Staff Correspondent

MANGALORE: The LIC Agents Organisation of India (LICAOI), which will hold its second State level conference for two-days here from Sunday, will discuss various aspects pertaining to the Life Insurance Corporation of India and insurance sector.

Organisation president and Member of Parliament Basudev Acharya will inaugurate it.

P.G. Dileep, general secretary of the organisation, will attend the conference.

Association joint secretary L. Manjunath said the Centre on July 31 had moved an amendment to the Insurance Act, 1956. This largely sought to destabilise the existence of the LIC. This amendment aimed at raising the initial capital from Rs. 5 crore to Rs. 100 crore which would result in the reduction of bonus.

He said that another alarming aspect of the amendment was a move to increase foreign direct investment (FDI) in the insurance sector from the present 26 per cent to 49 per cent. This would help private insurance companies. The amendments brought to 1972 Agents Act were a retrograde seeking to minimise the role of LIC agents in garnering business.

Mr. Manjunath said the recommendations of the D. Swaroop Committee, which hadsuggested Rs. zero commission to agents for sale of mutual, ULIP and life insurance policies from 2011 was aimed at reducing the number of LIC agents.

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