The Hindu : Andhra Pradesh News : LIC employees seek wage hike

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Andhra Pradesh

Andhra Pradesh

LIC employees seek wage hike

Staff Reporter

Plea for merger of insurance companies

40 per cent increase in salaries sought
‘LIC outperforming private companies’

Kakinada: The All-India Insurance Employees’ Association has sought the LIC and the GIC to commence negotiations on wage hike, due since August 2007, and effect a 40 per cent hike.

At a press meet here on Sunday, K. Vengugopal, general secretary of the association, said the demand was quite justified, as both LIC and GIC had the capacity to pay and “the operating expenses of the LIC are the lowest in the industry at 5.54 per cent against 23.11 per cent of the private companies.”

He said the salaries of the LIC staff were much lower in comparison with the wages of the private insurance companies’ staff. “However, there is not much attrition and only 4-5 per cent of the LIC staff is leaving the jobs to join the private companies. The demand for wage hike is therefore quite reasonable. Even internationally the accepted norm is that 6 per cent of the premium income could be allocated to the salaries of the staff and the LIC was only paying 4.6 per cent or so,” he explained. He said the LIC was outperforming the private companies and it had 23 crore policy-holders, with a market share of 64 per cent.

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Andhra Pradesh