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| Sunday, 28 July 2002 |
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Features |  |
| News Business Features Editorial
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Selling of Sri Lanka Insurance Corporation An open letter to the Prime Minister regarding the fate of the Insurance Agents in the event of the sale of the Sri Lanka Insurance Corporation. Now that the Government has decided to go ahead with the selling of the Sri Lanka Insurance Corporation there comes the question of the quantum of "goodwill" money for those who helped to build not only the SLIC but the industry itself. PERC has already decided to allocate 10% to the employees of the SLIC. Similarly in 1993 when the SLIC was turned into a Limited Liability Co., there were strong rumours that it would be privatized and the employees would get 10% of the sale money. The Sri Lanka Field Officers' Association appealed to the then Minister of Finance, Mr. Harold Herat to give similar recognition to the Field officers. He directed this appeal to Mr. Paskeralingam, the Secretary to the Treasury. As a Senior Vice President of the S.L.F.O.A., the writer also attended the conference called by the S.T. After hearing our submissions he agreed that the insurance agents had made a case that they also be treated on an equal footing with the Corporation employees. To recall what happened at this conference would be useful - Some Treasury officials said that there was no difference between the Insurance Agents and Petroleum Corporation agents (the petrol shed owners). The writer who with his long years of experience (having worked for foreign insurance companies before nationalization) refuted this argument. He said that life insurance unlike any other commodity had to be sold. Life insurance is hardly ever was bought at the counter unlike petroleum products which were a captive market. If one did not want to buy petrol, one was free to have one's vehicle jacked up in the garage. Introducing local insurance to the market which had been used to foreign insurance for over fifty years was no mean task. During these forty years, it was the pioneering skill, the ingenuity of agents of the SLIC that helped to build up not only the SLIC but also the mighty industry itself. Another point worthy of note is that all agents were tied hand and foot to work only for the SLIC. Violation of which would have been the termination of service. Thus, in some cases, after having loyally worked for over forty years, to be treated liked squeezed lemons, is to say the least, is grossly unfair. It is understandable that the PERC wishes to sell the SLIC for the maximum amount, but in doing so the role of the insurance agent should not be overlooked. Notwithstanding the above I would wish to point that by the ICSL's Development Manager's registered letter dated 7th June 1993 wherein he had intimated to the field officers (Agents) that "it had been decided that 5% of the sales of the SLIC would be allocated free to the Senior Agents. Accordingly agents are requested to fill particulars in the bottom half of this letter, regarding your eligibility for the same." Much water has flowed down the Mahaweli since this letter. Without indulging in legal casuistry about rights and wrangling about the quantum what one is entitled to, I would want would like to make a suggestion a modus vivendi that while not jeopardizing the Government interests but at the same time giving due recognition to the insurance agent. PERC should see that the Productive Agents be included in the "goodwill" on the sale of the Sri Lanka Insurance Corporation Ltd., taking into consideration, service, consistency and commission earnings which would constitute only a small minority of the 10500 odd agents of the SLIC. This would stop a lot of heartburn among the insurance agents (many being Government supporters) and not feel that the Government is using the jack boot to crush their legitimate demands. Amaradasa Fernando , Snr. Agent of the SLIC, Member Chairman's Club. |
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