PSGIC staff demand wages on par with LIC

Mumbai: Around 50,000 staff of public-sector general insurance companies (PSGICs) are demanding that they should get their wage revised at par with Life Insurance Corporation of India (LIC).

They have made a solid point in favour of their demand in the presentation which had been made by the trade union leaders before GIPSA Chairperson Suchita Gupta recently. However, in an update, a reliable source familiar with the development has confirmed Bizz Buzz that GIPSA Chief Executive RR Singh, would revert back on wage revision issue on September 4.

It comes at a time when General Insurance Public Sector Association (GIPSA) has clarified that the 12 per cent hike in wage as offered by it during the wage revision talk, which was held on August 4 was final. Though the PSGIC employees have rejected the offer and are demanding that their wage revision, which was due since August 1, 2017, must be settled in parity with that of LIC and it shouldn't be less than 15 per cent.

A delegation led by General Insurance Employees' All India Association (GIEAIA) general secretary Trilok Singh has met the Union Finance Minister, Nirmala Sitharaman on the issue of the wage revision at parity with LIC.

"The FM assured our team to do her best in keeping the interest of our industry and the welfare of employees," he said.

Meanwhile, Bharatiya Veema Karamachari Sena (BVKS) Central Committee has insisted GIPSA to update on wage revision before starting of KPI meeting.

"Considering the BVKS demand, Suchita Gupta, Chairperson, GIPSA, addressed the forum and stated that the last offer of 12 per cent can't be increased further. BVKS has strongly opposed this offer and demanded the wage revision at par with LIC and opposed the further discussion on KPI," says Dinesh Bobhate, General Secretary, BVKS New India Assurance.

Non-life insurance industry directly supports industries and economy. At present, insurance is mandatory for all projects (roads, constructions/erection of various projects), operational risks and most of the transit insurance, which is not in the case for LIC.

Hence, support to nation building by supporting non-life industry in big way and PSGICs have lion's share on it. PSGICs & GIC Re give insurance to wide sections ranging from crop-to-satellite. PSGICs & GIC RE generate collective profit of Rs20,808 cr against the Rs9,668 cr of LIC for the wage revision period 2012-17 and it's 115 per cent higher than LIC.

PSGICs & GIC Re generated Rs20,808 crore profit with 50,000 employees against the 1,14,000 employees of LIC for profit of Rs9,668 crore. Per employee profit contribution of PSGICs & GIC Re is Rs41 lakh against the Rs8.4 lakh for LIC, which is 390 per cent higher than LIC. PSGICs & GIC Re are directly affected by present climate change impact and majority of industries losses are contributed by the climate change, whereas LIC has remote impact of the said cause. At the time of calamities or nature's furies like earthquake, flood, cyclone, etc. PSGICs & GIC Re take direct impact of the same. PSGICs & GIC re support in recent pandemic was commendable. They are torch bearers to cover complicated risks to support nation building through creating various insurance pools like terrorism pool, nuclear pool, FAIR Net cat pool and recent example of such step is fertilizer pool, which is being created to cover fertilizers & related goods imported from Russia & Belarus.