SLOGAN of the LIC Agents’ Organisation of India (LICAOI) is ‘Save LIC and protect Agents’.

The present asset of LIC is Rs 38 lakh crore as against capital of mere Rs 5 crore by the government. The total dividend paid to the government including this year was Rs 31,663 crores.

The centre is engaged in fake publicity that LIC is not being privatised.  The selling of shares of LIC is the first step towards privatisation.  Only parliament is authorised to make any change in the rule of LIC.  Once the first share is sold,(Using BJP’s majority in the parliament), it is easy to sell the rest of the shares by a decision of the cabinet.  Procedures are complete to sell 49 per cent of the shares.  The position of the chief of the IRDAI which was vacant for the last nine months is now filled with an IAS officer, who was the erstwhile finance secretary, for a period of three years.

HOW WILL IT AFFECT THE POLICYHOLDERS?

They will lose a sovereign guarantee and receive only a reduced rate of bonus. The present practice of LIC is to share 95 per cent of the return from its investment of the premium collected, except their total expenses in government securities and bonds including share market, to the policyholders and the balance 5 per cent to the government as dividend.  Now it will change.

The total premium collected every year will be invested in government securities, bonds and other institutions directed by the government including the share market after meeting all expenses of LIC. Ninety-five per cent of the interest received from these sources will be given to policyholders as a bonus.  The claim is that the interest, only on the investment in the share market, will be distributed to the shareholders as dividends.

It was after realising this fact that the major trade unions formulated a coordination committee and conducted a convention in the town hall at Kochi in Kerala to announce a public strike.  The convention elected a LIC Protection Committee.  The beginning of the strike was made with the participation of policyholders with the slogan “Keralam forwards in one force to protect LIC”.  The central government thought that policyholders will never unite and they could use this opportunity to sell the shares of LIC.  But the policyholders of Kerala united.  Kerala legislative assembly also unanimously passed a resolution against IPO.  The primary aim of the coordination committee is to organise policyholders into a united force and protect their rights.