THE NATIONAL CONFEDERATIONOF

GENERAL INSURANCE OFFICERS’ ASSOCIATIONS

Submits

CHARTER OF DEMANDS OF

PROPOSED WAGE REVISION (to be effective from 01.08.2012)

To The Chairman,

GENERAL INSURERS (PUBLIC SECTOR) ASSOCIATION OF INDIAAt Kolkata on 1st October’2012

_____________________________

National Insurance Company Officers’ Association

New India Assurance Officers’ Association

Oriental Insurance Company Officers’ Association

United India Insurance Officers’ Association

I N D E X

SECTION TOPIC PAGE NO

PART I PREAMBLE 3-4

PART II CORE 5-11

PART III NON-CORE 12-17

PART IV OTHERS 18-19

2

CHARTER OF DEMANDS

INTRODUCTION

The Last SALARY Revision of GIPSA Officers took place with effect from 1st August 2007 and it was notified in October 2010. Hundred Percent of DA as on 31 st July’2007 i.e. up to 2944 points with a base of 100 Points in 1960 was merged to formulate new pay structure. Wage Revision for GIPSA Officers is now due w.e.f. 1st August 2012. Last time Wage Revision took place with a delay of about 38 months, the period which forced the entire workforce on the back foot due to uncertainty hovering around. The same revision if offered in time would have induced a feeling of high motivation among the employees during these three odd years yielding into much better results. The workforce if given a timely decent wage revision will enthuse them to perform better and serve better resulting into better results for the Companies.

BACKGROUND

THE PREVIOUS pay revision though welcomed by us all on an interim basis, failed to address many issues pertaining to core and non-core benefits in respect of GIPSA officers e.g. third pension option, bonus to all, litre based conveyance to officers on administrative side etc. The time has now come to address such issues with all seriousness.

Revision of Pay Scale in our Industry cannot take place in isolation. It has to have a relation to Pay Scales prevailing within Industry, other Public Sector Undertakings and in Government. Compensation level in Private Sector Companies within Industry is 3 to 4 times higher than what it is in our set up. Better career prospects & Job satisfaction available in other industries attracts our employees to switch over, resulting in talent drain, besides not attracting fresh breeds to our industry. Even in comparison to banking sector, GIPSA companies lag behind in terms of non-core benefits. This aspect needs serious consideration as an input for revision of Pay Scales. At the time of Nationalization, the Pay Scales in our Companies were far better than Government Pay Scales, that is the reason a good number of Officers joined our Industry after leaving the Government Jobs at Central as well as state level. The situation was so up to 1987 wherein the Fourth Pay Commission left us behind and the situation worsened in 1996 & in 2006 with the implementation of Fifth & Sixth Pay Commission. We have been given a raw deal since then. Even the saving in terms of Petro-litres, which resulted on account of the cut effected, due to the Gulf crisis, from the Marketing side officers was not shared with the Officers on the Administration side despite our strong demand with the Management and Ministry to do so.

Despite vigorous competition and loss of talent from GIPSA companies to private companies, GIPSA companies have grown in terms of Premium generation from Rs.17282 crores in 2007 to Rs.27,989.80 in 2010-11 to Rs.34,126.17 crores in 2011-12. The Competition has been fierce over the last five years. Despite increased competition, the market share of the PSU is 58.48%, solvency

3

margin of all GIPSA companies continued to be positive, despite provisioning mandated by IRDA during this period, and Management Expense Ratio has also come down.

There have been internal challenges as well, which the Industry has been able to withstand. The Transfer & Mobility Policy introduced in 2002 gave an initial jolt to the Industry as the Officers who were responsible for Premium procurement & servicing the Clients were transferred forcibly without any rationale. As a result either these officers started leaving the Companies & joined Private Companies who needed experienced workforce and were ready to pay handsome packages. This game plan worked even better in favour of the Private Insurers with the introduction of SVRS - 2004 in the four PSU Companies and made the thought of leaving the Company more lucrative. Promotion Policy 2006 proved to be another jolt to destabilize and de-motivate the workforce.

The formation of a Common Seniority List for Scale V & above and movement of Scale VI & VII officers from the parent Company to another one was another nail in the Coffin which forced the Senior Officer to change their Loyalties overnight which was not very easy and it was even more difficult to get accustomed to the culture of the respective Companies. No adequate Recruitment since 1991 and a high attrition level during this period was a great handicap in the growth of the Companies, but the Industry has done extremely well.

Against all these odds, the four Companies have stood the test of time and are ready for a bigger fight ahead. The Industry has risen to the occasion during the last five years even during the two world wide recessions. The Four PSU Companies in no way are lagging behind any of the Private sector Companies. These Companies can even do wonders if the Compensation and HR practices are conducive, as the core strength of the Industry is its skilled experienced loyal workforce.

The charter is the valid expression of hopes and aspirations of the Officers in the Industry. We hope that this time Management will create history by giving a handsome pay revision whereby the aspira-tions of our Officers are accommodated to the fullest, the dignity of the officers-fraternity is main-tained in the society and rising cost of living is met with.

If the Companies are unable to settle the Wage revision within a reasonable period due to reasons beyond its control, we hope that Management will grant us some immediate interim relief.

The volumes of business and customer’s expectations of 24X7 customer services have become high and the dearth of Officers in the Industry is increasing the workload of the existing workforce. Aver -age age of present work force is approximately 48 years and Industry desperately requires young blood being transfused to the system and retained to achieve the targets. Talent Management is a must for the Organization to cope up with the volume and to bring new ideas for sustaining the In -dustry in the market. Global benchmarking of our New Business procurement and policy-servicing can be done only by offering salary packages as per global bench-marks. We wish that our industry should be one of the best preferred PSU employers.

We hereby submit this charter for your favourable consideration.

4

PART – I I - CORE BENEFITS

PAY SCALE STUCTURE

The present 7-Scale structure for Class I Officers was evolved in the 1975 Rationalisation Scheme. With the growth of the GIPSA companies over the years and due to the present organizational requirements the 7-scale structure has lost its relevance. This has resulted in large scale stagnation of Officers at the available levels affecting motivation. Many successful PSUs have already moved on to a 9 or even a 10 Scale structure to cater to the current organizational requirements and the aspirations of Officers community , the main strength of their operational and managerial capability. We feel that the time has come to address this issue in our set- up also and it is recommended that the present 7 scales be improved to a 9-Scale structure.

BASIC PAY

In the last pay revision effective from 01/08/2007, as against an entry level basic pay of Rs.25000/- , taking into account the recommendations of the 6th Central Pay Commission for Govt. employees and the recommendations of the Justice Rao committee for pay revision for Officers in PSUs, demanded by us, the basic pay was fixed at Rs.17240/-, much below our expectations. Hence this distortion needs correction in the ensuing wage revision exercise. Keeping in view the need to retain talent within our industry and to attract fresh talent to our industry, it is imperative to have pay scales on par with Govt. /other PSUs**. Hence, our Basic Pay at the entry level need to be fixed at minimum of Rs.42000/- (Scale I) and maintaining the relativity as per earlier wage revisions, other Scales up to Scale VIII ( proposed ) to be drawn-up accordingly. The proposed Scale IX for the position of Executive Directors to be on a fixed basic pay structure on the lines of Apex Scale ( S-33) of the 6th Central pay commission. **note enclosed

RUNNING SCALE

DUE to the stage based structure of Pay Scales, a large number of GIPSA Company Officers languish in Stagnation.

Most of the organizations and Govt. of India have moved to a pay band structure. We should also implement a pay band structure which would automatically take care of stagnation and delayed promotions.

Running scale is all the more relevant in the absence of in-situ promotions.

5

FUNCTIONAL GROUPS

The proposed scales should be classified into functional groups as below: Junior Management Cadre: Scales I to III Middle Management Cadre: Scales IV and V Senior Management Cadre: Scales VI and above

We therefore demand that Officers reaching maximum of pay in the JMC/ MMC scales should be automatically allowed to draw increments in next higher Cadre Pay Scale, till he/she reaches maximum of such alternate higher Cadre scale.

GRADE PAY

In the present scenario, it is seen that the promotional avenues are very less and it takes a decade to get promoted and no substantial financial benefits accrue to officers on promotion due to large-scale stagnation in almost every scale. As a result, Officers forego the promotion if they have to move out on Promotional Transfer and in most of the cases the Officers tend to lose financially on Promotion. Hence we demand Grade Pay on the lines of 6th Pay Commission as follows:-

CADRE ( proposed ) GRADE PAY (Rs)( SCALE 1 ) 6500( SCALE 2) 9000(SCALE 3 ) 12000(SCALE 4 ) 14500(SCALE 5 ) 17000(SCALE 6 ) 19500(SCALE 7 ) 22000(SCALE 8 ) 25000P.S.: Grade Pay should be treated at par with Basic Pay for all allowances and benefits.

ANNUAL GRADE INCREMENT

Annual Grade Increment should be 5% of Basic Pay stage-wise.

FITMENT:

The possibility of moving on to an open-ended pay structure should be considered. In any case the number of increments drawn by the officer in the revised scale should not be less than the number of increments drawn in the existing scale as on 1.8.2012.

6

DEARNESS ALLOWANCE

In previous revision, DA for CPI 2944 (Base 1960-100) was merged with basic pay and thereafter continued with 100% neutralization. We demand that

i. DA at 4708 points in CPI ( base 1960=100) should be merged with Basic;ii. DA should be revised monthly;iii. DA should be based on CPI for second previous month;iv. DA neutralization should continue to be based on existing formula;v. Upon DA becoming 25%of Basic Pay, the same should be merged with basic pay for all

benefits including Terminal Benefits and subsequent DA payments.vi. DA should be treated as Basic Pay for all purposes.

HOUSE RENT ALLOWANCE

GIPSA Officers should be provided with free furnished accommodation and those who are not provided with quarters should be paid HRA. In line with rates at which HRA is paid for Officers in Government and other Public Sector Organizations, rate of HRA should be as under:

PLACE OF POSTING RATE PER MONTHMetro Cities and Cities with population exceeding 45 lakhs and Vashi, Faridabad, Ghaziabad, Noida, Gurgaon and Chandigarh

40 % of revised basic salary plus Grade Pay without any ceiling

A Class Cities 35% of revised basic salary plus Grade Pay without any ceiling

B Class Cities 30% of revised basic salary plus Grade Pay without any ceiling

C Class Cities 25% of revised basic salary plus Grade Pay without any ceiling

ENHANCED HRA payment up to 150% of HRA rates on return on capital cost/rent receipt basis for those who stay in own house/rented house, should be introduced.

CITY COMPENSATORY ALLOWANCE

CITY Compensatory Allowance should be paid at the rate of 15%, 12% and 9% of revised basic pay respectively for cities based on the classification given below without any ceiling.

7

PLACE OF POSTING RATE PER MONTHCities with population exceeding 25 lakhs and Vashi, Faridabad, Ghaziabad, Noida, Gurgaon and Chandigarh

15 % of revised basic salary plus Grade Pay without any ceiling

Cities with population exceeding 12 lakhs and all State Capitals.

12% of revised basic salary plus Grade Pay without any ceiling

All other places 9% of revised basic salary plus Grade Pay without any ceiling

TRANSPORTATION ALLOWANCE

WE demand that litre-based Transportation Scheme should be extended to all GIPSA Officers in administrative side every month as under on reimbursement basis :-

Metro, Cat.I Cities State Capital All Other Officers with Cars 60 litres 50 litres 40 litresOfficers with 2 wheelers 40 litres 30 litres 25 litresOfficers without Vehicles Amount equivalent of 20 litres of petrol

FIXED PERSONAL ALLOWANCE

FIXED Personal Allowance should be related to last drawn increment plus DA of the relevant cadre and it should rank for all benefits like DA, HRA, CCA, etc.

HILL STATION ALLOWANCE

HILL Station Allowance should be paid at the rate of 15% , 12% and 9% of revised basic pay based on existing classification, without any ceiling.

RURAL POSTING ALLOWANCE

15% of Basic Pay beyond Tier 3 Cities as per Census 2011

LUNCH ALLOWANCE/MEAL COUPON

A scheme for Lunch allowance in the form of Meal coupon should be introduced in the GIPSA companies

CONVEYANCE ALLOWANCE TO PHYSICALLY HANDICAPPED OFFICERS

An amount of 3% of revised basic pay with minimum of Rs 5000/- pm should be paid to handicapped employees irrespective of cadre/scale.

8

KIT ALLOWANCE

KIT Allowance should be paid at Rs.15,000/- per annum for all eligible Officers.

UNIFORM ALLOWANCE

DRESS CODE ALLOWANCE should be paid at Rs.25,000/- per annum for all Officers

QUALIFICATION PAY

QUALIFICATION Pay should be granted to Officers for acquiring insurance qualifications at following rates: LIII Rs 2000/- PM

AIII/Inter-ICWA/Inter-CA/LL.B/B.E./BVSc Equivalent Rs 3000/- PMFIII/ICWA/CA/MBA/LL.M/M.E/MCA/MBBS/MVSc/Actuaries Equivalent Rs 5000/- PM

SPECIAL PAY

ALL Specialist Officers should be paid WITH TWO INCREMENTS AT THE ENTRY CADRE

PRODUCTIVITY LINKED INCENTIVE SCHEME

The current PLI Scheme should be modified to ensure minimum incentive to all officers.

LEAVE

CASUAL Leave should be restored to 15 days.

Provision of ACL should be restored.

ACCUMULATION of Earned Leave should be allowed up to 360 days.

Accumulation of Sick Leave should be allowed up to 300 days.

Minimum EL to be allowed to be availed for 5 day.

Un-availed CL/ACL should be carried forward to the subsequent year.

ENCASHMENT of EL should be allowed every year subject to a max of 15 days.

Sick Leave on Full Pay be allowed for 30 days for each completed year of service.

9

Unutilized Sick Leave should be allowed to be en-cashed at the time of retirement/death.

PATERNITY Leave of six weeks may be allowed on two occasions during entire service period.

EXTRA-ordinary leave should be raised to two years during entire period of service.

Child care leave for all officers may be introduced for two years during entire period up to the age of 18 years of two legitimate children.

Sabbatical Leave up to 5 years may be allowed.

Trade Union Leave for 30 days every year should be allowed to Office Bearers of Check Off Qualified Association.

TERMINAL BENEFITS

PROVIDENT FUND /CONTRIBUTORY Provident Fund should be at 12% of Basic + Grade Pay + DA for all Officers.

GRATUITY – one month’s gross salary for every completed years of service, without any ceiling

ENCASHMENT of Earned leave – limit should be increased to 360 days on retirement.

PENSION

All OFFICERS including Retirees on the roll of the Company as on 08.10.2010 should be given an option to join the Pension Scheme 1995.

REVISED basic pay to be made applicable for Pension and updation of Pension for existing pensioners.

Eligibility of full Pension after 20 Years of Service.

Pension should be calculated @ 75% of average last 10 months Basic + Grade PAY+FPA instead of 50% at present.

COMMUTATION benefit to be allowed on 50% of pension and commuted portion of pension should be restored after 12 years.

Commutation rate should be at par with the Annuity rate.

10

For service beyond 20 years of pensionable service, additional pension to be paid at 1% per additional year of service.

Officers who joined the Industry after serving another PSU or Govt. job, their earlier service period should be taken into account.

FAMILY pension should be paid at uniform rate of 50% for all on updation basis with each revision.

LTS should be allowed once in every four years for pensioners.

RETIREMENT

WE demand that retirement age in our Industry should be increased to 62 years to retain experienced workforce for two more years in the company, as we understand that officers who are work-ready, turn to the private sector after retirement.

In resignation cases the major Terminal benefits should be allowed including Encashment of Leave

FUNCTIONAL ALLOWANCE:

Officers in Inspection and Audit and Vigilance to be paid an amount at least Rs. 5000/- PM and it should be payable irrespective of period of outdoor office duties/ touring.

FACULTY ALLOWANCE:

The increase in Volume of Business and Customer Service expectations have combined to exert enormous pressure on existing workforce, especially Officers Community whose numbers have come down in the last decade due to non- recruitment. This Scenario calls for reskilling the available force and giving quality training to fresh large scale recruitment being carried out now. This necessitates the creation and strengthening the HR training structure

One important step in this direction is attracting quality teachers from within who know our set-up better. Hence there is an urgent need for improving the faculty allowance, facility at par with Mar-keting Officers, Honorarium and extending the best benefits possible in our set-up to those officers chosen to be faculty in our revitalized HR Centres.

11

PART – I I I - NON-CORE BENEFITS

CONVEYANCE FACILITY

ENTITLED OFFICERS

ACTUAL cost of Car shall be allowed.

REIMBURSEMENT of cost of Tyres and Tubes should be allowed after 2 years or after 24000 kms. Whichever is earlier on a declaration basis

REIMBURSEMENT of Garage and cleaning charges at the rate of Rs.500/- per month and Service Charges at the rate of Rs.5000/- per year be allowed to all entitle Officers.

100% increase in Major Repairs

In case of accidents, cost of repairs over and above insurance claim amount, should be absorbed by the company

100% increase in Petrol/Diesel facility

NON-ENTITLED OFFICERS

ACTUAL cost of vehicle shall be allowed for Cars as interest free loan.

REIMBURSEMENT of Road Tax and actual cost of re-registration of the vehicle on transfer.

REIMBURSEMENT of Garage and Cleaning charges at the rate of Rs.500/- per month and Service Charges at the rate of Rs.5000/- per year be allowed.

FACILITY of providing Car loan after every Five years should be extended.

CONVEYANCE ALLOWANCE FOR VETERINARIANS AND MOTOR ENGINEERS

CONVEYANCE allowance for Veterinarians and Motor Engineers, whose allowance was not revised in last Pay Revision, be revised upwards proportionately.

ENTERTAINMENT ALLOWANCE

ALL Officers with Marketing assignment and Officers in Scale IV and above should be paid entertainment allowance. The present entertainment allowance should be increased by 100 %.

12

HONORARIUM FOR FACULTY

HONORARIUM paid to Officers who are visiting Faculty Members in Learning Centers both at Head Office and Zonal/Regional Centers should be increased suitably with a conveyance facility on the day of lecture.

TELEPHONE FACILITY

Telephone/ Cell phone/ Data card/ Broadband Communication facility shall be provided to all Officers with reimbursement of charges up to Rs.25,000/- per annum.

For entitled Officers the reimbursement should be Rs 35,000/- per annum.

Mobile Handsets shall be provided to all Officers up to an amount of Rs 15,000/-

LAPTOP COMPUTERS

ALL Officers should be provided with Laptop/ Tablet Computers.

MID ACADEMIC YEAR ALLOWANCE

MID Academic allowance for Officers should be increased by Rs.2,000/- PM

MEDICAL BENEFITS

MEDICAL facility being an employee welfare measure, all Officers should be entitled for reimbursement of entire medical expenditure on actual basis for self, spouse, children and dependent parents, both for domiciliary treatment and for hospitalization.

ALTERNATIVELY, by way of seeking improvement in existing provisions, we demand the following:

Domiciliary treatment – One Month of initial Basic in the scale per annum for all Officers on declaration basis.

Hospitalisation – Present Basic Mediclaim limit of Rs. 1.10 Lacs be increased to Rs.5 lakhs free of cost without any bearing of premium by the officer and the additional cover of Rs. 5 Lacs on optional basis. Cash Less Service – Cashless Service should be made available to the Employees and Retired personnel as well.

Floater facility should be extended to the employees & their family members and also to retirees

13

Free health check up facility once in Two years should be extended to all Officers on attaining 40 years of age irrespective of cadres and also to retirees

MODE OF TRAVEL ON TOUR

ALL officers should be allowed to travel by Air on tour.

DAILY halting allowance should be increased by 100%.

REIMBURSEMENT of Local conveyance at the place of tour subject to a maximum of one day halting allowance per day as in government sector.

HOTEL STAY

HOTEL stay eligibility for all Officers be linked with basic as below:

METRO : 10% A CLASS : 7.5%B & C CLASS : 5%

LEASED ACCOMMODATION

Metros, State Capitals and : 50% of revised basic pay as monthly rentOther specified places

OTHER Places : 40% of revised basic pay as monthly rent

SELF-Lease facility should be allowed.

Accommodation owned by the Blood relatives may also be allowed to be taken on Lease.

LEASED accommodation should be provided at the place of choice of Officer automatically on transfer without any further representation/ sanction to be made. In case of difficult/ Hill station postings where Bachelor’s Accommodation is not provided, Lease at two stations may be provided as provided

ADVANCE/Deposit of maximum 10 months rent.

RWA/ Society MAINTENANCE charges payable to be borne by Company.

BROKERAGE to be allowed not exceeding half month’s rent.

14

FURNITURE

Rs. One Lac as Furnishing Allowance shall be allowed every Four Years. LEAVE TRAVEL SUBSIDY

Air Travel should be allowed to all the Officers

TRAVEL distance should be enhanced to 5000 kms (each way).

MODE of travel should be as per the choice of Officer.

Package Tour should be allowed within overall limit.

Reimbursement of lodging and DHA as per official eligibility be allowed.

AN Officer should have option to surrender and en-cash LTS

EDUCATIONAL ASSISTANCE

OFFICERS shall be allowed reimbursement of full tuition fees for Management/Computer/Acturial Courses completed through part-time, correspondence courses of all UGC recognized Universities, Central and State Government sponsored institutions and all India Professional & Technical institutions.

TRANSFER BENEFITS

WITH the introduction of TMPO, transfer on a structured basis has become an integral part of the service life of an Officer. The concept of protection of HRA and CCA on transfer has already been introduced in the Companies for other Classes of employees. To mitigate the hardship we demand protection of HRA and CCA on transfer of Officers and payment of an allowance, called Transfer Allowance, at the rate of 10% of basic of the scale of pay of the transferred Officer per month during the period of posting on such transfer. ALL family members shall be allowed to travel as per entitled class either jointly or separately without any time limit. At Metro cities and State Capitals, Company should enter into agreement with reputed Packers & Movers for transportation of House hold goods of transferred officers.

TRANSFER grant equivalent to Two months revised basic pay.

JOINING time of 10 days shall be allowed.

ALL transferred Officers should be provided with Company owned/leased accommodation. Otherwise, in addition to 30 days halting allowance, 30 days lodging expenses also should be allowed.

15

HOUSING LOAN

OFFICERS shall become eligible for First Housing Loan on confirmation of service in the Company.

Officers should be allowed to take the Housing Loan from any of the Housing Finance Company/ Bank. The difference of the additional Interest should be paid as subsidy to the Officer along with the Salary as in LIC.

AMOUNT of loan shall be up to a maximum of 100 times of revised Basic Pay irrespective of cadre.

SECOND Housing loan should be allowed after completion of 10 years from first loan. All the prevailing conditions of second housing loan may be done away with. All the officers should be provided with 2nd Housing Loan irrespective of any pre-condition.

PRINCIPLE shall be deducted first and after deduction of principle is over, deduction of interest should start.

FREE comprehensive house-holders policy to be allowed.

COLLATERAL security shall be borne by Company through a Group Mortgage Redemption Policy from LIC.

FESTIVAL ADVANCE

FESTIVAL advance should be increased to two month’s revised basic salary.

FLOOD/DRAUGHT ALLOWANCE

EQUAL to One month’s revised gross salary in notified areas on declaration basis.

COMPENSATION TO OFFICERS ATTENDING LOK ADALATS & OTHER COURTS

OFFICERS attending MACT/Lok Adalats on Holidays should be paid compensation equal to Two days salary and on Working days One day’s salary.

OFFICERS who attend Court relating to Marine Recoveries, Ombudsman, WC Cases, MACT Evidence etc should be paid One day’s salary.

16

PERSONAL LOAN

OFFICERS should be provided with an Emergent Personal loan of Rs.2 lacs once in 5 years for any purpose.

BONUS / EX-GRATIA

BONUS/Ex-gratia should be paid to all Officers at same rate as dividend paid to Government, subject, however to a minimum of 20% of annual gross salary.

GTIS & GSLI

GTIS is envisaged to compensate family of an Officer who dies in harness to protect commutation of pension. We demand increase in sum assured under GTIS scheme to Rs.25 lacs.

GSLI limits also need to be revised up to Rs.25 lacs.

SCHEME FOR CHILDREN

Tuition Fee Reimbursement : Rs. 2500/- PM Per Child up to two children

HOSTEL Subsidy : Rs.2500/-PM Per Child up to two children

EDUCATION LOAN : Interest Free Loan of Rs. 10 Lacs for study in India and Rs. 25 Lacs for Study Abroad.

SCHOOL/College tie up arrangement with major schools/college for admission of children of transferred Officers in all Centres.

PROFESSIONAL INDEMNITY INSURANCE

A suitable & Comprehensive Professional Indemnity Insurance should be provided to cover up the professional & Legal liabilities arising out while discharging the official duties.

17

PART – I V - OTHERS

ORGANISATIONAL STRUCTURE

The Company should have the same Five tier organizational structure as proposed:

Corporate Office – To take care of Corporate functions only Zonal Office – To take care of all the Operational Issues in the Five ZonesRegional Office – To take care of all the Operating offices under the RegionArea Office – To be a profit Center & report to Regional OfficeBranch Office & Micro Office – To be reporting to Area Office.

The Operating Offices should be headed by a suitable officer as per the business handled by the Office.

RE-DESIGNATIONS

Executive Director – Scale IXChief General Manager – Scale VIIIGeneral Manager – Scale VIIDeputy General Manager – Scale VIAsst. Gen. Manager – Scale VChief Manager – Scale IVSenior Manager – Scale IIIManager – Scale IIAsst. Manager – Scale I

DEFINITION OF FAMILY

DEFINITION of family should be uniform for all benefits. Family should consist of self, spouse, unemployed male child up to the age of 25 years, unmarried/separated daughters, non-gainfully employed parents (Parents having the Pension Income should be treated as Dependent Parents) and unmarried/ separated sisters/ unemployed brothers up to the age of 25 years in case parents are not there.

RECOGNITION TO ASSOCIATIONS

PROMISED autonomy for Managements in service matters and resultant bipartite mechanism is possible only if majority association in Industry is recognized as sole bargaining agent. Issue of recognition of Majority association in Industry has been pending for long. Though process of Check-off is now in place, recognition to majority association is yet to be done. The logical conclusion of Check-off process is recognition of majority association. The decision to recognize the Check off

18

qualified Association by the respective Companies was already taken in the GIPSA Governing Board Meeting held in March 2003.

We are demanding participative management as a token of recognition of Check Off Qualified Associations.

CONCLUSION

LIST of demands given above is only illustrative and not exhaustive. The National Confederation of General Insurance Officers Associations and its affiliates National Insurance Company Officers Association, New India Assurance Officers Association, Oriental Insurance Company Officers Association and United India Insurance Officers Association reserves the right to add, alter or amend any demand in this Charter of Demands, keeping in view of situation prevailing within Industry or outside at the time of negotiations/finalization of Charter of Demands.

(VIVEK SAXENA)SECRETARY GENERAL

19

ANNEXURE TO “CHARTER OF DEMANDS-2012”

We have worked keeping the desired Basic at entry level expected in the last wage revision at Rs 25,000/-. We give below our working ( which formed part of our Charter of Demands -2007) which will clearly show the distortion due to keeping the Basic at Rs 17,240/- instead of Rs 25,000/-:

Extracts from our Charter of Demands – 2007

“COMPARATIVE position of an Officer in other Public Sector Undertakings changed dramatically with recommendations of Justice Mohan Committee which formed basis for revision in 1997. Pay Scales of Officers in Public Sector Undertakings were revised from 01.01.1997 at DA points 1668 with fitment benefit of 20%. Starting scale of comparable level of our Scale I Officer in Justice Mohan Committee system was Rs.10750/- at 1668 points. As against this starting basic of GIPSA Officers with effect from 01.08.1997 was Rs.7535/- at 1740 DA points. Moreover, correction of DA pattern in Public Sector Undertakings as per Justice Mohan Committee recommendation has further altered relative position of an Officer in GIPSA set up and other Public Sector Undertakings in favour of Officer in the latter.

SIMILARLY relative position of Class I Officer in Government also changed as compared to an Officer of GIPSA set up. Pay Scales for Central Government Officers were revised from 01.01.1996 at DA points 1510 with 40% fitment benefit to arrive at new starting basic of Rs.8000/- against which starting basic of Officer in GIPSA was only Rs.7535/- with effect from 01.08.1997 at 1740 DA points.

WHEN our Pay Scales were revised in 1997, Pay Scales of Officers in Public Sector Undertakings were also revised in same year on the basis of Justice Mohan Committee recommendations. Justice Mohan Committee, after going into a range of issues, has made a recommendation for a starting basic of Rs.10750/- for the comparable level of our Scale I Officer. We have made out a case for application of starting basic of Rs.10750/- as recommended by Justice Mohan Committee for our Scale I Officers also in our Charter submitted to you in 1997 revision. As against this, pay for Scale I Officer was revised as Rs.7535/-. Pay Scales of Officers in Public Sector Undertakings is again under revision from 01.01.2007. Hence there is a need for correction in our Pay structure to restore parity with Officers in other Public Sector Undertakings.

IF we work out Pay Scale of Officers at Rs.10750/- in 1997 and revision in 2002 with same parameter of 20% fitment benefit, present basic would be Rs.24315/- signifying an increase of 60% from present level of Basic and DA. Any increase with less than 60% fitment benefit would push the position of GIPSA Officers still lower as compared to Officers in other Public Sector Undertakings and Government as already detailed in previous paragraphs. Relative position of an Officer in GIPSA has been coming down in relation to Officers in other Public Sector Undertakings and Government. This has resulted in large scale talent drain which has got cascading effect on Officers position.

20

THE quarterly average of All India Average CPI for April, May and June 2007 stood at 2944. From August 2007 all classes of GIPSA employees are getting DA at the rate of 27.72%. (2944-2328)/4x.18%. Hence DA upto 2944 points should be merged with corrected basic ie after removal of anomaly and a fitment benefit of a minimum of 60% should be applied, to arrive at new Pay Scales.

ON this basis the end of present seven scale structure will be Rs.75,000/-. Applying internal relativity between beginning and end of Officers Scale at 1:3, starting basic should be at least Rs.25,000/-.

THUS there is need for drastic improvement in compensation level for Officers in GIPSA to make it more meaningful as compared to their competitors, to make it comparable with their peers in other Public Sector Undertakings and Government and to ensure proper internal relativity between Officers and other cadres in the GIPSA set up”

21