THE NATIONAL CONFEDERATION

OF

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 INDIA
At Kolkata on 1st October2012

______________________________
National Insurance Company Officers Association
New India Assurance Officers Association
Oriental Insurance Company Officers Association
United India Insurance Officers Association

INDEX
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

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 31st July2007 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

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
aspirations of our Officers are accommodated to the fullest, the dignity of the officers-fraternity is
maintained 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 customers expectations of 24X7 customer services have become high
and the dearth of Officers in the Industry is increasing the workload of the existing workforce.
Average 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
Industry 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.

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 )
25000
P.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.

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.
ii.
iii.
iv.
v.
vi.

DA at 4708 points in CPI ( base 1960=100) should be merged with Basic;

DA should be revised monthly;
DA should be based on CPI for second previous month;
DA neutralization should continue to be based on existing formula;
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.
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
Metro Cities and Cities with population
exceeding 45 lakhs and Vashi, Faridabad,
Ghaziabad,
Noida,
Gurgaon
and
Chandigarh
A Class Cities
B Class Cities
C Class Cities

RATE PER MONTH

40 % of revised basic salary plus Grade Pay
without any ceiling
35% of revised basic salary plus Grade Pay
without any ceiling
30% of revised basic salary plus Grade Pay
without any ceiling
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
Cities with population exceeding 25 lakhs
and Vashi, Faridabad, Ghaziabad, Noida,
Gurgaon and Chandigarh
Cities with population exceeding 12 lakhs
and all State Capitals.
All other places

RATE PER MONTH

15 % of revised basic salary plus Grade Pay
without any ceiling
12% of revised basic salary plus Grade Pay
without any ceiling
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 :Officers with Cars
Officers with 2 wheelers
Officers without Vehicles

Metro,
Cat.I Cities State Capital
All Other
60 litres
50 litres
40 litres
40 litres
30 litres
25 litres
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/- PM
FIII/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 months 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 those who joined on or after 01.01.2004 have been forcibly included under
NPS) 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
Marketing 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
GROUP PERSONAL ACCIDENT COVERAGE
Employee Group Personal Accident coverage should be minimum Rs. 10.00 lacs
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
A CLASS
B & C CLASS

: 10%
: 7.5%
: 5%

LEASED ACCOMMODATION
Metros, State Capitals and
Other specified places

: 50% of revised basic pay as monthly rent

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 Bachelors 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 months 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 months revised basic salary.
FLOOD/DRAUGHT ALLOWANCE
EQUAL to One months 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 days salary.
OFFICERS who attend Court relating to Marine Recoveries, Ombudsman, WC Cases, MACT Evidence
etc should be paid One days salary.

PERSONAL LOAN
OFFICERS should be provided with an Emergent Personal loan of Rs.2 lacs once in 5 years for any
purpose.
16

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 Zones
Regional Office To take care of all the Operating offices under the Region
Area Office To be a profit Center & report to Regional Office
Branch 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
Chief General Manager
General Manager
Deputy General Manager
Asst. Gen. Manager
Chief Manager
Senior Manager
Manager
Asst. Manager

Scale IX
Scale VIII
Scale VII
Scale VI
Scale V
Scale IV
Scale III
Scale II
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 Checkoff 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.

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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%. (29442328)/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

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