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However, the lawmakers of the US Congress havemodified, both in letter and spirit, the implementationof such an agreement. At this juncture, among otheraspects, it is essential that we insist on the followingfour central themes:India should continue to be able to hold on to hernuclear option as a strategic requirement in the realworld that we live in, and in the ever-changingcomplexity of the international political system. Thismeans that we cannot accede to any restraint inperpetuity on our freedom of action. We have notdone this for the last 40 years after the Non-Proliferation Treaty came into being, and there is noreason why we should succumb to this now. Universalnuclear disarmament must be our ultimate aim, anduntil we see the light at the end of the tunnel on thisimportant issue, we cannot accept any agreement inperpetuity.After 1974, when the major powers discontinuedcooperation with us, we have built up our capabilityin many sensitive technological areas, which neednot and should not now be subjected to externalcontrol. Safeguards are understandable whereexternal assistance for nuclear materials ortechnologies are involved. We have agreed to thisbefore, and we can continue to agree to this in thefuture too, but strictly restricted to those facilities andmaterials imported from external sources.We find that the Indo-US deal, in the form approvedby the US House of Representatives, infringes onour independence for carrying out indigenous researchand development in nuclear science and technology.Our R&D should not be hampered by externalsupervision or control, or by the need to satisfy anyinternational body. Research and technologydevelopment are the sovereign rights of any nation.This is especially true when they concern strategicnational defence and energy self-sufficiency.While the sequence of actions to implement thecooperation could be left for discussion between thetwo governments, the basic principles on which suchactions will rest is the right of Parliament and thepeople to decide. The prime minister has alreadytaken up with President George Bush the issue ofthe new clauses recommended by the US House ofRepresentatives. If the US Congress, in its wisdom,passes the bill in its present form, the ‘product’ willbecome unacceptable to India, and, diplomatically, itwill be very difficult to change it later. Hence it isimportant for our Parliament to work out, and insiston, the ground rules for the nuclear deal, at this stageitself.We therefore request you, the Parliamentarians, todiscuss this deal and arrive at a unanimous decision,recognizing the fundamental facts of India’sindigenous nuclear science and technologyachievements to date, the efforts made to overcomethe unfair restrictions placed on us and the imaginativepolicies and planning enunciated and followed in theyears after Independence. The nation, at this criticaljuncture, depends on its representatives in Parliamentto ensure that decisions taken today do not inhibitour future ability to develop and pursue nucleartechnologies for the benefit of the nation.LIC introduces strict claim norms for AgentsThe state-owned life insurer Life Insurance Corporation of India (LIC) has decided to introduce strict norms foragents in a move to arrest fraudulent and early claims (arising after first year of the policy). The corporation found thatearly claims arose due to poor underwriting and moral hazards.A senior LIC executive said the corporation had identified agents with a high incidence of early claims. An index filecalled “watch-listed agents” has been created to track these agents’ records. Whenever a new business proposalis registered by these agents, a message will flash on the screen saying “the agent has a history of adverse earlyclaim experience”. In 2006-07, LIC settled total claims worth over Rs 127.93 crore. The corporation settles morethan 45,800 claims on every working day or 2.21 claims a second. The corporation has centralised its claimprocessing system to manage claims worth over Rs 20,000 crore out of the total one crore policies annually. LIC hasintroduced differential underwriting rules for watch-listed agents. Proposals submitted by such agents would beregistered only after 100 per cent implementation of know your customer (KYC) norms. Such agents will only beallowed to procure business under the medical and non-medical (special) categories, but not under the nonmedical(general) category. If the case is non-medical (special), a duly signed certificate will have to be procuredfrom the employer of the prospective policy buyer and attached with the records of leave taken on medical groundsin the last five years. Medical examinations would have to be conducted by third party administrators (TPAs),irrespective of the sum assured, or by examiners and specialists in the LIC panel in the absence of TPAs. The policybuyer must provide his photo identity during the medical examination. The policy documents will be handed to theinsured on the basis of photo identification or sent by post.10
ORGANISATIONAL ROUND – UPThe Letters sent by the Secretary General to theChairman and MD regarding CLIA & Bi-lateral discussions<strong>NFIFWI</strong>/ 07/ 2008-1019 th June’2008The ChairmanLife Insurance Corporation of IndiaCentral Office, ‘Yogakshema’,Mumbai-400 021Ref: Discussions held on 22 nd of May 2008, 19 thJune ’08 and representation in the matter of CLIA.Dear Sir,We were shocked to see the managementgoing ahead with the concept of supervisory agencythrough a circular on Chief Life Insurance Advisorscheme on the 12 th of April 2008. We have studiedthe scheme in detail and taken feedbacks from allacross the country. We are of the opinion that thisis totally unfair and a unethical decision on thepart of the management . Our stand on CLIAScheme is that Professionally, this is a scheme tryingto create a parallel marketing force diversifying theclub member agents and disturbing the entiremarketing force. Legally, this scheme is in violationto the various provisions of Law governing theInsurance sector, LIC Of India and appointmentof Intermediaries. Our stand is based on thefollowing facts and points:1. The CLIA Scheme is a big blow to the goodperforming Development officers who weremotivated to nurture and groom agents tobecome professional agents and club membersand MDRT’s. This scheme will create a lot ofinfighting and disturb the harmoniousmarketing force of LIC. After fine groomingand nurturing , such Development officers arepenalized by diversifying these professionalagents.2. The Development officer is expected to workat a particular cost norm and this business hasto be procured through one’s own unit agents.When such is the case it is unfair on the part ofthe management to diversify our unit agentsfor the same life insurance business but throughanother channel.3. The management expects growth fromDevelopment officer’s, whereas there is nogrowth requirement from the CLIA agents. AChairman’s club member becoming a CLIA cancontinue as a CLIA even if they become adivisional managers club member or performat lower level of NB figures. The CLIA is notrequired to perform at the same New Businesslevels(On No: of Lives, FPI and SFYPI andsum assured) , bring growth and maintain thesame club membership levels. This is in totalcontradiction of LIC’s direction and policy. Thiscontradiction affects the Development officerand LIC adversely.4. The CLIA who is being allowed to recruit theirrelatives as a agent will only promote benamiagency to earn more commissions. Themanagement is knowingly encouraging benamiagency thereby encouraging reduction ofperformance by the existing club members.Through this scheme the management has alsofacilitated the CLIA agents to earn morecommissions on the life insurance businesscompared to the commission the club memberagent would have otherwise earned. This willdirectly reduce the business in the Developmentofficer’s unit.5. The close relatives of an agent staying underone roof is permitted to take up agency only11
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