CMDs and general managers of GIPSA member companies in the presence of Saurabh Mishra, joint secretary, DFS, will meet the union officials of the industry in Faridabad on 27th August to discuss the revamping plans of the companies on the basis of the diagnosis of problems as identified by the Ernst & Young(E&Y) which has been roped in by the GIPSA to restructure the four primary general insurers
From next time, wage revision of each employee to be linked with the performance of the organization and his/her own performance, said GIPSA in its letter to the unions of the industry
According to the new plans, primary component of the wage revision will be variable (performance based). However, a small fixed component of the pay shall be towards the cost of living adjustment during each appraisal and wage revision cycle, said the GIPSA
New Delhi:
Even as the stalemate over the ongoing wage negotiations for the PSU general insurance industry continues, the government through GIPSA has informed them that going forward, the wage revision will be based on the performance of each of PSU general insurers and each individual within the company.
Wage revision of each employee to be linked with the performance of the organisation and his/her own performance, said GIPSA in its letter to the unions of the industry.
GIPSA is the official coordinating body for the four PSU general insurers, New India Assurance, Oriental Insurance Company, National Insurance Company and United India Insurance and GIC Re.
According to the new plans, primary component of the wage revision will be variable (performance based). However, a small fixed component of the pay shall be towards the cost of living adjustment during each appraisal and wage revision cycle, said the GIPSA.
Measurement of performance will be made absolutely objective, based on key performance indicators identified for each employee as well as the performance milestones set for each organization. APAR(annual performance and appraisal report) and promotion policies will be modified accordingly to recognize and reward good performance, said GIPSA.
Meanwhile, Saurabh Mishra, joint secretary, Department of Financial Services, Ministry of Finance will be unveiling the revamping strategies for four PSU general insurers on August 27 during a meeting of top officials of the four companies and unions.
The CMDs and general managers of four PSU general insurers and GIC Re will meet the union officials of the industry in Faridabad on August 27 to discuss about the revamping plans of the companies on the basis of the diagnosis of problems as identified by the Ernst & Young(E&Y) which has been roped in by the GIPSA to restructure four primary general insurers.
The four PSU general insurers had earlier engaged E&Y as consultant for their project on implementing organizational efficiencies and performance management in the companies which is part of their key performance indicators (KPI) initiatives.
The assignment consists of three phases – Diagnose, Design and Implementation.
The `Diagnose phase’ is just over and the Design phase is going to commence shortly, revealed GIPSA.
Hence, this is the appropriate time when the findings of the “Diagnose phase” should be shared with employees’ unions / associations and their inputs are gathered which can be gainfully utilised while designing and thereafter implementing the project, said GIPSA.
Earlier, refusing to accept the latest offer of 12 per cent pay hike with full five year arrears since August 2017 made by the GIPSA, the unions of PSU general insurance industry had said it was far much lesser than the wage revision granted to state owned Life Insurance Corporation of India (LICI) and ECGC.
“Pay scales offered to us as on 01st August 2017 with loading factor of 10 per cent put us in most disadvantage when compared to those granted to LICI and ECGC,’’ said unions on in their letter to Suchita Gupta, chairperson,GIPSA.
The government last year had approved a 16 per cent wage revision with arrears and 15 per cent of hikes with arrears for the employees of LIC and PSU banking industry respectively.
We will be profitable, if we avoid or control the unprofitable mediclaim business done on the pressured by the Govt. Of India.which were of low premium but result in high claims
Now companies will require correct financial reporting
But It’s funny how 100+ key account specialists holding specialization in insurance and financial reporting…..were removed from their job by management 1 month ago…and now talking about diagnosis of financial figures..😅😅
The people removed were specialists in Insurance (Fellows and Associates) ,CAs , CWA , holding audit experience and were key people as per business heads.
Unable to understand the PROCESS YET for PSU revamp.
PSU’s are forced to dance according to the whims and fancies of the ruling government
This whole affair is very poor. we demand like LIC. ie 15% or above.
may be 20%
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It’s funny how 100+ key account specialists holding specialization in insurance and financial reporting…..were removed from their job by management 1 month ago…and now talking about diagnosis of financial figures..😅😅
The people removed were specialists in Insurance (Fellows and Associates) ,CAs , CWA , holding audit experience and were key people as per business heads.
Unable to understand the PROCESS YET for PSU revamp
Haha
The only solution to save and to make these 4 PSUs profitable is by making them A SINGLE corporation like LIC. Without making them a single company any restructuring is useless and amounts to nothing and killing these PSUs.
.
We are getting very less.
LIC is very high.
Somehow better.
All PSU of Gen. Insurers always provided services to the Indian society including weaker section, middle class section and upper class also deal with all natural calamities, provide covers against a small premium, so they cannot be assessed on the basis of performance
We have our own rules and regulations. But we need transfer policy as in Banks and administrative instructions to be clear and they should be available and In-charges alone can be allowed for granting discounts and need not depend on higher office.
Otherwise psu cannot survive in near future. Higher office should monitor the situation And provide guidance at this stage.
Performance of a PSGIC depends much upon the policies implemented by our Govt. for the benefits of the common public either in the way of premium rates or in the way of settling a claim to the affected public particularly in death claims under various social schemes and motor accident claims as well where the claim amount is not pre-fixed. Hence an employee has no control on his performance so far as the profit or loss is concerned even after his dedicated and honest working for his organization. Whereas in the case of a Life Insurance by LIC the amount of premium deposited with it for long time giving great earning by investments. Secondly the claim amount in death case the claim amount is pre-decided for which the premium is computed accordingly. Hence, there are little chance of affecting the performance adversely.
PSU Generel Insurance Cos.employees unions should sick to their demands for long pending wage revision wef 8/ 3
2017 at par with LIC employees.
Instead of performance based wage revision of employee in each company from August 2027, better make one General Insurance Company of all 4 companies.
Our Demand is Genuine as we are Requesting GOVERNMENT to consider on Par with LIC but not more than That.
Hope Government will definitely consider our Request please.
Pay hike should be equalent to LIC & ECGC.
Monolithic GIC only alternative and need of the hour. Common sense. Separate 4 Companies owned by the same GOI (fighting with each other to survive) will each die one by one.
Only a merged entity will survive. GOI surely needs PS GIC for social objectives and financial inclusion.
I agree with this’ll bring Unity among the PS GIC employees and reduce the management expenses as well the need of the hour.
Govt. is playing step motherly role in case of PSGICS. Are the wages of LIC and Banks are performance linked? Most importantly who will decide the performance of an employee?
An employee who has given his/her entire life in serving of the company will not be considered as performing and an employee who can manage the statistics he/she will be considered as performing.
How terrible!
Besides, let the govt clear the pending WR, afterwards they should discuss about performance! Since 2012-2017 the performances of the PSGICS were very good.
It’s funny how 100+ key account specialists holding specialization in insurance and financial reporting…..were removed from their job by management 1 month ago…and now talking about diagnosis of financial figures..😅😅
The people removed were specialists in Insurance (Fellows and Associates) ,CAs , CWA , holding audit experience and were key people as per business heads.
Unable to understand the PROCESS YET for PSU revamp
First of all, who will decide the performance of GOI who is still not able to settle the wage revision of their dedicated employees (some died for rendering services in corona period also) even after 5 years . Is this not a bad & irresponsible performance on the part of GOI? Who will punish them? If that will not affect them, then why the employees will be punished for non performance?
Agency structure will be streamlined. Dummy agents maintained by Office incharges should be removed. Targets to incharges should be there but not to office. More concentration on Third Party claims, where more funds waisted as INTEREST because of negligence and incorrect decisions. Assistance from retireed employees will help in this regard.
What is management expense being paid in the insurance sector. Lunch expenses to internal, statutory auditors, unlimited, irrelevant payments by in-charges. How this can be reduced. By Paying to the person, who has to reduce them.
Require at par with lic. Merger may not be ideal. Atleast let the four form a cartel for gmc quotes.linking performance is welcome. Improve the software. Give good training. Require good HR. Promotion exam to be scrapped. Objective work record shall be the criteria. We will do well if you have the will to conquer.
Why should we accept a paltry 12% wage revision after nearly 61 months of relentless waiting?
Are we anyway doing less job than LIC ?
All the loss making PM Yojanas are forced down on PSGICs. Loss incurring auto tie up, GMC and TP losses are some of the examples of bad insurance .
focus of the Government Insurance co. needs to be changed from growth to profit.as in line to private players.
The board of these organizations are required to held responsible.
I find the people sitting in the board is least bothered on this issue.
General insurance industry is not
that much evaluated by the Government
Air india n Indian airlines merged. What happened next?
General Insurance Employees deserve hike at-least on par with LIC of India. Servicing a general insurance policy involves much more technicalities and paper work, liaisoning with intermediaries like Surveyors/TPAs/Honble Courts than what is called-for in a Life policy. General Insurance means collect a small percentage of value at stake as premium, and pay, in the event of loss/damage full value. If the surplus given by LIC of India are compared with the returns given by General Insurance all these years, the immense value generated by General Insurance will be revealed.