Chidambaram Promises Pay Hike For LIC Employees

PATNA: Union Finance Minister P. Chidambaram on Sunday promised to increase salaries of the 1.2 lakh employees of Life Insurance Corporation of India (LIC) and announced that the new Aam Aadmi Bima Yojna to cover one crore Below Poverty Line families in one year would be launched on the occasion of Gandhi Jayanti.

Mr. Chidambaram was responding to a demand from his Cabinet colleague Ram Vilas Paswan, while inaugurating the East Central Zone office of LIC, the eighth in the country, covering Bihar, Jharkhand and Orissa. Others present on the occasion included Railway Minister Lalu Prasad and Chief Minister Nitish Kumar. Mr. Chidambaram acknowledged that the most precious jewe had to be made more competitive, as private players offering were better pay packages to their employees.

He, however, pointed out that LIC was performing better than others.During the past seven years LIC had grown by 122 per cent and its first premium had rocketed by 941 per cent. The Centre, he said, intended to cover one crore families in the first year of the launching of Aam Aadmi Bima Yojna. LIC has the responsibility to perform this daunting task. Mr. Chidambaram promised additional families below the poverty line would be taken up in subsequent years.