JOINT MEETING OF ALL CHECK-OFF

QUALIFIED UNIONS / ASSOCIATIONS

OF GIPSA MEMBER COs.

EXPLORATORY TALKS ON
PROPOSED WAGE REVISION
W.E.F. 01.08.2012
Wednesday, January 29th ,2014,
Mumbai

29th January, 2014

GIPSA

PROFILE OF PUBLIC SECTOR

GENERAL INSURANCE COMPANIES - 1
FROM A MODEST BASE OF Rs.208 CRORES IN 1973,
GROSS PREMIUM HAS GONE UP TO Rs.37072
CRORES IN 2012-13.
AVERAGE GROWTH RATE 13.83%PER ANNUM SINCE
1973. HOWEVER, THE AVERAGE GROWTH RATE
DURING PAST 5 YEARS HAS BEEN 15.91%.
MANPOWER GROWN FROM 26,112 IN 1973 TO
70,979 AS ON 31.03.2007 AND THEN CAME DOWN
TO 65,710 AS ON 31.03.2013.
NUMBER OF OFFICES INCREASED FROM 750 IN
1975 TO 6,190 AS ON 31.03.2013.

29th January, 2014

GIPSA

PROFILE OF PUBLIC SECTOR

GENERAL INSURANCE COMPANIES - 2
INVESTMENT PORTFOLIO INCREASED FROM
Rs.355 CRORES IN 1975 TO Rs.86,748 CRORES
AS ON 31-03-2013
INVESTMENT INCOME INCREASED FROM
Rs.21 CRORES IN 1975 TO Rs.8,533 CRORES
AS ON 31-03-2013
RESERVES AND SURPLUS AS ON 31-03-2013
STAND AT Rs. 17,981 CRORES
NET WORTH IS Rs. 17,702 CRORES AS ON
31-03-2013

29th January, 2014

GIPSA

GROSS DIRECT PREMIUM (Rs. CRs)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

4295.85 6455.78 4077.90

4277.77

19107.30

2009-10

4645.97 7099.14 4854.70

5239.05

21838.86

2010-11

6245.17 8225.51 5569.88

6376.66

26417.22

2011-12

7815.69 10073.87 6194.60

8179.29

32263.45

2012-13

9194.62 11873.49 6737.66

9266.04

37071.81

29th January, 2014

GIPSA

GROWTH RATE (GROSS PREMIUM) %

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

6.81

4.95

4.56

14.39

7.26

2009-10

8.15

9.97

19.05

22.47

14.30

2010-11

34.42

15.87

14.73

21.71

20.96

2011-12

25.15

22.47

11.22

28.27

22.13

2012-13

17.64

17.86

8.77

13.29

14.90

29th January, 2014

GIPSA

NET PREMIUM (Rs. In CRs)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

3653.65 5500.31 3235.10

3510.41

15899.47

2009-10

3977.65 6002.66 3962.53

4190.16

18133.00

2010-11

5389.71 7192.23 4611.58

5116.94

22310.46

2011-12

6952.85 8771.21 5236.65

6779.52

27740.23

2012-13

7956.92 10274.17 5545.25

7489.07

31265.41

29th January, 2014

GIPSA

EARNED PREMIUM (Rs. In CRs)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

3422.38 5249.30 3066.80

3199.10

14937.58

2009-10

3815.79 5710.86 3590.83

3838.19

16955.67

2010-11

4763.95 6473.33 4314.91

4647.63

20199.82

2011-12

6073.53 7874.59 4893.06

6087.24

24928.42

2012-13

7468.48 9450.64 5387.10

7250.94

29557.16

29th January, 2014

GIPSA

MARKET SHARE
AS ON

PUBLIC

PRIVATE

2005-06

73.66

26.34

2006-07

65.28

34.72

2007-08

60.08

39.92

2008-09

58.92

41.08

2009-10

59.07

40.93

2010-11

58.73

41.27

2011-12

58.47

41.53

2012-13

57.07

42.93

29th January, 2014

GIPSA

INCURRED CLAIMS (Rs. In CRs)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

3393.67 4671.86 3057.19

2515.05

13637.77

2009-10

3245.37 5132.45 3260.17

3329.24

14967.23

2010-11

4623.27 6524.87 4065.36

4385.64

19599.14

2011-12

5314.07 7087.53 4464.83

5386.94

22253.37

2012-13

6390.53 8143.07 4392.85

6134.92

25061.37

29th January, 2014

GIPSA

INCURRED CLAIMS RATIO %

(TO NET PREMIUM)
YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

92.88

84.94

94.50

71.65

85.77

2009-10

81.59

85.50

82.27

79.45

82.54

2010-11

85.78

90.72

88.16

85.71

87.85

2011-12

76.43

80.80

85.26

79.46

80.22

2012-13

80.31

79.26

79.22

81.92

80.16

29th January, 2014

GIPSA

10

INCURRED CLAIMS RATIO %

(TO EARNED PREMIUM)
YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

99.16

89.00

99.69

78.62

91.30

2009-10

85.05

89.87

90.79

86.74

88.27

2010-11

97.05

100.80

94.22

94.36

97.03

2011-12

87.50

90.01

91.25

88.50

89.27

2012-13

85.57

86.16

81.54

84.61

84.79

29th January, 2014

GIPSA

11

COMMISSION (Rs. In CRs)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

218.17

560.83

201.02

199.30

1179.32

2009-10

231.41

561.36

241.27

232.95

1266.99

2010-11

255.44

648.68

289.80

271.54

1465.46

2011-12

361.38

897.50

325.95

356.92

1941.75

2012-13

390.52

843.17

307.26

308.08

1849.03

29th January, 2014

GIPSA

12

COMMISSION % (TO NET PREMIUM)

YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

5.97

10.20

6.21

5.68

7.42

2009-10

5.82

9.35

6.09

5.56

6.99

2010-11

4.74

9.02

6.28

5.31

6.57

2011-12

5.20

10.23

6.22

5.26

7.00

2012-13

4.91

8.21

5.54

4.11

5.91

29th January, 2014

GIPSA

13

COMMISSION % (TO EARNED PREMIUM)

YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

6.37

10.68

6.55

6.23

7.89

2009-10

6.06

9.83

6.72

6.07

7.47

2010-11

5.36

10.02

6.72

5.84

7.25

2011-12

5.95

11.40

6.66

5.86

7.79

2012-13

5.23

8.92

5.70

4.25

6.26

29th January, 2014

GIPSA

14

MANAGEMENT EXPENSES (Rs. In CRs)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

1023.93 1456.45

914.44

1031.39

4426.21

2009-10

1299.58 1736.79 1150.76

1156.99

5344.12

2010-11

1602.31 1943.23 1572.54

1725.38

6843.46

2011-12

1783.84 2065.81 1354.46

1566.06

6770.17

2012-13

1913.53 2374.09 1748.71

2001.62

8037.95

29th January, 2014

GIPSA

15

MANAGEMENT EXP. % (TO GROSS PREMIUM)

YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

23.84

22.56

22.42

24.11

23.17

2009-10

27.97

24.46

23.70

22.08

24.47

2010-11

25.66

23.62

28.23

27.06

25.91

2011-12

22.82

20.51

21.87

19.15

20.98

2012-13

20.81

19.99

25.95

21.60

21.68

29th January, 2014

GIPSA

16

MANAGEMENT EXPENSES %
(TO NET PREMIUM)
YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

28.02

26.48

28.27

29.38

27.84

2009-10

32.67

28.93

29.04

27.61

29.47

2010-11

29.73

27.02

34.10

33.72

30.67

2011-12

25.66

23.55

25.87

23.10

24.41

2012-13

24.05

23.11

31.54

26.73

25.71

29th January, 2014

GIPSA

17

MANAGEMENT EXPENSES %
(TO EARNED PREMIUM)
YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

29.92

27.75

29.82

32.24

29.63

2009-10

34.06

30.41

32.05

30.14

31.52

2010-11

33.63

30.02

36.44

37.12

33.88

2011-12

29.37

26.23

27.68

25.73

27.16

2012-13

25.62

25.12

32.46

27.60

27.19

29th January, 2014

GIPSA

18

COMBINED OUTGO (Rs. In CRs.)

YEAR

NIC

NIA

OIC

UII

ALL COS

2008-09

4635.77

6689.14

4172.65

3745.74

19243.30

2009-10

4776.36

7430.60

4652.20

4719.18

21578.34

2010-11

6481.02

9116.78

5927.70

6382.56

27908.06

2011-12

7459.29

10050.84

6145.24

7309.92

30965.29

2012-13

8694.58

11360.33

6448.82

8444.62

34948.35

29th January, 2014

GIPSA

19

COMBINED RATIO* (% TO NET PREMIUM)

YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

126.88

121.61

128.98

106.70

121.03

2009-10

120.08

123.79

117.40

112.63

119.00

2010-11

120.25

126.76

128.54

124.73

125.09

2011-12

107.28

114.59

117.35

107.82

111.63

2012-13

109.27

110.57

116.29

112.76

111.78

*INCLUDES NET INCURRED CLAIMS, M.E. & COMM.

29th January, 2014

GIPSA

20

COMBINED RATIO* (% TO EARNED PREMIUM)

YEAR

NIC

NIA

OIC

UII

WT. AVG.

2008-09

135.45

127.43

136.06

117.09

128.82

2009-10

125.17

130.11

129.56

122.95

127.26

2010-11

136.04

140.84

137.38

137.33

138.16

2011-12

122.82

127.64

125.59

120.09

124.22

2012-13

116.42

120.21

119.71

116.46

118.24

*INCLUDES NET INCURRED CLAIMS, M.E. & COMM.

29th January, 2014

GIPSA

21

UNDERWRITING PROFIT / LOSS

(Rs. in Crores)
YEAR

NIC

NIA

OIC

UII

TOTAL

2008-09

-1205

-1440

-1106

-547

-4298

2009-10

-969

-1720

-1061

-881

-4631

2010-11

-1720

-2643

-1613

-1735

-7711

2011-12

-1381

-2286

-1252

-1223

-6142

2012-13

-1221

-1835

-1062

-1194

-5312

29th January, 2014

GIPSA

22

INVESTMENT INCOME
(Rs. in Crores)
YEAR

NIC

NIA

OIC

UII

TOTAL

2008-09

1039.62

1686.82

1019.59

1047.81

4793.84

2009-10

1348.43

2139.69

1169.43

1714.67

6372.22

2010-11

1820.13

2329.99

1796.56

1831.81

7778.49

2011-12

1711.69

2344.42

1609.63

1600.09

7265.83

2012-13

2101.90

2791.05

1862.99

1777.34

8533.28

29th January, 2014

GIPSA

23

PROFIT / LOSS ALL COs

(Rs. in Crores)
YEAR

2009-10

2010-11

2011-12

2012-13

Underwriting
-4297.16 -4630.78
Profit/Loss

-7711.57

-6142.25

-5311.09

Investment
Income

4793.84

6372.22

7778.49

7265.83

8533.28

PBT

578.20

1537.88

-24.74

1322.84

3282.30

PAT

508.87

1288.12

-161.75

1144.25

2600.57

29th January, 2014

2008-09

GIPSA

24

MANAGEMENT EXPENSES & COMMISSION

VIS--VIS PERMISSIBLE LIMITS UNDER SEC 40C
All Companies

YEAR
Permissible (%)

Actual (%)

2008-09

28.45

31.38

2009-10

28.35

32.53

2010-11

26.75

32.91

2011-12

26.53

27.49

2012-13

26.13

27.84

29th January, 2014

GIPSA

25

MANAGEMENT EXPENSES & COMMISSION

VIS--VIS PERMISSIBLE LIMITS UNDER SEC 40C
NIC
YEAR

NIA

OIC

UII

Permi
ssible

Actual

Permi
ssible

Actual

Permi
ssible

Actual

Permi
ssible

Actual

2008-09

29.08

31.72

27.68

31.99

28.74

29.70

28.55

31.80

2009-10

29.02

35.75

27.41

33.93

28.70

31.10

28.51

29.36

2010-11

29.05

31.98

26.27

31.53

25.73

34.94

25.92

33.64

2011-12

29.12

28.66

25.80

28.00

25.47

28.14

25.62

25.36

2012-13

29.16

26.54

25.41

27.24

24.59

31.31

25.04

27.26

29th January, 2014

GIPSA

26

MANAGEMENT EXP. (COMPLIANCE TO SEC 40C)

YEAR

NIC

NIA

OIC

UII

ALL COs

2008-09

No

No

No

No

No

2009-10

No

No

No

No

No

2010-11

No

No

No

No

No

2011-12

Yes

No

No

Yes

No

2012-13

Yes

No

No

No

No

29th January, 2014

GIPSA

27

SOLVENCY MARGIN
YEAR

NIC

NIA

OIC

UII

2008-09

1.50

3.35

1.51

2.52

2009-10

1.37

2.59

1.33

2.71

2010-11

1.34

4.50

1.34

3.32

2011-12

1.60

4.63

1.56

3.41

2012-13

1.56

4.39

1.66

3.32

29th January, 2014

GIPSA

28

MANPOWER
TOTAL STRENGTH OF FOUR CLASSES OF
EMPLOYEES IN GIPSA COs. AS ON 31.03.2013:-

Class

No. of Employees

Class I

23175

Class II

6911

Class III

27445

Class IV
TOTAL

29th January, 2014

8179
:

65710

GIPSA

29

MANPOWER & PRODUCTIVITY

As On

No. of
Employees

(Rs. Cr.)

Productivity/
Employee
(Rs.'000)

%
Growth
in Prod.
Y2Y

Gr.
Prem.

31.03.2008

69445

17813

2565

5.34

31.03.2009

69026

19107

2768

7.92

31.03.2010

68618

21839

3183

14.98

31.03.2011

67341

26417

3923

23.26

31.03.2012

66778

32263

4831

23.16

31.03.2013

65710

37072

5642

16.77

Average Annual Increase in per employee productivity over last

5 years is 17.22%

29th January, 2014

GIPSA

30

HAPPENINGS IN THE INDUSTRY

TOTAL NUMBER OF GENERAL INSURANCE
COMPANIES IN INDIA WERE 10 AS ON 31.03.2002
AND HAVE GONE UP TO 21 AS ON DATE.
DETARIFFING OF PREMIUM IN MOTOR OD W.E.F.
01.01.2007 AND ALL OTHER CLASSES OF
BUSINESS, W.E.F. 01.01.2008, FURTHER
STIFFENING THE COMPETITION.
MARKET SHARE OF GIPSA MEMBER COs. HAS
SLIDED DOWN FROM 95.91% AS ON 31.02.2002 TO
57.07% AS ON 31.03.2013.

29th January, 2014

GIPSA

31

FINANCIAL INCLUSION INITIATIVE

A NEW GOVT. INITIATIVE I.E. FINANCIAL
INCLUSION PLAN ANNOUNCED BY
HONBLE FM IN THE BUDGET
ANNOUNCEMENTS FOR THE YEAR 2013-14.
OBJECTIVE INSURANCE PENETRATION,
SPREAD OF SECURITY OF INSURANCE TO
EVERY NOOK AND CORNER AND THEREBY
ENABLING FINANCIAL INCLUSION OF THE
MOST NEEDY.
RESULTED IN OPENING OF 1849 OFFICES
UPTO TIER-III CITIES.

November 28, 2008

GIPSA

32

FINANCIAL INCLUSION INITIATIVE

THESE OFFICES WILL BE DRIVERS OF
INSURANCE GROWTH AND SPREAD.
THEY HAVE BRIGHT FUTURE TO GROW
INTO FULL SCALE BRANCHES IN FUTURE
MEETING THE REQUIREMENTS OF
INSURANCE IN MOFUSSIL AREAS.
SPECIAL PROMOTION EXERCISE CARRIED
OUT RELAXING ELIGIBILITY CRITERIA TO
MEET THE TARGET OF OPENING OF
OFFICES.
RESULTED IN NEW PROMOTIONS FOR
APPROX. 450 EMPLOYEES.
November 28, 2008

GIPSA

33

MANPOWER AND PAY SCALES

PAY SCALES OF ALL CLASSES OF

EMPLOYEES ARE GOVERNED BY SCHEMES
NOTIFIED BY GOVERNMENT
FIRST SCHEME FOR PAY SCALES NOTIFIED
IN 1974, 1975 AND 1976 (CALLED
RATIONALISATION SCHEMES) FOR CLASS
III/IV, CLASS I AND CLASS II EMPLOYEES
RESPECTIVELY

29th January, 2014

GIPSA

34

SIX REVISIONS OF PAY SCALES

1985 AMENDMENT AMENDMENT SCHEME W.E.F.
01.10.1983
1989 AMENDMENT SCHEME W.E.F. 01.08.1987
1996 AMENDMENT SCHEME W.E.F. 01.08.1992
2000 AMENDMENT SCHEME W.E.F. 01.08.1997
2005 (& 2008)AMENDMENT SCHEME S W.E.F.
01.08.2002
2010 AMENDMENT SCHEME W.E.F. 01.08.2007
CURRENT WAGE REVISION DUE W.E.F. 01.08.2012

29th January, 2014

GIPSA

35

HR INITIATIVES
Earlier, Management Consultants in each
Company took extensive studies in the area of
Manpower Planning.
Need based changes in Promotional Processes
undertaken by GIPSA to address the
contemporary requirements in the changed
business scenario.
Special Promotion Exercise carried out from
Class II / Class III to Class I (Scale I) with
relaxed conditions.
29th January, 2014

GIPSA

36

CHECK-OFF ACCREDITED UNIONS/ASSNS

1.
2.
3.
4.

CLASS I
NATIONAL INSURANCE COMPANY OFFICERS ASSOCIATION
NEW INDIA ASSURANCE COMPANY OFFICERS ASSOCIATION
ORIENTAL INSURANCE COMPANY OFFICERS ASSOCIATION
UNITED INDIA INSURANCE COMPANY OFFICERS ASSOCIATION

CLASS II
1. ALL INDIA GENERAL INSURANCE FIELD WORKERS
ASSOCIATION
2. BHARTIYA VIMA KARAMCHARI SENA
3. GENERAL INSURANCE DEV. OFFICERS FEDERATION
CLASS III/IV
1. GENERAL INSURANCE EMPLOYEES ALL INDIA ASSOCIATION
2. ALL INDIA INSURANCE EMPLOYEES ASSOCIATION
3. NATIONAL FEDERATION OF GENERAL INSURANCE EMPLOYEES
ASSOCIATION

29th January, 2014

GIPSA

37

REPRESENTATION OF EMPLOYEES BY
CHECK-OFF QUALIFIED UNIONS/ASSOCIATIONS
EACH OF THE CHECK-OFF QUALIFIED UNIONS
REPRESENTS ONE CLASS OF EMPLOYEES.
LAST CHECK-OFF EXERCISE CONDUCTED IN THE
YEAR 2012.
10 UNIONS / ASSOCIATIONS REPRESENTING
EMPLOYEES / OFFICERS QUALIFIED IN THE CHECKOFF EXERCISE OF 2012.
CHARTER OF DEMANDS IS RECEIVED FROM CONFED
IN RESPECT OF ALL CHECK-OFF QUALIFIED UNIONS
FOR CLASS I.
CHARTER OF DEMANDS FROM ALL OTHER CHECKOFF QUALIFIED UNIONS REPRESENTING OTHER
CLASSES OF EMPLOYEES ARE ALSO RECEIVED.
29th January, 2014

GIPSA

38

WAGE BILL AS ON 31.07.2012

(Rs. Crores)
NIC

NIA

OIC

UII

ALL Cos.

1122.38

1534.18

1180.49

1255.48

5092.54

Extrapolated on the basis of expenses as on 31st March, 2012 &

31st March 2013

29th January, 2014

GIPSA

39

ME & WAGE BILL

(As per Annual Report)
WAGE BILL (Rs. Cr.)
YEAR

Management
Expenses

Wage Bill

Wage Bill
(%)

2008-09

4426.21

3293.97

74.42

2009-10

5344.12

3829.63

71.66

2010-11

6843.46

5182.30

75.73

2011-12

6770.17

4798.53

70.88

2012-13

8037.95

5863.56

72.95

29th January, 2014

GIPSA

40

WAGE BILL Vs. PRODUCTIVITY PER CAPITA

Parameters

2007-08

2011-12

Gross Premium (Global) (Rs. Crs.)

17813.00

32263.45

Wage Bill (As per Annual Reports)

(Rs. Crs.)

2676.00

4740.70

Employees as on 31st March

69445

66778

Per Capita Productivity (Rs. Lacs)

25.65

48.31

% Increase over 4 Years

88.36

Per Capita Wage Bill (Rs. Lacs)

% Increase over 4 Years

29th January, 2014

3.85

7.10
84.23

GIPSA

41

COMPONENTS OF ANNUAL WAGE BILL

AS ON 31.07.2012
(Rs. In CRs)

COMPONENT

AMOUNT

PAY SLIP COMPONENTS

BASIC

1931.14

37.92

DA

1102.54

21.65

325.84

6.40

3359.52

65.97

354.34

6.96

1338.46

26.28

40.23

0.79

5092.56

100.00

OTHERS
TOTAL
OTHER NON-RETIRAL BENEFITS
RETIRAL BENEFITS
REIMBURSEMENTS / EXPENSES
GRAND TOTAL
January 29th, 2014

GIPSA

42

BASIC STAGE-WISE NO. OF EMPLOYEES

AS ON 01.08.2012
BASIC PAY RANGE CL I

CL II

CL III

CL IV

TOTAL

05001 - 10000

36

69

3397

3502

10001 15000

167

2135

4228

6530

15

8513

15001 20000

1831

251

6416

20001 25000

1694

1045

11794

14533

25001 - 30000

4517

1596

7475

13588

30001 35000

7392

3920

230

11542

35001 40000

3974

3974

40001 45000

1943

1943

45001 - 50000

525

525

50001 - 55000

75

75

55001 - 60000

30

30

TOTAL
November 28, 2008

21981

7015
GIPSA

28119

7640

64755
43

CHALLENGES AHEAD

EXTERNAL CHALLENGES
INTERNAL CHALLENGES

29th January, 2014

GIPSA

44

EXTERNAL CHALLENGES - 1
Intense Competition on more profitable
lines of Business.
Premium rates continue to remain under
pressure.
Business acquisition cost continues to rise.
Re-insurance costs also continue to rise
due to reduction in ceding commission by
Treaty Re-insurers to compensate for
lower rates.

29th January, 2014

GIPSA

45

EXTERNAL CHALLENGES - 2
Shadow of continued global recession
looming large on Indian Industry and
Economy
Capital Markets continue to be volatile
having impact on income from investment
portfolio.
Changing customer profile and increasing
customer expectations
New emerging risks and need for
continuous innovations
29th January, 2014

GIPSA

46

CHALLENGES SOCIO ECONOMIC CHANGES

DEMOGRAPHIC CHANGES
CHALLENGES IN TERMS OF
INTERMEDIARIES, REGULATOR AND
GOVERNMENT POLICY
SERVICING CUSTOMERS THROUGH
E-COMMERCE
KEEPING PACE WITH, UTILISING AND
ADOPTING NEW TECHNOLOGIES
INFLUENCE OF SOCIAL MEDIA ON SOCIETY
NURTURING SOCIAL MEDIA FOR THE
BENEFIT OF THE INDUSTRY
29th January, 2014

GIPSA

47

CHALLENGES MACRO ECONOMICS

CONTINUOUS INNOVATION
DEVELOPING PRODUCTS TO MEET THE
REQUIREMENTS OF YOUNG POPULATION IN
THE CONTEXT OF DEMOGRAPHIC CHANGES
EXPLOSION IN THE GROWTH OF HEALTH
AND MOTOR SEGMENTS CONVERTING
THIS INTO AN OPPORTUNITY

29th January, 2014

GIPSA

48

INTERNAL CHALLENGES - 1
Statutory limits on ME Ratios Sec. 40 C
Every rise in Wage Bill demands
corresponding rise in productivity
There is need for evolving a producitivity
based compensation package to retain
talent
Skill gap in the manpower flowing from fast
changing technologies
29th January, 2014

GIPSA

49

INTERNAL CHALLENGES - 2
Adverse age profile of manpower
Imbalances in deployment of manpower
continued pockets of surplus / deficit
despite structured TMP widen TMP or
more flexible TMP?
Continuous losses in Motor TP, Health etc.
Need for Loss Management and
Minimization
Attitudinal issues of manpower at various
levels

29th January, 2014

GIPSA

50

GAP BETWEEN HAVE & WANT TO HAVE - 1

(Rs. in Crores)

P.A. Avg. ACTUAL

Growth
2012-13
@

PROJECTIONS
2013-14

2014-15 2015-16 2016-17 2017-18

Gross Prem
(Global)

15.91

37072

42970

49807

57731

66916

77562

M. Exp (without
Wage Revision)

16.95

8038

9400

10994

12857

15037

17585

21.68

21.88

22.07

22.27

22.47

22.67

194

226

265

310

362

424

Total ME

8232

9627

11259

13167

15399

18009

ME (% to GP)

22.20

22.40

22.60

22.81

23.01

23.22

Required Global GD
Prem. for 19.50% ME

42214

49369

57737

67523

78968

92353

Gap in Premium

-5142

-6399

-7930

-9792 -12052

-14791

ME %
Addition to ME with
5% WR w.e.f.
01.08.2012

29th January, 2014

5.00

GIPSA

51

GAP BETWEEN HAVE & WANT TO HAVE - 2

(Rs. in Crores)
P.A.
Growth
@

ACTUAL
2012-13

PROJECTIONS
2013-14

2014-15 2015-16 2016-17 2017-18

Gross Prem
(Global)

15.91

37072

42970

49807

57731

66916

77562

M. Exp (without
Wage Revision)

16.95

8038

9400

10994

12857

15037

17585

21.68

21.88

22.07

22.27

22.47

22.67

398

465

544

636

744

870

Total ME

8436

9866

11538

13494

15781

18456

ME (% to GP)

22.76

22.96

23.17

23.37

23.58

23.79

Required Global GD
Prem. for 19.50% ME

43261

50594

59169

69198

80928

94645

Premium Shortfall

-6189

-7624

-9363

-11468 -14012

-17083

ME %
Addition to ME with
10% WR w.e.f.
01.08.2012

29th January, 2014

10.00

GIPSA

52

GAP BETWEEN HAVE & WANT TO HAVE - 3

(Rs. in Crores)

P.A.
Growth
@

ACTUAL
2012-13

PROJECTIONS
2013-14

2014-15 2015-16 2016-17 2017-18

Gross Prem
(Global)

15.91

37072

42970

49807

57731

66916

77562

M. Exp (without
Wage Revision)

16.95

8038

9400

10994

12857

15037

17585

21.68

21.88

22.07

22.27

22.47

22.67

581

679

795

929

1087

1271

Total ME

8619

10080

11788

13786

16123

18856

ME (% to GP)

23.25

23.46

23.67

23.88

24.09

24.31

Required Global GD
Prem. for 19.50% ME

44200

51691

60453

70700

82683

96698

Gap in Premium

-7128

-8721

-10646

-12969 -15767

-19136

ME %
Addition to ME with
15% WR w.e.f.
01.08.2012

29th January, 2014

15.00

GIPSA

53

GAP BETWEEN HAVE & WANT TO HAVE - 4

(Rs. in Crores)

P.A.
Growth
@

ACTUAL
2012-13

PROJECTIONS
2013-14

2014-15 2015-16 2016-17 2017-18

Gross Prem
(Global)

15.91

37072

42970

49807

57731

66916

77562

M. Exp (without
Wage Revision)

16.95

8038

9400

10994

12857

15037

17585

21.68

21.88

22.07

22.27

22.47

22.67

775

906

1059

1239

1449

1695

Total ME

8813

10306

12053

14096

16485

19280

ME (% to GP)

23.77

23.98

24.20

24.42

24.64

24.86

Required Global GD
Prem. for 19.50% ME

45193

52853

61811

72288

84541

98871

Gap in Premium

-8121

-9882

-12004

-14557 -17625

-21308

ME %
Addition to ME with
20% WR w.e.f.
01.08.2012

29th January, 2014

20.00

GIPSA

54

HOPES - 1
Continuous innovation of business practices and
changes in the organization structure.
Developing innovative products meeting the
expectations of the policyholders.
Focus on financial inclusion plan for customer
service which helps in growth in business.
Optimum utilization of technology for rendering
customer service.
Induction of young employees into the organization
making it vibrant.
Any other suggestions from the learned
participants.
Let us evolve an Agenda to meet the challenges.

29th January, 2014

GIPSA

55

HOPES - 2
BPR initiatives expected to boost up productivity
and rationalize expenses besides improving
Customer Care.
Active co-operation from Employees and their
Unions / Associations required to supplement these
efforts.
An Organizational Agenda common to the
Management and the Unions / Associations
required for coordinated efforts and synergy.
Let us evolve such an Agenda.

29th January, 2014

GIPSA

56

CHARTERS OF DEMANDS - 1
One more option for Pension.
Increase in Salary by 40%.
Effective date of revision 01.08.2012.
Demands for DA neutralization varying

from 100% to 135% - Merger of DA upto

CPI 4708 (Base Year 1960-100 points)
441 slabs - 66.15% of the present Basic
Pay.
Class I Pay-scales be reorganized into 9
scales with introduction of 2 more new
scales.

29th January, 2014

GIPSA

57

CHARTERS OF DEMANDS - 2
Running scales for all cadres with a pay

band structure and grade pay.

Annual Grade Increment @ 5% of revised
Basic.
Minimum 2 increments rise on promotion.
Transport allowance upto Rs. 2500/- per
month.
Eligibility for full pension after 20 years of
service.
EL encashment on retirement for 300
days.

29th January, 2014

GIPSA

58

CHARTERS OF DEMANDS - 3
On retirement, shortfall in EL for

encashment to be made good from SL

available at credit.
Introduction of meal coupons.
Conversion from Development side to

Administration side should be allowed on

as an open ended scheme.

29th January, 2014

GIPSA

59

CHARTERS OF DEMANDS - 4
Deletion of Termination Clause for not

operating within cost parameters for Class

II.
2% relaxation in cost for Class II after

attaining the age of 55 years.

Introduce a new class of City i.e. D class

city to take care of concerns of Class II

posted in rural areas.

29th January, 2014

GIPSA

60

CHARTERS OF DEMANDS - 5
Cost Ratio to be relaxed to 9%, 10%, 12%

and 14% for A, B, C & D classes of cities

respectively.
Deletion of Rural / Social Sector Premium
criteria for promotion.
Redefine Scheduled Premium Income
deleting exclusions prescribed.
Scale of Pay for Development Officers
Grade I with a span of 32 stages.
Introduction of Actuarial Allowance.
PF contribution @ 12% of revised Basic
Pay plus DA.

29th January, 2014

GIPSA

61

CHARTERS OF DEMANDS - 6
Incentives to employees posted in one

man / micro offices.

Improvement in Technical qualification
pay.
Updation of Pension for retired employees.
Improvement in LTS / lumpsum medical
benefit.
Facility for yearly health check-up.
Encashment of unavailed LTS.
The demands listed are indicative but not
exhaustive.

29th January, 2014

GIPSA

62

WAY FORWARD
CHALLENGES ARE, BUT CHALLENGES ONLY
ALL CHALLENGES ARE SURMOUNTABLE
THE SOLUTION IS INNOVATION
LETS WORK TOGETHER, BE PROACTIVE,

INNOVATE, SURMOUNT THE CHALLENGES,

MEET THE ASPIRATIONS OF EMPLOYEES &
EXPECTATIONS OF ALL STAKEHOLDERS

29th January, 2014

GIPSA

63