1 / 42

JOINT MEETING OF ALL CHECK-OFF QUALIFIED UNIONS / ASSOCIATIONS OF GIPSA COs.

JOINT MEETING OF ALL CHECK-OFF QUALIFIED UNIONS / ASSOCIATIONS OF GIPSA COs. EXPLORATORY TALKS ON PROPOSED WAGE REVISION W.E.F. 01.08.2007 Friday, November 28, 2008 New Delhi. PUBLIC SECTOR GENERAL INSURANCE IN INDIA.

zinnia
Download Presentation

JOINT MEETING OF ALL CHECK-OFF QUALIFIED UNIONS / ASSOCIATIONS OF GIPSA COs.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. JOINT MEETING OF ALL CHECK-OFF QUALIFIED UNIONS / ASSOCIATIONS OF GIPSA COs. EXPLORATORY TALKS ON PROPOSED WAGE REVISION W.E.F. 01.08.2007 Friday, November 28, 2008 New Delhi GIPSA

  2. PUBLIC SECTOR GENERAL INSURANCE IN INDIA • FROM A MODEST BASE OF Rs. 208 CRORES IN 1973, GROSS PREMIUM HAS GONE UP TO Rs. 17,813 IN 2007-08. • AVERAGE GROWTH RATE 12.68% PER ANNUM SINCE 1973. HOWEVER, THE AVERAGE GROWTH RATE DURING PAST 5 YEARS HAS BEEN 5.68%. • MANPOWER GROWN FROM 26,112 IN 1973 TO 84,097 AS ON 31.03.2002 AND THEN CAME DOWN TO 69,445 AS ON 31.03.2008. • NUMBER OF OFFICES INCREASED FROM 750 IN 1975 TO 4,074 AS ON 31.03.2008. GIPSA

  3. Contd……. • INVESTMENT PORTFOLIO INCREASED FROM Rs. 355 CRORES IN 1975 TO Rs. 31,342 CRORES AS ON 31-03-2008 • INVESTMENT INCOME INCREASED FROM Rs. 21 CRORES IN 1975 TO Rs. 6,189 CRORES AS ON 31-03-2008 • RESERVES AND SURPLUS AS ON 31-03-2008 STANDS AT Rs. 13,253 CRORES • NET WORTH APPROX Rs. 13,800 CRORES AS ON 31-03-2008 GIPSA

  4. MANPOWER & PRODUCTIVITY GIPSA

  5. MANPOWER AND PAY SCALES • FOUR CLASSES OF EMPLOYEES IN GIPSA COs. AS ON 31.03.2008, TOTAL STRENGTH IS, • CLASS I : 17375 • CLASS II : 9104 • CLASS III : 34040 • CLASS IV : 8926 • TOTAL : 69445 • PAY SCALES OF ALL CLASSES OF EMPLOYEES GOVERNED BY SCHEMES NOTIFIED BY GOVERNMENT • FIRST SCHEMES FOR PAY SCALES NOTIFIED IN 1974, 1975 AND 1976 (CALLED RATIONALISATION SCHEMES) FOR CLASS III/IV, CLASS I AND CLASS II EMPLOYEES RESPECTIVELY GIPSA

  6. FIVE REVISIONS OF PAY SCALES • 1985 SCHEME W.E.F. 01.10.1983 • 1989 SCHEME W.E.F. 01.08.1987 • 1996 SCHEME W.E.F. 01.08.1992 • 2000 SCHEME W.E.F. 01.08.1997 • 2005 & 2008 SCHEMES W.E.F. 01.08.2002 • CURRENT WAGE REVISION DUE W.E.F. 01.08.2007 GIPSA

  7. SIGNIFICANT DEVELOPMENTS SINCE LAST REVISION • TOTAL NUMBER OF GENERAL INSURANCE COMPANIES IN INDIA WERE 10 AS ON 31.03.2002 AND HAVE GONE UP TO 20AS ON DATE. • DETARIFFING OF PREMIUM IN MOTOR OD W.E.F. 01.01.2007 AND ALL OTHER CLASSES OF BUSINESS, W.E.F. 01.01.2008, FURTHER STIFFENING THE COMPETITION. • MARKET SHARE OF GIPSA MEMBER COs. HAS SLIDED DOWN FROM 95.91% AS ON 31.02.2002 TO 60.08% AS ON 31.03.2008. • GIPSA MEMBER COs. HAVE UNDERTAKEN BUSINESS PROCESS RE-ENGINEERING INTITIATIVES. GIPSA

  8. MARKET SHARE GIPSA

  9. BUSINESS PROCES RE-ENGINEERING (BPR) IN GIPSA COs. • ALL THE FOUR COMPANIES APPOINTED MANAGEMENTS CONSULTANTS (MCs). • MCs TO MAKE AN ASSESSMENT OF KEY FUNCTIONAL AREAS AND DEVELOP OVERALL STRATEGIC PLAN FOR THEM IN FIRST PHASE • THE UNIQUE FEATURE IS THAT THE MCs WOULD BE INVOLVED IN IMPLEMENTATION OF RECOMMENDATIONS ACCEPTED BY THE MANAGEMENT OF COs. GIPSA

  10. MAIN AGENDA FOR MCs • REVIEW OF ORGANISATIONAL STRUCTURE AND ASSESSMENT OF KEY FUNCTIONAL AREAS • MARKETING AND SALES – REVIEW OF PRODUCT RANGE AND DISTRIBUTION STRATEGY • OPERATIONS – BETTER CUSTOMER SERVICING • HUMAN RESOURCE – RECRUITMENT & TRAINING, INCENTIVE SCHEMES • INVESTMENT, U/W, FINANCIAL MANAGEMENT, IT – REVIEW AND IMPROVEMENTS GIPSA

  11. BPR IN ‘NATIONAL’ • BANCASSURANCE – 5 Dedicated Bancassurance servicing offices have been opened. Target for 15 such offices by 31.03.2009 • SME SECTOR – 18 dedicated SME Cells have been opened and 22 more planned by 31.12.2008 and another 35 by 31.03.2009. • Claims Processing Hubs – Opened at Kolkata and Chandigarh for Motor OD Claims – Average Claim Processing Time reduced to 25 days. More such Hubs to be opened at New Delhi, Bangalore, Chennai, Luncknow and Hyderabad by 31.12.2008. • Agency Force - Efforts being undertaken to incentivise the performing agents through recognition and felicitation GIPSA

  12. BPR IN ‘NEW INDIA’ (NEW ENERGY) • WAVE 1 INITIATIVES– Process Redesign, Bancassurance, Brokers, Auto-dealers and Large Corporate – Pilot Work started in January, 2008 and rollout has commenced across the nation. Performance is being monitored by a dedicated HO Team for each initiative. • WAVE 2 INITIATIVES – Agency Performance Enhancement Program, Health TPA Management, HR & Organization Structure, Motor TP process redesign, Risk Based Pricing – Pilot work on these initiatives already started and performance is being closely evaluated. GIPSA

  13. BPR IN ‘ORIENTAL’ (NAYEE DISHA) • AGENCY MANAGERS– Project AGNI envisaged appointment of 80 Agency Managers at 10 Regional Centers by 15.10.2008 which has been achieved. • SERVICE CENTRES – Pilot launched in 9 Cities for Motor OD Claims and 3 more coming. 1 Pilot for Policy Issuance at Jaipur to be launched shortly. Motor TP Claims Hub Pilot started in Chennai and Bangalore. • HEALTH INITIATIVES – Regular and Enhanced Monitoring of TPAs started and Health Managers network created across the Regional Offices. • ORGANIZATION STRUCTURE, PMS AND INCENTIVE SCHEMES – Initiatives under advanced stages of finalization. GIPSA

  14. BPR IN ‘UNITED INDIA’ (UNISURGE) • As on 15.10.2008, have opened 7 Bancassurance Offices against 6 planned, 9 Tie-ups with Motor Dealers against target of 8, implemented Agency Managers concept in 96 Offices (9 ROs) and opened 3 Large Corporate & Broker Cells. • In Motor, 2 ‘filing ready’ products have been developed. • Design and Plan for Service Hub finalized with identification of location and personnel. • PMS and Incentive Schemes for Employees under final stages of discussion. GIPSA

  15. BPR – HR - COMMON IN ALL COs. • Management Consultants in each Company took extensive studies in the area of Manpower Planning. • Reforms in Promotional Processes undertaken by GIPSA to address the contemporary requirements in the changed business scenario. • New Promotion Policies evolved for Class I Officers and Class III/IV Employees. Promotion Policy for Development Officers amended to the requisite extent. GIPSA

  16. Contd……. • Companies have initiated Promotion Exercises for Promotions From Class IV to III, within Class III, From Class III to Class I, From Class II to I and within Class I (Scale I, II, III & IV) • All these Promotion Exercises scheduled to be completed by 15.12.2008. • Transfer and Mobility Policy now in vogue in all cadres to provide requisite flexibility in deployment to serve Organizational Requirements and career development of Employees. • PMS and Incentive Schemes for Employees under final stages of evolution. GIPSA

  17. PROCESS ANDFACTORSOF WAGE REVISION • 12 CHECK-OFF QUALIFIED UNIONS / ASSOCIATIONS OF EMPLOYEES IN MEMBER COMPANIES. • 2 OF THESE UNIONS REPRESENT MORE THAN ONE CLASS OF EMPLOYEES • ALL CHECK-OFF QUALIFIED UNIONS/ASSOCIATIONS (EXCEPT ONE FROM DEVELOPMENT OFFICERS) HAVE SUBMITTED THEIR CHARTER OF DEMANDS. GIPSA

  18. CHECK-OFF ACCREDITED UNIONS/ASSNS • CLASS I 1-4 NATIONAL/NEW INDIA/ORIENTAL/UNITED INDIA INSURANCE COMPANY OFFICERS’ ASSOCIATIONS (4) • GENERAL INSURANCE OFFICERS’ ALL INDIA ASSN • BHARTIYA VIMA KARAMCHARI SENA** • NATIONAL FEDERATION OF GENERAL INSURANCE EMPLOYEES** • CLASS II • ALL INDIA GEN INS FIELD WORKERS’ ASSN • BHARTIYA VIMA KARAMCHARI SENA** • NATIONAL FEDERATION OF GEN. INS. EMPLOYEES** • GENERAL INSURANCE DEV. OFFICERS’ ASSN • GENERAL INSURANCE DEV. OFFICERS’ FEDERATION* • CLASS III/IV • GENERAL INSURANCE EMPLOYEES’ ALL INDIA ASSN • ALL INDIA INS. EMPLOYEES’ ASSN • NATIONAL FEDERATION OF GENERAL INS. EMPLOYEES** *Charter not submitted ** Representing more than 1 Class of Employees GIPSA

  19. CHARTERS OF DEMANDS BY UNIONS / ASSOCIATIONS Charters of Demands submitted by the Unions / Associations talk of increasing the pay package by degrees varying from 20% to 60%. GIPSA

  20. GROWTH RATE (GROSS PREMIUM) % GIPSA

  21. MANAGEMENT EXP. (% TO GROSS PREMIUM) GIPSA

  22. MANAGEMENT EXP. (COMPLIANCE TO SEC 40C) GIPSA

  23. M.E. (% TO NET PREMIUM) GIPSA

  24. COMMISSION (% TO NET PREMIUM) GIPSA

  25. ICR (% TO NET PREMIUM) GIPSA

  26. COMBINED RATIO* (% TO NET PREMIUM) *INCLUDES NET INCURRED CLAIMS, M.E. & COMM. GIPSA

  27. UNDERWRITING PROFIT / LOSS GIPSA

  28. ESTIMATED WAGE BILL AS ON 31.07.2007* *Extrapolated on the basis of expenses as on 31st March, 2007 & 2008 GIPSA

  29. ME & WAGE BILL – PROJ. Vs. ACTUAL GIPSA

  30. WAGE BILL Vs. PRODUCTIVITY – PER CAPITA GIPSA

  31. CUSTOMERSERVICE INDICES (%) GIPSA

  32. CHALLENGES AHEAD EXTERNAL CHALLENGES INTERNAL CHALLENGES GIPSA

  33. EXTERNAL CHALLENGES • Intense Competition on more profitable lines of Business. • Premium rates to remain under pressure in De-tariffed regime. • Business acquisition cost continue to rise. • Re-insurance cost also continue to rise due to reduction in ceding commission by Treaty Re-insurers to compensate for lower rates in de-tariffed regime. GIPSA

  34. Contd……… • Shadow of global recession looming large on Indian Industry and Economy • Capital Markets meltdown reduces reliance on investment portfolio for net profit • Changing customer profile and increasing customer expectations • New emerging risks and need for continuous innovations GIPSA

  35. INTERNAL CHALLENGES • Statutory limits on ME Ratios – Sec. 40 C • Every rise in Wage Bill demands corresponding rise in productivity • Rigidity in pay package impedes retention of talent - need for flexi pay / differential pay package • Skill gap in the manpower flowing from fast changing technologies GIPSA

  36. Contd………….. • Adverse age profile of manpower – climate of inertia and rigidity • Imbalances in deployment of manpower – continued pockets of surplus / deficit despite structured TMP – widen TMP or more flexible TMP? • Continuous losses in Motor TP, Health etc. – Loss Management and Minimization • Attitudinal issues of manpower at various levels – commitment vs. alienation GIPSA

  37. GAP BETWEEN “HAVE” & “WANT TO HAVE” - 1 GIPSA

  38. GAP BETWEEN “HAVE” & “WANT TO HAVE” - 2 GIPSA

  39. GAP BETWEEN “HAVE” & “WANT TO HAVE” - 3 GIPSA

  40. GAP BETWEEN “HAVE” & “WANT TO HAVE” - 4 GIPSA

  41. HOPES • BPR initiatives expected to boost up productivity and rationalize expenses besides improving Customer Care. • Active co-operation from Employees and their Unions / Associations required to supplement these efforts. • An Organizational Agenda common to the Management and the Unions / Associations required for coordinated efforts and synergy. • Let us evolve such an Agenda. GIPSA

  42. Thank you

More Related