This document discusses the performance of PSGICs (Public Sector General Insurance Companies) and GIC Re compared to LIC for the wage revision period of 2012-2017. Some key points: - PSGICs and GIC Re had total profits of Rs. 20,808 crores vs Rs. 9,668 crores for LIC, paying higher taxes and dividends to the government. - On a per employee basis, PSGICs and GIC Re generated Rs. 4.16 crores profit per employee compared to Rs. 0.85 crores for LIC. - PSGICs support national development through mandatory insurance coverage and creation of specialized insurance pools.

1. WAGE REVISION
FOR THE PERIOD 2012 - 2017

2. WAGE REVISION PERIOD i.e., 2012 – 2017 PERFORMANCE OF
PSGICS WITH GIC RE vs LIC
Year National New India Oriental United GIC Re
Total PSGICs
& GIC RE
LIC
2016-2017 45.87 1,007.93 -1,691.09 -1,913.00 3,127.00 576.71 2,231.74
2015-2016 149.19 828.69 300.49 221.00 2,848.00 4,347.37 2,517.84
2014-2015 967.64 1,431.23 392.10 301.00 2,693.00 5,784.97 1,823.78
2013-2014 823.32 1,088.98 460.29 528.00 2,253.00 5,153.59 1,656.68
2012-2013 695.70 843.66 533.89 527.00 2,345.00 4,945.25 1,437.59
Total 2,681.72 5,200.49 -4.32 -336.00 13,266.00 20,807.89 9,667.63
Profit After Tax PSGICs with GIC Re vs LIC for Wage Revision period 2012-17 - Fig In Crs
Sources - Annual reports

3. PSGICs WITH GIC Re Vs LIC PER EMPLOYEE PROFIT AFTER TAX
PSGICs & GIC Re LIC
Profit in Crs from (2012-2017) 20,808 9,668
Employees 50,000 114,000
Profit per Employee 4,161,578 848,038

4. DIVIDEND AND TAX ON PROFIT PAID TO GOVT. BY PSGIC’s &
GIC Re FROM 2012-17
Year GIC Re New IndiaUnited National Oriental Total
2016-2017 1,498.18 465.93 - - - 1,964.11
2015-2016 1,143.20 377.76 115.91 54.18 144.40 1,835.45
2014-2015 783.44 705.07 91.84 455.52 360.20 2,396.07
2013-2014 575.98 462.83 229.46 377.14 325.80 1,971.21
2012-2013 585.85 366.45 196.52 325.59 363.02 1,837.43
Total 4,586.65 2,378.04 633.73 1,212.43 1,193.42 10,004.27
Dividend plus Tax on profit paid to Govt by PSGIC's & GIC Re for period 2012-17, Fig in Crs
Sources - Annual reports

5. PSGICs PREMIUM UNDERWRITTEN-2012-21
Source: IRDAI

6. SOLVENCY RATIO OF PSGIC’s & GIC RE FROM 2012-17
Insurer
March
2012
March
2013
March
2014
March
2015
March
2016
March
2017
National Insurance Co. Ltd. 1.37 1.50 1.55 1.52 1.26 1.90
The New India Assurance Co. Ltd. 2.03 2.50 2.61 2.44 2.30 2.19
The Oriental Insurance Co. Ltd. 1.38 1.51 1.64 1.68 1.59 1.11
United India Insurance Co. Ltd. 2.71 2.52 2.54 2.36 1.91 1.15
GIC Re 1.59 2.39 2.73 3.04 3.48 2.40
Source: IRDAI

7. PSGICs & GIC Re PERFORMANCE FROM 2011 to 2022
Year National New India Oriental United GIC Re Total
2021-2022 -1,678.83 164.00 -3,115.16 - 2,005.74 -2,624.25
2020-2021 -561.85 1,605.00 -1,525.44 -985.00 1,920.00 452.71
2019-2020 -4,108.39 1,417.75 -1,524.10 -1,485.00 -359.00 -6,058.74
2018-2019 -1,696.12 579.79 -293.66 -1,878.00 2,224.30 -1,063.69
2017-2018 -2,170.73 2,200.91 1,509.89 1,003.00 3,233.00 5,776.07
2016-2017 45.87 1,007.93 -1,691.09 -1,913.00 3,127.00 576.71
2015-2016 149.19 828.69 300.49 221.00 2,848.00 4,347.37
2014-2015 967.64 1,431.23 392.10 301.00 2,693.00 5,784.97
2013-2014 823.32 1,088.98 460.29 528.00 2,253.00 5,153.59
2012-2013 695.70 843.66 533.89 527.00 2,345.00 4,945.25
2011-2012 324.76 179.31 253.39 387.00 -2,468.75 -1,324.29
Total -7,209.44 11,347.25 -4,699.40 -3,294.00 19,821.29 15,965.70
PSGICs & GIC Re Profit (After Tax) from 2011 -2022 - Fig In Crs
Sources - Annual reports

8. IPO OF NEW INDIA & GIC RE vs LIC
New India 9,600.00 LIC 21,000.00
GIC Re 11,372.00
Total 20,972.00 Total 21,000.00
IPO Size in INR Crs

9. PSGICs LOSSES DUE TO GOVT. SCHEMES
Years
PublicSectorInsurers
Total Net Earned
Permium
Claims
Incurred
Incurred
Claims Ratio
Net Earned
Permium
Claims
Incurred
Incurred
Claims Ratio
Gross
Premium
Incurred
Claims
Incurred
Claims Ratio Premium Claims
National Insurance Co. Ltd. 4,805.28 4,917.58 102.34% 237.25 433.13 182.56% 2,698.60 2,913.40 107.96% 7,741.13 8,264.11
The New India Assurance Co. Ltd. 3,193.58 3,709.07 116.14% 143.19 479.51 334.89% 4,882.60 6,473.70 132.59% 8,219.37 10,662.29
The Oriental Insurance Co. Ltd. 755.52 1,106.09 146.40% 73.58 97.01 131.84% 4,435.60 6,548.50 147.64% 5,264.70 7,751.60
United India Insurance Co. Ltd. 5,070.56 5,877.12 115.91% 131.43 406.02 308.93% 4,492.90 4,321.70 96.19% 9,694.89 10,604.84
Total 13,824.93 15,609.86 112.91% 585.45 1,415.68 241.81% 16,509.70 20,257.30 122.70% 30,920.08 37,282.84
Source
Total
IRDAI Handbook IRDAI Handbook Rajya Sabha Unstarred Qus no 1463
Losses borne by PSGICs due to Govt Schemes- Fig in Crs
Government Sponsored Schemes
including RSBY & PMJAY
Pradhan Mantri Suraksha Bima
Yojana (PMSBY)
Pradhan Mantri Fasal Bima Yojana
(PMFBY)
2013-2021 2016-2021 2016-2021

10. DIFFERENCE IN ARREARS BETWEEN LIC & GIPSA OFFER ON
4th AUGUST 2022
CALCULATION ON THE BASIS OF EXISTING BASIC PAY OF INR 86505 AS ON AUG 2017
As per LIC
Notification
As per current offer
given by GIPSA
Gross Salary 28,88,091.39 14,19,141.79
Less : P.F. Diff. 3,71,180.00 3,20,399.50
25,16,911.39 10,98,742.29
Less : Income Tax @31.2% 9,01,084.51 4,42,772.24
Net Arrears after Tax 16,15,826.88 6,55,970.05
In INR

11. WHY PSGICs & GIC RE WAGE REVISION FOR 2012-17
SHOULD BE MORE THAN LIC :-
1. Non-life Insurance Industry directly support Industries & economy, presently Insurance is mandatory for
all projects (Roads, constructions/erection of various projects), operational risks, most of the transit
insurance & etc. Which is not in the case for LIC. Hence, support to nation building by Non-life Industry in
big way and PSGICs have lion share on it.
2. PSGICs & GIC Re give insurance to wide sections ranging from Crop to Satellite.
3. PSGICs & GIC RE collective profit of INR 20,808 Crs against the INR 9668 Crs of LIC for the wage revision
period 2012-17. Which is 115% higher than LIC.
4. PSGICs & GIC RE generated INR 20,808 Crs profit with 50,000 (approx.) employees against the 1,14,000
employees of LIC for profit of INR 9668 Crs. Per employee profit contribution of PSGICs & GIC Re is INR 41
Lacs against the INR 8.4 Lacs for LIC, which is 390% higher than LIC.
5. 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.

12. 6. 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.
7. PSGIC & GIC re 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, etc and recent example of such
step is Fertilizer pool, which is being created to cover fertilizers & related goods imported from Russia &
Belarus.
8. PSGICs & GIC Re acting in best interest to retain more premium within India through obligatory cessions
and creating various pools. In case of life insurance there is no such obligatory cessions, no pools and in
contrary LIC buy most of the reinsurance from foreign reinsurers.
9. In the latest wage revision LIC has achieved to make all Saturday as holidays without changing the existing
working hours.
10. Due to short term nature of the non-life business, non-life insurers have to face competitions in every 12
months for renewal and in case of a life insurance business insurers they do not have to face competitions to
renew same business at the end of every 12 months.

13. WE PSGICs & GIC Re ALWAYS ON
FOREFRONT TO SUPPORT OUR NATION’S
GROWTH AND PROSPERITY..!!!