General Insurance Employees All India Association (GIEAIA) announces to launch agitation, strike, if genuine demands not met

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General Insurance Employees All India Association (GIEAIA) announces to launch agitation, strike, if genuine demands not met

Kanwar Inder Singh/ royalpatiala.in News/ August 17,2024

General Insurance Employees All India Association (GIEAIA) has issued an urgent Appeal for the strengthening & safeguarding of Public Sector General Insurance Companies (PSGICs) and seeking wage-revision on parity with LIC.

The general secretary of GIEAIA, Trilok Singh said “the General Insurance Employees All India Association (GIEAIA) has called on the government and the Finance Minister to ensure wage parity with LIC for employees of public sector general insurance companies, whose wage revision has been pending since August 1, 2022. Despite wage revisions being implemented across the financial sector, including banking and LIC, nearly 24 months of delay in addressing this issue has raised concerns about the motivation and well-being of these employees. The overdue wage revision includes a 14% increase in the employer’s contribution to the NPS, uniform family pension improvement at 30%, and other benefits at par with LIC. Despite multiple representations over the last two years, there has been no meaningful progress in resolving these important issues, with only assurances given so far. Furthermore, the Joint Forum of Trade Unions & Associations has been seriously pursuing the Government of India to resolve these pending issues.”

“We expect these issues to be addressed in the next conciliation meeting before the Deputy CLC on August 27, 2024, in Delhi. If there are further delays or continued neglect from GIPSA companies and the DFS, the General Insurance Employees All India Association, along with other like-minded unions, will have no choice but to escalate severe agitational programs, including strikes across public sector general insurance companies, for which the management and other authorities will be held responsible” added Trilok Singh.

Darshan Kumar Wadhwa, secretary general, GIEAIA class I said ”the General Insurance Employees All India Association (GIEAIA) has been diligently writing a series of letters to the Government of India to safeguard and strengthen PSGICs and has again submitted a detailed letter to the Finance Minister on August 13, 2024, urging her to expedite the pending issues”.

Both Trilok Singh and Darshan Kumar Wadhwa highlighted  the main issues:

Merger of PSGI Companies

“We, the General Insurance Employees All India Association, urge the Government to merge the four Public Sector General Insurance (PSGI) companies—National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company Limited—into a single, unified entity. This merger would eliminate inter-company competition within the public sector, enabling these companies to perform better and fulfill their social obligations and government policies, such as the Pradhan Mantri Fasal Bima Yojana, Rashtriya Swasthya Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana, and other social schemes.

General Insurance Employees All India Association (GIEAIA) announces to launch agitation, strike, if genuine demands not met
GIEAIA

 

We strongly oppose the privatization of any of these PSGI companies, as recurring news of such intentions creates instability, weakens employee morale, and negatively impacts the performance of these companies. The inordinate delay in the merger, coupled with unhealthy competition, has resulted in a decline in the growth and market share of these companies. A merged entity would be stronger, better equipped to face challenges posed by private players, and more capable of providing efficient services to the common man. In the Budget 2020-21, your good self announced the “New Public Sector Enterprise (PSE) Policy for Atamnirbhar Bharat,” which classified banks, insurance, and financial services as one of the four strategic sectors, with the aim of strengthening PSGI companies.

Withdrawal of GST on Life and Medical Insurance Premiums

Both life insurance and medical insurance premiums currently attract a GST rate of 18%. We believe that individuals seeking to protect their families from life’s uncertainties should not be burdened with additional taxes on their premiums. Similarly, the 18% GST on medical insurance premiums is a deterrent to the growth of this socially essential segment of business and the inclusion of more people under the social security net through medical insurance. The GST burden on policyholders undermines the primary objective of life and health insurance, which is to provide financial security and support during unexpected events such as illness, accidents, or untimely death. This burden is particularly heavy on common people and senior citizens. Recognizing the significance of this issue, the Parliamentary Standing Committee on Finance of the 17th Lok Sabha, headed by former Minister of State for Finance Jayant Sinha, recommended the rationalization of GST on insurance products, especially health and life insurance. We, therefore, request your good self to consider withdrawing GST on life and medical insurance premiums in the interest of policyholders and citizens at large. The financial results of PSGICs for the financial years 2022-23 and 2023-24 show significant improvements despite challenges such as higher losses from major social welfare policies. We once again request parity with LIC in wage revision, allowances, NPS contributions, and pensioner benefits.

Adequate Recruitment

PSGICs have been performing better despite inadequate manpower, but the decreasing employee strength year after year without corresponding recruitment has led to extremely high work pressures. Employees are handling an increased number of documents, claims, and processes, leading to increased productivity per capita on a year-on-year basis. However, this increased workload has disrupted their work-life balance. Equitable and just compensation must be ensured to keep them motivated.

Additionally, we call for the immediate filling of over 20,000 vacant positions in PSGICs. The current lack of sufficient staffing has caused significant challenges within these companies, leading to operational difficulties and inefficiencies. As a result, many offices have been forced to close or merge, negatively impacting the services provided to the citizens at large.

Formation of Regulatory Authority on Hospitals

In reference to our previous letter, we wish to reiterate our serious concerns regarding the gross irregularities and nexus between TPAs and hospitals, which are resulting in significant financial losses to PSGICs. The CAG report on this matter, which highlights the misappropriation of crores of rupees and various other irregularities, was submitted to the Committee on Finance. The report expressed severe concern and urged the corporate management of PSGICs and the Department of Financial Services (DFS) to take corrective measures. We, therefore, strongly demand the formation of a regulatory authority to oversee hospitals and TPAs, to curb these irregularities in the interest of PSGIC policyholders and citizens at large. We demand serious and expeditious action, as well as meaningful progress, towards addressing our justified demands at the earliest.

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Deep resentment prevails amongst general insurance companies’ employees over non fulfillment of genuine demands –GIEAIA