open forum.pdf

8/10/2019 Open Forum.pdf

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YOGASHEMAM VAHAMYAHAM MAM ANUSMAR YUDHYA CHA

An Open Forum

(Intended for the members of National Federation Only)

The uniqueness of the Development Officer cadre is that each one of us is a leader. Each one

us have our opinion about the common issues related to us. What is connecting us is the

mutual concern for the welfare of all us.

It is also a fact that

Our opinions are based on OUR perceptions of issues

Our concerns are based on OUR priority of issues.

Unless we are heard by others AND unless we listen to others, we may not arrive at clarity of

issues and their preferences.

Meetings - be it conducted by the Management or our Trade Union- do not provide sufficient

time for all us to give our opinion.

Even during the available time for open discussions, members express their grievances on

various issues.

Friends, human mind gets ignited when fed with positive energies and gets provoked when

fed with adverse thoughts.

The Managements reply to RLC on 26.9.13 was a provocation. But our Secretary Generals

rebuttal on 14.10.13 is well meaning & documented with evidence and deserves praise. (Hope

members are aware of those communications)

We have been discussing the harsh effects of the Special Rule 2009 in the lives of

Development Officers throughout the country. The ill effects of it are fast catching up with a

destroying cyclonic speed. The cadre has woken up to the reality. The leadership of NFIFWI

has been fighting for the just rights of this cadre. Our Primary demands of Job Security,

Wage Security and Automatic Grade Increment remain top in the agenda. It remains so fromDay One. While we carry on with our duty as DO, let us spare some time to think as to

WHAT IS IN STORE.
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The Honey Pit

This is a wonderful story in the Mahabharata - Hanging on Lifes Illusionswhich describes the transient, fragile and perilous nature of life.

There once was a man who wandered in thewilderness and found himself in a remote deep forestteaming with beasts of prey, lions and elephants allroaring such sounds as would Yama himself! The

man was terrified, his hair stood on end; his heart beating fast, he ranhither and thither trying to escape.

But the forest was a trap surrounded with a net and many five-headed snakes. Running in fear, the man fell into a pit and became entangled in clusters of creepers that were interwoven

so that he hung upside down by his feet. From his hanging plight, he saw alarge mighty snake in the pit. Close by the monster snake, was a gigantic darkelephant with six faces and twelve feet.

Near the mouth of the pit were many beesof frightful forms swarming in large

numbers, who desired to drink honey collected in combs.The honey fell in many jets below and the man who washanging by his feet in the pit began to drink from the jets ofhoney. He drank and drank more - but his thirst was neverquenched and he always desired more. In that plight hecontinued to dwell, deprived of his senses, in thatwilderness.

The Moral of this story:The wilderness is this world and the forest is the limited sphere ofour own life. The beasts are all those forces which threaten ourexistence. The huge snake at the bottom of the pit is Time, whichdestroys all embodied creatures.The creepers represent our desire to hold onto life and the bees areour endless desires. The jets of dropping honey are the pleasuresderived from the gratification of our desires and to which men areseen to be strongly addicted. The wise know lifes course t o be

even such. Through that knowledge they succeed in tearing off itsbonds.

Friends, there are plenty of issues & discomforts in our job. What is to be prioritized as NUMBER ONE ISSUE is job security and rest of the issues can follow. ELIMINATE DECREMENT & TERMINATION, before Wage Revision,must be our demand. Otherwise many may be ELIMINATED FROMSERVICES after Wage RevisionLet us in one voice rise up and demand security of livelihood. Our familiesand the society around, are thinking that All is well with our job. History &

the present scenario remind us that this job remains a contract of adifferent kind. The salary that we draw is nothing more than 12 advances of an appraisal thatwould take place at the end. Our performance this year can only ensure job guarantee for thenext year. This is the reality.

Wage Revision would be meaningless when the earned increments are not guaranteed.


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Smart Management

We are privy to all those appreciations that year after year the Chairman records in his

address to SDMs. We are also aware that the Management is realistic in analyzing the

difficult economic scenario prevailing in the country resulting in de growth in some of the

years. We are also a witness to the revision or reduction of branch target based on its

previous years performance.

Beautiful Quotes:

The Chairman once said: First line sales supervisors like Development Officers should be

the most valued customers of the sales leadership in branch and division and I would like to

measure the effectiveness of the leaders of the branch and

divisions, in the yardstick of the quality of their

relationship with sales supervisors as much as the

quantity of the new business proceeds .

Another Chairman said: I feel it is time that we

simultaneously channelize our efforts and reorient our

strategies around Development Officers too, so that we can

achieve our goals at the shortest possible time . We have

to reinforce the feeling that prosperity is sum total of efforts

of all the constituents and each and every person involved in the work is important and they

have to play the role assigned to them.

The following passage from another Chairman

..Attrition must be dealt with a sense of urgency - whether attrition is related to customer,

agent or employee. In fact who is our customer? Is it only our policy holders? Our agents and

employees are also our customers. We have to be equally concerned about these two segments

of people.But remember mental attrition is all the more dangerous than physical

attrition.Our o perating cost has been moving northward over the past two years.

General Quote

Every promise you uphold is a stroke in the painting called credibility, every promise that you

falter is a scratch in the painting called credibility.

Facts are many, but truth is just one

Whatever be the prevailing economic situations in the country, the Development Officer

wherever he is working, whatever be his age or health conditions, whatever be his past

contributions- has to perform to his cost. Everyone else in this Corporation can attribute to

external reasons and still ensure their increments and promotions. We agree, we have an

assigned role in procuring new business and the performance of majority of us fulfills the

prescribed level.


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Sr.No.COST RATIO

RANGESNo. ofDO's

CumulativeTotal % Cumulative %

1 ABOVE 35 238 238 1.04 1.04

2 30.01 - 35 135 373 0.59 1.63

3 26.01 - 30 189 562 0.83 2.45

4 25.01 - 26 99 661 0.43 2.89

5 24.01 - 25 94 755 0.41 3.30

6 23.01 - 24 131 886 0.57 3.87

7 22.01 - 23 158 1044 0.69 4.56

8 20.01 - 22 532 1576 2.32 6.88

9 17.1 - 20 1028 2604 4.49 11.37

10 15.01 - 17 903 3507 3.94 15.31

11 13.01 - 15 1174 4681 5.13 20.44

12 12.1 - 13 694 5375 3.03 23.47

13 11.01 - 12 788 6163 3.44 26.91

14 10.01 - 11 1014 7177 4.43 31.3415 9.01 - 10 1128 8305 4.93 36.27

16 8.01 - 9 1339 9644 5.85 42.11

17 7.01 - 8 1571 11215 6.86 48.97

18 6.01 - 7 1922 13137 8.39 57.37

19 5.01 - 6 2156 15293 9.41 66.78

20 4.01 - 5 2440 17733 10.66 77.44

21 3.01 - 4 2327 20060 10.16 87.60

22 2.01 - 3 1977 22037 8.63 96.23

23 1.01 - 2 763 2280 0 3.33 99.56

24 UPTO 1 100 2290 0 0.44 100.00

COST RATIO RANGES AS AT 2010-11 (Courtesy:Sangarsh, NF,WZ)

No.ofDO's

Otherentries

NewRecruits

TotalAddit ion Ret ir ed VRS Death

Resignations

Terminations

OtherExits Total

No.ofDo's ason 31/3

2005-06 19230 93 33 126 89 2 52 24 19 322 508 18847

2006-07 18846 136 2746 86 13 41 112 25 148 21303

2007-08 21303 722 2956 3678 84 21 44 602 205 1011 1970 23011

2008-09 23051 364 3825 4189 123 24 53 1068 349 636 2253 24987

2009-10 24987 153 263 416 154 16 49 711 455 384 1769 23634

2010-11 23556 292 1804 2066 194 12 54 324 198 323 1105 24517

as on31.12.12 24851 542 1888 2 430 201 16 52 761 81 532 1643 25638

Details (All India) of Recrui tment, Resignation , Termination etc of Class II 2005-06 to 31.12.2012

Courtesy: Sangars h, NF,WZ Magazine fw dd by Com.Harish Desai

Chart of Cost Ratio Ranges of DOs as at 2010-11 ONLY . (Courtesy: Sangarsh)

Caution: This is just asample. The latest datamust be alarming withmore numbers added to the

the range above 20%. This table lists 1576 out of22900 as above 20% costratio which is 6.88% of thecadre strength. 5601(24.46%) DOs are between10% & 20% - Mostprobably, non-IB earners.Alert: The wage revision2012, with the merging ofDA and a similar increaseas 2007 might end up witha hike of at least 70% to80% of the present pay.Assuming it to be 60% hike(this is gross only; thedemand by unions isaround 40%; what ismentioned as 60% is basicplus DA, FCA, HRA, CCAetc) , we will find DOs who are in 20% cost ratio would jump to 32% cost ratio, 10% atpresent would move to 16% and 6% CR would move closer 10% assuming their Premiumproduction for costing continues the same. This may be frightening but this puremathematics of experience.

The percentage of non-performance or low performance is not unique with Class II alone.Every cadre comprises of high, average and low performers. Why such harsh punishment forus of taking away the earned increment, slapping decrement & ultimately issuing marchingorders? Are we integral part of this Institution? We are forced to think so because there aretwo set of rules governing our service conditions.

Following chart illustartes details of Class II Additions & Exits (Current data not available)
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LICI planned for recruiting 5000 Development Officers every year since 2006-07. This sort of an

expansion was not seen in any other cadre in LICI or any other PSUs. Look at the number of

Exits. We have joined with dreams of a decent profession and the family, friends & the society

around us think that our career is similar to other categories of employees in LIC.

Arent we in the business of preaching insurance for future economic stability? Are we

preachers to meet such an eventuality of untimely agonizing exit? Is there any insurance

policy to insulate a development officer from the happening of an occupational hazard like

no increment, decrement or termination without pension at an unknown time?

The above chart was up to 2010-11 . Todays scenario is much worse. The fear of future and

the ignominy one is to undergo in case of undesirable outcome is fast catching up every one.

Marketing profession in a PSU sector like ours would lose out its sheen, if the exit list on

terminations exists. Already, this job, in recent years, is becoming a stop gap employment for

the academically qualified youths as they find it difficult to continue and start searching for

better avenues.

The year 2009 has become a watershed in the lives of field force in

LICI. The Draconian amendments were effected to the then

existing Agents Rules 1972 and Special Rules (Development

Officers) 1989.

The Hurdles:

Look at the hurdles that have been created in the functioning of a development officer.

First, by one stroke, amending the MAB, we have lost a huge

reservoir of agents and the goodwill that we earned. We have

orphaned millions of policy holders. We were providing an

additional income to the small part time agents who were

operating in their own circle bringing in small volumes of

good business. We have lost them.

Secondly, these agents were a good source for new agency candidates and such

additions were also plugged.

Then there was another segment of agents whom we groomed to become club

members. They were light houses to showcase and motivate others and also used as

centres of influence for agency prospecting. By awarding them a parallel portfolio

named as CLIAs, that source was also totally depleted.

Thus the Management has spoilt the good relationships we had with such types of agents

and have wrongfully played into diminishing returns.


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The Management has not helped us in dealing with IRDA, highlighting the difficulties that we

face in training and passing of candidates. Changes have come for the better, in reducing

100 hrs to 50 hrs and minimum pass marks from 50% to 35%. But before this, we have

experienced a severe blow. The ATCs are not available in every branch. The Online centers

too are very limited. The syllabus is dry, boring and of rare use in practice after passing. The

interest of the candidate gets lost in transit i.e., in the gap of leaving a prospect at ATC for 10

days and taking care after their qualification.

Honestly, the Management must compile and study a comparison data between

The contribution of Pre-IRDA Agents And The contribution of Post-IRDA Agents

This would clearly prove the need for the reversal of the system & procedure for recruitment

and taking it up with IRDA. Of late, all the Insurers have been pleading this with IRDA.

Product positioning:

The Management s priority of big ticket selling of ULIPs was a pleasure for one or two years.

During this phase, those who did not participate in that windfall business were termed as

conservative and not market intelligent. But the aftermath of that wrong positioning is

boomeranging on us, by way lapses and loss of goodwill earned.

Crowding the Market:

The Managements principle is quite amusing. More number of people would result in

proportionate increase in business, is not possible in reality. It becomes the issue of survival

of the fittest on a temporary basis. The Management has crowded the field with

disproportionate additions.

A development officer gets groomed into this profession in a phased manner and requires

some time and attention. Posting and crowding each town with 5 to 10 new development

officers is not helping LICI.

The aspirants who visit Job Melas shy away from the stalls that are put up by the

representatives of Insurers which unfortunately includes our colleagues queuing up with

CLIAs.

Thus the portfolios of recruitment, motivating, prioritizing need based selling were all

hijacked. Added to this, is the economic recession in the country.

We appreciate that the Management has brought in some improvements to our just demands

related to No costing of PLLI, Meal Coupon, grading in IB, allotment of agents, Scheme 2

conveyance and other petty benefits.

We also appreciate the relaxation of IRDA, related to minimum pass marks and the

possibility for renewal of archived licenses.


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But the disincentive table in special rules is staring at us resulting in feeling of insecurity of job, wages and pension. This is hampering enthusiasm of younger & elder developmentofficers as it affects all across the cadre.

The Management has been kind enough to accept the demands of lowering the cost for agroup of development officers; please go through the following circular.

. In view of the genuine problems faced by the SBAs owing to settlement of wage revision arrears, thecompetent authority has decided that if the cost ratio of an SBA exceeds 3% ONLY because of thearrears of salary etc. paid on account of the wage-revision for the period 1.4.2010 to30.09.2010 , he/she will be allowed to continue in the SBA scheme provided the cost ratio so arrived atdoes not exceed 5%.....

Ref:Mktg/SBA/2011 dtd 25.10.2011

Thus the Management has shown that it would amend the rules when it affects; It has alsohas shown that it is willing to listen, as there was demand from this group in the referredcontext. There are also instances when the Management has offered special privileges &benefits to groups of its choice.

During the same period the settled appraisals of manydevelopment officers were reopened and recoveriesmade. The Audit Teams visit during that time was toensure that what was hitherto thought as DOsincentive was credited back to LIC account by simplemathematical calculations. Does not this expose thedouble standards?

Ever rising cost of living and ever rising cost ratio: On 12 th November 2009 the Special rules 2009 wasnotified by the Government of India replacing theSpecial rules 1989 and thereby the MOU 1988 wasburied leaving us shocked to realize and doubt theManagements care & concern for the welfare of thiscadre.

Marketing activities will be at its best when these threats are put to rest

Where the mind is without fear and the head is held high

Where knowledge is free,Where the world has not been broken up into fragments by narrow domestic walls,Where words come out from the depth of truth,Where tireless striving stretches its arms toward perfection,Where the clear stream of reason has not lost its way into the dreary desert sand of dead habit,Where the mind is led forward by thee into ever widening thought and action.In to that heaven of freedom, my father, Let my Country Awake!- Rabindranath Tagore, Gitanjali

Our Concerns in Special Rule 2009:

The developmen t officers community has been pushed back to 3decades.

Multiple decrements in one year of failure; Deferment of disincentives only after 10 years of

performance within norms;


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Ever increasing and unpredictable cost ; removal of adhoc annual remuneration ;

Only four classifications of areas contrary to five in 1989 No relief for age 50 to 55 contrary to 1989 Stagnation Increment after 3 years of consistent

performance; When NO increment is offered during stagnation, poor

performance even in one year attracts decrement from the past increments earned before stagnation period.

When young, we get one increment per appraisal BUT as we grow old, after >21 yrs ofservice, we have to perform to cost for 3 continuous years to earn one increment;

Stagnation release at the mercy of CR by branch-in-charge depends on his/their opinionabout us on me fulfilling his/their commitment,whereas our concern is towards cost ratio.

2% buffer offered in the disincentive table is not

available during stagnation stage; Nor aggregate costratio of three years, which is logical Termination, even when one fails one year if the

combined aggregate cost ratio of two years is morethan 38 %.

Termination without terminal benefits for the eligible is a wrong practice. Interview to find suitability for Reappointment after >7 years of experience in LIC is like

testing a graduate for kinder garden levels.Our Suggestions with Options for Immediate Action:

1. Prescribe the premium requirement , preferably FIXED COST for the appraisal year on Day 1 of the Appraisal Year.

2. In effect, one can be terminated for failure in one year if hiscost in the relevant year is above 38 % and if his aggregatecost including the previous year exceeds 38% even if he hadworked within his cost in the previous year and hence thiscondition be remove.

3. Termination of a permanent employee for failure of fulfilling a norm in one or two years,instead should be 5yrs aggregate.

4. No increment - should not be awarded as punishment at first instance, instead a lesser

punishment should be considered. No Increment should also be restored if good performance follows in any future appraisal.

5. Any punishment should not be a permanent one but time bound.The decrements can be restored by good performances in 3consecutive y ears. But No Increment can NEVER be restored

6. The word DECREMENT must be removed from the special rulesbecause we are paid increment ONLY on achieving the cost norms.i.e., ours is an earned increment.

7. Absorption to the cadre of AAO (Development) as is prevalent inGIC. If that is not an option. Alternately, Full Terminal Benefits on termination due to costnorms to be considered.

8. When notification for promotion to AAO is issued, DOs t o be included for consideration as itis notified in Special Rules.


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9. No Mans Land: If NO incentive is payable to Development Officerdespite being eligible, then the premium in excess of cost is to betaken to subsequent appraisal (Note: Lapse is taken forsubsequent appraisal)

10. Optional Incentive: Development Officers should be given an

option to receive incentive or to keep the excess contribution inabeyance for future costing. (Note: Equitable relief is loadedretrospectively)

11. Reappointment should be automatic as we find ABM eligible DOis rejected for the job of an assistant in interviews.

12. Deferment of disincentives on assessment of 5 yearsof past performance (as in special rules 1989), insteadof 10 yrs for keeping the punishment in abeyance.

13. As far as increased expense limit to elder development

officers, the increase must be at least to the levels of1989 rules

14. The classification area of operation B and C should berestructured as majority of Development officers areworking in these areas. At the same time area C & Dof 1989 MOU, related to people working in rural areas with population around 4 lacs are

punished by adding up their cost when the population remains the same. DO's working inthose areas face severe problems with regard to cost norms and are punished for workingthere as one has to bring in 4% extra cost compared to 1989. Similar is the plight of

Development officers working in areas classified under E in 1989.

Deceptive Appearance & Dubious Status:

The job of a development officer is not well understood even at the micro level by others inthe branch office. Somehow, wrong notions have been conceived based on the appearance &designation as Development Officer. But pity is that even members of our own fraternity arenot fully aware of the risks involved in this profession. Unfortunately, the recent past hasunfolded the adverse effects of this job.

The Audit Team, which used to open the Appraisal files of DOs earning IB to check for

excess payment, has very little number of files in this category. There was a communicationfrom the CO to complete the Appraisal within one month of due date to invoke theprocedures for Special Rules application to the concerned DOs as the various judgmentshave gone against the Management on such technical lapses.

There is a gloom in DOs cabins in branches wheresilent exits due to Special Rules are taking place.Members who suffer increment cut or decrements aredestined to suffer in is olation. Even elder DOs after creditable past performances are discussing the options

of VRS. The scenario can be compared to that of an ICUwhere the departure of one soul affects the mentalbalance of other in-patients. These are notexaggerations. For those who feel comfortable, we wishthe best but advice to be careful.


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Landmark judgments related to Development Officers affected by Special Rules (Old & New)

Observations by The Supreme Court of in S.K.Verma case:

one does not have to be carried away by the appellation 'developmentofficer' but must look to the nature of his duties to discover what precisely adevelopment officer is. It is seen from the Life Insurance Corporation of India(Staff) Regulations that development officers, while classified separately from'Supervisory and Clerical Staff' are also classified separately from 'officers'and from the scales of pay prescribed as well as the authorities competent toappoint and take disciplinary action in respect of various categories of officersand staff mentioned therein it is clear that the appellation 'developmentofficer' is no more than a glorified designation. Development officers are

separated from 'officers' strictly so called and are generally placed on a par with subordinate and clericalstaff. The nature of the duties of a development officer gathered from the letter of appointment issued tothe appellant indicate that he is to be a whole time employee of the Corporation, that his operations are tobe restricted to a defined area, that he is liable to be transferred, that he has no authority to bind theCorporation in any way, that his principal duty is to organise and develop the business of the Corporationin an area allotted to him and for that purpose to recruit active and reliable agents and to train them andthat even so, he has not the authority either to appoint them or to take disciplinary action against them.Further, it was admitted that a development officer has no subordinate staff working under him. It is thusclear that a development officer cannot by any stretch of imagination be said to be engaged in anyadministrative or managerial work.

We expect public sector corporations to be model employers and model litigants. We do not expectthem to attempt to avoid adjudication or to indulge in luxurious litigation and drag: workmen from court tocourt merely to vindicate, not justice, but some rigid technical stand taken up by them. We hope that publicsector corporation will henceforth refrain from raising needless objections, fighting needless litigations andadopting needless postures.

.. A few of the development officers may have been very fortunate in that the agents working within their jurisdiction had done excellent business and that entitled them to earn a good commission. But we are toldthere are more than six thousand development officers and nothing has been said about the averagecommission earned by them or the commission earned by the present petitioner himself.

.. A perusal of the above extracted terms and conditions of appointment showsthat a development officer is to be a whole time employee of the Life InsuranceCorporation of India. that his operations are to be restricted to a defined area andthat he is liable to be transferred. He has no authority whatsoever to bind theCorporation in anyway. His principal duty appears to be to organise and developthe business of the Corporation in the area allotted to him and for that purpose torecruit active and reliable agents, to train them to canvass new business and torender post-sale services to policy-holders. He is expected to assist and inspirethe agents. Even so he has not the authority to appoint agents or to takedisciplinary action against them. He does not even supervise the work of theagents though he is required to train them and assist them. He is to be the friend,

philosopher and guide' of the agents working within his jurisdiction and no more.He is expected to stimulate and excite those agents to work, while exercising no administrative control overthem. The agents are not his subordinates. In fact, it is admitted that he has no subordinate staff workingunder him. It is thus clear that the development officer cannot by any stretch of imagination be said to beengaged in any administrative or managerial work. He is a workman within the meaning of s. 2 (s) of theIndustrial, Disputes Act.

Another observation in S.N.Goswami case by the Punjab HC referring the landmark judgment of R. Sureshby Supreme Court emphasizing S.K.Verma Case:


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..however, a shift of emphasis from what the workman needs to show that he was doin g managerialand administrative functions to what the workman is bound to show that he was not C.W.P No.2290 of2008 -8- doing only manual, clerical or supervisory functions. This approach is brought out through aConstitution Bench of the Hon'ble Supreme Court in H.R. Adyanthaya and others Vs. Sandoz (India) Ltd.1994 (5) SCC 737 where the Hon'ble Supreme Court said that even a person who does not perform manualor supervisory duties, with a view to hold that he was a workman, it must be established that he performs

skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward. The decision of theConstitution Bench was particularly noted as significant in Mukesh K. Tripathi Vs. Senior DivisionalManager, LIC and others 2004 (4) RSJ 465 which examined a question whether an ApprenticeDevelopment Officer in LIC did not perform any skilled, unskilled, manual, technical or operational job of a

workman. It held that the decision in S.K. Verma Vs. MaheshChandra (supra) did not consider or refer to the decision in M/s Mayand Baker (India) Ltd. Vs. Workmen AIR 1967 SC 678 that held asales representative to be not a workman and to other decisions inWestern India Match Co. Ltd. Vs. Workmen (1964) 3 SCR 560 andBurmah Shell Oil Storage & Distribution Co. of India Vs. BurmaShell Management Staff Association (1970) 3 SCC 378. The Three-

Bench of the Hon'ble Supreme Court held in Mukesh K. Tripathi'scase that S.K. Verma Vs. Mahesh Chandra did not notice the earlierdecisions and the decision must be taken as per incuriam.

.Learned counsel for the petitioner, however, refers to the decision of the Hon'ble Supreme Court by Two - Member Bench in LIC of India Vs. R. Suresh 2008(3) RSJ 232 where the Hon'ble C.W.P No.2290 of 2008 -9-Supreme Court referred to S.K. Verma and Mahesh K. Tripathi and still held that the Development Officerin LIC was a workman. According to the learned counsel for the petitioner, S.K. Verma's case still holds the

field and it was not expressly over-ruled in any decision. While LIC of India Vs. R. Suresh has notexpressly over- ruled S.K. Verma, it can be noticed that it distinguished Mahesh K. Tripathi only on theground that it dealt with the case of an apprentice and hence was not applicable to the case in LIC of IndiaVs. R. Suresh. Even the Constitution Bench did not go as far as to say that S.K. Verma was wrong thoughthe Five-Member Bench clearly laid down that decision in S.K. Verma must be understood as beingconfined to the facts of the said case only.

Another landmark judgement ordering pension for termination on the grounds of Special Rules isC.Damodarasamy case delivered by Madras High Court:

. It is unjust to deny pension to the appellant solely on the technical ground since the appellant wasterminated not by way of punishment, but as per Schedule-III, Clause 6 of the Service Regulations and hewas not re-appointed/re-employed. It is not in dispute that the appellant has put in 27 years of serviceand during the performance review as contemplated under Schedule-III, Clause 6, the appellant wasterminated. It should be, in the normal circumstances, treated as compulsory retirement otherwise than

punishment. Once a person is not allowed to continue after certain period of service due to lack of utility,the past services rendered by him cannot be totally obliterated and for the past services rendered, he isentitled to get pension, provided the termination was not by way of punishment...The concept of pension is now well known and has been clarified by this C ourt time and again. It is nota charity or bounty nor is it gratuitous payment solely dependent on the whim or sweet will of theemployer. It is earned for rendering long service and is often described as deferred portion of compensation

for past service. It is in fact in the nature of a social security plan to provide for the December of life of asuperannuated employee.

(Read the following portions carefully).. Yet another factor in this case as rightly contended by the learned counsel for the

appellant is that the appellant was a Developmental Officer of the Life InsuranceCorporation, who has to travel for attaining the target fixed for him by getting policies.In the affidavit filed in support of the writ petition the appellant has clearly stated thathe was suffering from dislocation of the spinal cord and was on medical leave for morethan one year from November, 1984 to December, 1985 and due to his ill-health, his


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performance was not up to the mark. The said disease is occurred during the course of the employment ofthe appellant and the same is not denied in the counter affidavit.

.. A similar issue arose before the Honourable Supreme Court in the decision reported in AIR 1991 SC 1003= (1991) 1 SCC 731 In the said case, the point for consideration was whether the drivers of the TransportCorporation who were terminated on the ground that they have developed eye-sight which was not thestandard required to drive buses due to occupational disease,

..Ultimately, the Honourable Supreme Court in the above referred Judgment, taking note of the nature ofthe duty performed by the drivers and similarly placed persons , who were not having the same eye- sight, were retained in service in other departments other than drivers, thought fit to suggest to providealternate employment along with retirement benefits and also ordered to pay additional compensationamount.

the appellant is denied the payment of pension on the technical ground that he is a t erminatedemployee of the corporation, forgetting the fact that the said termination was not by way of punishmentbut by way of dispensing with the services due to non - utility

Latest one is Syam Kumar case with a favourable judgment from Kerala HC.Order passed with a closed mind is liable to be interfered with on that sole score. It is further submitted that while taking up Exts.P4 and P6 for consideration, the respondents may also bedirected to consider the request of the petioner made in ground H of the writ ppetition which reads thus:H. The petitioner is willing to forgo portion of his annual remuneration exceeding 38% to maintain costratio to bring it on par with eligible premium and maintain it below 38% as provided in the rule to avoid the proposed termination indicated in the impugned order.. There will also be a direction to the first respondent to reconsider the matter afresh. Needless to say that while taking up such matters for consideration, it is only appropriate for the firstrespondent to look into Ext.P7 judgment and also the feasibility of accepting the request made in groundH, as referred above. I have no doubt that while taking up the matter for consideration the firstrespondent would bear in mind that the matter involves the question of deprivation of means of livelihoodof a person.

History reminds us the MOU between LIC Management

& National Federation which led to Spl Rules 1989.

There was a mutual agreement to withdraw several

cases (13 by NF & 79 by individuals in that Annexure)

filed by NF & individual Development Officers. On

display adjacently is the relevant portion dated

19.07.1988.


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Friends, the recent News Bulletin Oct 2013- with cover story of Legal Battles for Survival ,

lists only a few battles. But there are plenty, still ongoing. Please imagine the time it has

consumed for these comrades and the social stigma & humiliation they suffered. It must be

an extremely difficult and unpleasant phase in ones life.

Friends the Alarm bell has begun, we cannot afford to put it to snooze anymore. The alarm is

to wake up.

If we are not part of the solution, then

we are part of the problem.

We, as members of NF, must be prepared to contribute to achievement of the focused goal.

Let our voice for Job Security be raised in all the meetings of Management & Federation.

Contribution does NOT end at paying ones subscription. Huge amounts of time, money &

energy are invested in the conduct of council meetings at division, zone & central level.

Our AIP Com.Vivek Singh has expressed his concern over the paucity of time for Open

Forums. Its true. A place for everything & everything in its place; A time for everything &

everything in its time should be the guiding principles for the conduct of our meetings . It s

the primary duty of each one us to maintain the integrity of our dear Institution and the dear

Federation. Let the social media be used

for propagating the positives of LICI &

NF. Any adverse opinion may please beaddressed in proper forum.

Strength of character is born out of the obstacles overcome. We are the co-authors of our

destiny. When someone is blessed with good business performance, please think of those

friends who suffer in areas of difficult access, lack of insurance awareness, poor economic

conditions, affected due to natural & man-made disasters or is sick.

There is no paucity of leadership in National Federation. Our leaders know that the election

of their co-office bearers is not their choice. They fine tune, if needed, their inter-personal

relationship to work in tandem and take combined responsibility for their success & failures.

The difference of opinion towards approach to an issue is not avoidable. In fact, it is a

healthy factor in democracy. Ideal

leadership would evolve to find a

unanimous decision. There must not be any

whispers of individuals opinions as the

collective wisdom should prevail over.

Accountable work for everyone and everyone accountable to their work would ensure betterresults. Our NF constitution clearly outlines the duties of Leaders at various levels.


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S.Mukundhan, Coimbatore [email protected]

I.M.Raja , Coimbatore

[email protected]

S.Venkatasubramanian, [email protected]

C.P.Ravindranathan, [email protected]

Trespassing into others role, suppressing /filtering/ editing information that is to beconveyed to the grass root members would not enlighten the members but confuse.

Let us renounce the life of insensitivity at all levels and embrace the life of mutual care andconcern. It is not you & me, but those who are unconnected but concerned about ouractivities are also watching.

This article is only to share the sharing of our friends. This is only to improve the awarenessand create an area for expression. The purpose is only to refresh the priorities and focus ourfight for dignity in our career.Most of the points are already represented by our Federation.

This is intended to make the Management understand that it isnot a group of development officers but everyone in thebranches has been undergoing an emotional agitation andWork Norms is playing havoc in the minds of all developmentofficers resulting in loss of peace of mind. There are Only Twogroups Already affected & To be Affected by Spl. Rules onWork Norms.

We have joined in LICI not to fight court battles for survival but to earn name, fame & wealthby honestly discharging our duties. Shifting of goal post by unreasonable stretch would neverhelp reach the goal. Kindly REVISIT SPECIAL RULES and make amendments in tune withemp loyees sentiments shared above, is our demand to the Management.

Dear LIC, WE the members of National Federation, love you so much; You have been our

livelihood. We want to carry only the sweet memories of our association with YOU and takepride in contributing our share to The Nations Pride, LIC.

WE assure - Policy in every pocket by 2020 is a possibility. WE request you to ensure that

our pockets do not get dried up & we do not get vanished.

Dear Friends, we are sure this article reflects the mood of the development officers. If you like

this article, please dont keep it a secret. Share it with our members of NF. If you have any

suggestions for improvement, let that also be shared.

This article is to EXPRESS OUR CONCERN AND IMPRESS THE MANAGEMENT FOR A

SPEEDY & FAVOURABLE SOLUTION. Sharing & Caring eases the pain. GOD BLESS!

Thanks & Regards

NOTE: Care is taken to present this article appealing to every member, leader and the management, without prejudice.

Purpose is to have a united & focused approach to ensure job security. Spread this to all the members in your contact.

LONG LIVE LIC! ~ t.s.rajan ~ NATIONAL FEDERATION ZINDABAD!

18.11.2013 [email protected]
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