1

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 from
Day One. While we carry on with our duty as DO, let us spare some time to think as to
WHAT IS IN STORE.
tsrajanlic@gmail.com 94431 56829

The Honey Pit

This is a wonderful story in the Mahabharata - Hanging on Lifes Illusions
which describes the transient, fragile and perilous nature of life.
There once was a man who wandered in the
wilderness and found himself in a remote deep forest
teaming with beasts of prey, lions and elephants all
roaring such sounds as would Yama himself! The
man was terrified, his hair stood on end; his heart beating fast, he ran
hither 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 a
large mighty snake in the pit. Close by the monster snake, was a gigantic dark
elephant with six faces and twelve feet.
Near the mouth of the pit were many bees
of 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 was
hanging by his feet in the pit began to drink from the jets of
honey. He drank and drank more - but his thirst was never
quenched and he always desired more. In that plight he
continued to dwell, deprived of his senses, in that
wilderness.
The Moral of this story:
The wilderness is this world and the forest is the limited sphere of
our own life. The beasts are all those forces which threaten our
existence. The huge snake at the bottom of the pit is Time, which
destroys all embodied creatures.
The creepers represent our desire to hold onto life and the bees are
our endless desires. The jets of dropping honey are the pleasures
derived from the gratification of our desires and to which men are
seen to be strongly addicted. The wise know lifes course to be
even such. Through that knowledge they succeed in tearing off its
bonds.
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 FROM
SERVICES after Wage Revision
Let us in one voice rise up and demand security of livelihood. Our families
and 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 a
different kind. The salary that we draw is nothing more than 12 advances of an appraisal that
would take place at the end. Our performance this year can only ensure job guarantee for the
next year. This is the reality.
Wage Revision would be meaningless when the earned increments are not guaranteed.
tsrajanlic@gmail.com 94431 56829

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 operating 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.
tsrajanlic@gmail.com 94431 56829

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

Caution: This is just a
sample. The latest data
must be alarming with
more numbers added to the
the range above 20%.

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

Sr.No.

COST RATIO
RANGES

No. of
DO's

Cumulative
Total

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

2.89
This table lists 1576 out of
5 24.01 - 25
94
755
0.41
3.30
22900 as above 20% cost
6 23.01 - 24
131
886
0.57
3.87
ratio which is 6.88% of the
7 22.01 - 23
158
1044
0.69
4.56
cadre
strength.
5601
8 20.01 - 22
532
1576
2.32
6.88
(24.46%) DOs are between
9 17.1 - 20
1028
2604
4.49
11.37
10% & 20%
- Most
10 15.01 - 17
903
3507
3.94
15.31
11 13.01 - 15
1174
4681
5.13
20.44
probably, non-IB earners.
12
12.1
13
694
5375
3.03
23.47
Alert: The wage revision
13 11.01 - 12
788
6163
3.44
26.91
2012, with the merging of
14 10.01 - 11
1014
7177
4.43
31.34
DA and a similar increase
15 9.01 - 10
1128
8305
4.93
36.27
as 2007 might end up with
16 8.01 - 9
1339
9644
5.85
42.11
a hike of at least 70% to
17 7.01 - 8
1571
11215
6.86
48.97
80% of the present pay.
18 6.01 - 7
1922
13137
8.39
57.37
19
5.01
6
2156
15293
9.41
66.78
Assuming it to be 60% hike
20 4.01 - 5
2440
17733
10.66
77.44
(this is gross only; the
21 3.01 - 4
2327
20060
10.16
87.60
demand by unions is
22 2.01 - 3
1977
22037
8.63
96.23
around 40%; what is
23 1.01 - 2
763
22800
3.33
99.56
mentioned as 60% is basic
24 UPTO 1
100
22900
0.44
100.00
plus DA, FCA, HRA, CCA
etc), we will find DOs who are in 20% cost ratio would jump to 32% cost ratio, 10% at
present would move to 16% and 6% CR would move closer 10% assuming their Premium
production for costing continues the same. This may be frightening but this pure
mathematics 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 for
us of taking away the earned increment, slapping decrement & ultimately issuing marching
orders? Are we integral part of this Institution? We are forced to think so because there are
two set of rules governing our service conditions.
4 25.01 - 26

99

661

0.43

Following chart illustartes details of Class II Additions & Exits (Current data not available)
Details (All India) of Recruitment, Resignation, Termination etc of Class II 2005-06 to 31.12.2012
No.of
DO's

Other
entries

New
Total
Recruits Addition Retired

2005-06

19230

93

33

2006-07

18846

136

2746

2007-08

21303

722

2956

2008-09

23051

364

2009-10

24987

2010-11
as on
31.12.12

126

VRS

Resig
natio
ns

Death

Termi
No.of
nation Other
Do's as
s
Exits Total on 31/3

89

52

24

19

322

86

13

41

112

25

148

3678

84

21

44

602

205

1011

1970

23011

3825

4189

123

24

53

1068

349

636

2253

24987

153

263

416

154

16

49

711

455

384

1769

23634

23556

292

1804

2066

194

12

54

324

198

323

1105

24517

24851

542
1888
2430
201
16
52
761
Courtesy: Sangarsh, NF,WZ Magazine fwdd by Com.Harish Desai

81

532

1643

25638

tsrajanlic@gmail.com 94431 56829

508

18847
21303

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.

tsrajanlic@gmail.com 94431 56829

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 Managements 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.

tsrajanlic@gmail.com 94431 56829

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 development
officers as it affects all across the cadre.
The Management has been kind enough to accept the demands of lowering the cost for a
group 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, the
competent authority has decided that if the cost ratio of an SBA exceeds 3% ONLY because of the
arrears of salary etc. paid on account of the wage-revision for the period 1.4.2010 to
30.09.2010, he/she will be allowed to continue in the SBA scheme provided the cost ratio so arrived at
does 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 also
has shown that it is willing to listen, as there was demand from this group in the referred
context. 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 many
development officers were reopened and recoveries
made. The Audit Teams visit during that time was to
ensure that what was hitherto thought as DOs
incentive was credited back to LIC account by simple
mathematical calculations. Does not this expose the
double standards?
Ever rising cost of living and ever rising cost ratio:
On 12th November 2009 the Special rules 2009 was
notified by the Government of India replacing the
Special rules 1989 and thereby the MOU 1988 was
buried leaving us shocked to realize and doubt the
Managements care & concern for the welfare of this
cadre.
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 development officers community has been pushed back to
decades.
Multiple decrements in one year of failure;
Deferment of disincentives only after 10 years of
performance within norms;
tsrajanlic@gmail.com 94431 56829

Ever increasing and unpredictable cost ; removal of ad

hoc 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 of
service, 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 opinion
about 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 cost
ratio of three years, which is logical
Termination, even when one fails one year if the
combined aggregate cost ratio of two years is more
than 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 his
cost in the relevant year is above 38 % and if his aggregate
cost including the previous year exceeds 38% even if he had
worked within his cost in the previous year and hence this
condition 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 3
consecutive years. But No Increment can NEVER be restored
6. The word DECREMENT must be removed from the special rules
because 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 in
GIC. If that is not an option. Alternately, Full Terminal Benefits on termination due to cost
norms to be considered.
8. When notification for promotion to AAO is issued, DOs to be included for consideration as it
is notified in Special Rules.
tsrajanlic@gmail.com 94431 56829

9. No Mans Land: If NO incentive is payable to Development Officer

despite being eligible, then the premium in excess of cost is to be
taken to subsequent appraisal (Note: Lapse is taken for
subsequent appraisal)
10. Optional Incentive: Development Officers should be given an
option to receive incentive or to keep the excess contribution in
abeyance for future costing. (Note: Equitable relief is loaded
retrospectively)
11. Reappointment should be automatic as we find ABM eligible DO
is rejected for the job of an assistant in interviews.
12. Deferment of disincentives on assessment of 5 years
of past performance (as in special rules 1989), instead
of 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 of
1989 rules
14. The classification area of operation B and C should be
restructured as majority of Development officers are
working in these areas. At the same time area C & D
of 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 in
those areas face severe problems with regard to cost norms and are punished for working
there 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 in
the 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 are
not fully aware of the risks involved in this profession. Unfortunately, the recent past has
unfolded 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 communication
from the CO to complete the Appraisal within one month of due date to invoke the
procedures for Special Rules application to the concerned DOs as the various judgments
have gone against the Management on such technical lapses.
There is a gloom in DOs cabins in branches where
silent exits due to Special Rules are taking place.
Members who suffer increment cut or decrements are
destined to suffer in isolation. Even elder DOs after
creditable past performances are discussing the options
of VRS. The scenario can be compared to that of an ICU
where the departure of one soul affects the mental
balance of other in-patients. These are not
exaggerations. For those who feel comfortable, we wish
the best but advice to be careful.
tsrajanlic@gmail.com 94431 56829

10

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 'development
officer' but must look to the nature of his duties to discover what precisely a
development 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 to
appoint and take disciplinary action in respect of various categories of officers
and staff mentioned therein it is clear that the appellation 'development
officer' 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 clerical
staff. The nature of the duties of a development officer gathered from the letter of appointment issued to
the appellant indicate that he is to be a whole time employee of the Corporation, that his operations are to
be restricted to a defined area, that he is liable to be transferred, that he has no authority to bind the
Corporation in any way, that his principal duty is to organise and develop the business of the Corporation
in an area allotted to him and for that purpose to recruit active and reliable agents and to train them and
that 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 thus
clear that a development officer cannot by any stretch of imagination be said to be engaged in any
administrative or managerial work.
We expect public sector corporations to be model employers and model litigants. We do not expect
them to attempt to avoid adjudication or to indulge in luxurious litigation and drag: workmen from court to
court merely to vindicate, not justice, but some rigid technical stand taken up by them. We hope that public
sector corporation will henceforth refrain from raising needless objections, fighting needless litigations and
adopting 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 told
there are more than six thousand development officers and nothing has been said about the average
commission earned by them or the commission earned by the present petitioner himself.
..A perusal of the above extracted terms and conditions of appointment shows
that a development officer is to be a whole time employee of the Life Insurance
Corporation of India. that his operations are to be restricted to a defined area and
that he is liable to be transferred. He has no authority whatsoever to bind the
Corporation in anyway. His principal duty appears to be to organise and develop
the business of the Corporation in the area allotted to him and for that purpose to
recruit active and reliable agents, to train them to canvass new business and to
render post-sale services to policy-holders. He is expected to assist and inspire
the agents. Even so he has not the authority to appoint agents or to take
disciplinary action against them. He does not even supervise the work of the
agents 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 over
them. The agents are not his subordinates. In fact, it is admitted that he has no subordinate staff working
under him. It is thus clear that the development officer cannot by any stretch of imagination be said to be
engaged in any administrative or managerial work. He is a workman within the meaning of s. 2 (s) of the
Industrial, Disputes Act.
Another observation in S.N.Goswami case by the Punjab HC referring the landmark judgment of R. Suresh
by Supreme Court emphasizing S.K.Verma Case:

tsrajanlic@gmail.com 94431 56829

11

..however, a shift of emphasis from what the workman needs to show that he was doing managerial
and administrative functions to what the workman is bound to show that he was not C.W.P No.2290 of
2008 -8- doing only manual, clerical or supervisory functions. This approach is brought out through a
Constitution 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 manual
or 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 the
Constitution Bench was particularly noted as significant in Mukesh K. Tripathi Vs. Senior Divisional
Manager, LIC and others 2004 (4) RSJ 465 which examined a question whether an Apprentice
Development 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. Mahesh
Chandra (supra) did not consider or refer to the decision in M/s May
and Baker (India) Ltd. Vs. Workmen AIR 1967 SC 678 that held a
sales representative to be not a workman and to other decisions in
Western India Match Co. Ltd. Vs. Workmen (1964) 3 SCR 560 and
Burmah Shell Oil Storage & Distribution Co. of India Vs. Burma
Shell Management Staff Association (1970) 3 SCC 378. The ThreeBench of the Hon'ble Supreme Court held in Mukesh K. Tripathi's
case that S.K. Verma Vs. Mahesh Chandra did not notice the earlier
decisions 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 TwoMember Bench in LIC of India Vs. R. Suresh 2008(3) RSJ 232 where the Hon'ble C.W.P No.2290 of 2008 -9Supreme Court referred to S.K. Verma and Mahesh K. Tripathi and still held that the Development Officer
in 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 not
expressly over- ruled S.K. Verma, it can be noticed that it distinguished Mahesh K. Tripathi only on the
ground that it dealt with the case of an apprentice and hence was not applicable to the case in LIC of India
Vs. R. Suresh. Even the Constitution Bench did not go as far as to say that S.K. Verma was wrong though
the Five-Member Bench clearly laid down that decision in S.K. Verma must be understood as being
confined to the facts of the said case only.
Another landmark judgement ordering pension for termination on the grounds of Special Rules
C.Damodarasamy case delivered by Madras High Court:

is

. It is unjust to deny pension to the appellant solely on the technical ground since the appellant was
terminated not by way of punishment, but as per Schedule-III, Clause 6 of the Service Regulations and he
was not re-appointed/re-employed. It is not in dispute that the appellant has put in 27 years of service
and during the performance review as contemplated under Schedule-III, Clause 6, the appellant was
terminated. 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 is
entitled 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 Court time and again. It is not
a charity or bounty nor is it gratuitous payment solely dependent on the whim or sweet will of the
employer. 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 a
superannuated 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 Insurance
Corporation, 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 that
he was suffering from dislocation of the spinal cord and was on medical leave for more
than one year from November, 1984 to December, 1985 and due to his ill-health, his
tsrajanlic@gmail.com 94431 56829

12

performance was not up to the mark. The said disease is occurred during the course of the employment of
the 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 Transport
Corporation who were terminated on the ground that they have developed eye-sight which was not the
standard required to drive buses due to occupational disease,
..Ultimately, the Honourable Supreme Court in the above referred Judgment, taking note of the nature of
the duty performed by the drivers and similarly placed persons, who were not having the same eyesight, were retained in service in other departments other than drivers, thought fit to suggest to provide
alternate employment along with retirement benefits and also ordered to pay additional compensation
amount.
the appellant is denied the payment of pension on the technical ground that he is a terminated
employee of the corporation, forgetting the fact that the said termination was not by way of punishment
but 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 be
directed 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 cost
ratio 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 first
respondent to look into Ext.P7 judgment and also the feasibility of accepting the request made in ground
H, as referred above. I have no doubt that while taking up the matter for consideration the first
respondent would bear in mind that the matter involves the question of deprivation of means of livelihood
of 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.

tsrajanlic@gmail.com 94431 56829

13

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. Its
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 be
addressed 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
leadership

factor
would

in

democracy.
evolve

to

Ideal
find

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 better
results. Our NF constitution clearly outlines the duties of Leaders at various levels.
tsrajanlic@gmail.com 94431 56829

14

Trespassing into others role, suppressing /filtering/ editing information that is to be

conveyed 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 and
concern. It is not you & me, but those who are unconnected but concerned about our
activities are also watching.
This article is only to share the sharing of our friends. This is only to improve the awareness
and create an area for expression. The purpose is only to refresh the priorities and focus our
fight 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 is
not a group of development officers but everyone in the
branches has been undergoing an emotional agitation and
Work Norms is playing havoc in the minds of all development
officers resulting in loss of peace of mind. There are Only Two
groups Already affected & To be Affected by Spl. Rules on
Work Norms.
We have joined in LICI not to fight court battles for survival but to earn name, fame & wealth
by honestly discharging our duties. Shifting of goal post by unreasonable stretch would never
help reach the goal. Kindly REVISIT SPECIAL RULES and make amendments in tune with
employees 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 take
pride 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

S.Mukundhan, Coimbatore
smukundanlic@gmail.com
I.M.Raja , Coimbatore
imraja1318@gmail.com

S.Venkatasubramanian, Salem
manisvsubramani@yahoo.co.in
C.P.Ravindranathan, Erode
cpr.nathan@gmail.com

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!

18.11.2013

~t.s.rajan~

NATIONAL FEDERATION ZINDABAD!

tsrajanlic@gmail.com
tsrajanlic@gmail.com 94431 56829