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30th March, 2009GIPSA1 3 RD ROUND DISCUSSIONS WITH UNIONS/ASSOCIATIONS OF GIPSA MEMBER COMPANIES ON 30.03.2009 AT HYDERABAD.

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Presentation on theme: "30th March, 2009GIPSA1 3 RD ROUND DISCUSSIONS WITH UNIONS/ASSOCIATIONS OF GIPSA MEMBER COMPANIES ON 30.03.2009 AT HYDERABAD."— Presentation transcript:

1 30th March, 2009GIPSA1 3 RD ROUND DISCUSSIONS WITH UNIONS/ASSOCIATIONS OF GIPSA MEMBER COMPANIES ON AT HYDERABAD

2 30th March, 2009GIPSA2 PRESENTATION MADE ON Sharing of Financials, Constraints & Projections. Inviting suggestions & comments for review & re-look. Call for evolving a Joint Agenda – Common Path. Commendable response by the Unions. Commitments of cooperation/support.

3 30th March, 2009GIPSA3 2 ND ROUND DISCUSSIONS FROM 3 RD TO 6 TH FEB., 2009 First step taken by Management on common path Submission of a draft Joint Agenda Mixed response from Unions for walking along Positive and constructive responses from the Unions taken note of Review and re-look of projections

4 30th March, 2009GIPSA4 ISSUES FOR REVIEW/RE-LOOK GDPI Growth 5.68%? ME Growth 9.1%? Factoring in of SVRS amortization amount in Wage Bill Base? Factoring in of Rationalization of manpower? Factoring in of Inv. Income from Policyholders Fund in Revenue A/c ? Additional External opportunities Impact of internal support/motivation

5 30th March, 2009GIPSA5 RESULT OF REVIEW / RE-LOOK GDPI Growth to be in place of 5.68% ME Growth to be in place of 9.1% Base Wage Bill for to be discounted by Rs. 154 Crs.(SVRS Amort.) Inv. Income from Policyholders Fund to be factored in Revenue A/C. Impact of internal support/motivation kept in view.

6 30th March, 2009GIPSA6 REVISED GAP BETWEEN “HAVE” & “WANT TO HAVE” – 1 (Rs. in Crores) ACTUALPROJECTIONS Gross Prem 7.00% p.a M. Exp (w/o WR) 5% p.a. (Excluding SVRS Amort) ME % Addition to ME with 5% WR w.e.f Total ME ME (% to GP) Required Gr. Prem. for 19.50% ME Premium Gap

7 30th March, 2009GIPSA7 GAP BETWEEN “HAVE” & “WANT TO HAVE” – 2 REVISED GAP BETWEEN “HAVE” & “WANT TO HAVE” – 2 (Rs. in Crores) ACTUALPROJECTIONS Gross Prem 7.00% p.a M. Exp (w/o WR) 5% p.a. (Excluding SVRS Amort) ME % Addition to ME with 10% WR w.e.f Total ME ME (% to GP) Required Gr. Prem. for 19.50% ME Premium Gap

8 30th March, 2009GIPSA8 REVISED GAP BETWEEN “HAVE” & “WANT TO HAVE” – 3 (Rs. in Crores) ACTUALPROJECTIONS Gross Prem 7% p.a M. Exp (w/o WR) 5% p.a. (Excluding SVRS Amort) ME % Addition to ME with 15% WR w.e.f Total ME ME (% to GP) Required Gr. Prem. for 19.50% ME Premium Gap

9 30th March, 2009GIPSA9 REVISED GAP BETWEEN “HAVE” & “WANT TO HAVE” – 4 (Rs. in Crores) ACTUALPROJECTIONS Gross Prem 7% p.a M. Exp (w/o WR) 5% p.a. (Excluding SVRS Amort) ME % Addition to ME with 20% WR w.e.f Total ME ME (% to GP) Required Gr. Prem. for 19.50% ME Premium Gap

10 30th March, 2009GIPSA10 Analysis of Revised Working Gap between “Have” and “want to Have” comes down as projected on from 40C angle, - For 5% Wage Revision, from Rs.7,300 crs. to NIL For 10% Wage Revision, from Rs.8,400 crs. to Rs. 254 crs. For 15% Wage Revision, from Rs. 9,500 crs. to Rs. 1,135 crs. For 20% Wage Revision, from Rs. 10,600 crs. to Rs. 2,015 crs.

11 30th March, 2009GIPSA11 Further hurdles…… Overall operational results still a matter of concern. Inv. Income projections assuming greater uncertainty. Business Procurement Cost continues to rise. So does the Incurred claims amount. Combined outgo continues to mount. Leaving less and less for increased expenditure on other things including Wages.

12 30th March, 2009GIPSA12 Best possible projections of operational results, as on date Workings when ME do not include SVRS Expenses (& WR Arrears in , for Least Square Estimation) ACTUALS PROJECTED (Least Square Estimates ) NET PREMIUM Increase in Unexpired Risks Res EARNED PREMIUM INCURRED CLAIMS ME COMMISSION COMBINED OUTGO U/W LOSS (Comb. Outgo Less Earned Premium) Investment Income (Policyholders) (?) 3800 (?) 4000 (?) 4200 (?)

13 30th March, 2009GIPSA13 Then, what ?... Faith and hope are substance of life We have faith in you We have hope in you We know you will not let us down We, too, will never let you down With hope and faith in you, we propose the maximum possible Wage Revision for our people under the current constraints.

14 30th March, 2009GIPSA14 Wage Revision Proposal (Subject to Government’s approval) Wage Bill as on : Rs. 2,569 crs. (excluding SVRS Amort.) Additional expenditure proposed on Wage Bill as on : Rs crs. Overall percentage rise : 12% Average Per capita (p.c) rise p.a. : Rs.44,100/- Average p.c rise as on : Rs.32,477/- Proposed rise higher than last rise by : 36% The proposed rise is subject to the Organizational Agenda as floated on

15 30th March, 2009GIPSA15 View of 40C - Projections post proposed Wage Rise (Rs. in Crores) ACTUALPROJECTIONS Gross Prem 7% p.a M. Exp (w/o WR) 5% p.a. (Excluding SVRS Amort) ME % Addition to ME with 12% WR w.e.f Total ME ME (% to GP) Required Gr. Prem. for 19.50% ME Premium Gap

16 30th March, 2009GIPSA16 POSSIBLE PAY SCALES WITH 12% REVISION Cadre Existing Scale (including Stagnation Increments) Possible Scale with 12% Revision Sub-Staff Or, Running Scale of for 3 cadres combined Driver Record Clerk Assistant Sr. Assistant/Steno Dev. Officer Gr.II Dev. Officer Gr.I Contd…

17 30th March, 2009GIPSA17 POSSIBLE PAY SCALES WITH 12% REVISION Cadre Existing Scale (including Stagnation Increments) Possible Scale with 12% Revision Scale I Scale II Scale III Scale IV Scale V Scale VI Scale VII

18 30th March, 2009GIPSA18 Allocation of proposed rise into various components of Wages The overall Wage rise of 12% shall be distributed into various components of Wage (including Basic Pay Scales) once a broad understanding is reached on the overall proposal. Response of the Unions/Associations is invited.

19 30th March, 2009GIPSA19


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