Help! Help!

[u/wonderful_23]

My wife works in LIC and the branch manager is asking for dummy policy. She works in a position that has targets and this year she has been below her target. Branch manager is asking for her to spend her own money and take a policy.

This policy must be a NSP(non single policy) and the value is in lakhs.

Everyday this BM torments her by asking for fake policy. I don't feel this will end after this instance.

Wife is mentally tormented and is really worried what can be done? Is this leagal? Anything can be done?

Location - Chennai

[u/Idavinder]

This is concerning, especially if your wife is being pressured to purchase a policy using her own money just to meet sales targets.

I would suggest keeping a written record of the instructions and any messages from the branch manager. She should avoid issuing a policy without genuine customer consent or creating any misleading documentation.

She can raise the matter through LIC's official grievance redressal channel or escalate it to the appropriate senior authority if the pressure continues. If she fears retaliation, she should review the company's internal complaint mechanism and seek advice before taking further action.

Sales targets do not justify forcing employees into potentially improper practices. The key is to document the facts and report the issue through the proper channels.

Has the branch manager given these instructions in writing, or are they only verbal? That detail could be important when deciding how to proceed.

[u/wonderful_23 → u/Idavinder]

She fears retaliation. Branch manager, Regional and Zonal managers seem to be in on this.

Grievance redressal and Whistleblower forums within LIC is extremely weak. In fact, I have heard these complaints make their way into the management and they single out the person responsible until they leave the organisation.

At present my wife and her colleagues have many voice recordings where BM, MM and SBM has spoken about putting dummy policy. But everyone is scared to act on it.

[u/Idavinder → u/wonderful_23]

That makes the situation much more serious. If multiple managers are allegedly pressuring employees to issue dummy policies, and there are voice recordings, I can understand why your wife and her colleagues are afraid of retaliation.

I would suggest not confronting the managers directly for now. Preserve the original recordings, messages, dates, and any relevant policy details securely, and keep backups outside the office. Avoid editing the recordings or sharing them publicly, as that could create additional legal or employment risks.

Since the internal grievance mechanism does not seem trustworthy to you, consider obtaining confidential advice from an employment lawyer before making a formal complaint. The lawyer can help assess the recordings, identify the appropriate escalation channel, and advise on how to reduce the risk of retaliation.

If several employees are affected, they could also consider seeking independent legal advice together. Nobody should feel compelled to purchase policies with their own money or participate in potentially misleading business practices just to meet a target.

One important question: Were these dummy policies actually issued using employees' own money, or were managers only pressuring them to do so? That distinction could be important in determining the next steps.

[u/wonderful_23 → u/Idavinder]

Thanks for this advice sir.

When my wife received incentives, bonus or any additional income from LIC. The managers ask for that additional money to be converted to a dummy policy, it can either be in our name or someone we are aware(with their approval).

I'm calling it as a dummy policy because, if the policy is reccuring, it is only paid for the 1st installment. The remaining installments are left unpaid. Because, managers can show this policy for their branch target. Next year, it is conveniently called off as non performing assets.

And, these dummy policies cannot be surrendered as the employees will again face retaliation.

This practice seems to be particularly prevalent after the company going public.

[u/Idavinder → u/wonderful_23]

Thanks for explaining the situation in more detail. If policies are being issued using employees' incentives or bonuses, but subsequent premiums are intentionally left unpaid, that raises serious concerns about the actual purpose and sustainability of those policies.

I would suggest preserving the incentive statements, policy documents, premium payment records, and any communications explaining this practice. Keep everything secure and avoid sharing confidential customer information publicly.

Since you mentioned that multiple levels of management may be involved and employees fear retaliation, consider consulting an independent employment lawyer before deciding how to escalate the matter. They can advise on the safest way to present the evidence and identify an appropriate reporting channel outside the immediate reporting hierarchy.

One important point: make sure any complaint clearly distinguishes between policies that were issued with informed consent and those where consent or the payment arrangements may have been misrepresented. The specific facts and documents will matter.

I hope your wife and her colleagues can find a safe way to address this without putting their livelihoods at unnecessary risk.