Unpaid teachers now get notice over LIC default

Over the last few months, government-aided school teachers in Karnataka have been receiving notices from the Life Insurance Corporation (LIC...

int(3)

Over the last few months, government-aided school teachers in Karnataka have been receiving notices from the Life Insurance Corporation (LIC) to pay their premiums. But the teachers can only shrug helplessly. Why? Their salaries are never released on time, they say.

‘‘Our salaries are delayed by at least 10 to 15 days every month. At times, two months’ salaries are released at the same time,’’ said organising secretary of the Karnataka Aided Primary Teachers’ Forum P.M. Satyanarayana.

Though government rules prescribe that all salaries must be paid by the first of the month, they are delayed if funds are not allotted on time or if Block Education Officers, who release the payments, go on leave.

Story continues below this ad

Government-aided schools have to compulsorily subscribe to the LIC’s Group Savings Linked Insurance (GSLI), a scheme launched six years ago with the Centre’s nod.

Over 1,600 aided schools and colleges of the state are part of the scheme. ‘‘LIC has offered us the option of paying premiums three, six or nine months in advance to avoid default. But we do not get paid three or six months in advance,’’ Satyanarayana said.

‘‘If a salary cheque is released around the 10th of the month, it takes three to four days for it to be converted to cash and then another two days for the money to reach LIC,” he added.

‘‘LIC has threatened that they will not settle our claims in case of a death. But we are equally helpless.’’

Story continues below this ad

Added another teacher, ‘‘it is not just the LIC. We face the same embarrassment when it comes to paying the milkman or the newspaper agent.’’

When contacted, LIC officials said that as per policy rules, the master policy-holder (the school) is bound to pay the premiums of all the beneficiaries (the teachers) by the 10th of every month. As the premium is highly subsidised for GSLI, there is no question of grace time, they said.

‘‘It is a small amount for teachers and schools but a big amount for us. They pay Rs 40 to Rs 100 per head depending on their pay-scales. But we have to compute the premiums and interests for 5,000 teachers of 1,600 institutions,’’ said a senior LIC official.

Commissioner of Public Instruction V.P. Baligar admitted that funds are allotted to government schools first and then to aided schools ‘‘but they are released by the 10th of every month’’.