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LIC's perks for clerks
Freny Patel in Mumbai |
June 01, 2004 08:10 IST
Can file pushers become entrepreneurs? Over the next three years, the Life Insurance Corporation of India will have an answer to this question.
It is planning to give its 74,000 clerical staff members the option of switching careers and voluntarily becoming LIC agents and hawking its insurance products.
Cynics may think its probably a voluntary retirement scheme in disguise. But they will be wrong. For what the LIC plans to do is offer a three-year sabbatical from work to its class III employees so that they can sell insurance.
But they have the option to come back if, at the end of three years, they are happier to remain desk-bound and/or if they fail to find their feet as salesmen who can sell insurance as well as LIC's 10.6 lakh (1.06 million) agents.
Called the Staff Deployment Scheme, there is no compulsion for employees to push sales instead of files. Says LIC managing director RK Vashishtha, "While we have approved the scheme, we do not want to go for it in a big way as we need to ensure that the administrative side is not disturbed."
Today, many LIC branches are under pressure as the corporation adds about 2 crore (20 million) policies every year and services well over 1.2 crore (12 million) claims.
Those volunteering for the scheme will continue to get their salaries, which will taper off over a three-year period as their commissions from selling insurance increase.
Clerical staff opting for the three-year sabbatical will get their full salaries in the first year, 50 per cent in year two and 25 per cent in year three.
The successful ones will obviously make more than the salary lost in years two and three, says LIC executive director (publicity) AK Shukla.
Despite the liberal terms, it's not going to be a picnic. Not all comers will be entertained. A three-member committee will interview the candidates and their performance will always be under review by the corporation.
It is estimated that about 10 per cent of Class III employees will opt for the scheme. LIC has 1,20,000 employees, of which 17,564 are officers, 19,000 development officers, 74,000 clerks and 6,000 Class IV employees.
"Our scheme to convert development officers into agents has been highly successful," says Vashishtha. LIC is looking at clerical staff in the age group of 35-40 years, as the younger age group is expected to have more drive and aptitude.
The departure of so many clerks may not disrupt work as LIC is upgrading its technology. The scheme will be launched shortly after discussions with the unions. LIC officials stated that there is no need to seek approval from the regulator, the Insurance Regulatory and Development Authority.
"We will conform to IRDA norms in ensuring that we do not pay more than 35 per cent of the first year's premium to put feet-on-the-street," he added. The clerical staff today earns a monthly salary of Rs 8,000-25,000.
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