CONFED, the umbrella body of many officers’ association of public sector general insurance companies has laid down its charter of demands including “normal promotions, no VRS, no closure of offices citing merger' while assuring all its support to the government for implementing the mega mergers of three public sector general insurance companies- National Insurance Company, United India Company and Oriental insurance Company..
The CONFED, with over 18,000 members, also expects the possibility of a merger of four companies- fourth being New India Assurance- post listings of the merged entity.
Earlier, finance minister Arun Jaitly on Feb 1 has made a Budgetary proposal for the mergers of three state owned general insurers and listing of the merged entity.
The members of the body had met at Bengaluru on 24th Feb at United India Regional Training Centre to discuss on various issues of importance with major thrust on the merger issue.
Three managements of the three GIPSA(Assocation of Public Sector General Insurance companies) have also informally requested CONFED constituents for their views and suggestions on preparation of road map for merger. CONFED as the only driving force in the GIPSA companies for officers has decided to prepare a road map for the merger.
It is expected that the ministry will be calling a meeting shortly on merger where all the general mangers (GMs) of the three merging companies would be asked to be present.
It was decided that all the four constituents of CONFED will work in coordination with each other and form a special committee to prepare a road map for the merger , said sources who have attended the Bengaluru meeting
“There was a threadbare discussion on issues like merger, another option for pension, Pending Charter of demand , amendments in promotion policy etc’’ said sources.
The CONFED also briefed its members a few issues that were discussed in a meeting convened by the ministry of finance with the three CMD's of the merging companies.
Some of them are:
– Company's will work individually till March 2019.
– Promotional exercise for the current year upto GM will be conducted as usual. There are many GM's retiring very shortly along with three CMD's.
– Promotional exam. to be conducted within the 3rd week of May to 1st week of June 2018.And Probable date of examination are Sunday 20th May 2018.(not yet approved by governing board of GIPSA)
-GIPSA mandated to go in for appointing a consultant to prepare road map for merger.
– To interact and take the suggestion of all stake holders
-. No VRS or SVRS will be offered citing merger and no office to be closed at this juncture citing the same
– There is a probability of half yearly consolidation of Accounts of the merging companies.
-.No disruption of Human Resorces for the next financial year. It was felt that IT would be the major challenge as far as merger is concerned since all the companies are working on completely separate system.
Since New India Assurance Officers Association expressed their reservation on merger of four companies, so it was for the time being decided that strategies would be formulated keeping in view of the interest of the three companies but it was also unanimously decided to continue the CONFED at all levels.
The CONFED has decided to form four committees to examine the merger of following:
Statutory & Regulatory Compliance, Information Technology, Human Resources, Organisational Restructure including restructuring of association in view of the merger.