Lic Okays 3% Productivity-Linked Incentive

The Life Insurance Corporation of India (LIC) board has condoned the shortfall in the total premium income and has approved a three per cent productivity-linked wage incentive (PLWI) to all the employees.

Based on the wage bill as on August 1, 1997, which was in the region of Rs 1,325 crore, LIC employees have received an additional three per cent of their salary as an incentive. This is payable on achieving the benchmark levels set by the management in the area of first premium income, new policies and total premium income.

According to LIC chairman G N Bajpai, for 2000-01 the number of policies and first premium income achieved excelled the threshold levels by a wide margin.

 

However, the same was not reflected in the total premium income, which pulled down the eligibility for PLWI below three per cent. Despite a growth rate of more than 22 per cent in total premium income, this failed to meet the targeted Rs 31,483 crore, said LIC officials.

"The board, however, as a token of encouragement to overall good results achieved by the corporation decided to condone the shortfall and allowed three per cent PLWI," said Bajpai.

In 1999-2000, based on the three parameter eligibility achieved, LIC employees received just one per cent PLWI. This incentive scheme was introduced for the first time on June 22, 2000, encompassing all the constituents of the corporation irrespective of the cadre, in order to motivate and enhance productivity.

The lumpsum incentive is distributed in August to the various cadres in the ratio of their salary as on August 1, 1997.