“As we enter the New Year, we are excited to announce the introduction of this new organisational design starting from 13th February on pilot basis,”said Suchita Gupta, CMD, National Insurance Company in a letter to the company’s employees
Similar letters have been written by other CMDs to their employees
New Delhi:
The government has asked the four PSU general insurance companies, New India Assurance, Oriental Insurance Company,National Insurance Company and United Insurance Company to start implementing much awaited sweeping organisational restructuring on pilot basis in four identified regions of their companies from Monday amidst protest by the unions.
“As we enter the New Year, we are excited to announce the introduction of this new organisational design starting from 13th February on pilot basis,”said Suchita Gupta, CMD, National Insurance Company in a letter to the company’s employees.
Similar letters have been written by other CMDs to their employees.
Accordingly, the companies have issued detailed guidelines to their employees.
Earlier. Ernst & Young (E&Y) was appointed by the four companies to devise strategies to restructure the four public sector insurance companies to make them agile and profitable.
“We believe this change will help improve our services and strengthen the key client relationships. We understand that change can be challenging, and we are committed to supporting you through this transition. To that end, we will adopt a phased approach for implementation.” said Gupta.
The new structure will entail the following key changes:
-three tier structure of Region Office(RO)-Division Office-Branch Office/Micro Office to be moved to 2 tier structure with Region Office-Operating Office model and all operating offices to now report to the regional office directly,
. Increase regionalisation initiatives to ensure 100% coverage in claims, underwriting and accounts.
-Enhance focus on corporate business, by setting up more CBOs to cater to clients with total premium value of more than Rs3 crores in a single year
-Enhanced focus on business development, across channels and office types,
-Introduction of key performance indicators
The companies will transition their retail businesses of these ROs to the new operating model. This will provide an opportunity to closely monitor the functioning of the new model and allow them time for course correction while they continue to refine the design to bring in success.
In the first phase, NIC will proceed with the change roll-out in four identified regions of the country namely Nagpur RO, Kolkata RO -2, Vishakhapatnam RO, and Dehradun RO.
Meanwhile, the unions of the industry have protested about the move of “Unilateral Pilot basis implementation of organisational restructuring” without considering the suggestions of the unions and associations and also without having adequate analysis and preparation.
The unions vehemently oppose the decision of GIPSA management under the pressure of department of financial services (DFS) to move ahead in haste in the last quarter to implement K.P.I and Restructuring on the name of so-called pilot project without having complete report of the consultant and it’s feasibility study, said unions.
The unions will hold *Lunch Hour demonstrations at HO/RO and other centres across the country on Monday