LIFE INSURANCE AGENTS FEDERATION OF INDIA (LIAFI)

STRUGGLES AND ACHIEVEMENTS

LIDEEEE

PRESIDENT ALL INDIA PRESIDENT SECRETARY GENERAL

LIFE INSURANCE AGENTS FEDERATION OF INDIA

LIFE INSURANCE AGENTS FEDERATION OF INDIA 1964 KNOW YOUR FEDERATION -LIAFI

1. LIAFI is established on 2nd October 1964, at Bombay, It has completed 49 years of Glorious Existence. Every L.I.C. Agent is celebrating this day 2nd October throughout the country.

2. It was on 24th January 1945 that Agents of the Country came together at Calcutta under the leadership of Late S.S.Ali to protect our rights. Hence every year, we celebrate 24th January as Agency Profession Protection Day (A.P.P.Day)

3. LIAFI has represented the Agents community before various Parliamentary committees.

4. LIAFI could succeed in brining in Agents Regulations 1972. These Regulations are first of its kind in the world.

5. LIAFI could succeed in convincing L.I.C. to formulate club rules to enhance the prestige of L.I.C Agents who are consistently doing Good Business.

6. LIAFI could succeed with a lot of struggle in introducing the prestigious Career agency scheme in LIC of India.

7. LIAFI is mainly instrumental in establishing many Life Insurance Educational Institutions.

8. LIAFI discusses with L.I.C. Management every six months in the form of Agents Consultative forum Meeting.

9. LIAFI could succeed to enhance the gratuity amount from Rs. 50,000/- to Rs. 2,00,000/- but now it should be increased to Rs. 5,00,000/-

10.

LIAFI could succeed in covering agents under Group Insurance Scheme with accident cover.

11. LIAFI could succeed in covering all Agents under Group Insurance Scheme through their respective Associations.

12. Every efforts and each step of LIAFI is directed towards achieving full time professional status to the Life Insurance Agency career in the country. So that we can do our work with Honour and dignity.

13. In It?s pursuit of achieving professionalisation LIAFI has succeeded in getting the stipend of career agents increased from Rs. 750 to Rs. 2500 p.m and Mediclaim to club members.

14. Group Loan (Vehicle Loan) replenishment scheme for agents has been implemented from 1.10.2005

15. Discussions for Group savings linked insurance scheme is on the finalization stage.

16. Because of the efforts of LIAFI Our CM Club Convention is continued or even be can go for different types of training like motivation, stress management and health management etc.

17. Because of the efforts of LIAFI our festival advances is increased from Rs. 7000/- to Rs. 15000/-

18. LIAFI is always concerned about problems of Policy Holders. L.I.A.F.I. tried for Penal Interest to the Policy Holders on delayed Payment.

19. LIAFI was also instrumental in bringing relief to the Policy Holders by way of reduction in stamp duties on Policy Loans.

20. Early settlement of Survival benefit claims, Maturity Claims, Death Claims etc. are the results of L.I.A.F.I.?s continuous efforts.

21. It is because of our efforts that crores of Rupees of Special Medical Fee are now being refunded to agents.

22. Given a whole hearted helping hand by the Agents Community L.I.A.F.I. is confident of achieving many more rightful benefits to the policy holders and to the Agents Community of India which are being enjoyed by our foreign counterparts. Mainly health, wealth and honour till his death. The way to achieve this aim is full time Professional status for agency career in India.

LIAFI LEADERS MEET PRESIDENT OF INDIA HER EXELENCY

MEMORANDAM TO THEN FINANCE MINISTER PRANAB MUKARJEE

LETTER TO FINANCE MINISTER P CHIDAMBARAM

OPPSITION LEADERS AND MP’S AT RAMLEELA MAIDAN DELHI

PAPER CUTTINGS and PROTESTS BY LIAFI

HUGE GATHERING BY LIAFIANS AT JANTAR MANTAR IN PROTEST AGAINIST INSURANCE BILL

LETTER TO SWAROOP• LIFE INSURANCE AGENTS’ FEDERATION OF INDIA (LIAFI)

President: Secretary General:• S.B.Sreenivasa Chary Shyamal Chakraborty• •

• To Dated 05-09-2009• Mr. D.Swaroop• Chairman• Committee on Investor Protection• and Financial Literacy • • Dear Sir,• • Subject:-Life Insurance Agents Federation of India (LIAFI ) Strongly Condemns the Draft • Report of the Committee on Investor Protection and Financial Literacy • Recommending scrapping the Agents’ Commission by 2011-Reg.• • The Draft Report of the Committee on Investor Protection and Financial Literacy recommending scrapping the Agents’ Commission by 2011 on Life Insurance and

ULIP Products is uncalled for as it appears to have been proposed without having representation from insurance industry who are well informed about the problems concerning the industry and absolute need for an insurance advisor being a primary underwriter.

• • No representation in the six-member committee of any insurance player, in particular a behemoth like LIC of India, which is serving the nation for the last 53 years

and a key nation builder, is a glaring blunder. This indicates a deliberate attempt to avoid the material facts which goes against the predetermined agenda of massacring the agent community.

• • When LIC was started in the Year 1956, the Life Fund of the Corporation was Rs 380.61 crores today the same has reached Rs. 8, 07,317.43 crores. From 7, 94,585

policies by the end of 1957, today LIC has in its books over 25.78 crores in-force policies. Agents, who are responsible for 95 per cent of Corporation’s business, have played a vital role to bring all these Policies into the Corporation’s books. No other evidence is necessary to prove the role played by the Agents of the Corporation to bring about the Customer Awareness and Literacy about Life Insurance.

• • Contd-2• • -2-

• Your report is against the very spirit of Investor Protection and Financial Literacy of crores of people of India who are depending upon the advice of 27 lakh Life Insurance Advisers. Life Insurance Agents, who will be adversely affected by this proposal, are known and respected as the Financial Counselors in the Indian households. They are in a position to influence people’s decision to plan the family financial wellbeing.

• • The ill informed Committee is with a mindset that Life Insurance Agents are garnering great incomes by way of commissions on Policies marketed by them. It is a matter of pity that the

Average Income of the Life Insurance Agents today is around Rs.60000 /- per annum which is much below the salary of a Class IV employee. The agents are also selling single premium and ULIP Policies and getting only two percent commission on it.

• • The Committee felt that the Agents need not learn their job apart from passing a simple examination held by IRDA at the time they joined the profession. If the job of Life Insurance

Agents were to be easy and to earn huge commissions was an unqualified job, why would over 8 lakhs of Agents get terminated in the last 5 years on account of mal performance? Contrary to the Committee’s opinion, those who are on the job of continuous learning about their profession only remain in the profession. The 80/20 principle works for Life Insurance Marketing Also. It is those highly competent and qualified 20 % of the Agents who approach people extend them professional guidance and bring in 80 % the business.

• • Two years ago the then IRDA Chairman Mr. C.S.Rao in his report has ruled out the need to bring about a change in the existing Commission Structure for Agents.• • Comparing the Mutual Fund Agents’ Commission with that of the Life Insurance Agents is in appropriate. The Investment and Life Insurance are two different functions of Financial

Markets. Life Insurance is a long term contract and certainly needs understanding the proponents’ needs and counseling appropriately. • • The Findings and Recommendations of the Committee on Investor Protection and Financial Literacy headed by Mr. D.Swaroop are baseless, imaginary and arbitrary and are against Public

Interest and will be hampering the livelihood of 30 lakhs of Life Insurance Agents in the Country.

• The Life Insurance Agents’ Federation of India LIAFI in view of all the reasons stated above, Strongly Condemns the recommendations and appeals to scrap all proposals against the constructive role being presently played by the Life Insurance Agents and save the Life Insurance Industry and the lives of Agents who are Committed to their Profession. LIAFI also demands the Committee not to tamper with the existing Agents’ Commission protected under Insurance Act 1938 failing which LIAFI will have to be constrained to go ahead with a Nationwide Agitation for which the Committee will be responsible.

• • Yours faithfully• • S.B.SREENIVASA CHARY• President, LIAFI• Flat.No-202, 2-2-185/56/c/3• Sathya Sai Apartments• Baghamberpet, HYDERABAD-500 013• • • Copy to:• • 1. Sri.PRANAB MUKERJEE, Honourabl’e Minister for Finance, Govt of India for kind • Notice and not taking in to consideration of the Recommendations made by the • Committee in the interest of the Insurance Industry• 2. Sri J.HARINARAYAN, Chairman Insurance Regulatory Development Authority, Hyderabad for necessary action.• 3. Sri T.S.Vijayan, Chairman, LIC of India, Central Office, Yogakshema, Mumbai for Necessary action•

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LIAFI ZINDABAD

SPEECH BY LEADERS

LETTER TO YASHWANTH SINHATo Date-26th October 2010

Shri Yashwant Sinha

Honourable Chairman

Parliamentary Standing Committee on Finance

New Delhi

Subject- Standing Committee on Finance – Examination of ‘The Insurance Laws (Amendment) Bill, 2008

Dear Sir,

The Life Insurance Agents Federation of India wishes to express thanks to the Parliamentary Standing Committee on Finance for their considering our request for a personal hearing on the Insurance Laws (Amendment) Bill,2008.

We the Life Insurance Agents’ Federation of India have been consistently working since 1964 to improve the policy conditions, policyholders’ benefits, agents’ socio-economic status, and the working of the industry with the end objective that if the Country and its people shall flourish it shall be our inclusive growth. We have achieved a lot in all the targeted dimensions by persuasive dialogue and resultant cooperation of the LIC OF INDIA- once the Industry in itself and now to be dwarfed as one of the Industry but whose client base may dwarf the population of some of the countries of the world and whose annual growth rate of 8-9 percent for last 2-3 decades may dwarf the Average growth rate of so many economies of the world. The figures need not be put before this learned Committee but it is our humble duty to reiterate before you that this was achieved by the toil of the Agents’ and the sacrifice of the policy holders of the early days of the L I C Of India.

With this perspective; we append below our observations and suggestions on those proposed amendments in the Insurance Act 1938 vide this bill i.e. The Insurance Laws (Amendment) Bill 2008 that have a direct bearing to the Agents and/ or policy holders of the Life Insurance Corporation Of India. Once these amendments are passed as proposed, they will consequently pave the way for lakhs of Insurance agents will be out of books of insurance company and also the inflow of insurance business will be reduced drastically. Sir, we humbly pray you for a sympathetic, thoughtful consideration on our submission before inking recommendations on the subject.

We have reservations on the amendments, proposed on the following Sections of the Insurance Act 1938 viz. Sec(s) 40, 40A,44 and 45; vide Clause no. 48, 49 , 57and 58 of the subject Insurance Laws (Amendment) Bill 2008.

Clause 48, mentions the substitution of new section for section 40 of the Insurance Act 1938. The relevant parts of this Section on which we want to draw your attention are 40(2)and 40(2A) The Sec 40(2A) has a provision to protect the policyholders orphaned by their procuring Agents either due to termination by the Insurer for non-fulfilment of minimum business to maintain Agency / or death or for any other reason and allows to extend service to such policyholders by another Agent and encourages the other Agent by allowing half of the commission that was otherwise payable to the procuring Agent. This practice has been giving relief for long to the large class of orphan policyholders created by the wrong system of appointment of Agents in the Industry.

Once our demand used to be that the full renewal commission should be extended to the Agent who opted the client for future servicing ; but considering the interest of the Insurer and the view that the Renewal Commission is actually the deferred compensation out of the First Commission, that the Insurer is supposed to pay at once and one time but - due to economical reasons and dynamics of the Industry - cannot settle at the instance of procurement of the business by the Agent , we reconciled to the pattern as per the Sec 40(2).

Sec 40(2) of the Act defines the limit for the commissions payable to the insurance agents on first year premiums and the renewal premiums on policies affected through them. These Sections are being omitted without any specific substitute section in the proposed Insurance Laws (Amendment) Bill 2008. Whereas the amendment bill has not mentioned specific details in the substitute section on commission limits with this amendment, the statutory protection and guarantee of the commission payable to the agents which is available in the act would be taken away.

Sir, due to vested interest a campaign with the help of media is now on to malign the noble profession of Insurance Agency like –mis-selling, high commissions etc. and the perception has been coined that the insurance agents are cornering a very high percentage of commissions on the business procured. It is a matter of pity to point it out before you that the Average Income of the Life Insurance Agents today is around Rs.60000 /- per annum. Had this profession be so easy to earn, the lakhs of Life Insurance agents been not out of books of Insurance companies every year. The Annexure 1 showing the details of Additions and deletions of individual agent’s commission expenses ratio of Life Insurers are enclosed herewith for your kind information.

For your ready assessment about the role, responsibility and commission of the Agent in procuring new business we quote from the recorded interview of Sri S B Mathur, Secretary General, Life Insurance Council, the representative body of All Life Insurance Companies in India, and a print copy is annexed as Anex.II

An insurance agent’s role is different from a normal distributor.

He gives a primary report of financial and physical health of a person in such cases. So he is a primary underwriter.

Secondly, in case of death, who helps the family? It’s the agent. In case of death before completion of three years, the agent has an active role in the mandatory investigation.

Despite these, commissions have been gradually coming down. The law has capped commission payments. Our provisional data shows that last year, 47% of the total new premiums of Rs1.09 trillion came at commissions of less than 2%. During the four years ending fiscal 2009, 42% of the new premiums came at commissions of less than 2%.

During those years, mutual ….. contd. From Mint dated 10th May 2010. Sir, with all that stated above we see a very grim future of the LIC agents and the Agency as a career in the hands of any other Authority except the democratically elected Parliament by the people of India.

Thus by this amendment the class of Agents, and the persistency of the Agency as a career, shall suffer by loosing the statutory protection given to them by the Insurance Act 1938. Consequently the policyholders shall also be victim to this amendment. For these and other reasons, we strongly request to retain Sec 40(2) of the Insurance Act 1938.

Clause 49 of the bill seeks to omit Section 40A of the Insurance Act 1938 so as to omit the provisions relating to limitation of expenditure on commission. This also provides for the payment of commission to insurance agents at the rates specified in the act. By omission of this clause, there is no clarity as to the commission payable to the agents. Further there is no alternate provision made in the proposed bill.

Our views that this section defines the upper limit that any insurance company can spend on commission to their agents and should remain as it is. If this amendment takes place, not only demoralise the agency force but also lakhs of agents will be deprived of the statutory protection embedded in the Act. Therefore we strongly request you to retain the section 40A with Insurance Act 1938 only and the Regulator should not be empowered.

Clause 57 of the Insurance Laws Amendment Bill 2008 proposes to wipe off the entire Sec 44 of the Insurance Act 1938.

Sir, this Section is the foundation of the Agency Career in our country. The Sec owes its existence on the acceptance of the following facts—

1.The Insurer needs a person to propagate his life insurance plan , but simultaneously wants him to share the risk of underwriting i.e. probe into the buyer’s personal habits, his family history, his medical history, moral hazard etc on the grounds of misstatement in which Insurers decline the Death Claims and terminate the soliciting person .

2. It is universally accepted fact that selling of non tangibles and in particular the life insurance is one of the toughest jobs and wisely said that life insurance is always sold and seldom bought. So the person who opts to solicit the insurance – one of the toughest jobs - has simultaneously to share the risk of underwriting, leniency in which may lead to his termination.

3. It is also universally accepted by the Insurers all over the world that the job of this person needs more than average remuneration as incentive, but that could not be cut from the first premium for the

reason of sustaining the business, and hence the conception, of a part compensation as the First Commission and deferring the balance of payment in instalments to be paid out of the renewal Premiums and named as Renewal Commission, was born.

4. It is also widely observed that only 45-50% of policies remain in force till maturity or it can be said that 50% of the policies sold lapse before the full term. Amongst many, one of the reasons of lapsation is the Insurer himself. This excludes death cases. Lapsed policy means no renewal premium paid and so, no renewal commission. THUS

The soliciting Agent has to bear a) the pains of doing the toughest selling b) the risk of primary underwriting c) accept his compensation in future instalments as renewal commission d) loosing his renewal income due to death of the policyholder or lapsing of the policy.

5. It is also accepted by the Actuaries that if prudently run, a policy starts adding to the profits of the Life Insurer only after its fifth instalment been paid.

Considering these, amongst so many others, the prudent Members of the Council while framing the Insurance Act 1938 introduced the Sec 44.

44 (1), apparently to protect the Agent from loosing his earned but deferred income and inserting subsections (a) ,(b) and (c) to protect the Insurers from the liability of payment of renewal commission not before the latent period of 5 years.

44(2), apparently to protect the heirs of the Agent from loosing their rights to the renewal commission.

Thus you will kindly observe that a stand which was accepted after a prolonged discussion by our learned forefathers in the Council and stands true on all the legal, social and economic reasoning is going to be negated by omission of this Sec 44.

The reminiscence of the deletion of this Sec 44 shall be felt by the country in the year 2020-25, when we are destined to be the 3rd growing economy behind USA and CHINA. The economic prosperity shall come with its own problems of intra mismatch, big population, high unemployment etc. We shall be a Democratic country of 150 crore people of which about 50 crore shall be in the impatient age group of 20-30 and seeking for employment. We advocate for the Insurance Agency as a whole time career and as a respectable source of employment, provided the profession gets protection by such Sections as Sec 44 and the Govt takes other measures towards professionalizing the Agency Career (for which we have a separate panel of people working on the scheme).

We strongly request you to stop the omission of the Sec 44 of the IA 1938 and scrap the Clause 57 of the ILAB 2008.

Clause 58 of the Insurance Laws Amendement Bill 2008 seeks to amend Sec 45 of the Insurance Act 1938 amongst others.

Sir, Sec 45 gives a protection to the heirs of the policyholders from the action of the learned and highly paid officials of the Insurer from declining Death Claims on flimsy grounds, if the death occurs after completion of two years of the policy; but gives enough space to the insurer to protect itself from wrong, malicious design - if any- either by the policyholder or his soliciting Agent. During the regime of this Sec 45 the LIC has made tremendous financial growth. We shall like to draw your attention on the Death Claims Statistics for the year 2008-09 - Annex. 3, a period when the Sec 45 prevails, and kindly note that the private insurers have repudiated the death claims to the extent of 9.97 % whereas LIC has repudiated as much as 1.33 % only.

Clause 58 seeks to extend this period of 2 years as per Sec 45 of the Insurance Act 1938 to 5 years during which the policy can be called to question. It can be easily inferred that this extension shall give more leeway to the above kind of Insurers to repudiate higher percentage of the death claims raised by the mostly shy, semi literate/ ill literate , inwardly looking and mostly exploited class the – widows ; to whose benefit the conception of Life Insurance was born. Besides, the LIC has withstood it for last 55 years.

Hence, we pray to stop the amendment to Sec 45 0f the IA 1938 as proposed in the Clause 58 of the Insurance Laws Amendment Bill 2008.

Sir, by transferring these very important financial powers (which are with the parliament for a very valid reason for the last 72 years) to the Regulator - there are possibilities of these provisions being misused either deliberately or through ignorance or under influence. Besides, the proposed amendments will adversely affect Agents, Policy holders and also the health of the insurance industry. With regard to the changes and omissions recommended in the above said sections, maintaining status quo is ideal in the current juncture for the industry as well as insuring public of our country.

Sir, these are our humble submissions as an additional and / or updated suggestion to our earlier memorandum; with a request to keep us always involved in the process, since we are your soldiers on the front or the ground level and understand the pulse of the nation.

Thanking you once again for inviting us for personal hearing and all the pains that you may have to take for the same.

Sincerely yours,

S.B.SREENIVASA CHARY SHYAMAL CHAKRABORTY

President Secretary General

AGENTS MELA AT DO II BANGALORE

Speech by S B S CHARY AND SHYAMALJI

memorandam submitted to veerappa moily

LIAFI GENERAL COUNCIL MEETING AT CULCUTTA

GENERAL BODY MEETING AT CHINTAMANI

EDUCATIONAL MEET AT CHIKKABALLAPUR ARRANGED BY BANGALORE DO II LIAFI

Agency Section, Marketing Department, 3rd floor, Central Office, “Yogakshema”,

Jeevan Bima Marg, MUMBAI 400 021

Ph: - (022) – 66598333,34,38,39, Fax: - 22824386, e-mail: -co_agency@licindia.com

Ref: Mktg/A/32 17.01.2011 Shri S.B. Sreenivasa Charry, President, LIAFI, Flat No.202, 2-2-185/56/C/3, Sathya Sai Apartments, Baghamberpet, Hyderabad-500 013. Re: Meeting with Agents Representatives (LIAFI) on 8th February, 2011 It has been decided to hold a meeting with you and Shri Shyamal Chakraborty, Secretary General, LIAFI to discuss issues of mutual concern on 8th February, 2011 at 11.30 a.m. in Committee Room No. 1, 7th floor, Central Office, Mumbai. We would request you to kindly confirm your participation along with Shri Shyamal Chakraborty. Kindly note that maximum three outstation members subject to overall limit of five will be allowed to participate in the abovementioned meeting. Kindly let us know the names of the members who would be attending the above meeting. We would also request you to inform us about the likely issues to be discussed in the abovementioned meeting.

Yours faithfully,

Executive Director(Mktg.) C.C. to Shri Shyamal Chakraborty, Secretary General for information

To Sri Sridharan Chairman IRDA Sub Committee (Commissions & Intermediaries & Policyholders) Dear Sir, Subject:-Discussion on Persistency of policies. Ref: 1 Comments submitted by Life Insurance Agents Federation of India Dated 29-7-2010 2. View points submitted by Life Insurance Agents Federation of India Dated 9-9-2010 We wish to express our thanks to you for inviting us to participate in the meeting to be held on 6th December 2010 at IRDA offi ce to discuss on “Persisting of Life Insurance policies.” It is a matter of great concern for all the persons involved actively in the insurance industry for keeping low rate of Persistency of Life Insurance policies and higher percentage of lapsation of life insurance policies. With reference to the letter cited, we have already submitted our observations and views on the above subject as stated in the Reference 1st and 2nd. In addition to the above representations, further we are furnishing the following observations and views for your kind notice. According to the Annual reports of IRDA, during the last three financial year’s i.e. 2006-07, 2007-08 and 2008-09 nearly 16.50 laks agents were out of the books of the Insurance industry on various reasons. Let us assume an agent has brought an average 6 policies to make it simpler 16.5 laks agents x 6 lives equaling to 1 crore policyholders have become orphan. The customer is totally disappointed and the person who promises to serve the entire period is no more in the picture. Due to this policy holders are not able to keep their policies in force and leads to high lapsation and low persistency.

Hence the solution for keeping high persistency lies in retention of the agency force and there is a need to design an effective system to make the agency force as professional. Keeping in view of the above facts, and in the interest of insurance industry our Federation expresses its opinion and suggests that one committee should be constituted by the IRDA .This committee should be empowered to study the problems of Insurance agents, ascertain the reasons for huge termination of agents every year and to give their certain recommendations in solving the problems in this regard.

The draft paper on persistency of life insurance policies particularly suggestions made at No.6 imposing a disincentive clause for lapsation and part of the first year commission shall be withheld to be paid based on persistency in later years and suggestion no 2 and 3 imposing minimum 20 policies and 1.5 lac first year premium income is not advisable and against the very spirit of protection of policy holders.

LETTER TO IRDA FROM LIAFI ON 06/12/2010

-2- The Malhotra committee also made one of the major recommendations in its report that “Improvement of the commission structure for agents to make it an effective instrument for procuring business specially rural, personal and non obligatory lines of business.” There is a provision in the Insurance Act 1938 i.e Sec 40(2A) has a provision to protect the policyholders orphaned by their procuring Agents either due to termination by the Insurer for non-fulfillment of minimum business to maintain Agency / or death or for any other reason and allows to extend service to such policyholders by another Agent and encourages the other Agent by allowing half of the commission that was otherwise payable to the procuring Agent. This practice has been giving relief for long to the large class of orphan policyholders created by the wrong system of appointment of Agents in the Industry.

But unfortunately majority of insurers and agents are not aware of this and there is no proper and effective implementation of the same. If this tool utilizes, there is a possibility of reducing higher percentage of lapsation and maintain good persistency by way of paying commission on orphan policies revived by an agent other than the one procuring the same.

The copy of the earlier representations submitted to you also enclosed herewith once again for your kind information and necessary action.

Today majority of the insurance agents are belongs to Rural area, hence this new proposal of stipulating minimum requirements for agents in terms of performance is not advisable and it leads to not only huge terminations of insurance agents in the industry but also Lacs of policy holders are going to become orphan.

Keeping in view of the above mentioned facts, The Life Insurance Agents’ Federation of India, (LIAFI) appeals to rationalize and moderate all proposals against the constructive role being presently played by the Life Insurance Agents and save the Life Insurance Industry and the lives of Agents who are committed to their Profession.

Thanking You

Yours sincerely

S.B.SREENIVASA CHARY President, LIAFI

POINTWISE DISCUSSIONS Central Office MDRT Support Desk

Agency Section, Marketing Department, 3rd floor, Central Office, “Yogakshema”,

Jeevan Bima Marg, MUMBAI 400 021

e-mail:- co_agency@licindia.com

Ref: Mktg./A/ICCM Dated: 9th Nov, 2012 Re.: Issues raised by Agents Association in ICC Meeting on 05.11.12. A Meeting with the representatives of LIAFI was held on 05.11.12 in conference room of CO OS Deptt. Yogakshema Bldg CO Mumbai. The following members were present in the meeting: From Management side: From LIAFI: Sh.Hemant Bhargava ED (Mktg. /PD) Sh. S.B.Sreenivasa Chary, President (Hydrbd) Sh. P.H. Kutumbe ED (F&A) Sh. Shyamal Chakraborty, G.Sec (Kolkatta) Ms. T.T. Mathew ED (U&R) Sh. A.S.Permer (Barelly) Sh. Niranjan Mishra ED (CLIA) Sh. N.C.Khandelwal (Delhi) Sh. K. Ganesh ED (CRM) Sh. Samit Ganguly (KSDO) Sh. R. Sudershan ED (IT) Sh. Singarapu Srinivas (Hyderabad) Sh. P. Venugopal Chief (P&GS) Sh. A.N.Srivastava (Patna) Sh. H.S.B Sinha Chief (Mktg.) Sh. Sunil Nigam (Shahdol) Ms. Vidhu Verma Secretary (Mktg.) Sh. P.Srinivasan (Coimbatore) Sh. P.J.Tikoo AS (Mktg) Smt. Seeta Kakodkar (Goa) After a brief introduction round by all the meeting started with a welcome address by ED (Mktg.) He said that Corporation has managed a marginal growth in NB. There has been huge growth of GDP in last few years but we are not growing at the same speed. ULIP products have shown a high negative growth but our NAV is presently at a 52 week high. ED then requested the LIAFI to deliberate with respective departmental heads. The discussion continued and matters related to CRM were taken. ED (CRM) shared some facts with members as LIC has 30crore policy holders and 22crore customers. During last FY we have had 40crore transactions out of which 9crore were outside made BOs. For vision 2020, we will have to formulate means to cater to about 170crore transactions a year. He also said that soon premium payment by mobile phone will be possible. He advised that agents to go for ECS or payment through credit cards where charges towards LIC were lowest at Rs/- 35. He also talked about relationship renewal programme, its benefits and online services to be started and also urged agents to play their role in NEFT collection data.

CRM 1) Facilities like generation of Loan/

Revival/Surrender quotations, Loan related repayments, cash acceptance in CDA cases, change of address and change of nomination etc. to be made available to Empowered agents.

2) Staff is not aware about several new initiatives of CRM and also how the modules work.

3) BMs signature should be removed from ECS mandate and also the CDA charges on ECS.

4) Remove restriction on printing of premium status and FUP updation on agent’s portal.

ED (CRM) discussed in detail and said that at present these suggestions can not be implemented, however he took a note and assured to look into them in future. ED noted the point and assured that it will look into it. ED noted the point and assured that it will look into it. ED noted the point and assured that it will look into it.

ED (IT) then gave a brief review of latest developments and insisted on agents that e-feap module has now settled and scene will be much better now. Review of issues related to IT department raised by agents association. IT

1) Rosters not taking care of correct no. of lives and single premium policies, less premium paying term policies, retire and enjoy policies, other branch policies transferred within Division etc. are not counted.

2) Green channel FPR can not be generated again. LIC should introduce e-commission bills and mail them to the Agents, as at several places commission bills are not printed at all.

3) Premium due lists are not provided and there should signing authority for agents on premium certificate at premium point centre.

ED (IT) discussed in detail and said that at present they have resolved all complaints of this nature, however he assured to look into specific cases (if any) for desired corrections. ED noted the point and assured that it will look into it. ED (Mktg.) also intervened and requested ED (IT) that duplicate FPR should be printed with words DUPLICATE on it. ED noted the point and assured that it will look into it.

Chief (P&GS) then gave a brief review of changes and latest developments in group insurance. Review of issues related to P&GS department raised by agents association. P&GS

1) Group Term insurance increase in Maturity age and quantum of insurance.

2) Agents association also desired a group insurance scheme of their own. .

3) Samvardhan yearly statement to the Agents, they also raised that Samridhi prizes and also CZ had floated a competition on pension policies but prizes were not given yet.

Chief (P&GS) replied that Sum insured was increased only last year, however they have called for data and would examine again. He also insisted that premium on allowing age 70 will be very high which the association agreed to pay Chief (P&GS) replied they are welcome with their proposal and data, Thereafter P&GS will send a quote. He also agreed to revisit it and get the certificate issued.

ED (CLIA) then gave a brief review of new things brought by the department and showed concern for very slow increase in the number. Review of issues related to CLIA department raised by agents association. CLIA

1) New Display Boards for Premium Points.

2) Enhancement in transaction fee to Rs/-10-

3) Higher office allowance should be there.

4) Agents at premium point should have authority to sign receipts.

5) Different types of receipts are given at premium points and Branches. There should be uniformity in premium receipts issued by BOs/PPs & SBAs.

6) RCAs & UCAs should also be allowed to CLIAs. Allotment of agents of terminated CLIAs made to Dos and not vice verse.

For all the points raised :- ED (CLIA) discussed in detail and said that at present these suggestions can not be implemented, however he took a note and assured to look into them in future. ED noted the point and assured relook into it. He also insisted that non performance by the channel was a big hindrance in allowing any fresh benefits.

ED (F&A) then gave a brief review of latest developments and insisted on agents to use the alternative channel of premium payment more. Review of issues related to F&A department raised by agents association. F&A

1. Multiple transactions should be allowed on 1 cheque.

2. NEFT should come in a phased manner as only 14% people have bank accounts in India. Final policy payments are taking more time now.

3. CDA charges are loaded separately on each policy in multiple policies on a single life

For all the points raised :-

ED (F&A) as well as ED (IT) gave their view

point on certain measures taken and also ensured to have a relook into it.

ED (U&R) then gave a brief review of changes and latest developments in underwriting. Review of issues related to U&R department raised by agents association. U&R

1) Questions regarding Terrorist Activity should be removed from ACR.

2) One year clause in NMS/NMG should be removed.

3) Reinsurance limits should be increased, citing various examples of higher amounts in different countries.

4) Widows are not allowed proper insurance it should be increased and liberalized.

5) Female category III and minor insurance should be revisited.

6) Medical examinations held by different companies for their CEOs should be treated valid.

ED advised agents, since they are in field with so many connections to know about a person’s health, habits etc. that is why this question is in ACR, however if they don’t have any specific knowledge they may write (Not to my knowledge) to terrorist question. For all the points from 2 to 6 raised :- ED noted the point and assured that it will look into it.

(LUNCH BREAK)

ED (Marketing/PD) then made a presentation and gave a brief review of what is the present scenario of market and what is our performance as on date. He also assured that all issues raised will be followed with servicing departments. Agents association expressed satisfaction and thanks for introducing cashless medi-claim for agents and increase in amount of Housing Loan for Club member Agents. Review of issues related to Marketing department raised by agents association. Marketing

1) Removal of Escalation Clause. 2) Office allowance clarification on

graded office allowance to CM Club Agents and proportionate office allowance to Club member Agents in case of death of an Agent.

3) Increase in Computer allowance. 4) Increase in out of pocket expanses. 5) Revision in Daily Allowance. 6) Current position of Gratuity

notification. 7) Modification in Scheme of advances,

vehicle advance and marriage advance to be given to Agents 6 times.

8) Why service tax on Jeevan Akshy policies on proposer.

Already deferred by 1 year. It has been already put up and soon we will come out with clarifications. Not possible presently. Not possible presently. It has been already put up and soon we will come out with a new circular. Matter is pending with Government for notification. Matter is under consideration. Tax levied by Government only and we have taken up with them already.

Meeting Closed with Vote of Thanks.

REPRASENTATION TO- ED- IT To 27th JULY 2012 The Executive Director, (IT/SD) LIC of India, Central Office MUMBAI, Respected Sir, Subject: Suggestions from Life Insurance Agent’s Federation of India with regards to the Agent’s Portal, Merchant Portal and with respect to Hardware and software. The Life Insurance Agent’s Federation of India would like to submit its suggestions on the following Subjects for your kind notice and favourable action.

1. MERCHANT PORTAL 2. AGENT’S PORTAL 3. HARDWARE & SOFTWARE

1. Merchant Portal – Suggestions for Improvement

It is highly gratifying to get connectivity from our respective offices and save time and energy instead of going over to the branch offices and save time energy and money. Apart from Premium Payment, we are able to look at the Policy Status, partially generate the Revival Quotations and also generate Premium Payment Certificates. There are some more areas where we are sure the Merchant Portal can be of greater utility as mentioned hereunder.

Generation of Agents’ Commission Bills – Presently Branch Offices are burdened with colossal amount of work fortnight after fortnight towards printing the Commission Bills for Agents. This will not only involve huge stationery but also consumes significant printing time. At times all other activities have to be put in abeyance on account of the printers being used to print bills for several hours nonstop. This will also result into repeated breakdowns of Printers and other hardware.

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Suggestions: Make available a link for the Agents’ Commission Bills online for the Agents to download. Alternatively, the Bills can be sent via email to the agents whoever opts for the same. An estimated 20 Cr can be saved on account of this activity alone by the Corporation each year. Payment of Premium through Credit Cards: Initially, Premium payment was allowed through using Credit Cards. However, this feature is not available any more. This is extremely customer friendly feature and should be restored. Premium Certificates: For all New Policies, Premium Paid Certificates are not generated particularly for those issued within the year. Further while opting Premium Cert for Consolidated Policies, some of the policy numbers don’t get reflected in the Cert with a result that repeated exercise for the balance of policies has to be done. Online Invoice Payment to LIC: Payment made online on Saturday, gets reflected only on Tuesday next and during the meanwhile, Premium Payment activity for the Merchant ID remains suspended. FUP Updation: Sometimes although the Premiums are paid through Merchant Portal and the respective invoices together with Cheques/Cash are remitted at LIC other than Servicing Branches, the FUP online are not moving to the next due date. On enquiry the concerned Branch Offices have reported that they don’t have the availability of un-updated leads. Premium Payment for Health Insurance Policies: Health Plan Premium should be accepted through Merchant Portal. LOANS:

1. The Policy Status does not reflect the Existing Loan and Interest Outstanding if any.

2. The Loan Quotations generated, don’t take cognizance of Existing Loans.

3. Merchant Portal should be enabled to collect Loan Principle and Interest Outstanding.

4. While generating the Premium Receipt, if the Loan & Interest outstanding if any can

also be reflected, it would be ideal.

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2.SUGGESTIONS REGARDING AGENTS PORTAL Consolidated Premium Paid Certificates to be enabled Status of Proposals forwarded DO/ZO/CO are not captured on the Agent’ Portal Provision may be made in the portal to reflect Net No. of Lives FUPs for Policies issued under SSS may be updated on real time basis The “Edit Contact Details” link is defunct Club Member Agents may be given the data of their business and short fall if any to maintain existing Club Status or reach higher Club Status may be indicated. Claims Enquiry in Agents as well as Merchant Portal is not functioning. All latest LIC Forms may be provided on the Merchant and Agents Portals as downloadable .pdf forms. All Agent Related Circulars may also posted on the Agents as well as Merchants Portal and a download link there for may be provided.

3.Suggestions with respect to Hardware and Software

1. Some of the old Systems have slowed down after E-Feap is launched. The Existing Hardware is not compatible with New Software. This is inordinately slowing the process. Systems and Printers have to be upgraded compatible with the speed of e-Feap in all branches.

2. Hardware particularly in the Branches are in deplorable state. The Print sometimes is hardly visible. This is causing unrest at Cash Counters.

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1. In some Branches the Cables and other Peripherals need to be replaced. So also the Mouses being used have to be replaced.

2. A separate System and printer may be provided at the Agents’ Room.

3. Club Roasters module is in the E-Feap Software is having several bugs. If a Policy

Holder takes one Policy in different financial years, it is being treated as one life. As per rules, If only a Policy Holder obtains more than one Policy in the same financial year it should treated as one life.

4. While counting the Number of Lives in Force, the Health Insurance Policies, Single

Premium Policies, Fully Paid up Policies, Pension Policies and Transferred in and out Policies are not taken into consideration. The Software should be amended appropriately accommodating all the above features.

5. After introduction of Loan and Maturity Payment online through NEFT Transaction,

the Policy Holder or the Agents have no information whether the payment is made and if so when and how. An automatic intimation should be generated by the software as and when payment is made.

6. Wherever Customers bank through Cooperative Banks, transactions may be

processed through ECS using the MICR Number and Core Banking Account No. as the Co-op Banks have not yet got the NEFT Numbers.

7. Under Jeevan Ankur Plan 807, Enhancement in Service Tax has not been captured by

the Software under SSS Mode. This may be updated.

8. Maturity Claim intimations are generated in excess of payable Bonuses but while payments are actually made to Policy Holders the payments are for a lower amount. The Maturity Intimations should be rationalized so that Policy Holders don’t get a shock when the actual payment is received.

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1. In NB in some branches, Duplicate Policy No’s are being generated. It has been reported that the number is reaching to thousands which is extremely alarming. Immediate plugging of this loop hole should be taken on SOS basis.

2. Periodic interaction with Agents should be held at all levels by the concerned IT

Heads in order to improve the Customer Service.

Keeping in view of the above, we request you to kindly view our suggestions in the true spirit and in the overall interest of the Customers, Agency force and the corporation.

Yours Faithfully

S.B.SREENIVASA CHARY SURI SEETA RAM President Chairman, Information and Technology Copy to The Executive Director, (Mktg), LIC of India, Central Office, MUMBAI

THE MINUTES OF THE LIAFI REP- MEETING ON 5/07/2012 LIC MANAGEMENT

LIFE INSURANCE AGENT’S FEDERATION OF INDIA,(LIAFI 1964 )

MINUTES OF THE LIAFI REPREDENTATIVE MEETING WITH LIC MANAGEMENT

The LIAFI Representatives Meeting with the Management of LIC held on 5th July 2012 at Central office, MUMBAI. The following Officials from LIC of India and Representatives from Life Insurance Agent’s Federation of India (LIAFI)

participated in the said meeting.

OFFICIALS FROM LIC OF INDIA:

1. Mr.D.K.MEHROTRA Chairman, LIC of India

2. Mr.H.L.BHARGAVA Executive Director, Marketing

3. Mr.H. S.B.SINHA Chief Marketing

4. MS. VIDHU VERMA Secretary

5. Mr.A.K.TRIVEDI Secretary

6. Mr.P.J.TIKOO Asst.Secretary

7. Mr.SANJAY SINGH Asst. Secretary

8. Ms.SWATHI Administrative Officer

REPRESENTATIVES FROM LIAFI:

1. S .B.SREENIVASA CHARY President

2. SHYAMAL CHAKRABORTY Sec.General

3. N.C.CHANDHAK Chairman, Planning Committee

4. V.K.DUBEY Chief Editor, ILU Magazine

5. HARBAJAN SINGH National office Bearer

The Meeting has commenced with the welcome address by Sri HEMANTH BHARGAVA, ED, Mktg and explained the business performance of LIC, Details of Club members, Highlights of agent’s performances, agent’s statistics, market trend and its share, concerns with falling the number of agents and commission statistics of agents through Power Point Presentation. He congratulated the Agents for the good performance recorded and for positive growth in gaining the Market Share during the

financial year.

The Management has expressed its concern on declining number of agents every year due to various reasons and recruitment of agents also not an encouraging move during the last financial year and disappointed.

The Statistics which we have collected from the Central Office pertaining to the Commission paid during the last five financial years, Additions and deletion of Agents and Cub Members entry and continuation with growth percentage are mentioned in the

following tables for your kind information.

The President of LIAFI Sri S .B.SREENIVASA CHARY has introduced his team members to the management and all the members from LIAFI felicitated the Chairman on the occasion of the official confirmation of his position as Chairman, LIC of

India. It is really a worthy meeting which has been attended by the Chairman and positively responded on the issues.

Further the President expressed his concern on the issues related to IRDA guidelines such as Closure of plans from 1st October 2012 and refilling the same as per New Guidelines for Designing Products, Orphan Policies. The President also expressed the Concern of Agents and Policy Holders with respect to the proposed Direct Tax Code by M inistry of Finance. LIAFI representatives requested the management to take up the matter with Regulator and Govt of India not to initiate such drastic regulations which would adversely impact Insurance Industry , Policy Holders and the Agents.

The Chairman informed the delegation that LIC has already represented the matter to the IRDA as well as to the Govt of India. He accepted that these guidelines would adversely impact the new business and that the Industry will also suffer a lot if the same

is implemented.

GRATUITY:

We are extremely happy to inform you that the management has agreed to enhance the quantum of amount of Gratuity from 2 lakhs to 3 lakh.The necessary proposals have been sent to the Govt of India for ratification and M anagement is awaiting the approval from the M inistry of Finance.

GROUP INSURANCE:

The Executive Director (M KTG) agreed to send the proposals to the P&GS Dept for extending the group insurance to the

maximum age of 70 years of agents. At present it is available for the agents who are aged less than 65 years.

GROUP MEDICAL INSURANCE: This M ediclaim facility will be available for all Cub M ember agents up to the age of 80 years. Currently there is a single TPA operating for all India from M umbai, which is causing lot of inconvenience for processing and settlement of claims. Further, there is undue delay in processing and also excessive rejections for vague reasons. Mr Shyamal Chakrborty our Secretary General placed some specific cases before the management, which are pending since long time for claim settlement. The Executive Director (M ktg) has assured to take up this issue with the New India assurance Company Ltd at the time of Renewal of Policy i.e. in the month of September 2012. M anagement also assured the delegation to propose for decentralization to speed up claim settlements at Zonal level.

TERM INSURANCE:

It has been agreed by the management to initiate the process for enhancement of term insurance for all agents which is required to

be sent the necessary proposal to the Govt of India.

REVISED CLUB RULES : Lengthy discussions were held on “Revised Club Rules” issue particularly on Number of lives, escalation clause and first year and renewal commission. The management has informed that there is a positive growth in commission earnings and growth of Club member’s strength every year and if there is any adverse impact on the club members then it would be consider after reviewing the performance.

The ED,M ktg has assured that instructions would be reissued to all the concerned for club roaster preparation without any mistakes and all single premium policies, health and pension policies also going to be incorporated on Net Number of Lives in

force basis.

AGENTS’ HOUSING LOAN:

When we have raised the issue for enhancement of Housing Loan, the Chairman also in our meeting and advised the Executive Director to take up the matter with LIC Housing Finance LTD and resolve the same at the earliest. Accordingly Sri HEMANTH BHARGAVA, ED, Mktg has informed the delegation that he has taken charge recently and assured to settle the same within two

months.

OTHER LOANS:

The proposal for increasing number of times in availing the Four Wheeler and M arriage Advance placed before the management

in the said meeting and the Executive Director positively responded and assured to examine the possibilities.

OTHER MATTERS:

We have raised the point of including minor children in exercising the option to visit any place of their choice in India in lieu of attending the CM Club Convention. We have explained the reasons for inclusion of minor children and management was also

convinced in this matter.

M anagement has agreed to include "FAMILY" in place of Spouse and also agreed to include in the option to visit any place of their choice in India and “Other than India". Discussions were held on Direct Agents Benefits and on the clause related to 5 activated supervised agents for the payment of Training and M entorship allowance to CLIA. We have advised the management irrespective of number of agents the Allowances should be paid those who have procured the minimum required first year premium. We had a discussion with Mr. K.GANESH, Executive Director, CRM in relation to the Non availability of Policy Valets, Non Delivery of Policy Bonds in time, Enhancement of Transaction fee and transit insurance for empowered agents. In addition to this we have given the feedback with regards to the problems in ECS. We have specifically requested not to insist the Bank M anager attestation in the prescribed format to be submitted at the time of proposal wherever the Cancelled Chq and/or Passbook Copy are presented as Bank Account Proof. It is also assured by him to check the possibilities after going through the RBI guidelines. He has assured to solve these concerns at the earliest. M r.Suri Seetaram, from Hyderabad also had given some valuable suggestions in relations to the portal updating and upgrading the collection of Loan principle and interest at premium points and other than servicing branches. The ED, CRM has informed the delegation that the process of EDM S completion is in the completion stage and several new developments would be introduced at the earliest and hopefully this may take place with effect from October 2012 itself. We have also brought some technical problems to the notice of M r. B.Venugopal, Executive Director, IT particularly the problems being faced by the agents and policyholders due to E-feap at the Branches. It has been told by him that tentative relaxations provided in implementation NEFT We have also got an opportunity to meet both the Managing Directors Mr. THOMOS MATHEW and SUSHOBHAN SARKAR and submitted the memorandum with regards to the concerns of Agents community. They have positively responded on certain issues and assured to safeguard the Agents interest. The delegation of LIAFI has also met the Executive Director, CLIA Mr. NIRANJAN MISRA, Mr. T.C.SUSEEL KUMAR, ED, Bank Assurance & Alternative Channels and Mr. M.R.KUMAR, ED, Personnel at Central Office, M umbai and represented the matters related to the concerned Departments. The Meeting concluded on a positive note. Vote of Thanks was proposed by the Secretary General, LIAFI Mr Shyamal Chakraborty. S .B.SREENIVASA CHARY SHYAMAL CHAKRBORTY PRESIDENT SECRETARY GENERAL

To Dated 23-06-2011 The Executive Director (Mktg) LIC of India, Central Office Yogakshema, MUMBAI. Respected Sir, Subject: Grievances of Agents and Policy Holders Particularly LIC tied up with the New Software E-FEAP to improve efficiency of the organization. The Life Insurance Agents Federation of India humbly submits the Following grievances of the policy holders and Agents particularly with the introduction of new Software which is known as E Feap for your kind attention and necessary action. LIAFI is glad and appreciates the way Corporation is upgrading technology to keep up with times, by way of adopting new technology with an intention to extend efficient and prompt services to its Policy Holders, It has been noticed that there are serious drawbacks in the newly introduced E-Feap programme which has become a serious hurdle in the conduct of day to day business for the employees and is creating avoidable issues between corporation employees and policy holders as well as agents. SOME OF THE PROBLEMS IN E-FEAP 1. ECS transactions are not being updated particularly in Health Policies 2. Policyholders policy loans, Revival of Policies, Surrenders processing has become very difficult as compared to earlier process more particularly with whole life and Jeevan Anand Policies. 3. Abnormal delay in data keying in NB. FEAP has become a time consuming programme without results. 4. FUP Updation in SSS policies and accounts Mismatch 5. SSS policy commissions are not being processed. 5. Invoices generated at Premium Points run by Agents’ Offices could not be updated in LIC’s Systems, even after remitting cash and submitting relevant papers to Servicing branches. 6. Club roasters menu for the year 2010-11 option not available. 7. Inordinate delay in payment of Commissions to Agents is caused. Some of the branches are unable to Generate commission invoice and bills till date

PROBLEMS REG E FEAP SOFTWARE

-2- 8. The New Program does not identify the Advances sanctioned to the agents and hence Vouchers are not generated even after two months 9. Policy Refunds during Free Look Period or Agents’ Bulk Deposit refunds are not processable. 10. Agency Code Correction wherever required could not be done. At NB stage even if a typographic error takes place, officials are unable to correct the same. We have quoted only few problems but there are many other flaws in the new software which cannot be solved. We apprehend many more unfriendly features and snags in the programme. We came to know that the concerned incumbents at departments, are unable to get the proper support either from the Higher offices concerned or from the WIPRO servicing company in solving the said problems even after sending repeated e-mails. We are also receiving lot of complaints from the customers and the field force with regard to the servicing aspects at branch level. There is a need to set up a mechanism to solve the problems to rectify these issues immediately and not to repeat such kind of defects in future. Keeping in view of the above and in the interest of the customers and reputation of our esteemed organization, we humbly request your immediate intervention in handling such kind of grievances and enable the policy holders and agents enjoy with the services of LIC at an early date. Yours faithfully S.B.SREENIVASA CHARY SHYAMAL CHAKRABORTY

Copy to

The Chairman, LIC of India, Central Office , Yogakshema, MUMBAI, for necessary action

LIFE INSURANCE AGENTS FEDERATION OF INDIA

SOUTH CENTRAL ZONE President Secretary Treasurer Resident Secretary S.Srinivas K.Chandra shekara J.Chandra shekar M.Phaneendra kumar 99854 22277 98451 19748 98491 24075 93939 33911 ToThe Regional Manager (Mktg)LIC of India, South Central ZoneHYDERABAD.Dear Sir, Subject: - Submission of Agenda points to be discussed in the Agents Representatives Meeting to be held on 29.10. 2013.At the outset, The Life Insurance Agent’s Federation of India, South Central Zonal Council would like to extend its sincere thanks to you for confirming the date of Agent’s Representative Meeting to be held on 29th October 2013 at Zonal Office, Hyderabad and allowing All the Zonal Level Representatives to this meeting. The following office bearers of LIAFI, SCZ will be participated in the above meeting.1. Singarapu Srinivas President2. M.Rajavardhan Reddy Chief Advisor, Corporate Club Member3. K.Chandra Sekhara General Secretary, Bangalore4. M.Phaneendra Kumar Resident Secretary5. D.Ramachandra Vice President, Bangalore6. J.Chandrashekar Treasurer7. J.Krishna Reddy Secretary, Kadapa Division8. S.Srinivasa Raju Secretary, Machilipatnam Division After consulting our Agents from various Division Council associations, we have finalized the following Agenda for discussion in the ensuing meeting.The Various Points Proposed to be Discussed are:-1). Roasters: - In some divisions, they are not obtaining signatures of agents on club roasters for finalization of club. By this practice it will create lot of confusion in agents. There is a need to ensure the accuracy of roasters particularly in calculation of Net No of lives in force.

AGENDA FOR JCC MEETING ON 29/10/13

2) At least one computer terminal should be provided at all branches in the agent’s chamber and also provide password as supplied to DO’s (only read) 3). Samvardhan pension fund annual (Accumulated) statements should be sent to all contributed agents branch wise.4). Samriddi competition award pension contribution amount of LIC should be credited to the pension fund regularly. 4). New Business. Special attention should be given for completion of the proposals in order to meet the expecting new business due to closure of products.5). Confusion prevailed in payment of office allowances to the Club members and needs to be clarified and enlightened in this regard.6). Special training must be conducted on new products guidelines from January at Branch, Division & ZO level7). Draught/Cyclone advance should be given in all affected areas.8). Implementation of the housing loan as per the revised scheme9). Recommendations to be sent to central office for providing second time housing loan or enhancement of existing loan as per the eligibility.10).Commission bills are sending through online. But most of the agents are from rural areas; hence they don’t know how to use the internet for obtaining the bill. Hence we request you to continue old system excluding having mail ID agents.11) Agents portal: - By introducing the following things it is very useful to club member agents. A) Details of existing membership and also shown for upgrade the membership B) No. of policies in force. As on date earned comm.details (Renewal and fresh) C) Details of last year lapsed policies for revive to makeup current year membership D) Loan/SB cum revival quotations.12) Premium intimation, SB/MC, Loan int. intimations sent to policy holder through SMS.13) Foreclosure intimations should be sent policy holder as well as agent before 2 months.Any other matter with the permission of the chair. Yours faithfully M.Phaneendra kumar Resident secretary

MINITS OF JCC MEETING AT HYDERABAD

MINITS OF JCC MEETING AT HYDERABAD

MINITS OF JCC MEETING AT HYDERABAD

Without these efforts and struggles from LIAFI we could not be able to get these benefits

• ENHANCEMENT OF GROUP INSURANCE TO 5 LAKHS• ENHACEMENT OF GRATUATY TO 2 LAKHS• CHIEF LIFE INSURANACE ADVISOR • ENHANCEMENT OF HOUSING LOAN TO AGENTS• ENHANCEMENT OF CAR LOAN.• ENHANCEMENT OF MEDICLAIM• PREMIUM POINT TO AGENTS• REIMBURSEMENT OF MDRT FEE• ENHANCEMENT OF FESTIVEL ADVANCE• EARLY SETTLEMENTS OF SB/MC PAYMENTS• ABOLITION OF SWAROOP COMMITTEE REPORT• AND SO MANY

WITH CO OPERATION OF TEAM LIAFI SOUTH CENTRAL ZONE

SINGARAPU SRINIVASPRESIDENT

K.CHANDRASHEKARGENERAL SECRETARY

Designed by

N.KRISHNACHAIRMAN

IT WING (KAR)LIAFI,SCZ

EMAIL-liconwheels@rediffmail.com

“All of our dreams can come true if we just have the courage to pursue them.”– Walt Disney