ALL INDIA GENERAL INSURANCE FIELD WORKERS ASSOCIATION
MEMORANDUM OF GRIEVIENCES AND CHARTER OF DEMAND
We would like to submit our broader views on the charter of demands on core
benefits of Development Officers. We will be submitting our elaborate charter of
demands with justification for each and every demand after hearing the initial
presentation of the management in this matter. Proper internal relativity between the
Development Officers and other class of employees in the GIPSA should be ensured.
The list of demands given below is only illustrative and not exhaustive. The All India
General Insurance Field Workers’ association reserves the right to add, alter or
amend any demand in this charter of demands, keeping in view of the situation
prevailing within the industry or outside at the time of negotiations or finalization of
the demand charter. Whatever may be stated in this charter of demands must in no
way adversely affect or take away from any employee any of their rights, privileges,
usages, practices, conventions , amenities or other service conditions that are
already vested in or enjoyed by the employee.
Before going in to our demands we would like to highlight the grievances of
Development Officers Cadre based on which our demands are made.
MEMORANDUM OF GRIEVIENCES
Depletion of Development Officers Cadre:
This concerns the PSGI Industry more that the Development Officers themselves.
We wish to point out that when the marketing channels were opened up it was
assumed by the industry that the Development Officers Cadre will face extinction and
projected as run off cadre. From then on AIGIFWA has been insisting that considering
the nature and functioning of this industry and the liaison the Development Officers
have with the clients, we will continue to be the dependable contributor for the
companies. The experience of the past years has proved our contention. Moreover the
other new channels have not brought in the desired results.
The concept of Brokers, Corporate Agents and Bancassurance concept has not
resulted in expected results. Also these channels have eroded the captive premium of
our companies. This can be achieved only by strengthening the Development Officers
Cadre. Even in the private companies there is marketing executive cadre not only to
procure premium but also to take care of their existing clients.
In LIC also similar situation prevailed. They also published vision 2010 in which the
Development Officers Cadre had been declared as run off Cadre. LIC also initiated
various steps in this direction. While curtailing the Development Officers benefits (as
done by GIPSA) they initiated further steps like super agents, agents recruit agents
etc. Now after analysing the impact, the LIC has embarked on the following moves.
They started recruitment of Development Officers. The Development Officers strength
which came down to 18000 in 2007 is now more than 25000. Now LIC is recruiting
Development Officers every year. Also all the direct agents are attached to
Development Officers for servicing.
During our Discussions with GIPSA and Company officials on 18th May 2012, we were
informed that in principle decision has been taken for recruitment of Development
Officers and the modalities will be worked out shortly. But nothing has come out till
date.
Pay Scale:
Almost all the Development Officers have joined as Development Officers and retire
as Development Officers. Due to the faulty structure of the pay scales of Development
officers, a large number end up as victims of stagnation for long periods. Due to the
illogical promotion policy and promotional exercise, it is impossible to get a
promotion to the next higher cadre within a reasonable period. In order to eliminate
this anomaly and to overcome large scale stagnation, it is highly essential to have a
running scale. Hence during the last wage revision also we demanded additional
stages in the pay scale. During last round of talks in Hyderabad we insisted on at
least one more stagnation increment. In the final outcome all the Classes who were
earlier not offered were given additional stagnation increment except Development
Officers.
Relaxation in Cost Norms;
With the opening up of Insurance Industry the Development Officers are going
through a harassing period because:

Private companies eat in to the profitable premiums of the Development
Officers.

Our own companies did not believe that the Development Officers can survive
the onslaught of private companies and new marketing out sourcing concepts.

Management of public sector insurance companies informed the Ministry that
this cadre will be run off cadre.

To expedite the elimination of this cadre, the cost components were changed
to include apart from Basic, DA, HRA & CCA, also conveyance allowance,
entertainment allowance, tour expenses, expenses on vehicle and telephone
etc.

By this the cost requirement of Development Officers has been instrincly
increased.

Instead of ten to fifteen rupees they were made to procure 13 to 20 rupees
premium for every rupee of salary.

The premiums procured by Development Officers earlier were booked under
the codes of brokers, Bancassurance and corporate agents.
Generally any company management will relax the norms under adverse conditions.
But it is totally irrational that GIPSA companies tightened the cost norms to eliminate
one cadre.
The impending wage revision will push the Development Officers further to the wall.
This has far reaching impact. Those Development Officers exceeding cost due to no
fault of them are subject to recovery of excess cost, reduction in their basic pay and
ultimately termination. This has put them in soup as they will lose their pension
though they have contributed for the pension fund. It is totally unfair to punish the
Development Officers after they have put in dedicated and sincere service for about
30 years and above 50 years of age.
Carryover of excess cost
During the wage revision in 2008, according to the original Administrative Instruction,
for the period 2003-2008, the entire excess cost (old wage plus arrears) has to be
taken for the years 2008-09 and 2009-10 and accordingly many Development Officers
have given the option letter for apportion and absorption of excess cost for the years
2008-09 and 2009-10.
With subsequent amendment to the Administrative Instructions some of them have
exceeded cost in the years 2003-2008 in the pre revised scales itself and the
companies have worked out/made recoveries. Now with adding the arrears for 20082010 some of them are exceeding cost for these years also. But for the carryover they
are within cost for these years. This has created a peculiar situation in which those
exceeding cost for a particular year are punished in more than one year.
Staff GMC
The proposed Staff GMC is being implemented unilaterally. While we appreciate many
positive features like, higher sum insured and floater, our objection for high premium
especially for parents, company bearing a portion of premium for dependant parents
and private TPA are not taken into consideration.
CHARTER OF DEMAND
To redress our grievances, to recognise and motivate the marketing force and for the
companies own sake we demand the following:
Recruitment of Development Officers
Due to afore mentioned reasons Development Officers recruitment has to be started
immediately. Even if each company recruit 2000 Development Officers on two years’
probation period, it will result in augmentation of 15000 fresh, new agents and
premium of Rs.10, 000 crores.
Relaxation in cost norms
The earning of an increment after the completion of 12 months service is the basic
right of an employee. Development Officers are the only one category who are kept in
abeyance to this clause. We demand the reintroduction of dual cost norms and
relaxation of 2% from the present cost norms. We also demand to take only Basic &
DA for calculating cost for Para 11,11A &13.
Without relaxation in cost, not only there is no relevance in wage revision but it is
also detrimental to the Development Officers’ Cadre.
Correction of carryover of excess cost of 2008.
Definition of Scheduled premium income
The exclusions in scheduled premium income as defined in clause 16 of Para (3) of
the Rationalisation Scheme as it has lost relevance and detrimental for both the cadre
and the companies.
BASIC PAY
We demand 100% merger of DA up to 4708 points with 35% fitment benefit.
Scale of Pay - 32 stages
Gr.I:- 28000-1400(8)-39200-1800(9)-55400-2200(2)59800-2700(13)-94900- 4-stagn
Gr II- 22500 – 1000 (5) –27500-1300 (8) –37900-1800(2)-41500-4 stn
Stagnation increment/FPA/Running scale
Due to the faulty structure of the pay scales of Development officers, a large number
end up as victims of stagnation for long periods. Due to the illogical promotion policy
and promotional exercise, it is impossible to get a promotion to the next higher cadre
within a reasonable period. Most of the Development Officers retire in the entry cadre
itself. In order to eliminate this anomaly and to overcome large scale stagnation, it is
highly essential to have a running scale. Hence we demand additional 9 stages in the
pay scale instead of additional stagnation increment or grade promotion may be
considered those who have completed minimum 20 years of services and reaching
the stagnation increment.
Grade II Cadre was created as buffer to take care of those exceeding cost and new
entrants. But with some people struck in Grade II both admin and marketing, there is
the need to increase the span of pay scale for Grade II.
Promotion
The central pay commission has recommended at least two promotions in the service
period of an employee. So we demand
two promotions in the service period of a
Development Officer.
Before the promotion policy was amended 2008, When the draft was circulated, we
opposed the condition of RSB for eligibility and it was agreed that it will qualify for
ranking only. Unfortunately when the amendment came, the RSB was a condition for
eligibility. After our protest, a transitional arrangement was made with waiver for first
year, 50% for second year and 100% from third year onwards. In true sense no
company has given clear guidelines and no company is booking the premium
properly. The result is improper calculation of RSB premium. More over there is no
logic in making RSB an eligibility condition. Applying it for marks will give
weightage/reduction for RSB performance.
Moreover the number of vacancies declared from Class II to Class I is proportionately
less when compared to Class III to Class I. The criterion is not applied based on
eligible numbers. Though some vacancies in Marketing remain unfilled especially due
to RSB norm, the Development Officers (admin) are getting very little vacancies. We
insist on immediate revision of Promotion Policy before the next exercise.
Dearness Allowance
At present DA is linked to CPI 2944 points with 100% neutralization.
DA for CPI
4708(Index-441) should be merged with the basic and thereafter continue with 100%
neutralization. DA should be @0.15% of basic pay for every rise or fall of 4 points over
4708 points in the quarterly average of the All India Average Working Class consumer
price index (General) base 1960=100
HRA – Without any ceiling in A class city @20% -B class city @17% and other centres
@15% of basic pay.
CCA: On percentage of basic without ceiling in A class city @5% -B class city @4%
and C class including other centres @3%
Hill Station Allowance @10% of Basic pay without ceiling.
Qualification Pay: - Licentiate Rs.1000, Associate Rs.1500 and Fellow or MBA Rs.2000.
Transportation Allowance to Development officer (Admin) @12% of basic pay.
LTS:
Allow air travel in economy class once in 2 years.
Allow worldwide travel subject to maximum eligibility like banks & LIC

Allow the option to surrender and encash LTC, upon which the development
officer shall be entitled to receive an amount equivalent to 80% of the eligible
fare for the mode of travel he is entitled to.
All perk tax should be borne by the company
Halting Allowance: -
Lodging Charges: -
A class City
B class
C class
Rs.1500
Rs.1200
Rs.1000
Rs.3000
Rs.2000
Rs.1500
Mileage allowance: - Should be revised as follows:-
Motor cycle- 6% of 1 litre petrol cost
Car (Petrol) - 15% of 1 litre petrol cost
Car (Diesel) - 20% of 1 litre diesel cost
Incidental Expenses on Tour: - Actuals or one day halting allowance
Brief case – Allow Rs.3500/- Once in 2 years
Club Membership: - We shall be entitled to membership of a Social Club and the
expenses like entrance fee, subscription etc shall be reimbursed in full.
Educational Allowance for Children: - Provide Rs.8000/- p.a as tuition fees and
Rs.20000/- p.a as hostel subsidy for two children
Garage and cleaning charges @ of Rs.2000 p.a. and service charges @ Rs.2000 per
year should be allowed.
Allow to purchase any model of car within the fixed loan amount. Provide 4th car loan.
Development Officer (Admin)

Provide car loan facility for Development Officers (Admin) with reduced rate of
interest. Provide reimbursement of registration charges, road tax and
Insurance premium.

Provide Telephone allowance of Rs.2000/- pm and Entertainment allowance of
Rs.500/- pm

Provide Mobile Phone facility and reimbursement of mobile charges up to the
limit of Rs.18000/- p.a to Development Officers (Admin)

Functional allowance Rs.2000/- p.m for Development officers (Admin)

Attending MACT/Lok Adalats on holidays should fetch Rs.1200/- per day and
on working days, Rs.600/- for Development Officers (Admin) additionally.
Leave:
Unavailed CL/ACL to be added to EL in the subsequent year.

Unutilized leave should be allowed encashment at the time of retirement/death.

Accumulation of EL and SL should be allowed up to 360 days
Recognition of Unions and Special leave for Principal Office Bearers of Association:Recognize the association and allow special leave to the principal office bearers
of National/Regional/State level leaders of recognized Associations.
Retirement Benefits:
Gratuity – One month’s gross salary for every completed year of service,
without any ceiling.

One more pension option should be allowed

Compassionate ground appointment should be reintroduced.
Housing Loan: - Additional housing loan for repairs and maintenance upto 50 times of
basic pay should be allowed after the completion of 15 years from first loan.
Free comprehensive householders’ policy to be allowed.
Furniture Loan: - Provide Interest free furniture loan limited to Rs.100000/recoverable in 60 monthly instalments.
Medical Benefits
All Development officers should be provided with reimbursement of the entire medical
expenditure on actual basis for self, spouse, children and dependent parents, both for
domiciliary treatment and for hospitalization.
Alternately we demand the following:

Domiciliary treatment – one month basic salary per annum on declaration
basis

Provide free executive health check up facility to all Development officers of
age 45 years and above.
Personal Accident Policy: Increase On duty PA Policy to 60 times of basic pay.
Transfer Benefits on Transfer:
Introduce the concept of protection of HRA and CCA on transfer.

Provide Transfer Allowance@10% of basic pay for 1 year.

Transfer grant equivalent to one month salary.

Leased accommodation should be provided.

Allow joining time of 10 days and reimbursement of 1 month lodging expenses.

Allow Disturbance allowance and mid academic year grant.

Revise the packing charge and transportation charges.

Tie up arrangement with selected school/college for admission of children of
transferred development officers in all major cities and state capitals.
Modification in the Incentive scheme
Allow 5% of operating surplus as incentive subject to 24 months basic.
The condition of minimum 20% operating surplus should be withdrawn. The same
logic applied in the revised promotion policy should be applied for incentives.
The condition of minimum growth should be withdrawn.
Cost based incentive
A fixed percentage of the cost margin should be given as incentive to motivate the
Development Officers.
One more Option to both Marketing and Administration
In order to clear the anomaly of the 2003 scheme, we demand one more time bound
option to Marketing and Administration.
Conversion to Administration on health grounds
Marketing Development officers should be allowed the option to convert to
Development Officer Administration on health grounds without considering age and
service
We look forward to meaningful dialogue with pragmatic approach resulting in win win
situation for both the Cadre and the PSGI Industry.
S.Vasudevan
Secretary General
AIGIFWA