The new long list of 16 promotions to the posts of general managers in the public sector general insurance industry, meant to fill up the vacncies in 2018-19,announced on Thursday, hinst at the delay in the proposed merger- beyond FY 2018-19- of three PSU general insurers, United India Insurance(UII), National Insurance Company(NIC) and Oriental Insurance Company(OIC).
Immediately after fiancé minister Arun Jaitley had announced the merger proposal of three companies in his Budget 2018-19, Subash Chandra Garg, economic affairs secretary,ministry of finance. had said that the government was keen to complete the merger within 2018-19.This announcement by Garg had put on on hold all the promotional excercises in the public general insurance industry that used be completed by March of every year..
After a bit of delay, On Thursday, the GIPSA, the official association of four state owned general insurance companies and GIC Re- has announced the promotions of 16 senior officials to the posts general managers.
In the public sector general insurance industry, the post of general manager, unlike public sector banking industry, is a very senior level posting , right below the post of chairman and managing director.
“ Obviously, the number of promotions indicate the merger is not happening in a hurry. These companies don’t need such large number of GMs after the merger. Some of the newly appointed GMs have residual services of thtee to four years,’’ said sources in the industry.
Besides, in the last meeting, held on Apr 23, when Debasish Panda, the newly appointed additional secretary, Insurance, ministry of finance, had met the CMDs of three merged companies, there was no talk of dead-line for the merger discussed, said sources.
The top meeting had discussed about the appointment of a consultant that may take couple of months.
“By the time a consultant is appointed, after following the proper procejure, it will be another three to four months and by the time consultant prepares the merger action plan , it will be end of the fiscal,'' said sources.
Also government has already indicated, it will be business as usual for all the merged entities,’’ said a CMD of a public sector general insurance company who doesn’t want to be named.
Now the entire focus is on the government's move to appoint three CMDs as Sanat Kumar of NIC, is retiring this month end, MN Sarma of UII is retiring in May end and G Srinivsan, CMD, NIA is retiring in July end.
The right time frame work for the merger which will take in to account the different IT systems which all the merged entities currently have and branch rationalisation plans, will be clear only after consultant prepares an action plan,he added.
The officials who have been promoted as GMs are – G Sobha Reddy,Anjan Dey,Gouri Ranjan Dinakaran,J Jayanthi, Neera M Saxena (from the New India Assurance), M. Bhaskar, D.N. Godbole, Shashikant Narayan More,(from GIC Re), Ravi, S Singh, S.K. Samantaray, P Vijayakumar, (from NIC), B Rajaram, M Shahul Hameed,(from UII), Navneet Doda from OIC.
Sources point out that the GIPSA panel headed by G Srinivasan, CMD, NIA, had taken into performance of each of the five companies rather than the performance of individual officials, as the main parameter, while deciding about the promotions. .
Accordingly, NIA has got the largest chunk of promotions followed by GIC Re, NIC , UII and OIC which has just got only one of its official promoted as GM. .