CHARTER OF DEMANDS

PREAMBLE
The structure of Pay scales presently in vogue was effective from While formulating the Demands, especially on Revision of Wages/Wage structure which predominantly comprised of demands in economic terms, it is essential to go into the broad spectrum of things and issues which are confronting the General Insurance Companies and its Employees. Essentially the economic demands cannot stand in isolation without due focus on issues quite relevant to it and forms the basis for evolving proper perspective to the issue of Wage Revision per se. In addition to contributing its role in terms of its impact on economic demands, these issues do require its due attention at the time of discussing issues at macro-level. With this perspective, the following issues are listed hereunder: The Demand for formation of One Single Monolithic Corporation had remained without much progress thereof. The pooling in of effective strengths- Financial, Administrative, Technical and Marketing based on the experiences gained over three decades of its existence could get assimilated for achieving best results in the industry. The Demand is reemphasised and it is insisted that a dialogue be opened up for crystallizing the formation of One Corporation. Notwithstanding the above Demand, on Re-organisation required on the functional aspects, the insistence would naturally be on Full Functional Autonomy to the Public Sector General Insurance Companies. While granting functional freedom, the Government may take assurances on performance from the managements so as to ensure that the performance levels are maintained as per the expectations of the Administrative Ministry/Government.

1.
This is one of the long pending demands Demand remains unresolved for more than three decades now. In partial consideration, the Check-off exercise was introduced in the year 2004 and the industry-wise second such exercise was conducted in 2006. Undoubtedly the GIEAIA had established its majority character under both the exercises. Following these exercises, representative character of the Association have been well established and it is time for us to move forward from the stages of Check-off to full-fledged Recognition of Union The GIEAIA This has become necessary in view of the fact that the bilateral mechanism as presently available does not truly reflect the benefits and advantages of ascertaining the representative characters of various unions and the GIEAIA, having proved its strength as per its claims needs better

positioning to further the cause of employees and the Industry to enable it to play its effective role. On the issue of outsourcing, the position of Managements had remained lackadaisical. In the name of outsourcing, some of the CORE FUNCTIONS of the offices like claim settlement of Mediclaim Policies, some of the functions under Motor claims were also OUTSOURCED despite opposition from GIEAIA, with the result the service parameters of the Companies in these segments have been coming down. As a consequence, the efficient, effective and experienced manpower available within the companies have not been utilized properly in these areas. On a number of occasions, the

The Public Sector General Insurance Companies have been registering phenomenal progress and growth consistently year-after-year. There had been no addition to the workforce subsequent to the last general recruitment drive conducted during the year 1991-1992. Despite regular exits by way of retirements and resignations and of mass exits through SVRS, the Companies could achieve these results with additional burden being shouldered and shared by the employees in a big way. It should be borne in mind that the absence of NEW ATTRITION affects the performance levels of the companies. This is one of the very important factors being kept before while formulating the Charter on pure Economic Demands. I The existing pay scales shall be linked to All India Consumer Price Index 2944 (Base 1960 = 100), Index average of April 2007 to June 2007 in such a manner that:i) ii) While constructing pay scales ensure inter-se Class and Cadre relativity. All allowances should be linked with Basic Salary irrespective of Class and Cadre.

Dearness Allowance shall be granted at 100% neutralization for every point of rise in All India Consumer Price Index over 2944 for industrial workers (Base 1960 = 100), the index average of April to June 2007. made quarterly. The revision of Dearness Allowance shall be

For the purpose of calculation for particular quarter, the index figure of last quarter will be taken.

All employees including those who are provided with Staff Quarters shall be paid House Rent Allowance @ 30 per cent of the Basic Pay.

The Scale of City Compensatory payable to the employees shall be as under:

PLACE OF POSTING RATE Cities with population exceeding 12 lakhs Urban agglomeration and National Capital Region, employees@ 10% posted at project towns and any city in Goa, Gurgaon, Faridabad, Ghaziabad, Noida, Vashi, Gandhinagar and such other cities City with population of 5 lakhs and above but not@ 8% exceeding 12 lakhs, State Capitals and such other places where Central Government / State Government employees are eligible for City Compensatory Allowance. City with population of One Lac and above but not exceeding 5 lakhs @ 6% All other cities with population of less than 1 lac @ 4% NOTE: 1. Population figures shall be related to latest census and also the Midterm Population appraisal made by the Central Government / State Government. 2. Employees transferred from CCA center to Non CCA center or center with lesser CCA, the existing CCA shall continue. 3.

All employees shall be paid Petrol Expenses of ONE a day

Special Qualification Increments shall be granted to all the employees on passing the following examinations and / or equivalent examination at the rate indicated against such examination. QUALIFICATION Graduate of a recognized University Double Graduate or Post Graduate of a recognized University (in addition to Graduation Increment) Licentiate Completion of Associateship (one for set of three subjects) Completion of Fellowship Institute of Actuaries - on passing of each subject Institute of Chartered Accountant or Cost Work Accountant or Company Secretaryship or Master of Business Administration, Master of Computer Applications and such other equivalent examinations: a) Completion of Intermediate b) Completion of Final (2 years course) No. of Increment TWO ONE ONE TWO THREE ONE

TWO THREE No. of Increment ONE TWO TWO

QUALIFICATION On passing SSC / SSLC or equivalent examinations On passing HSC or equivalent examinations On passing Graduation Examination

On reaching maximum of the grade the qualification pay will be treated as personal pay and attract all other allowances. All the existing Part Time Employees and Contract Employees such as Care Takers of the Guest Houses, Transit Camps, Holiday Homes and engaged in other Contract Jobs shall be regularized to as permanent full time employees.

Employees including FTS engaged in work mentioned below and / or designated below shall be entitled to Special Pay. The Special Pay shall be determined and linked to INDEX POINTS 2944 (Base 1960 = 100) and qualify as BASIC PAY for all purposes. Employees carrying cash to Banks, Employees holding Office Keys, Cashiers, Stenographers attached to the DGM, Chief Regional Manager and above and such employees performing a similar nature of jobs.

i) ii)

The Company shall constitute a women cell at every Regional Office center. A woman employee after availing of Maternity leave, if prefers to extend her leave, be permitted to avail leave on loss of pay up to a maximum period of Two years. The Company shall make provision for CRECHE for working mothers. To begin with State Capitals / Regional Centers shall be provided with creche facilities. However, where such facilities are not available, an allowance of Rs.500/- per month shall be paid to those women employees till their child attains the age of five years.

iii)

iv)

The Company shall provide ladies Rest room in every office.

A) GRATUITY: An employee shall be paid Gratuity at the rate of One Month Terminal Gross Salary for each completed year of continuous service. Assured Gratuity Scheme shall be introduced. B) PENSION: 1. One more option for pension shall be given to the employees. 2. Basic Pension shall be increased to 67% of the last drawn pay. 3. Commutation up to 40% of Basic Pension shall be allowed and restoration of commutation shall be made after 12-years. 4. Full pension after completion of 30- years of service and 1% additional pension for every year of service completed in addition to 30- years.

5. Family pension - minimum pension amount shall be raised substantially and ceiling be removed. 6. Unmarried employees shall be allowed to nominate their dependent parents for family pension.

7. The Basic pension shall be updated commensurate with every wage revision in the industry. 8. The quantum of Basic Pension of pre 1986 retirees shall be enhanced substantially. C) Extension of Benefits to all the Retired Employees The following benefits shall be extended to all retired employees and their spouse i) Medical Benefit Scheme. ii) Leave Travel Concessions. iii) Other Welfare Schemes.

i)

VEHICLE ADVANCE: All employees shall be granted loan up to Rs.2,00,000/- or the cost of Vehicle whichever is less for the purchase of vehicle including motor car. 100% invoice price including registration charges and taxes shall be sanctioned as VEHICLE ADVANCE. Waiting period of 2- years shall be deleted. After completion of 5years, employees shall be permitted to purchase another vehicle.

ii)

Flood / Drought / Natural Calamities advance: All affected employees shall be granted Rs.36,000/- free of interest. LOAN FOR MARRIAGE: Loan shall be granted free of interest to the employees up to Rs.50,000/- for his / her own marriage or for the marriage of his / her dependents. COMPUTER LOAN: All employees shall be granted loan of Rs.35,000/free of interest for purchase of Computer / Laptop.

iii)

iv) .

All part Time Employees shall be regularized as full time employees and all the benefits including Pension shall be extended to them. All Full Time Employees will be classified as Class IV Employees. Notwithstanding anything contained in the CHARTER OF DEMANDS total emoluments of any employee in any cadre shall not be reduced at any time, no recovery shall be effected whatsoever due to the revision in the wage structure. Nothing shall adversely affect or take away from any employee or group of employees any rights, privileges or usage, practice or conventions, amenities or other conditions of service that are already vested in or enjoyed by employees.