Dear Members,

Pl find attachment draft memorandum to Finance Minister. Pl make additions/deletions if any.

Yours sincerely,

Sujit Bagchi

General Secretary,

NFGIE

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           Place  :

           Date   :

 Shri Arun Jaitley,

Minister for Finance,

Government of India,

New Delhi.

Dear Sir,

Wage Revision in Public Sector General Insurance Companies

We, the employees and officers of National/New India/Oriental/United India working at …………………………………………………………….. (Office) express our anguish and disappointment over the inordinate delay in settling the demand for wage revision.  The wage revision in Public Sector General Insurance Cos fell due on 1.8.2012 and despite the passage of over three years this demand is still pending resolution.  The progress Public Sector General Insurance Companies have been registering year after year is in your knowledge and we are happy that you are very appreciative of the work being done by these great institutions.  Therefore, we do not want to burden you with all the details of the working of PSGI Companies to justify our demand for a good wage revision.  Still we would like to place some important aspect of the functioning of PSGI Companies that are relevant to the issue of wage revision.

The last wage revision in PSGI Cos took place on 1.8.2007.  The period between 1.8.2007 and 31.7.2012 witnessed impressive performance by PSGI Cos in every aspect of their functioning despite a very difficult economic environ. The Gross Direct Premium Income (GDPI) increased from Rs.16,832 crore to Rs.42,591 crore. The market share of PSGI Cos has increased from 54.76% in FY 2014-15 to 56.58% as at August for current FY 2015-16.    The PSGI Cos share of dividend to the Government rose from Rs.599 crore for FY 2013-14 to Rs.665 Crore for the FY 2014-15.  The financial strength of 4 PSGI Co in the form of Reserves and Surplus was increased to Rs.22662 crore in the Financial Year 2014-15 when compared to Rs.18131 crore for the FY 2012-13. The GIC Re has paid the Dividend of Rs.540 crore for FY 2014-15 as against Rs.449 crore in FY 2013-14. The financial strength of GIC Re in the form of Reserves and Surplus was increased to Rs.13364 crore in the Financial Year 2014-15 when compared to Rs.9232 crore for the FY 2012-13. The productivity of the employees registered a massive increase.  The per capita premium generation rose from Rs.46 lakh for the year 2011-12 to Rs.58.6 lakh for the year 2013-14. The number of Policies issued by an employee at an average of 663 during 2008 stands increased to 1163 in the year 2014.  It is in the background of this impressive performance to which the employees have made immense contribution, we have been demanding a satisfactory wage revision.

The employees and officers have also been asking for a final option to join the pension scheme.  The Employees’ Pension Scheme was introduced in 1995 replacing the management’s contribution towards PF. The employees recruited between 1995 and 31.3.2010 were compulsorily covered by Pension Scheme.  The PSGI Cos introduced a new scheme of Pension to those who joined the services after 1.4.2010. Only around 12 percent of A small portion of employees who were in service in 1995 and did not opt for the Pension Scheme are seeking an option to join the Pension Scheme 1995.  The number is small and the Pension is fully funded in PSGI Cos.  Therefore, we do not feel any difficulty in agreeing to this request from those employees for an option to join the Pension Scheme as a final opportunity.

We are happy to note that on a number of occasions, you have said that if an industry does well, the employees should get benefitted.  We appreciate this reasoning.  The PSGI Cos have done well and therefore our demand for a good wage revision is totally justified.  We request you to instruct the GIPSA management to convene discussions with the unions and settle the wage revision at the earliest.

We look forward for a positive response from you for which we shall be very thankful to you.

                                                            Yours faithfully,

S.NO.	NAME  & DESIGNATION	SIGNATURE