February 2011VOL XXVIII Issue No.2 Annual subscription Rs. 90/-
EDITORIAL
We once had a Prime minister who paid from his pocket, when his son used the official car for
a personal travel. Another gentle man Prime minister, while leaving the office, all that he had was a
few personal belongings packed into an old iron suitcase and walked out with dignity. Agreed, we
don't have leaders of that stature now. But what's horrifying is the levels to which they can stoop is
lowered every day. The respect accorded to the positions they occupy are scant now.
The CAG – the highest auditing authority in the country states in his report, the enormous loss
the country's exchequer has incurred due to the actions of a minister. The minister tried to cling to
power desperately, but finally had to quit. His replacement minister, also a legal eagle, states in an
open press conference that the CAG was wrong. Remember, the CAG is a constitutional post and
normally his stand will not be disputed. Dragged into the controversy, the CAG insisted that his
charges were correct and was convinced of the great loss of revenue to the country.
Where do we stand now? It was firmly entrenched in our minds that certain officials and
offices cannot be corrupt. Not even a shadow of that ever crossed our minds. Sadly, now we are
proved wrong, repeatedly.
The Judiciary is really rotten with allegations of corruption and bribing. Even the office of the
Chief Justice was under a cloud recently. If anyone looks at the judgements with suspicion, they
cannot be faulted. Organisations like ISRO and LIC were always thought to be beyond the reach of
corruption. These institutions are held in very high esteem by the public.
It was with disbelief that we read the news about the irregularities in the leasing of S-band
spectrum by ISRO. This again was pointed out by the CAG himself. It not for a national daily
splashing it on their headlines, the S-band spectrum deal would have gone unnoticed. This forced the
ISRO top brass to convene a hurried press conference to answer many uncomfortable questions and
leave much more unanswered.
The Chief Vigilance Commissioner's appointment itself is now grilled by the Supreme Court
of India. The bottom line is that – the highest anti-corruption official of the country himself is
convicted in a major corruption case. How can he then sit on judgment on other corruption cases? The
Govt. is tying itself in knots over his appointment.Alot remains to be answered.
The money looted from the country is safely stacked in foreign banks accounts. The Govt.,
though has access to information regarding the account holders, remains silent and treats it only as an
issue of tax evasion. The Govt. is reluctant to reveal the names of the defaulters and citing
compulsions of international treaties. Is the Govt. fearing something or shielding someone?
Now, think of the other extreme. When a policy holder wants to deposit his hard earned money
in some Govt. savings like LIC, he is harassed through all the norms of KYC and AMLA. He has to
submit proof of his income like Bank Account Statement showing regular flow or IT returns
statement. There is strict scrutiny. Yes, laws are there to be implemented. But the real spirit behind
these rules was to nab the real money launderers. The result is that the Govt. protects the real culprits
and penalizes the common man.
This has to change, if it does not, the distant trumpets of a people's revolution may not be far
off even in our country.
OF INSURANCE FIELD WORKERS
Vol XXVIII Book No 2 February, 2011
NEWS BULLETIN
Chief EditorR. Jayprakash
Associate EditorsK. VenkateshS. Sreekumar
EditorsJ. BaburajanM. B. Vinod
Editorial BoardV. ShibuB. ShibuHari T. Pillai
Please send yoursuggestions, articlesand contribution to
The EditorNews BulletinKalvit BhavanCapital HeightsPlamoodu, PattomTrivandrum - 4ormail [email protected]
The views &
opinion expressed
in the articles need
not necessarily be
that of NFIFWI
CONTENTS Page No
1. EDITORIAL
2. PERSPECTIVE 2From the Secretary General’s Desk
3. HIGHLIGHTS OF DISCUSSION WITH MARKETING DEPARTMENT 3
4. NEC NOTICE AND AGENDA 4
5. COVER STORY 5Outsourcing and persistency guidelines
6. MEDIA WATCH 13
7. ORGANISATIONAL EVENTS 17
8. ORGANISATIONAL COMMUNICATIONS 19
CORRECTION
News Bulletin January 2011 issue - in the captions of photos in the
back inner page, it was wrongly mentioned :
Com. Vivek Singh, Zonal Secretary, ECZ.
It should be corrected and read as
Com. Vivek Singh, Zonal Secretary, North Central Zone.
The error is regretted - Editor
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News Bulletin February 2011
PERSPECTIVE
From the Secretary General’s DeskNFIFWI/31/2010-12 2nd February 2011
The ChairmanLife Insurance Corporation of IndiaCentral Office, ‘Yogakshema’, Mumbai
Ref: Marketing circular Ref: Mktg/ZD/3/2011 dtd 28/01/2011 on conducting of unit meetingsfor February 2011
Dear Sir
We appreciate the initiative by the Marketing department for deciding to have unit meetingsconducted in February 2011. We have gone through the Marketing circular Ref: Mktg/ ZD/3/2011 dtd 28/01/2011 on conducting of unit meetings for February 2011. Our members across the country are hurt anddejected over the tone, conditions and thoughts of the circular.
We place our strong resentment over the statement in bold under condition 1 “At no cost itshould be left to the Development Officers to decide the dates”. Development Officers work oncosts and the marketing activities are planned depending on suitability of customers and agents. It wouldhave been appreciable if it was stated that the convenience of the Development Officer should be taken intoaccount. The supervision by ADM (Admn), AO, AAO etc is only demeaning the Development Officer andprojecting a suspicious management. We could have appreciated, if it was stated that the SBM/BM orABM (who have been kept out in the circular) should attend the meeting. The purpose of marketing focusin the unit meeting is lost with these conditions.
The cost reimbursed is Rs.300/225/150 per agent as per the attendance register. First of all thecost reimbursed is too low for arranging a good meeting. Secondly, our issue of who pays for the DevelopmentOfficer, BM and unattended agents is not addressed. It was shocking that auditors had recovered the costof food from Development Officer and BM also during the earlier unit meetings. Thirdly, many a times theagent and spouse and prospective agents are invited to the meeting for better motivation. This concept isalso taken away in this circular. Fourthly, with all the above condition there is the condition of ensuring 75%attendance. Development Officers do not have any enforcing powers. We have been successfully conductingthe marketing activities with real relationship of love, care and support to agents. These conditions arecreating rift and divide rather than relationship building and co-ordination. Kindly trust and entrust theactivity of conducting unit meetings to Development Officer who is accountable with cost norm.
Requesting the management to treat the Development Officers in a more dignified manner whohave been the marketing leaders bringing in more than 90% of Individual business without even beingsupplied the basic tools of Agents manual, Ready reckoner of Premiums, Software presentation of productsetc and also successfully challenging the competitors in the market. Requesting you to kindly consider theabove grievances and do the needful to give us a solution at the earliest.
With best wishes and regards
Yours sincerely
R.Jayprakash
Secretary General
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News Bulletin February 2011
Highlights of the presentation by ED ( Marketing ) to the leadership of NFIFWI on 18th
January 2011 during the Marketing Department Discussions.
Some Important Mktg Initiatives
• Rules on allotment of agents to DO modified.
• Growth parameters in GOIBS 2007 modified for the 3rd year of the scheme
• PLLI was excluded from the AR for the calculation of IB in Oct.09 but now it has been excluded from
cost ratio also.
• 50% of equitable relief provided in the latest wage revision whereas it was not allowed in previous wage
revision.
• Credit on renewal of lapsed policies allowed in the 3rd year of the scheme without considering agency status
• Mail order business allowed to Dev.Officers w.e.f. 1st April 10
• Mentorship of newly recruited PDOs by SBA/ASBAs and other performing Development Officers.
• Reappointment of terminated Development Officers (condition reduced to 7 yrs from 10 yrs)
• Revision in fixed conveyance allowance done w.e.f.1st Nov.10
• 5246 ADOs appointed 3865 reported for training.
• Training period of ADOs revised from 3 to 6 months.
• Introduction of city career agent scheme.
• Attachment of supervised agent of CLIA allowed with Development Officers.
• Opening of area : Divisional area is open to all to Dev.Officers. All India is open to all SBAs.
• Promotion rule from Dev.Officer to ABM(S) modified as to encourage young people to go for promotion
• Revision of financial limits of advances to Development Officers under Scheme – II is in process
Some more Marketing Initiatives
• Re-introduction of RCA Scheme
• Revision in MBG limit for agents (12 lives & 1 lakh premium)
• Revision in reinstatement & attachment rule
• Reinstatement in 5th agency year allowed
• Reinstatement within 12-24 months of termination can be done by SDM.
• Revision in criteria for club membership for agents
• Scheme of advances to agents revised
Some terms of reference & areas of concern for new IB formula
• Impact of gradation on length of service
• Impact of gradation on different cost ratio
• Modification in no man’s land in EP,NOL and productive agent
• Recruitment of agents
• Retention of agents
• More opportunity to earn additional IB
• 80% of premium comes from Dev.Officers at cost ratio up to 8%
• Incentive for premium income from rural area
• Inculcating professionalism in agents
NFIFWI shared our concerns with the management and expressed our protest over some points in
the presentation and extending the GOIB scheme for another year. Our demand for retrospective
effect of the new IB formula was also placed.
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News Bulletin February 2011
NEC Notice and Agenda
Sec.Gen/08/2010-12 25th January 2011
To all the members of the National Executive Committee of NFIFWI
This is further to the earlier Notice of the NEC meeting. The agenda for the National Executive
Committee meeting scheduled to be held on Thursday the 24th of February 2011 and Friday the 25th of
February 2011 at Chennai, South Zone is given below. The meeting will start at 10am on 24th Feb 2011
and continue on 25th Feb 2011 and till the end of the meeting. Kindly plan for your return journey on 26th
of February ’2011.
The venue of the meeting is at the Hotel “The Checkers”,No 30, Mount Road, Little Mount,
Saidapet, (Near Chellammal Women’s Arts College),Chennai: 600 015. Tel:044-43994399,Chennai. Hope
you have already received the letter from the host divisions, Chennai I and II.
Agenda for the meeting is as follows
1. Garlanding the photo of late S.W. Kalvit & lighting of lamp and Inauguration.
2. Minutes of the previous meeting.
3. Presidential Address
4. Reporting by Secretary General on the activities after the Indore NEC meeting. Discussions with
specific focus on
a) Analysis of the Wage Revision and pursuing the unfinished agenda of our Charter of Demands,
Review of Work Norms, Meal coupon issues.
b) Review of Incentive scheme, FCA - discussions and our focus.
c) Analysis of IRDA guidelines on Outsourcing and future strategies to fight the Issues of CLIA
Scheme, Direct Marketing, agents recruitment, MBG.
d) Insurance Laws Ammendment Bills and its impact on LIC and Marketing force.
e) ULIP’s-Impact after the new guidelines on ULIPs.
5. Organisational Matters
a) Ratification of the decision of Levy of 3% on Gross Arrears
b) Management stand on SBA and Implementation of our Ooty NEC decisions with regards to SBA
c) Finalisation of our stand on CCA scheme
d) Unauthorised communications and anti Federation propaganda
e) Outstanding Dues
6. Any other matter with the permission of the chair.
7. Vote of thanks and national anthem.
Any matter of concern other than what is already represented by NFIFWI may be submitted in
writing for follow up. Let us have a constructive NEC and make our Federation stronger.
Keep Marching ahead strongly and vigorously.
National Federation Zindabad………… Long Live National Federation………….
NFIFWI ZINDABAD……………..Yours Comradely
R. Jayprakash
SecretaryGeneral
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News Bulletin February 2011
COVER STO RY
The IRDA has come out with two circulars
1) Guidelines of Outsourcing activities by Insurance Companies and
2) Guidelines for Persistency of individual policies for Life Insurance Agents.
Both these circulars will have far reaching impact on the insurance sector in future. Many
established practices will have to be stopped and new practices to be introduced. The highlights
of the two circulars are given below for a close study. Please give your valuable suggestions after
going through this. It may be of vital importance to the entire class of Development Officers.
IRDA/Life/CIR/GLD/013/02/2011 01st February, 2011
Guidelines on Outsourcing of Activities by Insurance Companies
Reference: 1. INV/CIR/031/2004-05 dated 27th July, 2004
2. INV/CIR/058/2004-05 dated 28th December, 2004
3. RBI/2006/167 DBOD.NO.BO.40/21.04.158/2006-07
4. Regulation 7(c) of IRDA (Registration of Companies) Regulations, 2000
1. INTRODUCTION
1.1 Insurers in India are increasingly using outsourcing, as a means of both reducing cost and accessing
expertise, not available internally and achieving strategic aims. ‘Outsourcing’ may be defined as
“Insurer’s use of a third party (either an affiliated entity within a corporate group or an
entity that is external to the corporate group) to perform activities on a continuing basis
that would normally be undertaken by the Insurer itself, now or in the future”. These
outsourcing arrangements are becoming increasingly complex.
1.2 Joint Forum set up by Basel Committee on Banking Supervision, International Organization of Securities
Commissions and International Association of Insurance Supervisors has devised high-level principles
on outsourcing in financial firms which gives guidance to firms, and to regulators, in effectively managing
risks involved in outsourcing without hindering the efficiency and effectiveness of firms. Reserve Bank
of India also brought out Guidelines on Managing Risk and Code of Conduct in outsourcing of financial
services vide reference 3 cited above. This circular is issued based on best practices adopted
internationally as outlined in above document. These instructions are intended to provide direction and
guidance to insurers to adopt sound and responsible risk management practices for effective oversight.
1.3 Regulation 7 (c) of IRDA (Registration of Companies) Regulations, 2000, clearly sates “The applicant
will carry on “all functions” in respect of insurance business including “management of Investment”
within its own organization”. It has been observed that certain insurers are outsourcing even core
activities such as Investment, Underwriting and Policy servicing. It is not desirable to outsource the
core and important activities which will affect corporate governance, protection of policy holders,
solvency and revenue flows of insurer.
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News Bulletin February 2011
1.4 In order to ensure proper corporate and regulatory oversight over the outsourcing of activities of
insurers, the Authority has decided to issue following instructions under Section 14(2) of Insurance
Regulatory and Development Authority Act, 1999. These guidelines apply in addition to the instructions
given vide reference 2 cited above.
1.5 However this circular supercedes the provisions of para 3 of reference 2 cited above.
1.6 The insurer shall ensure that outsourcing arrangements neither diminish its ability to fulfill its obligations
to Policyholders nor impede effective supervision by IRDA. Insurers therefore have to take steps to
ensure that the service provider employs the same standards in performing the services as would be
employed by them if the activities were conducted in house. Accordingly, insurers should not engage
in outsourcing that would result in their internal control, business conduct or reputation being
compromised or weakened.
1.7 Activities of insurers are broadly classified into two categories namely ‘Core’ and ‘Non-Core’, in
accordance with Regulation 7(c) of IRDA (Registration of companies) Regulation, 2000.
2. COREACTIVITIES
2.1 All activities relating to:-
1. Underwriting,
2. Product design and all Actuarial functions and Enterprise wide Risk Management
3. Investment and related functions
4. Fund Accounting including NAV calculations
5. Admitting or Repudiation of all Claims
6. Bank Reconciliation
7. Policyholder Grievances Redressal
8. Approving Advertisements
9. Market Conduct issues
10. Appointment of Surveyors and Loss Assessors
11. Compliance with AML, KYC etc.
12. All integral components of the above activities shall be treated as Core Activities
2.2 Policy Servicing and related activities
2.3 Insurers shall not outsource any of the core activities listed in para 2.1.
3. NON CORE ACTIVITIES:
1. Facility management i.e. Housekeeping, Security, Catering, etc.
2. PF Trust
3. Internal audit, Internal / branch /concurrent audit etcWebsite Development and Management / Software
and other IT Support
4. Pay Roll Management
5. HR Services
6. Service Tax Consultancy and Support
7. TDS filing
8. Compliance with labour laws
9. Data entry Including Scanning, Indexing Services
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News Bulletin February 2011
10. Printing and posting of reminders and other documents
11. Pre employment medical checkups
12. Reminders for Premium Payment
13. Call Centre and outbound calling for registering complaints or answering enquiries
14. Claim Processing for Overseas Medical Insurance Contracts
15. Tele-marketing
16. Consultancy Services pertaining to Service Tax, Income Tax and any other taxes payable by insurer
17. Other Employee Benefits
18. Deployment of personnel within the premises / offices of the Insurer on a contract basis
4. ACTIVITIES SUPPORTING CORE ACTIVITIES:
4.1 Certain activities which support the core activities as listed in column 3 of Annexure –I may be
outsourced as per risk management principles outlined in these guidelines subject to reporting
requirements.
4.2 Activities in column 4 of Annexure I, which insurers normally assign to outside professionals, regulated
either under different laws or provide outside expertise and economies, may be outsourced to such
entity as otherwise legally permitted to carry out those activities.
5. PREMIUM COLLECTION & CHEQUE PICK-UPACTIVITIES:
5.1 The insurer shall ensure that the entities, other than those referred at Sl No. 3 Column No. 4 of
Annexure – 1 shall be only a Company registered under Indian Companies Act, 1956. Such entities
engaged for cheque pick-up shall have a net worth of at least Rs.10 Crores. However, these conditions
are not applicable to Scheduled Commercial Banks and Post Office.
5.2 In respect of outsourcing of premium collection, insurers shall strictly ensure that the same is outsourced
only to entities listed at Sl.No.2 of Column 4.
5.3 Notwithstanding what is stated at Sl No. 2 of Column 4 of Annexure – 1 Insurers are also permitted
to outsource cheque pick up and premium collection to their respective Individual Agents and Corporate
Agents in respect of those policies that are not sourced by such intermediaries. Such collection and
pick up by agents who have not procured such business is regarded as outsourcing. However, Insurers
shall carry out the due diligence on individual agents and corporate agents while outsourcing the same.
However, the activity of premium collection / cheque pick up referred in this paragraph shall be
subject to the following conditions.
5.4 The total amount entrusted to be collected and picked up by Agents and Corporate Agents for a
given financial year shall not exceed three times the renewal commission that the said agent earned in
the preceding financial year. Thus it is a prerequisite for carrying out activity that such agents are in
existence at least for a period of 2 years.
5.5 The insurer shall assign this activity to agents and corporate agents by allocating only a specified list of
the policies, where the services of the agents that procured the business are no longer available to the
insurer.
5.6 The above referred conditions are not applicable in respect of Scheduled Commercial Banks, Post
Office when these activities are carried out in their capacity as a collecting bank.
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News Bulletin February 2011
7. Policy Servicing and Related Activities: With regard to the activities referred in para 2.2, the
following components of the activities, referred at point no. 7.1, are allowed to be outsourced to any
service provider at the discretion of the Insurers and as per these guidelines. However, it is reiterated
that execution of these services shall remain to be Core Activity to be carried out by the Insurers:
7.1 Receiving requests in physical/electronic/telephonic forms and transmitting to the insurer without
accessing the original data base of Insurers for the following areas of Policy Servicing;
1. Issuance of Policy Document / Certificates of Insurance
2. Change of Name / Address
3. Fund Switching/ Premium Redirection
4. Surrender, Maturity, Withdrawals Free look Cancellations Payouts
5. Loan Against Policy
6. Change of Policy Terms and Conditions / Details Change
7. Registration of Assignment / Nomination
8. Revival / Cancellation of Policy
9. Transfer of Policy
10. Substitution of Vehicle Communications, Reports, Printouts to Policyholders / Claimants
11. Laid up Vehicles
12. Withdrawal of No Claim Bonus
13. Declarations Update
14. Extension of Cover
15. Duplicate Policy
16. Document Collection and Investigation for complying with AML and KYC norms
8. General Principles: Outsourcing of activities allowed in these guidelines are subject to following
general principles.
8.1 To avoid a potential conflict of interest no insurer shall outsource the internal audit to their respective
statutory auditors.
8.2. The third party service providers engaged by insurers are subject to the various provisions of Insurance
Act, 1938, IRDA Act, 1999, Rules, Regulations or any other orders issued there under. The third
party service provider shall comply with provisions of Regulations, Guidelines and any other law
under force and the insurer shall be responsible for all acts of omission and commission of its third
party service providers in this regard.
8.3. The regulated activities of the Agents, Corporate Agents, Brokers, TPA’s, Surveyors and other regulated
entities, as provided in the Insurance Act,1938, IRDA Act,1999 and Regulations, guidelines made
there under, are not covered by these guidelines.
8.5. Subject to these Guidelines, Agents, Corporate Agents, Brokers, TPA’s and Surveyors and other
regulated entities shall not be contracted to perform any outsourced activity other than those permitted
by the respective regulations/instructions governing their licensing and functioning.
10. Evaluating the Capability of the Service Provider: In considering or renewing an outsourcing
arrangement, appropriate due diligence should be performed to assess the capability of the service
provider to comply with obligations in the outsourcing agreement. Due diligence should take into
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News Bulletin February 2011
consideration qualitative and quantitative, financial, operational and reputational factors. Insurers should
consider whether the service providers’ systems are compatible with their own and also whether their
standards of performance including in the area of policyholder service are acceptable to it. Where
possible, the insurer should obtain independent reviews and market feedback on the service provider
to supplement its own findings.
10.1 Due diligence should involve an evaluation of all available information about the service provider,
including but not limited to:-
i. Past experience and competence to implement and support the proposed activity over the contracted
period;
ii. Financial soundness and ability to service commitments even under adverse conditions;
iii. Business reputation and culture, compliance, complaints and outstanding or potential litigation;
iv. Security and internal control, audit coverage, reporting and monitoring environment, Business continuity
management;
v. External factors like political, economic, social and legal environment of the jurisdiction in which the
service provider operates and other events that may impact service performance.
vi. Ensuring due diligence by service provider of its employees.
11. Reporting Requirements:
11.1 The activities outsourced vide point no.4.1 of these guidelines shall be reported to IRDA within 45
days from the date of entering into outsourcing agreement.
11.2 With respect to each of the other outsourced activities all insurers shall file a report in Form A (attached
as Annexure-II) within 45 days from the end of every half year.
12. Electronic Issuance of Policies and Data Storage: Where insurers issue policies in electronic
form in accordance to the guidelines issued in this regard or where Insurers prefer to outsource the
Data Storage, the outsourcing of data storage in electronic form shall be mandatorily with the repository
service providers authorised by IRDA. The guidelines for issuance of electronic policies and
authorization of repositories will be issued separately.
12.1 In respect of policies issued in electronic form, the terms and conditions of the policies shall be drafted
in simple and plain language. Insurers shall take prior approval of IRDA for the text format of such
policy documents.
12.2 Insurers are also permitted to allow the execution of the activities referred at point no. 7.1 to the
authorised repository service providers at their discretion with respect to all category of policies, both
electronic policies and otherwise.
13. Classification of any of the activities, that are not explicitly referred herein, as core or noncore shall be
done after due diligence. Mere listing of an activity as a non core shall not be taken as freedom to
outsource without proper risk assessment/due diligence. Further, Insurers are advised to refer to
IRDA for further clarification in case of any ambiguity regarding the classification of the activities as
core or noncore which are not specified in these guidelines.
14. Redressal of Grievances related to Outsourced services: Every Insurer shall direct in house
Grievance Redressal Machinery to deal with grievances relating to services provided by the outsourced
agencies. Wide publicity has to be given through print and electronic media about this. The Grievance
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News Bulletin February 2011
Redressal Machinery shall deal with every grievance in a fair, objective and just manner and issue
reasoned speaking reply for every grievance rejected. It shall also analyze grievances received to help
identification of the problem areas in which modifications of policies and procedures could be undertaken
with a view to making the delivery of services easier and more expeditious. The TAT’s for redressal
of grievances shall be as notified by the Authority from time to time
15. Centralized list of OutsourcedAgents: If a service provider services are terminated by an Insurer
on grounds of mischief, fraud and non compliance with terms and conditions of outsourcing agreement,
they shall inform the Authority with reasons for such termination. The Authority would be maintaining
a caution list of such service providers for the entire insurance industry for sharing among insurers.
16. These guidelines shall not be construed to be authorizing, any activity which otherwise is prohibited by
any law under force and/or Regulation and Guidelines of the Authority.
17. These guidelines would be reviewed by IRDA periodically.
18. These guidelines come into force with immediate effect.
19. The insurers shall terminate all existing outsourcing contracts entered into in contravention of these
guidelines before 31st June, 2011. Beyond the time period specified herein, the Authority may relax
time limit by 3 more months, on a case to case basis, in respect of existing contracts that are in
contravention of this circular.
(A.Giridhar)
Executive Director
IRDA releases norms for merger of general insurance companies
NEW DELHI: More than 10 years after opening up of the insurance sector, regulator Irda today
proposed to allow mergers and acquisitions in the general insurance business that requires consolidation
among the 24 industry players, most of which are loss-making.
To protect the interest of policyholders, they must be given right to exit from the insurer, which is on the
block for acquisition, Irda said in its draft guidelines. “The transacting parties shall ensure thatpolicyholders of the transferor entity are migrated in a manner which ensures that their existing policiesare continued to be serviced by the transferee entity on terms and conditions no less favourable than
those existing prior to the merger,” Irda said.
An acquirer will need approvals from Irda, the Reserve Bank and the finance ministry, in case it has
foreign direct investment. Most of the 22 players in the private sector have foreign investment, whichis capped at 26 per cent. Irda has also said that the intent of the acquirer should be clearly spelt out.
The regulator has retained with itself the power to vet the valuations arrived at by the companiesinvolved in M&As. “The Authority reserves the right to appoint an independent actuarial consultant tocarry out actuarial valuation of the insurance business of the proposed transacting parties, the guidelines
said. According to industry players, most of the private sector general insurance companies requirefresh infusion of capital which may come from foreign partners, who have been constrained by the FDIcap. The Bill to raise the FDI ceiling is pending in Parliament.
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News Bulletin February 2011
Ref: IRDA/CAD/GDL/AGN/016/02/2011 Date: 11-02-2011
Guidelines for Individual Agents for Persistency of Life Insurance Policies
To
All the CEOs of Life Insurance Companies
Re: Guidelines for Individual Agents for Persistency of Life Insurance Policies
I. OBJECTIVE:
Low Persistency of life insurance policies is a cause of concern for the Insurance Regulators worldwide , the
Industry, Intermediaries and the Policyholders. Early lapses and surrenders are not desirable for any of the
stakeholders in the sector. The Authority recognizes that agents can play a vital role to ensure high persistency
(i) by avoiding soliciting unsuitable products (ii). by bringing in transparency in providing correct and complete
details of suitable products to the prospective policyholders and (iii) by considering the needs of prospective
policyholders. In its endeavour to increase the persistency of the life insurance business thereby giving a fillip
to protection of policyholders’ interests, the Authority seeks to put in place minimum standards of performance
for agents. The Authority therefore issues these guidelines, under Section 14(2) of the IRDA Act, 1999
requiring agents and insurers to enhance persistency of life insurance policies.
II. DEFINITIONS:
(A). Persistency Rate: Persistency Rate refers to the percentage of policy contracts still inforce at the
specified time interval after they have been issued and shall be calculated on premium basis as well as
policy basis. The procedure for calculation of Persistency Rate shall be in accordance with Annexure
A attached.
(B). PerformanceYear: A “ Performance Year” for an agent for purposes of reckoning persistency as
prescribed herein would be the Financial Year.
(C). NewAgents: New Agents are those who have been issued fresh or renewal licenses on or after 1st
July, 2011.
(D). ExistingAgents: Existing Agents are those who hold valid licenses issued before 1st July, 2011.
(E). Orphan policy: A policy is treated as an orphan policy if the agent who procured that policy, is no
longer working for the insurer who issued it or if his licence is no longer valid.
(F). Deferred Commission: The component of initial commission, in case of regular premium and limited
premium payment policies, paid in subsequent years subject to fulfillment of conditions specified by
the insurer.
III. REQUIREMENTS ON PERSISTENCY
(a). For all renewals prior to the Financial Year 2014-15, the average Persistency Rate for each agent for
the years 2011-12, 2012-13 and 2013-14 shall be at least 50% in terms of both policies and premium
procured by such agent.
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News Bulletin February 2011
(b). From the Financial Year 2014-15, the Persistency Rate for each agent shall be at least 75% in terms
of both policies and premium procured by such agent.
(c). The Persistency Rate shall be on a pro-rata basis and rounded off to the nearest decimal where the
financial year is not covered in full.
(d) Renewal of agent license is subject to meeting the persistency rates as stated in (a) and (b).
(e). All agents shall maintain a correct and complete record of the various policies sold and their persistency
on a year on year basis and get the record endorsed by the insurer at the end of each year.
IV. RELATIVES OF EMPLOYEES OF INSURANCE COMPANIES NOT TO BE ENGAGED
ASAGENTS
Relatives of employees of insurance companies shall not be engaged as agents by the same insurer.
For this purpose, the definition of “relative” shall include spouse, sisters, brothers, parents, sons,
daughters –in-law, daughters and sons-in-law.
V. DEFERMENT OF COMMISSION
Every life insurer shall frame suitable guidelines on deferment of commission payments to agents.
Commission payment on Single Premium policies shall not be deferred. Commission on sale of Regular
Premium and Limited Premium policies may be deferred only after Board approval, which is clearly
spelt out and disclosed to the agents as well as displayed on the website.
VI. SERVICING OF ORPHAN POLICIES
In respect of life insurance, for all orphan policies, insurers are advised to allow transfer of policies to
another agent and pay 50% of the deferred commission the original agent was eligible for. The total
commission paid for each policy shall remain within the statutory limits and as per File & Use approvals.
VII. INSURERS TO LAY DOWN MINIMUM BUSINESS REQUIREMENTS FOR AGENTS
All insurers are required to lay down Minimum Business Requirements for agents and monitor the
performance of agents in this regard as often as it is required.
VIII. INSURERS TO MONITOR:
Insurers are required to incorporate these stipulations in the agency agreements with their agents and
shall monitor the compliance of these guidelines by agents through appropriate software.
These guidelines shall come into effect from 1st July, 2011. Please acknowledge this circular and
confirm action taken.
(A.Giridhar)
Executive Director
13
News Bulletin February 2011
Health insurance policy portability from
July 1
Thursday, Feb 10, 2011, PTI
In a big relief to dissatisfied health insurance policy
holders, sectoral regulator IRDA on Thursday
allowed them portability — shifting policies from
one insurer to another on same terms — from July
1.
“The Authority has examined various issues
involved in the portability of health insurance plan
and has issued necessary orders for effecting
portability which will be implemented from July 01,
2011,” Insurance Regulatory and Development
Authority (IRDA) said in a statement.
The portability facility will allow policy holders to
switch over to another insurance company with the
same conditions.
“The accepting insurer shall provide cover, at least
up to the sum assured in the previous insurance
policy,” the regulator said.
The new facility will also help those policy holders
who stick to one insurer throughout life for fear of
losing the cover for Pre Existing Diseases (PED).
“It is essential to protect the policyholders against
discontinuity and consequential loss of PED cover
by making the health insurance plans portable
across the insurance companies,” IRDA said.
In general, health insurance policies have specific
exclusions for PED for a specified period of cover
during the initial year, and policy holders do not get
this cover in the event of changing insurance firm. It
was considered “detrimental to competition”.
IRDA decision comes after it received several
representations from consumer associations and
policyholders for enabling portability of health
insurance policies.
Currently, IRDA allows portability of motor
insurance polices.
MEDIA W ATCH
Health insurance policy portability will also help
people shifting from one part of the country to
another. In want of such facility they were put to
disadvantage due to lack of their insurers’ offices
at new locations.
Also, in case of change of jobs, policy holders lose
health insurance cover as they could not change
their insurer.
IRDA has directed insurance companies to mention
in the prospectus and sales literature that all health
insurance policies are portable.
The request of porting the policy shall be completed
as per the timelines prescribed in the IRDA
regulations and guidelines, the regulator has told
the insurance companies.
Besides, three standalone health insurers — Star
Health & Allied Insurance, Apollo MUNICH and
Max BUPA — number of other players including
National Insurance Company, United India and
Oriental Insurance and ICICI Lombard are active
in this field.
Irda to bring new pension norms in April
Mumbai February 02, 2011
After unit-linked pension products disappeared
from the market following an imposition of
guaranteed returns of 4.5 per cent, the Insurance
Regulatory and Development Authority (Irda) has
decided to revise the pension norms in April.
“Since companies are busy this season, we have
decided to come out with new guidelines in the
next financial year. We will issue the draft guidelines
in April,” said a senior Irda official. In the new
guidelines too, the regulator will ensure the capital
of policyholders was protected.He said the existing
guidelines were not liberal and the revised ones
would give some flexibility to the insurers. It would
look at protecting premium along with adding some
returns.”Guarantee at this level is unattainable and
14
News Bulletin February 2011
is the main reason for drop in sales,” the official
added.
New product offerings have declined following the
introduction of new rules in September. While only
the Life Insurance Corporation (LIC) of India
launched a regular unit-linked pension product,
others like ICICI Prudential Life launched unit-
linked pension plans on a single-premium platform.
Most insurers say offering 4.5 per cent on one-
time premium is feasible compared to long term.
Also, a single-premium pension product does not
provide long-term protection.
Returns on pension products have been linked to
the reverse repo rate and insurers have to offer an
additional 50 basis points over the same.
Given the recent rise in reverse repo rate, the
returns on unit-linked pension plan are likely to be
5.5-6 per cent for 2010-11.
“We have not launched any pension product as
we do not believe in offering a guarantee of 4.5
per cent. Capital guarantee would be a welcome
option and would give us some flexibility,” said a
senior executive of a life insurance company.
Last year, pension products constituted 20-25 per
cent of the total premium collected by the industry.
Around Rs 65,000 crore came from the sale of
pension products. Total premium rose 18 per cent
to Rs 2,61,025 crore.
With only a few players selling the product, it has
fallen significantly.
Brand LIC of India, which came in at number
seven.
In what is touted as India’s largest brand trust
survey, the apostle of truth and non-violence
clocked in at the 252nd position, 200 places behind
cricketing legendSachinTendulkar, who ranked
52nd. He even lagged ten places behind actor Aamir
Khan, who was ranked 242.
The revelations were a result of a study, published
by the Trust Research Advisory (TRA), a research
organisation dedicated to understanding and
simplifying concepts related to the idea of “trust”.
The study titled ‘ The Brand Trust Report, India
Study, 2011’ was released last week. The survey
is based on responses collected from 2,310
participants spread across nine major metro and
mini metro cities in India. “The results are based
on the level of trust every individual has in all these
brands,” said TRA’s chief executive officer (CEO)
N. Chandramouli.
What Indians trust most, it appears, are brands
that they either use extensively or those which are
familiar. And consumerism rules. So, mobile handset
maker Nokia emerges as India’s most trusted brand
in this survey, hardly surprising in a nation of half a
billion mobile subscribers, with at least one handset
per adult on the average.
The Finnish phonemaker is followed by Tata, easily
one of the most visible marques on Indian roads.
Consumer electronics giant Sony is third followed
by the Korean twins Samsung and LG. Telecom
players Airtel and the ubiquitous Reliance also
figure in the top 10 brands, all- India.
The only ‘ public sector’ brand in the top 10 is
insurance behemoth LIC of India, which came in
at number seven. LIC appears to be trusted more
in the East and West zones. It was ranked fifth in
the Eastern part of the country and seventh in the
West, slipping to the thirteenth place in the North
zone.
It failed to figure among the top 15 brands in the
South. India’s largest bank, State Bank of India
(SBI), figures just outside the top 10, at 11, all-
India.
So what exactly is a brand’s ‘trust’ quotient?
According to Chandramouli, as many as 61
individual components had been identified by TRA.
These 61 primary components of ‘ trust’ were then
grouped into ten composite descriptors like
15
News Bulletin February 2011
competence, sincerity, respect, empathy,
enthusiasm and responsibility.
Respondents were asked to name brands and rank
them according to these attributes. Since prompts
were not used, this threw up over 16,000 brands
among the respondents.
“Brand trust can be defined as the ‘soul of the
primary bond of engagement’. Over time, the more
evident connotations of trust like pedigree, size,
performance, etc, have changed, and the subtler
forces are beginning to exert their influence on brand
trust,” he says.
Incidentally, TRA has trademarked the term ‘Brand
Trust’. Adi Godrej, chairman of Godrej Industries
(ranked at 22) is quoted in the report as saying, “
Trust as a value evolved to being more about
empathy which helps the brand deliver powerful
and innovative experiences to its consumers, and
thus, going beyond insights and products alone.
Beyond legal rights, Godrej believes that the
copyright of its brand is held by the millions of
consumers, partners and employees in its ecosystem
and is activated every time someone somewhere
chooses Godrej.”
LIC to review rules hurting rural agents
Hindustan Times
New Delhi, January 29, 2011The Life Insurance
Corporation (LIC) of India has assured revision
of some of its measures that have hit about four
lakh of its agents in rural areas. LIC had raised
targets and norms of agents in a manner that cut
thousands of rural agents off business in recent
months. There are nearly 13 lakh LIC agents in
India, most of them operating on a modest scale.
Changes in 2009 brought identical business targets
for rural and urban agents, severely affecting rural
ones who survive on limited opportunities. The LIC
had raised targets for its agents to a minimum of
Rs one lakh as first year premium every year,
meaning, each agent would have to sell policies
worth Rs 20 lakh on average every year.
“This may be possible in urban areas, but
impossible in rural areas where people buy very
small policies,” an LIC agent says. “Increase of
minimum business guarantee for agents, has
already resulted in termination of agents working
in rural areas,” Professor P J Kurian, president
of the All India Life Insurance Agents Federation
said.
LIC chairman T S Vijayan on Friday told a
delegation of agents that such measures would
be reviewed.
A memorandum submitted by the federation also
urged withdrawal of direct marketing plans online
– cutting out agents.
Life insurers’ new biz premium dips 20%
Mumbai January 28, 2011
The new business premium income of the life
insurance industry fell by 20 per cent in December
compared to the year before.
According to data collated by insurers, the industry
collected Rs 9,709 crore by selling new policies in
December, as against Rs 12,201 crore last year.
However, the new business income rose from
November, when the industry collected Rs 7,282
crore.Since the past few months, insurers have been
facing the challenge of growing their top line while
maintaining the bottom line. Product training has also
killed much of their time.
State-owned Life Insurance Corporation (LIC) of
India reported a decline of 19.72 per cent in new
business income while most private players saw their
new premium income falling by 20-30 per cent. The
private sector saw a dip of 22 per cent in December.
SBI Life pipped ICICI Prudential Life to become
the largest private life insurer in terms of new business
premium income.
It reported fall of 11 per cent in new business in
December, while ICICI Prudential recorded 25 per
cent drop in income from the sale of new policies.
16
News Bulletin February 2011
HDFC Life was the only insurer to report an
increase in new business income.
Of late, insurers have increased their focus on
renewal premium. They find it easier to service
renewal policies as there is no acquisition cost
attached.
For the nine months ended December, the industry
recorded growth of 28.33 per cent in new business
premium income.
Most of it happened in the first five-six months.
Sales have taken a hit after new norms were
introduced in September.
“Income in December has been better than
November. Now, we expect January to be better
than December. It would not be fair to compare
this year’s sales to the year before as the regulatory
environment has changed,” said IDBI Federal Life
Insurance MD and CEO G V Nageswara Rao.
Pay equal pension to all the LIC retirees: HC
Jaipur, Jan 24 (PTI) The Rajasthan high court has
come down heavily on the “inaction” of the Life
Insurance Corporation of India (LIC) for not
adhering to its board resolution to pay equal pension
to all the retirees across the country irrespective of
their date of retirement.
The division bench of Justices Dalip Singh and
Mahesh Bhagwati directed LIC to give effect to its
board decision dated November 24, 2001 to revise
the pension and Dearness allowance ( DA) payable
to its retired employees corresponding to the
successive revisions of the pay scales that took place
in 1986, 1993, 1997, 2002 and 2007 respectively.
The court verdict is bound to effect thousands of
retired personals of LIC across the country.
Presently the retired employees of LIC across the
country are drawing pension based on the last pay
which was payable to them at the time of their
retirement and the same were never revised creating
different classes of employees based on their date
of retirement, which was put to challenge by Krishan
Murari lal Asthan, General Secretary of Retired
Insurance Employees’’ Association of LIC.
The LIC board infact took the decision to do away
the disparity amongst pensions but did not
implement the same on the ground that the Ministry
of Finance has not given financial approval.
Disposing off the writ petition filed by Asthana single
judge bench of Justice Munishwar Nath Bhandari
in its order dated January 12, 2010 had asked LIC
to take immediate steps to implement the resolution
of LIC board and held, “In the present matter, there
was no reason to seek approval of the Central
government.
The bench reprimanded LIC for not paying the dues
of the old age pensions and held that,
“Implementation of the Board’’s resolution would
take away discriminatory treatment amongst the
pensioners, apart from keeping the LIC away from
the administrative inconvenience. The LIC is bound
to implement its board resolution now and cannot
be allowed to run away from it.” PTI CORR
Irda asks LIC to be legally certain on issuing
infra bonds
Mumbai January 20, 2011
The Insurance Regulatory and Development
Authority (Irda) has asked Life Insurance
Corporation of India (LIC) if it is complaint with
regulations regarding raising of funds through bonds.
A senior Irda official said the regulator had asked
LIC if it was legally allowed to raise funds for non-
core business. “They should be legally certain,”
added the official.However, an LIC executive said
the rules permitted them to issue such bonds. “LIC
is governed by the LIC Act, which has a provision
allowing it to raise funds through bonds.”
LIC can raise up to Rs 5,000 crore by issuing tax-
free infrastructure bonds. Earlier, it had hinted at
offering a life-cover with the bond to make it
lucrative for customers.
17
News Bulletin February 2011
Organisational Events
Foundation Day Celebrations – 19th Jan 2011
A free medical check- up camp was organised on the foundation day of NFIFWI by branch unit of Ropar
branch under Chandigarh Division. Around 100 people were examined by two prominent doctors of the
town.All the comrades of branch enthusiastically organised the camp and vowed to serve NFIFWI with
renewed zeal and vigor.
l l l
Comrades of Amravati Division, West Zone, organised candle rally and distributed leaflets regarding
LIC’s contribution to the nation, etc. on the occasion of Foundation Day. Many agents and employees also
attended the rally and it was a grand success.
l l l
Foundation Day was celebrated by Visakhapatnam Division on 19-1-2011 at Divisional office premises
by organising a health check-up and dental check-up camp. A booklet on Health tips & Home remedies and
a brochure on Preventive measures on Diabetes were released the same day. The camp was attended by the
SDM, Sri. D. Nageswara Rao, MM, Sri. Swamy Naidu and leaders of all classes of employees and a large
number of Development Officers and class 3 employees. As many as 500 people got their health checked.
Health drink was provided to all the participants.
l l l
Tindivanam branch, South Zone donated 25 pairs of Bedspreads and breakfast to an old age home on
the eve of our Foundation Day
l l l
NFIFWI Belgaum Division had National Federation flag hoisting at CB1. A blood investigation camp
was conducted. More than 180 members got their blood examined. Lunch was given to an orphanage at
Chikumbimath Ram Nagar , Belgaum. Sister trade union leaders and SDM Sri V.D.Nadiger and MM Sri
B.P.Rao addressed the gathering. NFIFWI book and Calender was released at the function.
OBITUARY
NFIFWI regrets to inform the sad demise of our Comrade Shripad Mairal, Br 972, Br.PRS,
Nagpur City, Nagpur Division on 1st Feb due to cancer at the age 50. Our heartfelt condolences
and pray God to rest the soul in peace and give courage to the family to bear the loss.
l l l
NFIFWI expresses our heartfelt condolences on the shocking demise of our Comrade
R.K.Srivastava, 51yrs, Dev Off, CBO 6, Kanpur Div,NCZ on 02nd Feb. We pray God to rest his
soul in peace and give courage to the family members to bear the loss.
18
News Bulletin February 2011
28th Biennial Zonal Council Meet of our zone was held on 19th & 20th January 2011 at Tarapith, Birbhum. The
august house unanimously elected a new team of office bearers for the next term.
President : Com. Goutam Sengupta
General Secretary : Com. Sumit Baran Ray
l l l
The Central Zone Council meeting was held at Indore on 24th and 25th Jan 2011. Com.A.V.S.Rao and
Com.Sanjeev Meharotra have been unanimously elected as Zonal President and Zonal Secretary
respectively.
l l l
The Kadapa Division General Body meeting was held at Kurnool on 23rd Jan 2011. Com.A.Pratap Reddy
and Com.A.Rajasekhar have been re-elected unanimously as Divisional President and General Secretary
respectively.
l l l
The 24th biennial GB of Trivandrum Division was held on 22nd of Jan 2011. Com.Sajilakrishnan and
Com.Baburajan were unanimously elected as Divisional President and General Secretary of Trivandrum
Division.
l l l
Machalipatnam Divisional General Body Meeting was held on the 6th of Feb 2011 at Vijaywada.
Com.Sudheer Babu and ComA.D.S.Prasad were elected as Divisional President and Gen Secretary.
l l l
The Gwalior Division General Body Meeting was held on the 5th of Feb 2011 at Gwalior. Com.R.K.Singh
and Com.Nikhil Chaturvedi were unanimously elected as Divisional President and Gen Secretary.
Please register and visit our website regularly.
www.nfifwi.comRead circulars, other updates and discuss in branch unit
meetings. Knowledge is Power.
NEWS BULLETIN thanks all comrades
who contributed to this issue of News Bulletin.
www
Kindly send articles, News & Photos of Biennial meetings and
other matters to be published in NEWS BULLETIN
only to our email
[email protected] will ensure prompt attention
- Editor, News Bulletin
19
News Bulletin February 2011
11.02.11 : Dear Comrades, IRDA has issued
guidelines on Persistency of life insurance policiesfor Individual agents (50% upto 2014 & thenonwards 75%). The circular is being sent to you. Awelcome move is that IRDA has dropped the movefor MBG and advised Insurers to frame their ownMBG. IRDA has barred direct relatives ofemployees of Insurance cos from taking agencies.Kindly go through the circular and give yourfeedbacks.
08.02.11 : Dear Comrades, With regards to theunit meetings of agents, the Central Office hasclarified to the Zonal Managers that unit meetingshas to be conducted in consultation with DOs andtaking care of conveniences, payment has to bemade practically for ordered numbers inclusive ofBM,ABM,DO and guest, practical aspectsnecessary for motivation should be acceptable inflexible manner. All comrades are requested toconduct unit meetings taking into account the aboveaspects and take maximum advantage of theprovision to motivate the agency force. If anyimpractical situation is felt kindly report.
07.02.11 : Dear Comrades, The MachalipatnamDivision GB was held on the 6th of Feb 2011 atVijaywada. Com.Sudheer Babu and ComA.D.S.Prasad were elected as the President andGen Secretary. We wish them the very best.
07.02.11 : Dear Comrades, The Gwalior DivisionGB was held on the 5th of Feb 2011 at Gwalior.Com.R.K.Singh and Com.Nikhil Chaturvedi wereunanimously elected as the President and GenSecretary. We wish them the very best.
03.02.11 : Dear Comrades, We have lodged ourprotest and placed our grievances regarding unitmeeting circular. Our protest letter to managementhas been send by mail to all members. Managementhas agreed to redress the grievances. Kindly sendas email all issues and audit query pertaining toprevious unit meetings if any. We are awaiting the
clarity. Kindly await for instructions.
03.02.11 : Dear Comrades, We strongly protest
the clarification circular on attendance marking by
Personnel dept. The circular is anti marketing,
harassing DOs, unreasonable, impractical and
bureaucratic without understanding grassroot
realities in a competitive market. Management of a
marketing organisation is suspicious of its productive
field force and believes in ensuring presence in office
rather than productivity. We continue our protest
on multiple and unreasonable conditions and
demand immediate solution on our grievances.
Register your strong protest at Branch, Division &
Zone and talk only about attendance (which the
management wants). While you gear up for a
stronger protest start following the circular under
written protest “stating that this circular is creating
hurdles affecting my productivity”. Keep marching
strongly. NFIFWI Zindabad........
03.02.11 : Dear Comrades, NFIFWI regrets to
inform the sad demise of our comrade Shri.Shripad
Mairal, Br 972, Br.PRS, Nagpur City, Nagpur
Division on 1st Feb due to cancer at the age 50.
Our heartfelt condolences and pray God to rest
the soul in peace and give courage to the family to
bear the loss.
02.02.11 : Dear Comrades, NFIFWI expressesour heartfelt condolences on the shocking demiseof our Comrade R.K.Srivastava, 51yrs, Dev Off,CBO 6, Kanpur Div,NCZ. We pray God to resthis soul in peace and give courage to the familymembers to bear the loss.
31.01.11 : Dear Comrades, Our NEC member,Mysore Divisional President Com. Nageshmurthy(09448600565) is retiring from services of LICtoday 31st Jan 2011. NFIFWI wishes him a very
happy, peaceful and retired life. We place on record
our appreciation for his services to the cause of
NF.
31.01.11 : Dear Comrades, Com.I.S.Bharathiji,
Zonal Sec, Central Zone (09826023020) is retiring
Organisational Communications
Text of SMS send by Sec. General
20
News Bulletin February 2011
from the services of LIC today the 31st Jan 2011.NFIFWI wishes Com.Bharathiji a very happy,peaceful, healthy retired life. We salute him for allthe contributions for the growth and developmentof NFIFWI and its members. His services willalways remain memorable.
26.01.11 : Dear Comrades, Wishing you all aHappy Republic Day.
25.01.11 : Dear Comrade, The Central ZoneCouncil meeting was held at Indore on 24th and25th Jan 2011. Com.A.V.S.Rao and Com.SanjeevMeharotra has been unanimously elected as ZonalPresident and Zonal Secretary respectively. Wewish them the very best.
24.01.11 : Dear Comrade, The Kadapa DivisionGeneral Body meeting was held at Kurnool on 23rdJan 2011. Com.A.Pratap Reddy andCom.A.Rajasekhar has been re-electedunanimously as President and Secretaryrespectively. We wish them the very best.
24.01.11 : Dear Com,There is a minor correctionon food arrangement for NEC Members. Food isarranged for 24th & 25th .Kindly correct themessage.
24.01.11 : Dear comrade,The 24th biennial GB ofTrivandrum Division was held on 22nd of Jan 2011.Com.Sajilakrishnan and Com.Baburajan wereunanimously elected as President and Secretary ofTrivandrum Division. We wish them the very best.
22.01.11 : Dear Comrades, The 28th biennial ZonalCouncil meeting of East Zone Federation was heldon 19th and 20th of Jan 2011 at Tarapith underAsansol Div. Com.Gautam Sengupta andCom.S.B.Ray were unanimously elected asPresident and Secretary of Eastern Zone. We wishthem the very best
20.01.11 : Dear Comrades, Notice is hereby givenfor our next NEC which will be held on 24th &25th Feb 2011 at Chennai jointly hosted by ChennaiI & II, SZ. The CS meeting will be on 23rd from10am. Accomodation for NEC membrs will be from
23rd evening (for CS members from 22nd evening)
till 26th morning 8am. Food for NEC Members
from Bed Tea to Dinner on 23rd & 24th. The Del
Fee is 4200 per head. Kindly book your return
tickets for 26th Feb. Await detailed letter from hosts
regarding arrangements and venue.
20.01.11 : Dear Comrades, Com.Manoharan, All
India Jt.Sec has successfully underwent angio blast
surgery on 17th Jan. He is recouping well in the
hospital. We wish him a speedy recovery.
20.01.11 - Hyderabad Divn - My hearty
congratulations to each comrade who attended
blood donation campaign. My sincere thanks and
hats off to 52 comrades who responded to National
Federation’s call and donated blood by setting
example of real comradism.
19.01.11 : Dear Comrade, With great pain we
inform that Com.M.P.Reddy (former President of
composite Chennai) aged 76yrs, expired today due
to illness. Cremation will take place at Bangalore
tomorrow. (His son Chandrasekar mob.
09845452572). We deeply mourn the sudden
demise of our Com M.P.Reddy and pray God to
rest his soul in peace. Mouli,GS Chennai II
19.01.11 : Dear JP, Greetings to you. Today we
donated 25 pairs of Bedspreads and breakfast to
the old age home at Tindivanam branch area on
the eve of our Foundation Day... Long live NF...
On the event of Foundation Day, NFIFWI
Belgaum Division had flag hoisting at CB1 and
blood investigation camp was conducted. More
than 170 members examined. We gave lunch to
orphanage. Entire Programme was grand success.
National Federation Zindabad
19.01.11 : Dear Comrade,Greetings and Red
salutes to you on the ocassion of Foundation Day
of our great organisation NFIFWI. Our salutes to
all veteran comrades and leaders who created and
developed NFIFWI. Let us rededicate ourselves
to this great movement, be united and defeat the
divisive forces to ensure the welfare of LIC,
Industry, Policyholders and DOs.
FOUNDATION DAY CELEBRATIONS - JANUARY 19TH 2011
Free Medical Camp organized by NFIFWI, Ropar Branch Unit, Chandigarh Division, NZ
Rally organised by Comrades of Amaravati Division, WZ
All India Resident Sect. Dr.Vijay Kaushik, North Zone PresidentCom.Shrikant Vashisht along with Div. President and
Secretaries of Delhi 1 & 3, Office Bearers and Comrades of Delhi
Foundation Day Meeting of Delhi 1 & 3 Divisions
Edited, Printed and Published by : R. Jayprakash, Editor, News Bulletin of Insurance Field Workers of India on behalf ofNational Federation of Insurance Field Workers of India
from Kalvit Bhavan, S3, 2nd Floor, Capital Heights, Opp. RSP Office, Plamoodu, Pattom P.O., Trivandrum - 4Printed at SB Press, Trivandrum
Licensed to post without pre-payment : KL/TV (N)WPP/166/2010-12
Garlanding the photo of Com. S.W. Kalvit
Dental Check up Camp in progress
Check up in progress
Release of the book on Home Remedies
Dev. Officers participating in the camp
Dev. Officers participating in the camp
Health and Dental Check up Camp by Comrades of Visakhapatanam Division, SCZ
Free Blood Investigation Camp by Comrades of Belgaum Division, SCZ
FOUNDATION DAY CELEBRATIONS - JANUARY 19TH 2011