THE PATHETIC STORY OF LIC PENSIONERS

The Pathetic Story of LIC Pensioners – Whither National Litigation Policy?

Over 40,000 LIC pensioners, many of whom are in their seventies and eighties and their families, have been the victims of denial, indifference and insensitivity of the Life Insurance Corporation of India and the Union Government in respect of payment of fair pension they are entitled to. Their pensions remained paltry (for the retirees before 01.08.1997) or stagnant (for the later retirees). The issue remained unresolved for over 15 years as LIC and the Government have remained insensitive and unmindful while scores of hapless victims have been leaving this world each year.

LIC attempted to rectify the inherent anomalies as early as on 24.11.2001 through a full-fledged Resolution passed by its Board of Directors and sent the same to the Government of India immediately, for approval and Notification by the latter in the official Gazette. Most unfortunately Government has not taken action as recommended by LIC nor has it ever formally communicated its rejection of the recommendation.

Having waited for long, the pensioners’ associations were constrained to take their grievances to different Courts of Law all over the Country, within their limitations. The High Courts of Rajasthan (Jaipur Bench), of Delhi and of Punjab & Haryana, categorically decided the matter in favour of the Pensioners in the year 2010 and later and directed LIC to implement its Board Resolution dated 24.11.2001 forthwith. LIC at the behest of the Government filed appeals in Supreme Court with a prayer to stay the Orders of the High Courts. “There shall be no stay of the directions given by the learned judge” (of the Rajasthan High Court) was the order of Supreme Court passed on 30.09.2013, after hearing the appellant’s counsel. Thus the High Courts’ Orders became final and binding as of now.

Instead of honouring the categorical directions of the higher courts of law including the Supreme Court of India, LIC top management is now facing contempt proceedings before the Rajasthan High Court. That this is happening in the country’s biggest public sector corporation and greatest financial institution, is unfortunate.

In the above factual background we wish to make the following submissions:

1. We represent a responsible section of the society having toiled for over four decades to build a mighty financial organization viz., LIC.

2. We are all now in the evening of our lives.

3. Our demand is for the implementation of LIC’s own decision of 24.11.2001 for payment of fair pension, by setting right the anomalies.

4. Our legitimate claims are backed by at least three High Courts and the Supreme Court of India categorically declined to stay the HC Order.

5. We are not adversaries of the Corporation but are an integral part of it.

6. What is happening against us now is in flagrant violation of the Government’s declared policy concerning the country’s Senior Citizens as well as its National Litigation Policy.

7. Above all it also needs to be recognised that we constitute a group of stakeholders being the internal customers of the Corporation.

8. We feel the matter can be resolved by sincere efforts through discussions across the board instead of perpetuating the vexatious litigation, spending public money, valuable time and other resources.

9. We are willing to assist LIC and the Government to hammer out a solution and end the stalemate.

10. We therefore seek suitable opportunity and audience to place our concerns before Shri Rahul Gandhi, Vice President, Indian National Congress and the Hon’ble Minister for Finance, Government of India who only can end the unenviable plight of LIC Pensioners and help them to live in peace for the remainder of their life span.

Sreenivasa Murty, Mulukutla

Convenor, Joint Action Committee of LIC Pensioners’ Associations,

106, Hill County, Nizampet Road,

HYDERABAD 500090 (A.P)

+919177737356