The Life Insurance Corporation, LIC, has proposed a 11% wage hike for its over one lakh staffers across different categories in the current round of wage negotiations, reports The Financial Express. However, the multiple unions representing various categories of staffers have not yet accepted the proposal out of the negotiations going on for the last two days.
The last round with the management will take place today after which they will have to seek the governments approval for the package, said a senior union official. LIC's wage proposal, less by 2% than that of the banking industry, cannot be strictly compared with that of the banking industry as the corporation has a system of performance-linked lump-sum incentive. Under this system employees are entitled to receive 2-3% incentives. We are adding two more riders like improving early death claim and rental income to tune up the package for our employees, said the officials, adding that these conditions are basically meant for plugging revenue leakages of the corporation. Explaining the condition of improving early death claim ratio, the official said that the move is to ensure stricter underwriting norms at the entry level. Our people have to ensue that they are enforcing the right norms while selling an insurance policy and not just selling to show a higher business, he said. On improving rental income, he said the corporation's officials should ensure maximizing the use and income from the massive real estate the corporation has across the country, which would contribute to the corporation's income. The official also explained that the corporation is reworking on the conditions of PLLI and would like to further liberalize some of the five conditions so that more and more staffers can be eligible for the scheme.
