LICAOI organizes state-level conference
Mangalore Today News
Mangalore, Dec 27: The LIC Agents’ Organization of India (LICAOI) organized its 2nd state-level conference at PVS Kala Kunj in Mangalore on Dec 27, Sunday.
B Madhav, the president of the reception committee, gave the welcome speech, and said that the insurance company is facing increased demand in the foreign sector. He also said that the government of India is duty-bound to protect the insurance industry. He informed his listeners that there are 1.33 full-time insurance agents in India.
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C A Joseph, the central committee vice president of LICAOI, said that, excluding LIC agents, all other agents in the insurance industry are facing an umber of problems. Hence, steps must be taken to save the industry.
A number of issues were discussed during the conference, the chief among them being certain moves made by the Union Government, which are threatening to shake the very foundation of the Life Insurance Corporation of India.
L Manjunath, the central committee secretary, said that the Union Government has made certain amendments to the Insurance Act of 1956, which will adversely affect the interests of policy holder. These amendments are capable of destabilizing the very existence of LIC.
The focus on these amendments is to raise the initial capital from Rs 5 crore to Rs 100 crore, which will reduce bonuses from 95:05 to 90:10. The amendment also seeks to increase direct foreign investment in the insurance sector to 49 percent. The amendment also seeks to revise the work conditions of existing agents, which can put many of them out of work. The Swaroop Committee suggested a commission of Rs 0 for sale of mutual, life insurance, and ULIP policies from 2011, a move that will reduce the number of LIC agents.
MP Basudev Acharya, the president of LICAOI, inaugurated the convention. F S Sindhagi, the president of the state committee of LOCAOI, presided over the function. P G Dileep, the general secretary, and T C Susheel Kumar of LIC Karnataka, were present.