february 2011nfifwi.com/magazine/2011.002.pdf · life insurance corporation of india central...

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

2

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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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.

4


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

5


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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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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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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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

9


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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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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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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(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


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


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


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


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


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


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


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


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

february 2011nfifwi.com/magazine/2011.002.pdf · life insurance corporation of india central...

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