NOW, GENERAL INSURERS FACE HIGHER PROVISIONING ON MOTOR PORTFOLIO

DEAR VIEWERS,

IRDA demands an additional Rs.3,750/- Crores for the last FOUR years. General Insurance Companies, already reeling from price undercutting and poor Underwriting of risks, bnow face a further blow to their profits. They now have the burden of higherprovisioning for losses on their Motor portfolio - Specially on their Third Party Pool.

TP Motor Pool is a corpus of premiums transferred from all general insurance companies to meet the claims arising out of road accidents involving damage to life or limbof third parties, mainly caused by trucks. Currently this pool of premium is estimated at around Rs.3,500/- crores.  But this is running ata deficit because the losses are much higher. To plug this loss, the I.R.D.A. has asked insurers to make additional provisions of about Rs.3,750/- crores on account of the Motor Pool for the last four years.

The General Insurance Industry will suffer as a result of the provisioning because the liability of three years is being absorbed in the financials of 2010-11, a single year, said Mr. Rakesh Jain, Director Corporate Centre and Chief FuinancialOfficer, ICICI Lombardo.  The insurance regulator has asked insurers to make a provisioning of expected loss ratio of 153 Per Cent. This means, for every Rs.100 earned will have to payout Rs.153 as  claims.

RATING DOWNGRADE:

In its recent report, rating agency  Standard and Poor's has downgraded its outlook for the Indian General Insurance Industry to negative from stable due to poor underwriting of riskss following the dismantling of the tariff regime.

The financials of state owned companies seem to have turned from bad to worse for the nine months ending December 31, 2010, with the exception of United India Insurance.  The others THREE Insurers, National Insurance, New India Assurance and Orietnal Insurance, have posted a loss on their investment income.  For years, public players made profits only from their investment income and not fromtheir core business of Underwriting insurance.

Fourteen (14) private insurers reported Rs.782/- crores under writing losses for the nine months ending December 31, 2010. Mr. S.L. Mohan, General Secretary, Geneeral Insurance Council ( a self-regulatory body), said that the provisioning would impact the underwriting losses of general insurance companies. However, the extra provisioning will be made in the books (physical entry) of insurers and paid only when there are claims.

Dr. Amarnath Aananthanarayanan, CEO and Managing Director of the Two and Half year old Bharati Axa General Insurance, said provisioning to be made on account of motor pool would adversely impact the underrwriting losses of insurers.

"Bharati Axa General enjoys the last mover advantage and therefore, will not have to absorb the provisioning to a large extent" he said.

The standard and Poor's report said that underwriting performances are unlikely to improve significantly in the next 12 months, despite signs that prices are stabilising.  The overall industry remains profitable through investment income, but that can leave it vulnerable to investment market shocks.

---- EDITOR

.... SOURCE BUSINESLINE 08-04-2011

NEW INDIA ASSURANCE CONTINUING ITS SUPREMACY IN THE MARKET

DEAR VIEWERS,

ON BEHALF OF ALL OUR STATE UNITS OF GICEU ACROSS THE NATION & ON OBEHALF OF GICEU-AP  AND IT'S APPEX BODY NATIONAL FEDERATION OF GENERAL INSURANCE EMPLOYEES, WE EXPRESS OUR SINCERE THANKS TO ALL THE CLIENTELE OF NEW INDIA ASSURANCE FOR ENABLING IT TO CROSS GLOBAL PRMIUM OF Rs.8,600/- CRORES FOR THE YEAR 2010-11, OUT OF WHICH Rs.7,070/- CRORES FROM INDIAN MARKET,  THUS MAINTAINING ITS POSITION AS THE UNDISPUTED MARKET LEADER FOR THE LAST 30 YEARS.

ON THIS HISTORIC EVENT AND OCCASION, WE CONGRATULATE ALL FELLOW NEW INDIANS AT EVERY LEVEL AND AGENTS WHO STRIVED EVERY NERVE TO ACHIEVE THIS GOAL .

KHUDOS TO ALL CONCERNED, ONCE AGAIN.

WITH WARM GREETINGS,

M. HANUMANTHA RAO               T. GOPALA KRISHNA

       PRESIDENT                            GENERAL SECRETARY

CENSUS - INDIA AT A GLANCE - 2011

DEAR VIWERS,

--- EDITOR

NEW YEARS DAY GREETINGS - UGADI n GUDI PADWA, NAVREH, TAHIRI .. ETC.

DEAR VIEWERS,

THE GIC EMPLOYEES' UNION-AP IS WISHING THE PEOPLE OF VARIOUS STATES WHO ARE CELEBRATING TODAY NEW YEARS DAY - TODAY  VIZ.,

• The KASHMIRIS will be celebrating 'NAVREH".
• People from ANDHRA PRADESH & KARNATAKA call this new year UGADI and will begin it by offering a pachachadi (Chutney) made of Raw Managoe, Jaggery, New Tamrind, Banana and Leaf flower (neem) to God.
• MAHARASHTRIANS call it GUDI PADWA and erect a Gudi, Offer prayer to God and eat fresh neem leaf.
• In the hills, KUMAONIS celebrate culmionates nine days (Nava Vasanth) later on RAM NAVAMI
• SINDHIS prepare a speial dish this day called 'TAHIRI (Sweetened Rice) and visit Temple with that special Thal.

On this happy Occasion, we wish all the people a Happy and Prosperous New Year that brings every Happiness and cheers in every family through out the year.

WITH FESTIVE GRETINGS,

M. HANUMANTHA RAO         T. GOPALA KRISHNA

                                              PRESIDENT                GENERAL SECRETARY 

RESERVATION IN PROMOTION - TREATMENT OF SC/ST CANDIDATES PROMOTED ON THEIR OWN MERIT

Dear Friends,

We reproduce  the following Circulars issued by the Government of India,  Ministry of Personnel, Public Grievances and Pensions, Department of Personnel and Training, North Block, New Delhi- 110001 - for information of all concerned.

No.36012/45/2005-Estt. (Res.),

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel and Training

North Block

New Delhi- 110001.

Dated the 10th August. 2010.

                                    OFFICE MEMORANDUM

Subject: Reservation in promotion – Treatment of SC/ST candidates promoted on their own merit.

The undersigned is directed to refer to this Department’s O.M.No.36028/17/2001-Estt(Res.) dated 11th July, 2002 which clarified that SC/ST candidates appointed by promotion on their own merit and not owing to reservation or relaxation of qualifications will be adjusted against un-reserved points of the reservation roster and not against reserved points. It was subsequently clarified by this Department’s O.M. No.36028/17/2001- Estt. (Res.) dated 31.1.2005 that the above referred O.M. took effect from 11.7.2002 and that concept of own merit did not apply to the promotions made by non-selection method.

2. Central Administration Tribunal, Madras Bench in O.A. No.900/2005 [S. Kalugasalamoorthy v/s. Union of India & Others] has set aside the O.M.No.36028/17/2001-Estt. (Res.) dated 31.1.2005 and held that when a person is selected on the basis of his own seniority. the scope of considering and counting him against quota reserved for SCs does not arise. The High Court of judicature at Madras in the matter of UOI v/s.S. Kalugasalamoorthy [ WP No.15926/2007 ] has upheld the decision of the Central Administrative Tribunal.

3. The matter has been examined in the light of the above referred judgments and it has been decided to withdraw O.M. No. 36028/17/2001- Estt. (Res.) dated 31.1.2005 referred to above. It is clarified that SC/ST candidates appointed by promotion on their own merit and seniority and not owing to reservation or relaxation of qualifications will be adjusted against unreserved points of reservation roster. irrespective of the fact whether the promotion is made by selection method or non-selection method. These orders will take effect from 2.7.1997. the date on which post based reservation was introduced.

4. These instructions may be brought to the notice of all concerned.

sd/-
(K.G.Verma)
Director

Original Copy

...............EDITOR

GENERAL INSURERS' GROSS PREMIUM INCOME UP TO 22.6%

DEAR  FRIENDS,

The gross premium income of the general insurance industry grew 22.6 per cent in February, as compared to the year-ago period.

According to the data collated by insurers, the industry collected Rs 3,403.9 crore by writing new policies, as against Rs 2,775.8 crore last year. However, compared to January, when the industry collected Rs 3,692.3 crore, the gross premium income dipped 7.8 per cent.

While, at Rs 1,463.2 crore, private players outshone their public sector peers, registering growth of 26.3 per cent, the latter collected a premium of Rs 1,940.7 crore — up 22.6 per cent.

During April-February, at Rs 37,909 crore, the industry recorded growth of 22.5 per cent in the gross premium income, as against Rs 30,942 crore reported in the same period a year ago.

The four public sector players collected premiums worth Rs 22,051 crore — up 20.97 per cent. The private players grew 24.73 per cent to Rs 15,857.9 crore.

....Editor

PARA 13.2 PROMOTIONS- CHENNAI HIGH COURT CASE

DEAR FRIENDS,

WE ARE PLEASED TO INFORM YOU THAT, IT IS RELIABLY LEARNT THAT THE INTERVIEWS FOR THE LEFT OUT CANDIDATES (SOUTH ZONE) AS PER HON'BLE HIGHT COURT DIRECTION, WILL BE CONDUCTED TENTATIVELY IN THE NEXT WEEK OF THIS MONTH. THE EXACT DATE WILL BE KNOWN BEFORE THIS FRIDAY 18TH MARCH, 2011.

THE RESULTS ARE LIKELY TO BE DECALRED IMMEDIATELY AFTER COMPLETION OF INTERVIEWS.

ALSO UNDERSTAND FROM THE RELIABLE SOURCES THAT THE SELECTED CANDIDATES MAY BE ASKED TO REPORT IN THE PROMOTED CADRE ON OR BEFORE 31ST MARCH, 2011, BY THE MANAGEMENT. THIS IS FOR YOUR INFORMATION, PLEASE.

WITH WARM GREETINGS,

WITH REGARDS,

M. HANUMANTHA RAO    T. GOPALA KRISHNA

                                        PRESIDENT            GENERAL SECRETARY

RECRUITMENT OF ADMN. OFFICERS (SCALE-1) IN NEW INDIA ASSURANCE

DEAR VIEWERS,
Applications are invited from Indian Citizens for the post of Administrative Officer (Scale I) - Probationary, in Specialized disciplines and as Generalists.
(I) Total No. of vacancies
Sl.  Group   Code        Specialist Discipline           No. of Vacancies

1     A-1       01          Information Technology              40
2     A-2       02         Actuary                                    25
3     A-3       03         Accounts/CA                             25
4     B          04          Generalists                             289

Category     SC  ST  OBC   Unreserved    Total   PWD **
Vacancies   57    28   102        192          379     4

Reservation for released Emergency Commissioned Officers (ECO), Short Service and Retrenched Commissioned Officers (SSRCO) and Persons with Disabilities (PWD) candidates shall be as per rules.

** 4 vacancies for Persons with Disabilities (PWD) are included in the total vacancies of 379 mentioned above.
Application/s complete in all respects together with enclosures as mentioned above must reach by ordinary post on or before 28.03.2011 at the following address :

Post BagNo. 2281, Chanakyapuri, Post Office, New Delhi –110021
Application once made will not be allowed to be withdrawn and fee/s paid shall not be refunded under any circumstances.
Application Fee:  

A Crossed Bank Draft of Rs.500/- ( Rs.150/- for SC/ST candidates and Persons With Disability) valid for Six months, purchased from any branch of any Nationalized Bank or Scheduled Bank drawn in favour of ‘THE NEW INDIA ASSURANCE COMPANY LTD.’ payable at Mumbai, should be attached with the application form. Candidates should write their Name and Address, Group and Code No. on the reverse of the Bank Draft. Candidates applying for two Groups should pay examination fee of Rs.700/- or Rs.200/-, as the case may be, through a crossed bank draft. Fee paid through postal order/money order will not be accepted. Application received with defective bank draft shall be liable for rejection. Candidates are, therefore, advised to check if the bank draft is in order particularly a) date of issue b) signature of the bank authorities c) address of the bank/branch d) Amount (Rs.500/- or Rs.150/-) in words and figures and e) favouring The New India Assurance Co. Ltd. payable at Mumbai valid for six months. No Examination Fee is required for confirmed employees of The New India Assurance Company Limited., applying for the post.

If a candidate applies for two Groups as prescribed above and pays examination fee for only one Group i.e. Rs.500/- or Rs.150/-, as the case may be, his/her candidature will be considered for Group B only.

 Date of written examination: 22.05.2011

FOR MORE DETAILS PLEASE LOG IN TO http://newindia.co.in
 
....... EDITOR

"" FLASH "" "" FLASH"" - CHENNAI HIGH COURT CASE - PARA 13.2

DEAR FRIENDS,
JUST NOW WE HAVE RECEIVED A COMMUNICATION FROM OUR LEADERS FROM CHENNAI THAT THE   LONG AWAITED JUDGEMENT HAS BEEN PRONOUNCED BY THE HON'BLE CHENNAI HIGH COURT  TODAY (.) FURTHER LEARNT THAT THE HON'BLE COURT HAS DIRECTED THE NEW INDIA MANAGEMENT  TO CALL ALL THE LEFT OUT CANDIDATES UNDER PARA 13.2 FOR THE INTERVIEW, WITH IN A FEW DAYS FROM NOW (.)

MORE DETAILS FOLLOWS.

WITH REGARDS,

YOURS-IN-SERVICE,

M. HANUMANTHA RAO        T. GOPALA KRISHNA

         PRESIDENT                 GENERAL SECRETARY

HOMAGE TO DEPARTED GREAT LEADER "NANI MOHAN SAHA" - GICEU-EASTERN ZONE

Dear Members,

Debasish Banerjee from GICEU-EZ, KOLKATTA has sent a link to our Union blog today, which reads as follows: 


"" OUR BELOVED LEADER AND MENTOR OF OUR GIC EMPLOYEES' UNION EZ, NANI MOHAN SAHA EXPIRED ON 24TH FEB, 2011 AT 2.45 PM. WE PRAY OUR HOMAGE TO THE GREAT LEADER. HE FOUGHT FOR THE UPLIFTMENT OF OUR EMPLOYEES SINCE 1955.""
---
WE REALLY SHOCKED TO KNOW ABOUT THE SUDDEN DEMISE OF SUCH A GREAT AND DYNAMIC LEADER, WHO REALLY FOUGHT TO PROTECT THE RIGHTS AND BENEFITS OF WORKING CLASS OF GENERAL INSURANCE INDUSTRY.

ON BEHALF OF ENTIRE GIC EMPLOYEES UNION-ANDHRA PRADESH UNIT, WE EXPRESS OUR DEEP SORROW AND PAY A RESPECTFUL HOMAGE WITH SALUTATIONS TO THE DEPARTED GREAT  LEADER "NANI MOHAN SAHA", WHO REACHED HIS LAST ABODE.  WE ALWAYS REMEMBER HIM AS  " NANI DHA". 

With Deepest Condolences to the bereaved family members.

 

M. HANUMANTHA RAO           T. GOPALA KISHNA

              PRESIDENT                 GENERAL SECRETARY

NO I.T. RETURNS FOR SALARIED PEOPLE WITH INCOME BELOW Rs.5 LAKH

Dear Viewers,

The following are the a few highlight in Finance Bill,2011.

1. Salaried people,may be up to Rs.5 Lakh, need not file the Income Tax return. Form-16 issued to employees will be treated as Inome Tax Return.
2. Every person whose income exceeds the taxable limit is presently required to file returns.
3. Tax Exemptionlimit or individual tax payers aised om Rs.1.60 Lakh to Rs.1.8 Lakh, giving tax relief of Rs.2,000/-.
4. Exemption limit raised for Senior Ciizens from Rs.2.4 Lakh o Rs.2.5 Lakh; the qualiying age for the rebate reduced from 65 to 60.
5. Higher exemption limit for very Senior Citizens (80 years and above) at Rs.5 lakh.
6. Additional deduction of Rs.20,000/- for investment in long-term infrastucture bonds to be extended for one more year.

A) Basic Slab for Men: Earlier under the age of 65 years, now under 60 years.
 Upto Rs.1,80,000/-                                             NIL
Rs.1,80,001/- to Rs.5,00,000/-                             10%
Rs.5,00,001/- to Rs.8,00,000/-                             20%
AboveRs.8,00,001/-                                            30%
B) Basic Slabs for Women : Earlier under the ageof 65 year,now under 60 years.
Upto Rs.1,90,000/-                                              NIL
Rs.1,90,001/- to Rs.5,00,000/-                             10%
Rs.5,00,001/- to Rs.8,00,000/-                             20%
AboveRs.8,00,001/-                                            30%
C) Slabs for Senior Citizens: Earlier over the age of 65 years, now 60 to 80 years.
 Upto Rs.2,50,000/-                                             NIL
Rs.2,50,001/- to Rs.5,00,000/-                              10%
Rs.5,00,001/- to Rs.8,00,000/-                              20%
AboveRs.8,00,001/-                                             30%
D) Slabs for "Very" Senior Citizens: Now category over age of 80 years.
Upto Rs.5,00,000/-                                              NIL
Rs.5,00,001/- to Rs.8,00,000/-                              20%
Rs.8,00,001/- and above                                      30%
The above information provided for the benefit of all concened.
..... EDITOR

CONSUMER PRICE INDEX UP BY 3 (THREE) POINTS

DEAR FRIENDS,

ALL INDIA CONSUMER PRICE INDEX HAS ROSE BY 3 (THREE) POINTS I.E. FROM EXISTING 185 POINTS (DEC.,2010) TO 188 POINTS (JAN,2011).  IF THE SAME INDEX IS CONTINUED FOR FEB & MARCHH, 2011, THE EMPLOYEES IN PSU's WILL GET 30 SLABS D.A. W.E.F. 01ST MAY, 2011 ONWARDS.

THIS IS FOR YOUR INFORMATION.

WITH REGARDS,

YOURS-IN-SERICE,

M. HANUMANTHA RAO           T. GOPALA KRISHNA

      PRESIDENT                       GENERAL SECRETARY

Some relief in Budget 2011-12 (Income Tax) & FM not in the mood to cut income tax rates

Dear Viewers,
For the benefit of all concern, we publish here under some important news :-

Some relief in Budget 2011-12 (Income Tax)


At present the maximum limit u/s 80C is Rs. 1,00,000/- with an additional limit of Rs. 20,000/- under Section 80CCF. The tax exemptions for savings is received under section 80C of the Income Tax Act while the special window of Rs 20,000 investment in infrastructure bonds is available under section 80CCF (Total of Rs. 1,20,000/-).To give some relief to common man battling rising prices, finance minister Shri Pranab Mukherjee is expected to raise the exemption limit on annual savings of an individual in the upcoming Budget.

The savings exemptions may be raised in the Union Budget 2011-12 from the present Rs 1 lakh. In 2010-11, the finance ministry allowed an additional exemption of Rs 20,000 for investment in long-term infrastructure bonds.

Shri. Mukherjee is expected to raise the Rs 1 lakh exemption limit by another Rs 20,000 in the Union Budget in February, a Cabinet minister told FE. Besides pushing up the savings rate, this would align the current income tax regime towards the proposed Direct Taxes Code (DTC).

“This year is going to be an year of consolidation towards DTC,” a top official in the finance ministry had said recently. In the DTC, the government has proposed tax exemption on annual savings of up to Rs 1.5 lakh.

The tax exemption for savings limit of Rs 1 lakh when increased, will give an additional cushion to the common man who is grappling with price rise already. Tax experts also feel that there is a case for to raising the savings exemptions limit as the current exemption was prescribed long back. Last year, Planning Commission had suggested to the finance ministry that savings exemption limit can be raised to Rs 1.5 lakh.

FM not in the mood to cut Income Tax Rates

Those looking for income-tax relief in the forthcoming Budget to fight rising food prices are likely to be disappointed. Taxpayers can expect some relief from high inflation in Budget 2011-12 as the government may raise the income tax exemption limit for individuals.

Tax incentives to software companies under Sections 10A and 10B are set to continue next year, with a change in the basis of benefits from profit-linked to investment-linked. There were indications that Sections 10A and 10B would continue, but there was no clarity on whether it would remain profit-linked in 2011-2012 or would change to being investment-linked.

Moreover, they said, as the government is committed to raising the income tax exemption limit from Rs 160,000 per annum to Rs 200,000 in line with the Direct Taxes Code in 2012-13, tax payers could expect at least some relief in the upcoming Budget on February 28.
Currently, the exemption limit is Rs 1.6 lakh (Rs 160,000) and considering the fact that inflation is running at around 10 per cent, an increase of 10 per cent in the exemption limit could be expected in the upcoming Budget. This would mean that the exemption limit would probably be enhanced by Rs 15,000 to 1.75 lakh (Rs 175,000).

This step would result in a revenue loss of around Rs 4,000 crore (Rs 40 billion), said the official, adding that this would mean a Rs 1,500 tax benefit a year to the taxpayer.

He said that the increase in the exemption limit would also be a step towards aligning the tax structure with DTC, as the exemption limit under the proposed regime is Rs 2 lakh (Rs 200,000) a year. DTC is expected to come into effect from 2012-2013.

The Direct Taxes Code Bill, 2010, was introduced in the Lok Sabha on August 30 last year and it was proposed to implement the Code from April 2012.

The Income Tax Department had chalked out a plan for the preparation and its implementation from next year, said the official. A few changes due to political compulsions, however, should not be ruled out completely, said the official.

The department is focusing on developing an integrated technology platform to ensure a smooth transition to DTC from the existing Income Tax Act. The Code offers an opportunity for the Income Tax Department to integrate its people, process and technology through an integrated technology plat form.

In view of the economic recovery, Mukherjee had started the process of withdrawal of stimulus by raising tax rates in the 2010-11 Budget.

With the economy recording a growth rate of 8.9 per cent in the first half of the current fiscal, Mukherjee is expected to further withdraw the stimulus with a view to reduce the fiscal deficit, which is expected to be about 5.5 per cent of the gross domestic product in 2010-11.

* * * * * ..Editor

IRDA ISSUES DRAFT M & A GUIDELINES FOR NON-LIFE INSURANCE COS.

Dear Viewers,

Insurance Regulatory and Development Authority (Irda) today released a framework for amalgamation of non-life insurance companies to ensure smooth functioning of the sector.

Insurance Regulatory and Development Authority (IRDA) has issued merger and acquisition (M&A) guidelines for non-life insurance companies, reports CNBC-TV18.

According to the guidelines companies are required to submit intent letter two months prior to application and also explain the rationale behind the proposed merger. The merger proposal is required to be send to all policyholders. However, approval from Foreign Investment Promotion Board (FIPB), Reserve Bank of India (RBI) and IRDA is mandatory.

IRDA also says that application fee for non-life insurance M&A will be one tenth of the gross written premium. Fee will be in the minimum bracket of Rs 50,000,00 to Rs 5 crore.

--- editor

FLASH NEWS - PTS TO FTS, HIKE IN HALTING ALLOWANCE ETC,,,,,

Dear Friends,

The Board of  New India Assurance Company has given their nod on the following matters:

1. Payment of arrears to all PTS, due to Wage Revision.

2. Upgradation of all Part Time Sweepers as F.T.S.in a phased manner.

3. Increase in Halting Allowance to employees on Official tours.

Pursuing for clearance for few more non-core benefits, likely clears shortly.

With Warm Greetings,

Yours-in-Service,

M. Hanumantha Rao                 T. Gopalakrishna

                           PRESIDENT                  GENERAL SECRETARY

INCREASED D.A. FOR FEBRUARY,MARCH & APRIL, 2011

Dear Friends,

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for December, 2010 increased by three points and stood at 185 (one hundred and eighty five). THEREBY A NET OF D.A. 25 SLABS HAVE BEEN INCREASED.  THIS INCREASE IS EFFECTIVE FROM FEB.,2011 AND ONWARDS & UPTO APRIL,2011.


The All-India (General) point to point rate of inflation for December, 2010 is 9.47% as compared to 8.33% in November 2010. Inflation based on Food Index is 7.98% in December 2010 as compared to 5.35% in November 2010.  ----Editor.

INCREASE OF SURETY LOAN -NIA EMP.CO-OP-THRIFT & CREDIT SOCIETY LTD., NO.X-413, CHENNAI

Dear Friends,

We have been receiving enquiries on the captioned matter from various corners of the State. For information of all members of the Society, we reproduce here under the contents of society Circular NO.92/2010-2011 DATED:18-12-2010. Ofcourse, this circular has been already sent to all Operating offices under Hyderabad /Vizag Regions by the society directly in the 3rd week of December, 2010.

Contents:

"" TO ALL MEMBERS,

The Board of Directors at their meeting held on 18-12-2010 have decided to increase the Surety Loan quantum as detailed below:

Surety Loan increased from Rs.3,00,000/- to Rs.4,00,000/- and the same will be sanctioned at 25 times the Baisc Pay plus D.A. of the members salary or Rs.4,00,000/- whichever is less.  These reivions shall take effect from 20th December, 2010.

On account of enhancement of loan, the Boad of Directors have decided to ensure strict compliance of the Circular dated 03/04/2003 regarding adequacy of net salary as basic condition for sanction of loan. Hence, members are once again requested to submit Surety Loan application along with xerox copy of Latest Salary Slip Certified in addition to Signature of Pay Disbursing Officer in the application form from respective Offices Regional Accountant/Divisional Accountant/Office In-charge.

Members are  also requested to mention clearly about the amount of Loan required in column No.8 of the Loan application (Maximum / Net Amount).

With Regards,

Sd/-xx xx xx

V. JOSEPH DASS

MANAGING DIRECTOR ""

With Warm Greetings,

Yours-in-Service,

T. GOPALAKRISHNA       CH. KANTHA RAO

VICE-PRESIDENT                 DIRECTOR

   SOCIETY                    SOCIETY

COs to disclose Unclaimed Amount of Policy holders - News item

Insurance Regulatory and Development Authority (IRDA) has directed Insurance companies to disclose "UNCLAIMED AMOUNT" of policy holders separately under "Current Liabilities" in their Balance Sheets and also disclose its agewise analysis.

These unclaimed amounts, IRDA has instructed insurers, "will not be appropriated / written back, under any circumstances."

The background is that the quantum of the amount lying with companies unclaimed by the policy holders/insureds is accumulating on year on year basis.

These amounts may be due to:

• Claims settled but not paid to the policy holders/ insureds due to any reason except litigation by the insured / policy holder.
• Sum due to the insured / policy holders on maturity or otherwise.
• Any excess collection of the premium / tax or any other charges refundable to the policy holders either under the policy or as per law or as directed by the Authority but not refunded so far.
• Payments made but not encashed by the policy holders / insured.

....... SOURCE: Premium Magazine, December, 2010.

NEW INDIA WARNED FOR HIGH EXPENSES - NEWS ITEM

IRDA has warned The New India Assurance Company for contravening the provisions of Section 40 C of the Insurance Act, 1938, read with Rule 17E of the Insurance Rules 1939, that specify a limit for Expenses of Management of an insurance company.

IRDA has said that the Company has exceeded the expenses ratio as per this section ineach financial year, from 2004-05 to 2009-10.

The Company has attributed the expenses over run to accounting of salary arrears for the previous year and actuarial liability, but IRDA has said that there was no acceptable justification given by the Company for this breach and has warned the Company to bring the expenses down in line with the prescriptions under the Act.

--- Source: Premium Magazine, December, 2010.

CHENNAI COURT CASE - PARA 13.2

Dear Friends,

We learnt from our Chennai Friends that due to obvious reasons judgement did not pronounced on 19.01.2011 and expected only in the next week. This is for your information, please.

With Regards,
Yours-in Service,
GICEU-AP

PROVIDENT FUND INTEREST RATE - NEWS ITEM

Labour and Employment Minister Mallikarjun Khargewho is also Chairman for CBT is hopeful that his Ministy would be able to persuade the Finance Ministry to give its nod for the decision of the Cental Board of Trustees (CBT) to incease the rate of interest on Employees Provident Fund (EPF) from 8.5 to 9.5 per cent for 2010-11.

This would be benefit over 4.4 Crore PF Subscibers in the country. .

Source from Labour Minsitry Officials: The Officials said "We stand by our calculation and the decision to hike the interest rate by 1 % . The first such move since 2005-06, it was taken by the CBT on September 15, 2010, after analysing the figures and after getting satisfied that the surplus of Rs.1,731 crores in the Interest Suspense Account could be utilised for paying the additional interest rate. The increased interest rate will cost the Employees Provident Organisation (EP-FO) an additional Rs.1700 Crore."  


The basic objetion of the Finance Ministry was how the EPFO could manage and sustain a huge increase of additional money involved for paying the new interest rate

PARA 13.2 - CHENNAI COURT CASE- PROMOTIONAL EXERCISE-2010

DEAR FRIENDS,

OUR CHENNAIH OFFICE BEARERS INFORMED US JUST NOW THAT THE ARGUMENTS IN RESPECT OF SAID CASE ARE OVER.  IT IS LEARNT THAT THE JUDGEMENT IS RESERVED AND LIKELY TO BE PRONOUNCED POSITIVELY TOMORROW I.E 19TH JANUARY, 2011.

THIS IS FOR YOUR INFORMATION.

WITH WARM GREETINGS,

YOURS-IN-SERVICE,

M. HANUMANTHA RAO         T. GOPALAKRISHNA

                                 PRESIDENT                    GENERAL SECRETARY

TRUST THE HAND THAT GIVES

Dear Friends,

A slave had served his Master faithfully for years. So diligent was he that the Master rewarded him by taking him along on a tour of the Amazon jungles. They camped at night and walked, exploring nature’s pristine beauty, during the day. The loyal slave never failed in his duty to his Master even though the trip was his reward. He would feed his Master, make his bed and keep him warm at nights by stoking the bonfire.
Impressed further by his service, one day at lunch time, when they both spotted a big, exquisite, colorful fruit, the Master insisted that the slave have the fruit first. When the slave was shy to take up his offer, the Master said, “My dear son, you have served me well. Go on, eat this rare fruit first, and give me a small portion at the end.” The slave reluctantly agreed. And had a go at the juicy fruit. As he devoured the first few slices, the Master asked him how it was. And the slave replied: “Extra-delicious”. A few more slices later, the Master again asked him how it was and the slave gave the same reply. Big fruit that it was, larger than a pumpkin, the Master got the same reply time after time. Soon, more than three-fourths of the fruit had been eaten by the slave and the Master began to worry that he would not get to taste it. “Slaves will be slaves,” he thought, “Selfish and greedy.” Losing his patience finally, the Master snatched the last slice from the slave and bit into it. He shrieked in horror throwing the slice away. It was the bitterest fruit he had ever tasted in all his life.
He looked at his slave in dismay and asked him: “But didn’t you say it was extra-delicious? Didn’t you seem to be enjoying it? How and why, my son? Explain.” “Master,” replied the slave, “All my life you have looked after me. Whatever you have given me has only enriched my life. So, when you gave me this fruit to eat, its bitter taste.

"Friends, no doubt one has to trust the hand that gives us everything in our life - i.e. GOD."
..... Editor

15th January, 2011 - ARMY DAY

Dear Viewers,

All members of GIC EMPLOYEE'S UNION and NFGIE Salutes the Indomittable Spirit of India.

The Indian Army celebrates its 62nd  Aniversary on January 15, 2011 as Army Day by dedicating itself as a part of the "War Winninig Team" that defends our borders. 

The day begins with paying homage to the martyred soliders at the Amar Jawan Jyothi, Inda Gate, New Delhi followed by parades and military shows.  Unit credentials and Sena Medals are also presented onthe occasion.  

Today, let us pay "Tributes" to the INDOMITABLE SPIRIT of the Indian Armed Forces. We alway bank on them to protect us

With  Regards,

M.HANUMANTHA RAO     T. GOPALA KRISHNA

                                PRESIDENT                GENERAL SECRETARY

PONGAL GREETINGS

DEAR VIEWERS,

WE WISH ALLTHE VIEWERS, MEMBERS OF THE ORGANISATION AND WELWISHERS ....

WITH SEASONS GREETINGS

YOURS-IN-SERVICE,

M. HANUMANTHA RAO   T. GOPALA KRISHNA

                                PRESIDENT             GENERAL SECRETARY   

PROMOTIONS TO THE CADRE OF SR. ASSISTANT - PROMOTIONAL EXERCISE-2010

DEAR FRIENDS,

WE ARE PLEASED TO INFORM YOU THAT THE NEW INDIA MANAGEMENT HAS JUST DECLARED THE PRMOTIONAL LIST FOR BOTH HYDERABAD AND VIZAG REGIONS

1. K. M. KOTESWARA RAO, VIJAYAWADA
2. MAHESH, HYDERABAD
3. MS. R. RADHIKA, VIZIANAGARAM
4. J. A. GOPALA KRISHNA, VIJAYAWADA
5. MRS. T.BHAVANI, HYDERABAD
6. G. SRINIVASA RAO, HYDERABAD
7. MRS. K. PADMA, PARKLANE, HYDERABAD
8. RAJESWARA MURTHY, MANDAPAET BR.
9. T.. PRABHAKAR, SAMARLAKOTA
10. T. GOPALA KRISHNA, HYDERABAD RO TP CELL
11. M. SRINIVASA RAO, ONGOLE DO
12. T.SWARNALATHA, CLAIMS HUB VIZAG RO
13. T. VENKATESWARLU, GUNTUR
14. RAMULU NAIK, CHILAKALURIPET

HEARTY CONGRATULATIONS ALL THE PROMOTEE EMPLOYEES.

WITHWARM GREETINGS,

YOURS-IN-SERVICE,

M. HANUMANTHA RAO          T. GOPLAKRISHNA

                                PRESIDENT                 GENERAL SECRETARY

CHENNAI HIGH COURT CASE STAY VACATED- PARA 13.2 PROMOTIONAL EXERCISE-2010

DEAR FRIENDS,

IT IS TO INFORM YOU ALL THAT CHENNAI HIGH COURT HAS VACATED THE STAY GRANTED TO PARA 13.2 PROMOTIONAL EXERCISE FOR THE YEAR 2010. ADVISED THE NEW INDIA ASSURANCE MANAGEMENT TO INTERVIEW ALL EXAM PASSED SC / ST - 15 CANDIDATES , INSTEAD OF 1:5 FORMULA AS PER PROMOTIONAL POLICY GUIUDELINES.  FURTHER DETAILS FOLLOWS.

THIS IS FOR YOUR INFORMATION.

WITH WARM GREETINGS,

YOURS-IN-SERVICE,

M. HANUMANTHA RAO      T. GOPALA KRISHNA

                                PRESIDENT                GENERAL SECRETARY

CHENNAI HIGH COURT CASE - PARA 13.2 PROMOTIONS - PROMOTIONAL EXERCISE-2010

DEAR FRIENDS,

WE HAVE RECEIVED A COMMUNICATION FROM OUR CHENNAI REGION UNION OFFICE BEARER, SHRI BADARINATH, THAT THE  ABOVE CASE AS REGISTERED WITH W.P. NO.23338/2010, CONNECTED APPLICATION NO.1/2010 IN THE SAID W.P. THE CASE (SERVICE MATTERS)WILL LIKELY TO COME UP FOR HEARING POSITIVELY ON 11TH JANUARY, 2011 .  THE PETITIONER ADVOCATE NAME IS. MR. T. SUSINDRAN  AND COMPANY'S ADVOCATE IS MR. P. SUKUMAR.

THIS IS FOR YOUR INFORMATION. FURTHER DEVELOPMENTS WILL BE COMMUNICATED THROUGH THIS BLOG AND SMS. 

WITH REGARDS,

YOURS-IN-SERVICE,

M. HANUMANTHA RAO       T. GOPALAKRISHNA

            PRESIDENT                GENERAL SECRETARY

GENL. INSC. EMPLOYEES' CO-OP.THRIFT & CREDIT SOCIETY LTD., GUNTUR, A.P. -- FLASH NEWS

DEAR FRIENDS,

The following information has received from the Guntur Society President, Mr. J. Srinivas.

Decisions taken by General Body of Guntur Society

The following are the salient features of General Body Meeting of our Guntur GIE Co.op.Thrift & Credit Society Limited lead by our Guntur Unit Secretary Mr. J. Srinivas, the President, Mr. C. Prabhu Doss, the Treasurer and Mr. S. Ravindranath, the Director.

1. The GB has given approval to take L.I.C.Group Policy for SA of Rs.3 lacs to each member. 2. Rs.10000/- will be paid to deceased member immediately on the date of death towards funeral expenses. 3.Group PA policy has taken to all members for SI of Rs.3 lacs each.

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With Warm Greetings,

Yours-in-Service,

M. HANUMANTHA RAO    T. GOPALA KRISHNA

                                                     PRESIDENT           GENERAL SECRETARY

UNIFORM TO CLASS IV EMPLOYEE FOR THE YEAR 2011

As per the guidelines, the following are to be made available to confirmed existing Class-IV employees:

FULL TIME SWEPPERS (Male / Female):-

• Uniform                                           :: 5 sets in 2 Years
• Shoe (Male) / Chappals(Female)          :: Single pair Once in 2 years
• Socks (Male)                                    :: 2 Pairs every 2 years
• Umbrella                                          :: Once in2 years
• Accessories to the Security Guards      :: As per requirement.

PART TIME SWEEPERS (Male / Female):-

• Uniform                                     :: 3 sets in 2 years
• Shoes(Male)/Chappals(female)      :: Single pair Once in 2 years
• Socks (Male)                             :: 2 Pairs every year
• Umbrella                                   :: Once in 2 years

Accordingly, the Competent Authority has taken decision for providing Uniforms and related accessories to the said confirmed existing Class-IV employees for the year 2011 as under:-

1. SUB-STAFF UNIFORM:-

Bombay Dyeing's Suiting - Hi-tex(67% Polyester + 33% Viscose) and Shirting : Princy (67%Polyester + 33% Viscose)

>  Navy Blue Pants and Light Blue Shirts to Sub-Staff.

>  Navy Blue Pants and White Shirts to Driver.

>  Navy Blue Pants and Light Blue Shirts to AC Operators.

>  Navy Blue Pants and Light Blue Shirts to Class-IV employes (FTS) who are working as Lift Operators.

>  Navy Blue Pants and Light Blue Shirts to Class-IV employees (S/S - FTS) who are working as Cook, Serving Staff in Guest House.

2. TURBANS:

For the year 2011,Light Blue coloured Turbans @ Rs.150/- each are to be provided to confirmed Class-IV Sikh employees (only in area where Sikh employees wear turban as per their religion).

3. FTS (HAMALS) / PTS UNIFORM:

Suiting & Shirting - Trovine (67%Polyester + 33% Viscose)

For the year 2011. FTS(HAMALS) are to be provided with Raymond's Trovine-Dark Grey FullPants and Full Sleeves (coat type) shirts and PTS to be provided with Raymond's Trovine-Dary Grey Full Pants and Full Sleeves Shirts.  The Cost of uniform set (Pant & Shirt) are fixed at Rs.852/- (inclusiveof Rs.235/- stitching charges per set) for the year 2011.

4. SECURITY GUARD UNIFORM:

A) Suting & Shirting  - Trovine (67% Polyester + 33% Viscose)

Security Guards are to be provided with Raymon's Trovine (shade No.302824/45) Mehendi Khaki - Full Pants and Full Shirts.   The cost of uniform set (Pant & Shirt) are fixed at Rs.900/- (inclusive of Rs.235/- stitiching charges per set) for the year 2011.

B) Uniform accessories (security guards): Actual Cost:

1) Beret Cap; 2) Lynard with Metal Buckle; 3) Lathi; 4) Leather Belt with metal buckle; 5) Name Plate (Plastic); 6) Metal Logo on Beret Cap; 7) Metal Buttons; 8) Shoulder Metal Batch & 9) Logo/ Batch on buckles of leather belt.

5. FEMALE UNIFORM:

Sub-Staff / hamals (FTS/PTS) - Class-IV Female employees are to be provided with Saree + Blouse pieces from Khatau Mill - Light Blue colour with darker border and matching Blouse piece as under:-

a) 6 Yards @ Rs.690/- per piece + matching Blouse Piece.

b) 9 Yards @ Rs.810/- per piece + matching Blouse Piece.

The rate of Blouse stiching charges has been fixed at Rs.70/- per piece for the year 2011.

6. WOOLEN UNIFORM:

Employees posted in areas where winter is Cole / Severe are to be provided with Navy Blue Woolen Uniform at Rs.2,000/- per set ( inclusive of stiching charges)and Navy Blue Overcoats (to be provided once in 5 (FIVE) years) at Rs.1680/- per piece.

7. SHOES + SOCKS / CHAPPALS and UMBRELLA:

All confirmed Class-IV employees (including FTS & PTS) are to bbe provided with Shoes, Socks / Chappals to eligible Clas-IV employees as under:-

SHOES (1 PAIR ONCE IN 2 YEARS)    -- GENTS --  Rs. 600/-

SOCKS (2 PAIRS EVERY EYAR)         -- GENTS --  Rs.  50/- per pair.

CHAPPALS (1 PAIR ONCE IN 2 YEARS)-- LADIES -  Rs. 330/- per pair. 

8. UMBRELLA: From 2011, all confirmed Class-IV employees are to be provided with an Umbrella every year with max. cost of Rs.125/- per piece.

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WOMEN'S COMMITTEE CONSTITUTED AS PER SUPREME COURT DIRECTIVE - To deal with complaints of sexual harassment of female employees.

Dear Friends,

Referring to the captioned matter, we reporduce here under the text of New India Head Office Circular Ref.No.CORP.HRM:EWS:2010 DT.December 22, 2010.

"" ALL REGIONAL OFFICES:
We have to inform you that based on the directives and guidelines of the Supreme Court, our Company has constituted Women's Complaints Committee to deal with the complaints in respect of sexual harassment of female employees at workplace.  We has already issued circular in  April, 2005 about the constitution of Committee at Head Office.

W.e.f. November, 2010, the Committee has been reconstituted and Mrs. Mita Bhattacharjee, Dy. General Manager, H.O. is Chairperson of the said Committee.  There is another ex-officio member for the Committee. The following Officials of the Committee are other members:

1. Mrs. Sushma Anupam, Divisional Manager.

2. Mrs. Alka Banage, Divisional Manager.

3. Mr. S.V. Joglekar, Chief Manager, Establishment Dept., HO.

You are advised to display the above information on the notice board of every Office under your jurisdiction.  Any complaint against sexual harassment of female employees at workplace should be addressed to the Chairperson of the Committee.

Please acknowledge and confirm action taken.

Sd/-xx xx xx

( R. K. DEKA )

GENERAL MANAGER ""'

PARA 13.2 - CHENNAIH COURT CASE - FLASH NEWS

DEAR FRIENDS,

WE ARE PLEASED TO INFORM YOU THAT OUR CHENNAIH FRIENDS HAVE INFORMED US THAT STAY ON CHENNAI HIGH COURT CASE BEING VACANTED WITHIN A COUPLE OF DAYS.  UNDERSTAND THAT NEW INDIA MANAGEMENT HAS TAKEN SUITABLE AND NECESSARY STEPS IN THIS DIRECTION. IT IS ALSO LEARNT THAT PARA 13.2  RESULT MAY BE DECLARED  BEFORE PONGAL FESTIVAL AND FOLLOWED BY PROCESS OF COMPLETION OF ENTIRE PROMOTIONAL EXERCISE FOR 2010 ( FROM CLASS-III TO CLASS-I). WISHING GOOD LUCK TO ALL THE PROSPECTING CANDIDATES.

WITH WARM GREETINGS,

 YOURS-IN-SERVICE,

M. HANUMANTHA RAO       T. GOPALAKRISHNA

                                    PRESIDENT               GENERAL SECRETARY

DEARNESS ALLOWANCE UPTO JAN., '2011

DEAR FRIENDS,

AS PER INFORMATION GIVEN BY OUR OFFICE BEARER MR. K. HARIPRASAD, SCALE I OFFICER,  ANANTHAPUR DO "CPIIW ROSE BY ONE POINT TO 182 FOR NOV'10.  IF THE SAME INDEX IS CONTINUED IN DEC'10, ALL WORKMEN IN PSU INSURANCE COMPANIES & BANK'S MAY GET 19 SLABS MORE   D. A. FROM 1.2.2011. CPI(IW) Base 2001=100 Monthly Index 

WITH WARM GREETINGS,

YOURS-IN-SERVICE,
M HANUMANTHA RAO                           T GOPALA KRISHNA

             PRESIDENT                                 GENERAL SECRETARY

NEW YEAR GREETINGS - 2011

GICEU-AP WISHES ALL VIEWERS  AND THEIR FAMILY MEMBERS A HAPPY NEW YEAR  MAY THE NEW YEAR FILLED WITH JOY, GOOD HEALTH, PEACE AND PROSPERITY.

M HANUMANTHA RAO                        T GOPALA KRISHNA
PRESIDENT                                          GENERAL  SECRETARY