A. P. HIGH COURT JUDGEMENT ON 2011 PROMOTIONAL EXCERCISE OF SCALE I to V

DEAR MEMBERS,

we are pleased to inform you that Judgement on Scale 2 to 5 case  in favor of employee officers for adding marks for wrong quenstion/answers in 2011 promotional exercise.  Our GICEU-AP class I Secretary as well as NFGIE Jt.Secretary Mr.K S N Murthy individually  filed case in AP High Court against Management towards the same, AP High Court directed management to add 1 mark and promote him as Scale 2 officer, since he secured marks 49.33 in the examination.  In addition,  the court said that all officer scale 2 to 5 should be given marks for wrong question those who were attempt::

Scale I toII              : 4marks  (3 in HRM- 1 in Fire)
Scale II to III & IV : 3 marks in HRM
Scale IV to V          : 4 marks in HRM

Fresh list to be prepared for officers who have passed and exercise should be completed within 2 months. Judgement copy will be received in next week.
Kudos Mr.KSN Murthy case filed and succeeded.  we request all the officers who were benefited by this judgement, please share the expenses incurred by the Mr. K S N Murthy, Scale I, Srikakulam DO(Vizag RO)
M. HANUMANTHA RAO   T. GOPALA KRISHNA
         PRESIDENT               GENERAL SECRETARY

Judgement copy contained 42 pages-hence, we are attaching only final conclusion of judgement.

""It is however to be noticed that the second committee constituted by the Insurance Institute of India, Mumbai, demonstrated the illegality and injustice that would result in the event only candidates who answered the incorrect/ambiguous questions were awarded marks. That being so, it would mean that those officers who were ignorant of the right answers to these incorrect questions and answered them wrongly would be rewarded, while those who realized that the answers were incorrect and moved on to other questions but answered them wrongly, would be punished. This cannot be the purport of a fair process of selection. The remedial measure adopted by the National Insurance Academy, Pune, therefore fell short of addressing this aspect of the matter and caused injustice to such officers. The decision cited is therefore of no avail to the learned counsel.

          It is stated that the Insurance Companies have already effected promotions pursuant to the written tests held on 18.12.2011. However, the promotions so effected were subject to further orders in these writ petitions. Therefore, the exercise as indicated supra would have to be undertaken to identify the deserving officers who were left out owing to award of marks only to such officers who answered the incorrect/ambiguous questions.

          In so far as Writ Petition No.4623 of 2012 is concerned, the counter of the New India Assurance Company Limited reflects that the petitioner fell short as he secured 49.33% in the written examination as opposed to the requisite 50%. However, the petitioner admittedly attempted Section-7, i.e., HR including Legal, in the question paper set for Scale-I Officers, which had three incorrect questions, but he attempted only two out of the three wrong questions - Questions 187 and 200. However, as per the statement of incorrect/ambiguous questions furnished to this Court, there was one other incorrect question in Sectin-7 of the question paper set for Scale-I Officers i.e. Question No.190. As this Court holds that officers who attempted the tainted sections should be awarded marks for all the wrong questions therein, irrespective of whether or not they attempted all the wrong questions, the petitioner would be entitled to one more mark for Question No.190 in Section-7. With this additional mark, he would cross the 50% cut-off mark and would be entitled to be considered in the further process for promotion to the next higher scale. This writ petition is therefore allowed directing the New India Assurance Company Limited to consider the case of the petitioner in the further promotional process and decide whether he is eligible for promotion to the next higher scale. This exercise shall be completed expeditiously and in any event, not later than two (2) months from the date of receipt of a copy of this order.

          W.P.Nos.3340 and 4575 of 2012 are disposed of with a direction to the respondents to award marks for the incorrect/ ambiguous questions to all the officers of Scales I, II, III and IV who attempted the tainted sections, namely, Sections-1 and 7. After awarding such marks in the manner indicated above, the respondents shall verify whether such officers surpassed the 50% cut-off mark and include those who were successful for further consideration in the promotional process. This exercise shall be completed expeditiously and in any event, not later than two (2) months from the date of receipt of a copy of this order. WPMP Nos.4177, 4178 and 13337 of 2012, WVMP Nos.676 and 710 of 2012 in W.P.No.3340 of 2012; WPMP Nos.5844, 5845, 13338 and 25860 of 2012, WVMP Nos.795 and 796 of 2012 in W.P.No.4575 of 2012; and WPMP No.5907 of 2012 in W.P.No.4623 of 2012, shall stand disposed of in the light of this final order. No order as to costs.""

         

--------------------------

SANJAY KUMAR,J

28^TH AUGUST, 2012

AP High Court Judgement on 2011 Promotional exercise of Scale I to V

we are pleased to inform you that Judgement on Scale 2 to 5 case  in favor of employee officers for adding marks for wrong quenstion/answers in 2011 promotional exercise.  Our GICEU-AP class I Secretary as well as NFGIE Jt.Secretary Mr.K S N Murthy individually  filed case in AP High Court against Management towards the same, AP High Court directed management to add 1 mark and promote him as Scale 2 officer, since he secured marks 49.33 in the examination.  In addition,  the court said that all officer scale 2 to 5 should be given marks for wrong question those who were attempt::
Scale I toII              : 4marks  (3 in HRM- 1 in Fire)
Scale II to III & IV : 3 marks in HRM
Scale IV to V          : 4 marks in HRM

Fresh list to be prepared for officers who have passed and exercise should be completed within 2 months. Judgement copy will be received in next week.
Kudos Mr.KSN Murthy case filed and succeeded.  we request all the officers who were benefited by this judgement, please share the expenses incurred by the Mr. K S N Murthy, Scale I, Srikakulam DO(Vizag RO)

General Secretary

Judgement copy contained 24 pages-hence, we are attaching only final conclusion of judgement.

It is however to be noticed that the second committee constituted by the Insurance Institute of India, Mumbai, demonstrated the illegality and injustice that would result in the event only candidates who answered the incorrect/ambiguous questions were awarded marks. That being so, it would mean that those officers who were ignorant of the right answers to these incorrect questions and answered them wrongly would be rewarded, while those who realized that the answers were incorrect and moved on to other questions but answered them wrongly, would be punished. This cannot be the purport of a fair process of selection. The remedial measure adopted by the National Insurance Academy, Pune, therefore fell short of addressing this aspect of the matter and caused injustice to such officers. The decision cited is therefore of no avail to the learned counsel.

          It is stated that the Insurance Companies have already effected promotions pursuant to the written tests held on 18.12.2011. However, the promotions so effected were subject to further orders in these writ petitions. Therefore, the exercise as indicated supra would have to be undertaken to identify the deserving officers who were left out owing to award of marks only to such officers who answered the incorrect/ambiguous questions.

          In so far as Writ Petition No.4623 of 2012 is concerned, the counter of the New India Assurance Company Limited reflects that the petitioner fell short as he secured 49.33% in the written examination as opposed to the requisite 50%. However, the petitioner admittedly attempted Section-7, i.e., HR including Legal, in the question paper set for Scale-I Officers, which had three incorrect questions, but he attempted only two out of the three wrong questions - Questions 187 and 200. However, as per the statement of incorrect/ambiguous questions furnished to this Court, there was one other incorrect question in Sectin-7 of the question paper set for Scale-I Officers i.e. Question No.190. As this Court holds that officers who attempted the tainted sections should be awarded marks for all the wrong questions therein, irrespective of whether or not they attempted all the wrong questions, the petitioner would be entitled to one more mark for Question No.190 in Section-7. With this additional mark, he would cross the 50% cut-off mark and would be entitled to be considered in the further process for promotion to the next higher scale. This writ petition is therefore allowed directing the New India Assurance Company Limited to consider the case of the petitioner in the further promotional process and decide whether he is eligible for promotion to the next higher scale. This exercise shall be completed expeditiously and in any event, not later than two (2) months from the date of receipt of a copy of this order.

          W.P.Nos.3340 and 4575 of 2012 are disposed of with a direction to the respondents to award marks for the incorrect/ ambiguous questions to all the officers of Scales I, II, III and IV who attempted the tainted sections, namely, Sections-1 and 7. After awarding such marks in the manner indicated above, the respondents shall verify whether such officers surpassed the 50% cut-off mark and include those who were successful for further consideration in the promotional process. This exercise shall be completed expeditiously and in any event, not later than two (2) months from the date of receipt of a copy of this order. WPMP Nos.4177, 4178 and 13337 of 2012, WVMP Nos.676 and 710 of 2012 in W.P.No.3340 of 2012; WPMP Nos.5844, 5845, 13338 and 25860 of 2012, WVMP Nos.795 and 796 of 2012 in W.P.No.4575 of 2012; and WPMP No.5907 of 2012 in W.P.No.4623 of 2012, shall stand disposed of in the light of this final order. No order as to costs.

         

--------------------------

SANJAY KUMAR,J

28^TH AUGUST, 2012

PGS

Note:

Issue C.C. by 31-8-2012.

// BO //

BSB

Ensure that claims are settled in the shortest possible time frame

Dear All,

Following is an excerpt from the speech delivered by the Union Finance Minister Shri Pranab Mukherjee delivered during his meeting with the Chairmen of Public Sector Insurance Companies, recently held.

"" We have travelled a long distance since the time Insurance was nationalized in 1956.  The growth in premium underwriting has witnessed strong CAGR of 18.85% since 2001. Insurance penetration and density has improved since then. The public confidence in the industry is more positive today then it was earlier.  Asia, excluding Japan, will contribute nearly a quarter of global growth in next 5 years and within Asia, India will be the fastest growing general insurance market during this period with an average expected growth of 15%. 

I have few concerns in the General Insurance non-life sector where the insurance market is structurally challenged in terms of profitability. India is the only country in Asia with a combined ratio of 105 and above consistently during the last 5 years and all the four PSU General Insurance Companies have been largely responsible for such a trend. The combined ratio for four non-life PSU insurers, which was in the range of 136% to 140% during 2010-11, has come down and now is in the range of 120% to 129% for non-life general insurance companies.  There is a desire in general insurance PSUs to grow at a faster rate and be the market leader.  The growth rate in GDPI for all four companies, during last year was 21.39% with a market share of 55.76%.  While the emphasis on growth in premium is understandable, what is however concerning is the underwriting losses which stood at a whopping 6,134 crore during 2011-12. The overall profitability clearly is driven by the investment income, with continued deterioration in the core business of premium underwriting.  It is well understood that growth in top line cannot be at the cost of bottom line.  The Ministry has suggested certain welcome steps to curb the unhealthy competition in underwriting premiums and it will help restore the sustained business growth.

I complement the PSU insurance companies in reaching out to the people in far-flung areas. However, I have pointed out earlier in my Zonal Meetings the need to cover all the remaining un-served areas especially district headquarters.  You will agree that the per capita income has grown over the years and a large number of people in smaller towns are saving and are looking for insurance products.   It is in this regard that we have decided that LIC as well as PSU general insurance companies shall necessarily have a presence in all the towns up to Tier IV classification as per census.  Such an early foothold will be advantageous in business sense also to the PSU Insurance Companies and it should be done without any further delay. A reorganization of the existing loss making Branches, especially those of non-life general insurance companies and also de-congestion of branches which are concentrated in metros can help this expansion in un-served areas.
I would also like to highlight the need to ensure that claims are settled in the shortest possible time frame. I notice that large numbers of claims, especially in the General Insurance companies, are pending for final settlement. You may like to take up a drive to ensure that this pendency is minimized.
We have a long way to go if we have to grow on a sound footing. Policyholders trust is of utmost importance and all our functioning should be geared up with this philosophy. There is also a need to have a balance between growth and profitability and our strategy in coming years should be guided accordingly. I have full confidence in all of you and your team and hope that PSU companies will continue to be the leaders in their respective segments and in a financially sound and healthy manner. ""

======================================================

...... EDITOR

NEW INDIA COIMBATORE RO MANAGEMENT ATTITUDE TOWARDS RETIRING EMPLOYEES

DEAR MEMBERS,

A letter addressed to Mr. V. Devanathan, CRM of Coimbatore RO by our Madurai Unit Secretary, Mr. A.B.Venkata Subramanian, under GIC Emp.Union-Coimbatore Region is appended below about the attitude of the Coimbattore Regional Management. For further details if any, you may please contact Mr. Uma chandran at Coimbatore RO or Mr. AB Subrahmanian at our Madurai DO.

On behalf of GICEU-AP, we strongly condemn the un-ethical attitude of Coimbatore RO management towards fellow colleagues, who retire from services of the Company after playing their respective roles for a long long innings. It is very much shameful on the part of Management for such a mindset they have.

==============================================================
 

GIC EMPLOYEES UNION (COIMBATORE REGION)

MADURAI DO UNIT

2^nd July, 2012

SRI V. DEVANATHAN

CHIEF REGIONAL MANAGER

THE NEW INDIA ASSU. CO. LTD

REGIONAL OFFICE

COIMBATORE

Sir,

You have conducted MBS memento award presentation function today at Rathna Residency Hall, Coimbatore, for all eligible members of all Dos under Coimbatore RO.

At this juncture, we wish to remind you that you have objected for conducting the Retirement cum farewell function  outside   the office premises for three of our employees retired at Madurai DO.  You have also strictly advised to conduct the functions within the office premises so as to curtail the management expenses.  Furthermore, you had also informed us during our discussion that if we conduct such functions outside  the office premises, it would set a wrong precedence.

So, we were constrained to conduct the functions   outside the office premises with  the contributions  made by  all the  employees  only and without causing a single pie expense to the Management.  The local management has also not taken any initiative to conduct such functions involving high HR values.

It is very much strange  that you have violated your own words and set a  precedence by your own deeds, by conducting MBS memento function outside the office premises, that too in a three star hotel.  

Though we are not unhappy over felicitating our employees in such a grand manner we expect the same honour for our retiring employees also.  This, we say, in no ill feelings but with a strong desire that no retiring employee feel the disparity in felicitations. But, by your gesture, we presume that you have given a message that any decision can be taken and sanctified at your office level.

Now, we take it rightly that henceforth such retirement functions can also be conducted in the above lines.

M GANESAN IYER                  A B VENKATASUBRAMANIAN

(PRESIDENT)                                   (UNIT SECRETARY)

  ============================================================

----EDITOR

NASSCOM Created Health Insurance Plan for IT Sector

Dear Viewers,

In an initiative first of its kind by an industry body NASSCOM in association with ORIENTAL INSURANCE has created a Health Insurance planfor 2 - 5 million people in I.T.Industry.

 Over 200 companies have already committed to join the plan, and NASSCOM is expecting to bring 1000 SMBs under the scheme within 15 months from right now. When more people are part of any planthen insurance premium comes down. Given the scale of the IT Sector, NASSCOM's " TECHIE HEALTH PLAN" will bringdown the cost of providing insurance, especially for Small and Medium Businesses (SMBs). 

The scheme offers 30-50% cost saving for companies with up to 100 employees. Under the scheme employee along with his spouse and children will get cover of up to Rs.3 Lakh.  The scheme has different kinds of plans and the cost of the plan for a 100 - employee Company will vary from Rs.1.5 Lakh to 9.5 Lakh depending upon the plan.

Employees will not have to pay minimum premium unless they want to top the plan for more benefits.  Depending on the plan, 3-7 members of the family will be covered.  Plan is fairly comprehensive, covering even pre-existing ailments, maternity and new borns.

Insurance broking company Medimanage and Third Party Administrator 'MEDIASSIST' will also be involved in implementing the scheme.  NASSCOM will also organise road shows across the country to popularise this health insurance plan.

.... EDITOR

"New India Assurance" ordered to pay Rs 60000 by Consumer Court

DEAR VIEWERS,

Central District Consumer Disputes Redressal Forum has ordered The New India Assuance Co.Ltd., one of the biggest public sector general insurance companies, to pay around Rs.60,000/- as compensation to its policy holder SHIV KUMAR GUPTA.

Delhi-based Shiv Kumar Gupta holds a mediclaim policy from New India and he filed a claim for Rs.45,252/- towards medical expenses incurredfor his son. Mr. Gupta informed the Third Party Administrator (TPA) of New India Assurance and submitted the requisite documents to the TPA for claim processing.  But the New India Assurance has closed the claim processing on the grounds that in spite of several reminders, the policy holder did not provide the doctor's  prescription slip and IPD paper.   However, neither the insurers nor the TPA could prove that they had sent out reminders to the policyholder. Therefore, the consumer court ruled the decision infavour of the claimant Shiv Kumar Gupta and asked New India to pay for the expenses incurred plus Rs.10,000/- as compensation against harassment and mental agony and Rs.5,000/- as litigation cost.

The authorised person of the forum, Mr. B.B. Chaudary said that the New India Assurance company closed the claim without any valid reason and caused harassment and mental agony to the complainant.

.... EDITOR

Ministry of Finance asks Insurance regulator to relax branch opening norms

DEAR READERS,

On 30th April,2012, The Ministry of Finance has requested the Insurance Regulatory and Development Authority (IRDA) to relax the branch opening norms in smaller cities thereby increasing the penetration of insurance in smaller towns and rural areas.

The current penetration of insurance in rural areas is very dismal in both life as well as non-life insurance sector. The Ministry of Finance is of the opinion that the one of the ways to boost the penetration of the insurance in these areas is by relaxing the norms for opening branches. Taking the case of the Banking industry, the ministry believes that IRDA should also follow the footsteps of Reserve Bank of India (RBI) who relaxed the norms of opening bank branches in the Tier II cities.

Life as well as non-life insurance companies are confined to the limited urban population of India and therefore engaging in highly competitive tactics such as low pricing. If the insurance companies are allowed to expand geographically then they may hold on to their profitability grounds and come up with innovative products especially for such markets.

IRDA is a little apprehensive on currently allowing insurance companies to open branches in rural areas due to the fear that this step may affect the profitability and ratios of the insurance companies. According to the IRDA regulations, every insurance company should generate at least 7% of their total gross written premium from rural business.

.....editor

FINANCE MINISTER Urges IRDA to incentivize insurance e-policies

DEAR READERS,

On Wednesday, 4th April, 2012, the Finance Minister Mr. Pranab Mukherjee had a discussion with the board of Insurance and Regulatory Development Authority (IRDA) on various issues like cutthroat competition among the insurers, mis-selling of policies and promotion of online policies. 

In the private sector, life insurance companies have started selling policies through the internet. A customer can purchase a pure online term insurance policy by visiting the respective insurer’s website and pay the premium through debit/credit card or net banking. This online distribution space which had only two players till 2010, now has close to ten private life insurers promoting their online insurance policies. 

The Finance minister urged the insurance regulator to identify ways to expand the reach of online policies with a special emphasis on targeting the youth of our country. He reiterated the concern of poor insurance penetration in our country and the challenge in replicating the massive agent network of LIC across all the other companies in the life insurance sector. Mr. Mukherjee said, “Can we think of a system where in the mass market /OTC vanilla products with low-ticket size are incentivised by having a second level of agents with lesser entry restrictions?” He opened up the room for discussing ways to reach semi-urban and rural areas and spreading insurance literacy and awareness. 

The Finance Minister was extremely happy with the efforts of IRDA to dematerialise insurance accounts and set up a grievance redressal body for customer queries and assistance. After tasting success with one or two online policies, many life insurance companies are in the process of developing online policies across other sub-products in life insurance such Term with Return of Premium (TROP), Pension, ULIPs and Child Plans. The premium rates of online term plans are as low as one-third of the term plans which are available through the branch networks and agents. This low pricing has increased the popularity of online term plans and increased the sales numbers in this category for insurers. Lets hope with the request of the Finance Minister and the efforts of life insurance companies, more online policies are available at lower cost to the Indian consumers. 

....EDITOR

REVISION IN NON-CORE BENEFITS TO ALL CLASS OF EMPLOYEES' W.E.F. 01-04-2012

Dear Friends,

We are happy to inform you that 4 PSUs have cleared the non-core benefits for all classes in respect of Housing Loan, Festival Advance and Fast Conveyance to Class-I Officers with Administrative functions (scale 1 to 4), as per the details mentioned in our previous post in this regard.

The revision is effective from 01st April, 2012 and onwards.

With Warm Greetings,

M. Hanumantha Rao      T. Gopala Krishna

                                President           General Secretary

PROPOSED REVISION IN NON-CORE BENEFITS TO ALL CLASS OF EMPLOYEES'

Dear Friends,

The following Non-core benefits have under active consideration by the respective Boards of the 4 PSUs, in General Insurance Sector in India.

1. FESTIVAL ADVANCE:

a) Class-I Officers : Rs.20,000/-

b) Class-2,3 & 4 Employees: Rs.17,000/-

c) F.T.S.: Rs.8,500/-

2. Housing Loan:

a) Scale-1 & 2 Officers : Rs.16 Lakhs

b) Scale-3, 4 & 5 Officers: Rs.18 Lakhs

c) Dev.Officers/Sr.Asst./Asst. : Rs.12 Lakhs

d) Record clerks: Rs.10.5 Lakhs

e) Sub-Staff : Rs.8 Lakhs

3. CAR LOANS:

a) Scale-1 & 2 Officers: Rs.2.5 Lakhs

b) Scale-3 & 4 Officers: Rs.4.5 Lkahs

Friends, awaiting clearance from the Boards of the respective PSUs very shortly.  We shall communicate to you the further developments in this regard from time to time.

With Warm Greetings,

     M. HANUMANTHA RAO               T. GOPALA KRISHNA

          PRESIDENT                         GENERAL SECRETARY

  

UNION BUDGET 2012-13 - HIGHLIGHTS FOR SALARIED CLASS

DEAR ALL,

Senior Citizens not Having Income from Business Exempted from Payment of Advance Tax.

The exemption limit for the general category of individual taxpayers has been enhanced to Rs. 2,00,000 from Rs. 1,80,000 in the General Budget 2012-13, presented by the Union Finance Minister Shri Pranab Mukherjee in the LokSabha here today. This measure will provide tax relief uptoRs. 2,000 to every taxpayer in this category.

The Finance Minister, Shri Mukherjee introduced the DTC (Direct Taxes Code) rates for personal income tax, marking progress in the direction of movement towards DTC and GST (Goods and Services Tax).
            
It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. 8 lakh to Rs. 10 lakh. The proposed personal income tax slabs are:

Income uptoRs. 2 lakh	Nil
Income above Rs. 2 lakh and uptoRs. 5 lakh	10 per cent
Income above Rs. 5 lakh and upto Rs.10 lakh	20 per cent
Income above Rs. 10 lakh	30 per cent

            

In another relief to the individual taxpayers, a deduction of up to Rs. 10,000 has been proposed for interest from savings bank accounts. This would help a large number of small taxpayers with salary incomes up to Rs. 5 lakh and interest from savings bank accounts uptoRs. 10,000 as they would not be required to file income tax returns.

          

It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.

          

 For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax. 

• Individual Tax payers will be allowed a deduction of up to Rs.10,000/- on interest from savings bank accounts/deposits.
• Tax payers with salary income up to Rs.5 Lakh would not be required to file income-tax returns.
• No change in investing in Infra-structure bonds for tax relief. Limit remains Rs.20,000/- only.

MORE INFORMATION FOLLOWS:-

... EDITOR

L.I.C. OF INDIA BREACHES IRDA CEILING LIMITS

Dear Readers,


Life Insurance Corporation (LIC) has received regulatory for bearance from the government allowing it to breach investment limits set by the insurance regulator. 

The relaxation has been allowed largely to enable the corporation to hike stake in public sector banks, sources said. Several bank chairmen said that the corporation was acting as a proxy for the government as the lenders had originally sought funds from the Centre. Norms prescribed by the Insurance Regulatory and Development Authority (IRDA) require that an insurer should not invest more than 10% of a company's networth. 

Last month, Punjab National Bank said that it would issue shares worth Rs 1,574 crore to LIC and these shares would have a one-year lock-in . As of end-December , LIC already held 8.54% stake in the bank and the proposed investment will increase its stake beyond 10%. Similarly,Dena Bank will hold an extraordinary general meeting next month to issue 5% of its equity capital to LIC, which already holds over 6% in the bank. Syndicate Bank also said that LIC would invest Rs 327 crore in a preferential issue of equity shares. Other banks in which LIC has agreed to pick up stake recently include Indian Overseas Bank (Rs 302.6 crore), Central Bank of India (Rs 341crore), Punjab & Sind Bank (Rs 100 crore approx). In the case of Central Bank too, LIC would breach the 10% ceiling. 

On Friday, the market was rife with speculation that LIC had bought most of the ONGC shares being auctioned by the government in an investment of around Rs 12,000 crore. 

The numbers could not be corroborated. However, this would not be the first time that LIC is bailing out the government in a disinvestment sale. In 2010, LIC was a major bidder in the government's sale of PSU shares. 

Most notable was its bailout of the NMDC public issue where LIC alone bid Rs 8,000 crore. 

But there is a flipside to LIC's filling in as a proxy for the government. Typically, in every sharp fall, LIC would accumulate large chunks of blue chip stocks which would provide the corporation with bargain purchases and, at the same time, support the market . Following recent big-ticket investments in public sector banks and more recently ONGC, the corporation has exhausted a lot of its headroom for secondary market purchases . Although IRDA has reiterated its stance that LIC should follow investment regulations for life companies, it has never penalized LIC for breaching investment limits. LIC has sought to explain the breaches stating that the limits were separate for life fund and for various schemes of unit-linked insurance plans.

IRDA never clarified whether LIC was correct in its interpretation . Some LIC officials have sought exemption on grounds that LIC was special as it was governed by its own Act and because of this legislation it could not even meet IRDA's prescription that a company should have a minimum paid-up capital of Rs 100 crore and, therefore, it should have different rules. 

Big bro's buy 

Banks in which LIC will own over 10%: 

Punjab National Bank 

Dena Bank 

Central Bank of India 

Other banks in LIC's sights: 

Syndicate Bank 

Indian Overseas Bank 

Punjab & Sind Bank




.....EDITOR.

CBI raids premises of insurance companys bosses

Dear All,

The Central Bureau of Investigation (CBI) conducted simultaneous raids in Lucknow and Gurgaon at the office premises of some top bosses of United India Insurance in connection with a fraud under the Vyapari Durghatna Beema Yojna ( VDBY) (an insurance cover exclusively for traders) in which the government was deprived of Rs 15 lakh revenue that was siphoned off as agent commission in a policy though there was no agent involved in the particular transaction.

Though no arrest was reported following the raids which concluded on Thursday late night, the sleuths did seize some documents. The case dates back to 2008 when an insurance cover was assured to a client in Lucknow. Though the amount of cover assured was not known, sources said its premium was calculated as Rs 1.93 crore. The entire work for putting the policy in place and the entire documentation was done directly by the insured and the insurance company, some senior bosses routed the transaction through an insurance agent identified by the name of Bhuwan Chand.

A few months later, it came to light that there was no insurance agent by the name of Bhuwan Chand registered or recognised by the particular insurance company in Lucknow ever. Thereafter, a complaint was lodged with the CBI. The CBI inquiry was complete, it was found that the allegations were true and a formal FIR was lodged by the CBI Lucknow division's anti-corruption department a couple of months ago. The raids were conducted in connection with the particular case only.

The three locations raided by the CBI in Lucknow and one in Gurgaon were the residential and office premises of the four accused named in the FIR including the regional office of United India Insurance Company situated at Narahi in Hazratganj area of the state capital. The sleuths searched the records available at the office of the then senior regional manager (SRM), S K Agarwal, and at his residence at La Plas Colony, also in Hazratganj, apart from the residential premises of the then development officer (DO) P K Bose and the fake insurance agent, Bhuwan Chandra Tripathi. Both of them live in Risaldar Park area of the state capital in Hussainganj.

Another team raided the residential premises of UITC's general manager Ashutosh Asthana in Gurgaon simultaneously. The CBI sources said that the government was deprived of Rs 15 lakh that was given away to the fake insurance agent and which otherwise would have added to the revenue generated from the insurance unit. CBI sources have not ruled out the possibilities of some arrests in near future.

.......EDITOR

"" NEW INDIA ASSURANCE - MUTUAL BENEFIT SOCIETY - REVISING THE LIMITS W.E.F. 01-04-2012 TO ITS MEMBERS ""

DEAR MEMBERS, 


We are pleased to inform you that New India MBS has been revising the following with effect from 01st April, 2012:


1. Passing Insurance Examinations : : 


a) Licentiate : from Rs.300/- to Rs.600/- p.m.
b) Associate: from Rs.500/- to Rs.1000/-.p.m.
c) Fellowship     :From:Rs.750/- to Rs.1500/- p.m.


II. Cost of Children Text Books:  Fom Rs.400/- to Rs.600/-.


III. Special Awards for Children securing 90% in 10th & 12th Standard: Rs.1000/-


IV. Rent for Holiday Home: Rs.90/- per day for family.


V. Funeral Expenses: from Rs.1500/- to Rs.3,000/-


......EDITOR