Revision of Non-Core and Another Option for Pension - oicoa

THE NATIONAL CONFEDERATION
OF
GENERAL INSURANCE OFFICERS’ ASSOCIATIONS
C/o I.T.Department, Head Office, The Oriental Insurance company Limited, A-25/27, Asaf Ali Road, New Delhi 110002
President
Jose Verghese
Cell : 9444914088
joseverghese@uiic.co.in
joje29@yahoo.com
CONFED/2011/SG/018
Shri G.Srinivasan,
Chairma, GIPSA,
C/O United India Insurance Company Limited,
24, Whites Road, Chennai
28 th June'2011
Working President
Debaditya Ganguly
Cell : 09433379587
debaditya_g@yahoo.com
debadityaganguly@
newindia.co.in
Secretary General
Vivek Saxena
Cell : 09871278625
viveksaxena@
orientalinsurance.co.in,
wewakesaxena@gmail.com
Addl. Secy. General
S. Akilan
Cell : 09487410038
s.akilan@nic.co.in
Treasurer
S.K.Ahuja
Cell : 09811287805
skahuja@
orientalinsuranc.co.in
Re.: Revision of Non-Core and Another Option for Pension
Sir,
We would like you to refer to the discussions held on 4 th August'2010,
16 th March '2011 and finally on 18 th & 19 th April'2011 on the above
subject. Some of the Non-Core were cleared by GIPSA but could not
be cleared by the respective Company Board, we hope that these will
be cleared shortly by all the Company Boards.
As informed by you on 18 th April'2011 at Chennai that the issue of
Another Option for Pension is still open and shall be taken up after
the Financial results of the Companies. We would like to remind you
that this issue is affecting 18,000 odd employees in the Industry. The
financial outgo is not as high as projected by GIPSA initially. All the
four Affiliate units of CONFED has carried out the calculations of the
additional out go for offering another option of Pension and we have
found that it is not more than Rs. 600 Crores for all the four
Companies. In fact one of our constituent has got the Actuarial
valuation certificate and the additional outgo is around Rs. 100 crores
for OICL. The copy of the Actuarial certificate is enclosed herewith.
We would like to inform you that banks have been allowed to amortize
this amount over the next five years. Accordingly the total additional
annual provisioning would go up by only Rupees 120 Crores for all the
four Companies put together. Incidentally the Cost to Company (CTC)
for Pension optees in the current financial year is almost ten times of
the PF optees. Sir, in view of the above we would request you to
kindly take up the issue of Another option of Pension for the sake of
Equality among all the employees who could not opt due to some
reason. The issue may be considered in a non-biased manner and
without an approach “those who did not opt earlier let them suffer”.
NATIONAL INSURANCE COMPANY OFFICERS ASSOCIATION
NEW INDIA ASSURANCE OFFICERS ASSOCIATION
ORIENTAL INSURANCE COMPANY OFFICERS ASSOCIATION
UNITED INDIA INSURANCE OFFICERS ASSOCIATION

THE NATIONAL CONFEDERATION
OF
GENERAL INSURANCE OFFICERS’ ASSOCIATIONS
C/o I.T.Department, Head Office, The Oriental Insurance company Limited, A-25/27, Asaf Ali Road, New Delhi 110002
We would also request you to implement the NPS in our Industry at par with banks & LIC
irrespective of the fact that a circular was initiated in one of the Company in 2004 itself. Sir,
let us be fair in our approach in this matter, all the officers who have jointed the industry
between 2004 -2010 should not be penalized. Although Government had notified the scheme for
Government sector but was not mandatory for us to implement as a number of Government
directives such as Study Leave with Pay, Child care leave, Transfer on Spouse grounds etc. have
never been considered in our industry. Moreover the money deducted has not been invested
anywhere for the last more than seven years as PRFDA was not formed and Pension Managers
were not there.
We have always been taking up the Non-Core issues in two parts, one with Financial impact
second without any Financial implications. While the results of the four Companies are being
finalised shortly, we understand now GIPSA shall be able to get some more Non-Core Issues
cleared. Meanwhile we would request you to kindly get the issues without any financial implication
cleared immediately such as:
1. Reduction of Minimum Earned Leave from Six to Five.
2. Change in Designation on the lines of Banks e.g. AO – AM, AM – Dy. Mgr., Dy. Mgr. -
Manager, Manager – Chief Manager, Chief Manager – AGM.
3. Revamping of Housing Loan Scheme – The limits and provisions of Housing Loan are age old
and needs immediate revamping. The Housing Loan may be viewed as an Investment
instrument equivalent to Govt. Securities wherein the net yield is around 6.5%. The
interest on additional loan i.e. 7.5% is one percent more than the yield on Govt. Securities
and is the safest investment in financial terms. This may prove the best Human Capital
Investment from HR angle also. Revamped Housing loan will definitely be able to arrest the
increasing attrition rate in the Industry.
4. Revision of Vehicle Loan to all the Officers on the lines of LIC and as proposed for
Officers on Marketing side in our companies. Four vehicle is no more a luxury, it is a
necessity now. Officers are forced to take the Four vehicle loan from other Financial
institution whereby the interest outgo is more. A loan facility available within the company,
not only will become one of the motivating factor but also be a factor in reduction of
attrition.
Sincerely yours,
(Vivek Saxena)
Secretary General
NATIONAL INSURANCE COMPANY OFFICERS ASSOCIATION
NEW INDIA ASSURANCE OFFICERS ASSOCIATION
ORIENTAL INSURANCE COMPANY OFFICERS ASSOCIATION
UNITED INDIA INSURANCE OFFICERS ASSOCIATION