Unions want a 17 per cent hike to be on par with the Life Insurance Corporation(LIC) and the Indian banking industry.
GIPSA management has assured the matter would be taken up again with the Department Financial Services for further consideration, according to union sources
New Delhi: The unions of PSU general insurance industry, representing 35,000 workforce of the sector, have rejected the 12 per cent wage hike offered by the Department of Financial Services and want a 17 per cent hike to be on par with the Life Insurance Corporation(LIC) and the Indian banking industry.
However the unions have welcomed the development where the DFS finally has given in-principle agreement to revise the family pension of employees to 30 per cent
Wage revision discussions among all the stake holders were held today in New Delhi between GIPSA management, the representative body of six PSU general insurance companies, and representatives of all recognised unions.
The six state owned general re/insurers are- New India Assurance, Oriental Insurance Company, United India Insurance, National Insurance Company and Agriculture Insurance Company.
According to the union sources, initially, the GIPSA management proposed a 10 per cent loading on basic Pay and dearness allowance (DA), which was unanimously rejected by the unions. Following this, the management increased the offer to 12 per cent.
However, all unions stood firm in demanding parity with LIC employees and urged the management to enhance the offer further, said union sources.
In response, the management assured that the matter would be taken up again with joint secretary, DFS, for further consideration.
The companies were represented by their CMDs, executive directors, and general managers of the participating companies, along with the joint secretary and under secretary from the DFS.
It is utterly a Huge wasteful expenditure of public money
When companies floated by these GIPSA companies ie HITPA can productively work at 5.5 percent of premium efficiently.
Moreover there is absolutely no ownership.
No customer friendly service at the time of claims
No MNC style analysis and cost to company (coc) even at region levels
Everybody is king, jollylo Gimkana!
PM Modi has said minimum government and maximum governance but he has as usual failed in PSU general insurance companies.
Let them do atleast an analysis of per worker premium and per policy cost,
Profit/loss per worker
Let there be KPI fixing at the start of FY and based on performance let there be promotions.
Why IIM MBAS are not employed even as lateral entry after 10 yrs of Modi government
Insurance is not a rocket science.
Even Presentation of Policy to customer is highly lacking.
TMP is another wasteful exercise
Think of common man Mr Modi
I dont agree with you.
There is no comparison with MNC .PSU are Government owned companies are bound to fulfill social responsibility of Government which are all loss making segments.
So far Employees are concerned all are wel qualified at par with MNC . At present per employees profit and productivity is very high.
Frauds and miss selling of product are very rare in PSU, claims settlement after sales service are also remarkable.
Looking to the inflation and pairity with similar organisation in financial sector timely wage revision is justified demands Government should come forward to immediately settle the wage revision amicably
It’s easy to comment and write anything based on hearsay. These PSGIC are working so hard even though there is a stiff competition from Pvt Insurance companies who are kind of unregulated (free to do anything in terms of issuing policy, giving discounts, etc). Please refrain from giving bad names to these PSGIC’S who themselves deserved their hard earned payment rise.
I understand your pain. Probably you are working in a private general insurance company which are cheating people everyday and mis-selling products
I think mr rajan had a bitter experience from psu 😂it might be a claim rejection😁
These psu employees are salaried class and they also have a right of being entitled to good pay raise. Do you want to work in company without increment or do business without any profit.
I’d like to highlight that PSU general insurance companies have played a pivotal role in building the foundation of India’s insurance landscape. They serve not just profitable urban centers but also remote and rural areas where private players often hesitate to operate. This commitment to inclusivity is a major strength and reflects the true spirit of public service.
PSU insurers have been instrumental in implementing large-scale government-backed schemes like PMFBY, Ayushman Bharat, and others that directly benefit the common man. These initiatives are often not viable for private insurers, yet PSU companies take them up for the greater public good.
Operational efficiency and customer service are evolving areas, and many PSU companies are actively working on technology upgrades, digitization, and performance metrics to enhance transparency and delivery. HITPA and other similar entities are part of this transformation, aiming to reduce administrative costs while improving healthcare claim servicing.
As for talent and performance, there is certainly room for improvement, and many reforms are underway, including digital initiatives, internal KPIs, and greater accountability. Bringing in lateral talent like IIM graduates can definitely add value, and it’s a discussion worth having at policy levels.
Let’s not forget—PSU general insurers stood strong during natural calamities, the COVID-19 pandemic, and in the execution of mass-scale social security schemes. That kind of reliability and public trust is hard to match.
Positive change takes time, but it is happening. Constructive criticism like yours is part of what keeps the dialogue moving forward.
When all useless govt schemes are floated, the brunt is borne by PSUs and its employees. Moreover the lack of recruitment in all cadres for almost 10 years and the mass retirements have increased the work load of employees.
This is their legitimate demand. They are not at the mercy of the government as their salary is from the revenue generated by them and as the government is ready to forgo the profit share by bringing in 100% FDI.
The comments of Mr Rajan is not logical and not acceptable.PSU General Insurance Employees deserve salary hike.They are well qualified and can do their best.During FY 24-25,all PSU General Insurance Companies have shown excellent results inspite of decrease in number of employees due to mass retirement in last few years.Govt should consider wage revision at par with LIC
In reply to Rajan
You might have had a bad experience with PSU general insurers on the issues like absolute ownership, being customer friendly and so on but these so called GIPSA companies could not effectively work at 5.5% of premium because they effectively pay more claims to Policy holders in comparison with that of their private sector counterparts.
All these MNC styles also come with a cost and for your information, these companies have also a KPI based evaluation.
As u mentioned, these IIM MBA’s do not join PSU’s seeing the wages given. Atleast, now understand where these companies stand in the matter of the wages and that is why even a Btech graduate does not prefer this job.
You need not support their fight for better wages atleast, don’t make remarks that they don’t deserve it. At the end of the day, only they know the efforts and hardwork they have made in these companies.
As an employee of one PSU general insurer of India, I want to thank you from the core of my heart for raising voice for us.
It means a lot…🙏
It sounds like more from a person who may be working in any of the private general insurance companies, mis selling products and running away when a large claim has come or he tried to deceit PSU general insurers by lodging fraud claims but got caught. Pure personal grudge against PSU insurers!
In reply to Rajan
I don’t know who u r and what profession u r pursuing. I think u r not old enough to understand the role played by public sector undertakings in nation building. Better keep quiet. If this is wasteful then what u receive from ur employer ll be more wasteful as u ve commented in a half baked manner.
U lack maturity and that is why u r undermining the job done by others
I think you are a raw person without knowing the contribution made by the PSU in Nation building.
First of all know the concept behind PSU introduction in INDIA. We are in Democratic set up. Still Underdeveloped country. Since Independence where we stand now it’s due to PSU only Right from Five Year plans.
Since ready made se ups are available in India due to PSUs hard work now taking the advantage of experience and data available others and MNC are entering in field of PSU working area. Let them go to rural un explored are where even Mobile Towers are not available. People are totally dependent on Postal Service and BSNL only
Private players enter only in readymade Field wherever there is remo chance of loss .
In reply to Rajan
I think there is a bit of idiocy what you are saying. Try to know facts or better to keep your mouth shut.
Min. 16% hike required
Your words talk about your knowledge. Come with a healthy discussion and respectful communication.
Everything is not learnt at degrees.
Rajan would have had bitter experience with one or two employees of psu , please do not generalise it ,majority of us are well qualified people and put in a lot of effort , sacrificing many personal affairs and that top at much lower wages compared to equally qualified people and we do it due to our service mentality . But at the same time we need to support our family and hence we expect fair wages , we are not talking about any luxuries here , just for necessities
LIC is generating a lot of profit, so they deserved hike
Per employees profit of LIC is Rs 41 lakh, while per employee profit of GIC Re is 15 Crore. So GIC Re employees deserve far better salary as compared to LIC.
As an officer of a psu general insurer , I confirm that we are on duty 24/7 . We dont hesitate to work any any time or the day. We take every efforts to support our customer and help them get their claims unlike in private sector where they try every way to reduce the claims .
Every psu employee works hard and deserve good pay raise. No one can work on stagnant pay and run business on loss. I knew it because I am also a bank employee.
Why the unions are demanding the updation. If they don’t do, then one day they will be retired from the service. After that they get Lolibap. They will realise that time. So, the updation must be one agenda and it is very important.