HVK Archives: Union views opposing opening insu. sector (Part IV of IV)
Union views opposing opening insu. sector (Part IV of IV) - (no publication)
National Organisation of Insurance workers
()
2 August 1997
Title: Union views opposing opening insurance sector (Part IV of IV)
Author: National Organisation of Insurance workers
Publication:
Date: August 2, 1997
Enclosed pleased find herewith a brief Note prepared by us on our views on
"WHY WE OPPOSE OPENING OF INSURANCE SECTOR TO PRIVATE INDIAN CAPITAL AND
MULTI NATIONAL CORPORATIONS". The notes is prepared for the benefit of
M.Ps. and opinion makers in the field to effectively argue or case.
THE SOLUTION
Thus LIC has played crucial role in India's development thus far and has
continuing role in the future too. If distortions and inefficiencies have
occurred it is because of Government's policy (75% investment in Govt.
Securities etc.) and bureaucratization of the administration and not
because of the inherent weaknesses of their own. If reforms are required,
they should come to remove these distortions it does not mean privatisation
of insurance sector.
The answer lies not in exposing the insurance sector to private sector and
MNCs, but to make efforts to further strengthen the organisation under the
present frame-work. What is necessary is to strike a balance between
meeting ever-increasing expectations of Insuring public and fulfilling the
social obligations of the Insurance industry. LIC has proved beyond an
iota of doubt over the years, that it is capable of responding to the
growing expectations of the insuring public and meeting social obligations
in fairly adequate measure. At no stage LIC were oblivious to its
responsibilities in Insurance field. Over the years, LIC has simplified
procedures, decentralised powers and functions to Branches, opened new
Branches in rural sector, made available new products and streamlined the
entire organisational machinery to conform to the changing situations. We
have the In-built strength to stand the taste of time.
Abandoning the policies followed by us for the last few decades and
returning to the free-market economy in the name of GLOBALISATION or
exposing Indian market to MNCs and foreign insurers in the garb of
competition are not the products of Government's own thinking on economic
policies of the country. They are the results of the pressures from IMF,
WORLD BANK and related agencies enemical to our economic sovereignty and
independence. We must, therefore, defeat the attempts of the privatisation
of Insurance sector in the larger Interests of the Nation.
We must make it clear that as LIC employees, our jobs are not under threat
or the existing employees are not pushed into vulnerable position, because
of entry of MNCs or private Indian capital in insurance sector.
However, as a national organisation, our responsibility does not cease with
taking necessary steps to protect the interests of LIC employees and to get
them more benefits through our struggles, Though LIC employees constitute
our prime matter of concern, we must not remain confined to employees'
Interest alone but go beyond to the policyholders. We have always held
that employer and employees are not the exclusive partners in the industry
and that there is a third and most important player i.e the consumer. We
recognize the fact that consumers' interest is the nearest economic
equivalent of national interest. The changing situation in the industry and
ever-rising expectations of policyholders and our clients, call for further
strengthening the servicing with raising the level of efficiency and
productivity, commensurate to their expectations. Efficient servicing and
satisfied customer are the two important aspects of the role of workers in
the industry.
To achieve this objective, NOIW had held discussions with the LIC
management in December 1996 on customer service and productivity and
submitted to them detailed Note suggesting
i) Introduction of family insurance plan;
ii) Combination of Bima Kiran Policy (Risk cover plan) with Jeevan Akshay
or Jeevan Suraksha Plan to mobilise savings on wider scale; .
iii) Non-monetary recognition system to Agents/ Development Officers and
staff members;
iv) Proper infra-structural facilities to all Branch Offices with adequate
staff;
v) Introduction of new technique for market survey;
vi) Special efforts for conservation of business;
vii) Early-bird incentives to prospective buyers to take insurance etc.
But we view the policy pursued by Government in this regard as an onslaught
on Indian economy and a measure against the interest of workers, poor and
downtrodden, and the people of India.
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