We can’t prevent Parliament from passing a bill: SC

The apex court said it was “rubbish” that a responsible organisation had chosen to file the PIL and threatened to impose cost,upon which the counsel Chava Badrinath Babu withdrew the petition.

The PIL filed by Rajhamundry Division Council of LIC agents Association had urged the apex court to quash two bills — Insurance Laws (Amendment) Bill,2008 and the Life Insurance Corporation (Amendment) Bill,2009.

According to the petitioner,the first bill has proposed to withdraw the commission benefits enjoyed by 30 lakh-odd insurance agents and instead put the onus on the agents to collect fees from the policy holders.

The petition claimed that if the bill is passed,it would sound the death knell for the insurance agents and their families as no policy holder would come forward to insure by paying fees to the agents.

Besides,it said that commission enjoyed by the agents was a major source of their livelihood,most of whom are otherwise unemployed,self-employed persons and coming from poor and rural backgrounds.

The counsel submitted that the bill also proposed to eliminate the “earned renewable commission,and hereditary renewable commission,” presently enjoyed by the agents.

The other bill – Life Insurance Corporation (LIC) Amendment Bill 2009 – seeks to withdraw the “sovereign guarantee” offered by the Government to the policy holders,the petition alleged.

However,the apex court was not impressed with the argument of the petition and rejected it.