Mangalore, Dec 26: The LIC Agents’ Organization of India (LICAOI) will organize its 2nd state-level conference at PVS Kala Kunj in Mangalore from Dec 27, Sunday.
A number of issues will be discussed during this 2-day conference, including certain moves of the Union Government, which threaten the very existence of the Life Insurance Corporation of India.
L Manujanth, the all India joint secretary of LICAOI, said that the Union Government has made amendments to the Insurance Act of 1956, which will adversely affect the interests of a number of policy holders. These amendments can destabilize the very existence of LIC, he said.
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, will inaugurate the convention. P G Dileep, the general secretary and other leaders of LICAOI will participate in this conference, said Manjunath.