The story of private insurance companies functioned in the country prior to 1956 forgotten - so also "Mundra deal" and Justice MC Chagla Commission Report.... - Nationalisation of insurance companies in India - formation of Life Insurance Corporation of India - now all part of history...
________________RK VISWANATHAN________________
Justice MC Chagla’s observation in the Mundra deal :- The government should not interfere with the working of an autonomous statutory Corporation. LIC is an autonomous Corporation independent of the Government and it cannot be looked upon as merely as one of the many departments of the government. The only control the government can exercise is under Sec 21 and that control is restricted to matters involving public interest and what is equally important is that the control can only be exercised by directions given in writing. Does this situation really exist now ?
The 5th pay commission clearly states that autonomous institutions can have their own pension scheme provided their funds are adequate. LIC pension scheme is clearly funded by LIC and unlike the pension scheme of government employees is not a burden on the exchequer and at no point of time LIC pleaded for inadequacy of the fund. Why then suddenly this so called ‘ripple effect’ in banks has cropped up ? Where is autonomy then ?
The tinkering of pension rules now and then, by GOI and dictated to the unfortunate LIC which merely remains as a silent spectator with no guts to question its rationale, only shows that the GOI wants this overgrown, gigantic financial institution which was once described as a Navarathna, a Kamadenu and what not by the present Finance Minister to function as one of their own government departments for their own benefit coming to their rescue whenever they need finance in gigantic proportion which any other institution could seldom provide but yet forget those army of LIC work force who have contributed for its growth and success. Is this not raping the autonomy ?!
You be the judge !