mediclaim.

26- Increase of Group Insurance from Rs.40 Lakhs to Rs.80 Lakhs.

27- Outstanding vehicle Insurance.

28- One more option to Join Group Insurance Scheme for retired employees.

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29- Special Leave for death of Family Members, including for PDO's

30- Service of twenty years should qualify for the Full Pension. Pension should be payable on

proportionate basis for less than twenty years of service.

31- The rate of basic pension should be fifty per cent of the average emoluments for the last 10

months or the last pay drawn whichever is more beneficial to the employee, as the D.O’s attract

decrements and also can be restored.

32- Family pension should be 50 % of the last drawn pension on the death of the Employee.

33- Pension updation with every wage revision.

34- Cost relaxation for D.O’s working in Disturbed areas, red corridor areas, J &K, Sikkim,

North Eastern States, Himachal Pradesh, Andaman & Nicobar Islands, Lakshadweep and other

similar centers.

35- Woman Development Officers to be given exemption for maternity leave. Child Care leave as

applicable to the Central Government employees must be made available to lady officers i.e. two

years CCL with salary. It should be also extended to male officers if they are single parents.

36- Medical benefit for Spouse also. GIS – Family members also should be included.

37- A special relaxation and absorption into suitable post for D.O’s who have become differently

abled in terms of the Govt of India guidelines, and care and allowance should be paid to them.

38- The Gratuity should be paid at the rate of one month salary and allowances without any ceiling.

The gratuity should be completely exempt from payment of income tax. The calculation of

gratuity should be changed as we move over to 5 day week.

39- 50% of balance of Sick leave not availed may be converted to PL at the time of superannuation or

VRS.

40- Housing Loan: The housing loan at the rate of 5% was around 8% less than the rate of interest

charged to public housing term loans, which was prevailing at 13%. Hence, the spread of 8

percent should continue. Change in Calculation of interest.

41- Outstanding housing loan Insurance.

42- As cost of Education has increased, the Education loan has to be increased.

43- Repayment of all the loans should be extended upto 75 years of age, as group insurance has been

increased upto age 75.

Management during the discussions gave the data of the performance of the D.O’s which is as follows

and requested the co-operation of all the D.O’s in increasing the Market share of LIC and strengthen the

organization.

Total No. of D.O’s as on 28.2.2019 is 21647.

No. of D.O’s showing positive growth on ONE pillar – 3486 (16.10%)

No. of D.O’s showing positive growth on TWO pillars – 4848 (22.40%)

No. of D.O’s showing positive growth on THREE pillars – 3528 (16.30%)

No. of D.O’s showing positive growth on FOUR pillars – 3816 (17.63%)

No. of D.O’s showing Negative growth on All FOUR pillars – 5969 (27.57%)

Comrades, NFIFWI is committed and assures that all the issues placed before the management will be

pursued to a logical conclusion in the days to come. We also share the concerns of the management in

the fall of the market share of the corporation and request all the members to continue their undaunted

dedication towards the corporation for continuing its position of Jewel in the Crown and Pride of India.

Let us all rededicate ourselves and ensure that the market share of LIC in all counts peak to an all time

high in the remaining days of the financial year.

With warm regards, for a wonderful financial year closing.

Comradely Yours,

(Vivek Singh)

Secretary General Page-5

NB performance as on 28.02.2019

NOP SP (Crore)

NSP (Crore)

TFPI(Crore)

As on 28.02.2019 1,70,11,457 20646.62 13171.17 33817.79

As on 28.02.2018 1,67,01,324 23907.62 12574.97 36482.59

% Growth 1.86 -13.64 4.74 -7.30

% A2B 68.05 74.94 66.86 71.57

Market Share: Composite

March2018

June 2018

Sept2018

Dec2018

Jan2019

NOP 75.67 74.05 74.13 73.33 73.54

FYP 69.40 67.32 68.20 66.49 66.26

Market Share upto the month in %3

Market Share: Individual

March2018

June 2018

Sept2018

Dec2018

Jan 2019

NOP 75.67 74.05 74.13 73.32 73.53

FYP 56.18 54.28 52.82 52.84 52.74

Market Share in %4

Market Share - Individual (SP & NSP) FYP March

2018June 2018

Sept2018

Dec2018 Jan 2019

SP 83.60 75.14 76.21 77.87 77.88

NSP 41.70 44.73 42.04 40.60 40.33

NOP March 2018

June 2018

Sept2018

Dec2018 Jan 2019

SP 81.39 83.14 81.94 81.59 82.06

NSP 75.35 73.54 73.71 72.88 73.07

Market Share in % 5

Trend in In force Business (Individual)

F.Y. No. of policies(Crore)

2015-16 29.03

2016-17 29.05

2017-18 29.12

Growth in Business

Premium underwritten growth 2016-17 2017-18LIC 10.37% 7.02%

Private insurers 22.17% 13.71%

New Policies Growth:

LIC -2.02% 5.99%

Private Insurers 2.13% 8.47%

Overall expenses

2016-17 2017-18

Salary Expenses 20,629.37 Crore 21,081.97 Crore

Overall expenses 45,534.72 Crore 48,369.21 Crore

Overall expense ratio to TPI 15.17% 15.21%

Overall expenses ratio: comparison2016-17 2017-18

LIC 15.17% 15.21%

SBI Life 11.56% 11.20%

ICICI Pru 15.10% 13.70%

Persistency Ratios as at 31.03.2018By number of policies(%)

Insurer 13th 25th 37th 49th 61st

Exide Life 64.70 50.40 50.00 54.50 53.60

HDFC Standard 68.64 61.28 60.47 54.96 47.39

ICICI Pru 80.70 73.20 66.30 59.40 49.10

Max Life 77.00 69.00 58.00 52.00 47.00

Reliance 72.20 55.80 45.50 43.30 43.10

SBI 69.86 59.81 53.14 50.39 38.00

Birla Sunlife 62.07 52.32 43.93 34.99 28.46

LIC 66.00 58.00 53.00 53.00 43.00

As at 31.03.2018

66.00

58.00

53.00 53.00

43.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

13th 25th 37th 49th 61st

Pers

ista

ncy

Ratio

Persistancy Ratios by number of policies

Exide Life

HDFC Standard

ICICI Pru

Max Life

Reliance

SBI

Birla Sunlife

LIC

Persistency Ratios as at 31.03.2018

By premium(%)

Insurer 13th 25th 37th 49th 61st

HDFC Standard 87.10 77.44 70.93 62.16 50.98

ICICI Pru 86.80 78.30 68.80 64.20 54.50

Max Life 81.00 72.00 62.00 57.00 53.00

SBI 81.27 70.82 64.46 59.09 45.33

Birla Sunlife 75.25 64.44 55.47 49.46 42.28

Kotak Life 85.51 73.84 69.05 67.11 61.79

LIC 76.00 68.00 63.00 66.00 59.00

As at 31.03.2018

76.00

68.00

63.00

66.00

59.00

40.00

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

13th 25th 37th 49th 61st

Pers

ista

ncy

Ratio

Persistancy Ratios by premium

HDFC Standard

ICICI Pru

Max Life

SBI

Birla Sunlife

Kotak Life

LIC

Total Income of the Corporation(`. In crore)

Particulars Dec. 2018 Dec. 2017 % GrowthDec.2018 Dec. 2017

Premium income 2,26,232 2,23,854 1.06 11.47Income from Investments 1,45,162 1,32,717 9.38 11.49Income from Rent 206 314 -34.29 21.64

Profit on sale of Investments 13,006 20,085 -35.25 41.99

Other Income 554 339 63.40 -8.14Total Income 3,85,160 3,77,309 2.08 12.75

Change in Fair Value of Linked business (Unit Fund) -785 1,290Total Income of the Corporation (including Fair Value Change A/c) 3,84,375 3,78,599 1.53 12.19

Increase in Complaints

2016-17 30,784

2017-18 77,184

Five day week

• Holidays on 2nd and 4th

Saturdays of month w.e.f. 28.04.2018

HCPT Scheme

• Increase in limit from 10 lakh to 50 lakh

• Treatment in foreign countries upto 1 crore

GPA cover

• Minimum cover increased from 10 lakh to 50 lakh

Preventive Health check up

• Quantum increased

• Frequency increased to every year in the age band 50-60 years

GI scheme for retirees

• Extended for retired employees up to age of 75 years

Option for Pension

• Approved in-principle by the Govt.

Group Mediclaim

• Increase in compulsory floater cover from 3,4 &6 lakh to 5,6 & 10 lakh respectively•Option to increase cover up to

40 lakh and 50 lakh with room rent limit of Rs. 8500/- per day in Class A cities

•Extending the cover to independent children of employees

•Coverage to PF opteeemployees who resigned on health ground

•Reduction in Tabular premium for the year 2018-19

Recruitment

• Process for recruitment of 590 AAOs in Generalist, IT, Actuarial, CA and Rajbhasha, has been started

• Process for recruitment of Assistants will be started soon

• Recruitment of HGA in technical cadre is also being considered.

eBusiness Portal Solution – Customer PortalCustomer PortalRegistered Users : 1.08 CroresPremium Transactions per day : > 1 Lakhs

Online Loan Repayment and Loan Interest payment available on Customer Portal.

Alternate Channels of Premium Payment being enhanced continuously – UPI, PayTM, IDBI Bank Cash counters added. InstaPay & PoS implementation in progress. Premium collection through other bank cheques at IDBI Branches also being planned.

Online Service Requests – Online Loan Request implemented; Change of Address is in pilot at Mumbai and Pune Divisions. Service Requests for PAN Registration, Mode Alteration, Fund Switch, Change of Nomination and NEFT Registration are under discussion / in progress.

eBusiness Portal Solution – Agents Portal

New Agents Portal and Agents App launched in May 2018Registered Users : 1.34 lakhs

Sales App launched in July 2018 to assist in sales presentations.

Merchant Portal collections are 4-5 lakhs on an average day. PoS machines have been provided at select merchant outlets.

Following Mobile Apps available for use by our customers and field force on both Android and iOS:LIC Customer App (Android 17.39 lakh downloads; iOS 2.89 lakh downloads)Agent App Sales App

On an average day, more than 15000 premium transactions are completed through Customer Mobile App.

eFeap Next

RFP for efeap next is under process and orders will be placed to the technically qualified bidder.

The delivery, installation and commissioning of efeap next to complete before September 2019.

Latest hardware and software to deliver efeap services to customers at superfast speed.

Improvement in overall IT Systems, in terms of cost, performance, redundancy,and operating efficiency.

Migration from existing system to eFeap Next is planned without any disturbance of services to customers, agents and employees.

Upgraded EDMSUpgraded EDMS implemented to all Divisions giving uninterrupted EDMS service 24 x 7 without any downtime.

DR at Zonal Offices under implementation.

EDMS enables Anywhere Servicing – a number of new services are under implementation in eFeap across branches.

Mobile solution is part of the upgraded EDMS solution to provide instantaneous image transfer to D.O. NB workflow without any time lag.

Mobile services integrated with the application used by Engineering Department.

EDMS is integrated with Portal with the capability to support existing and planned future Online Service Requests.

New servers to ZO / Units (P&GS)

48 small units6 metro+ 1 sat.

21 large units

All units operational with new servers

48 small Units connectedto ZO servers with Oracle11g6 Metro & 1 sat. unitswith independent serversand Oracle 11g21 Large units withindependent servers andOracle 10g

RFP Floated for Centralized IT Application for P&GS (CIAPS)

Once operational, following features will be available

Centralized Database for MIS. Web based front end for anywhere access. Provision for contact details change, data upload and

claim upload and tracking access to customers through internet.

Integration of technology like system driven transactional SMS/ Email, mobile responsive software, alerts to customers.

At present, technical evaluation is in progress. Contract sign-off likely by 31.03.2019.