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New India on hiring drive, uncertainty continues for other 3 non-life PSUs

Even as The New India Assurance Company Ltd is on a massive recruitment drive, suspense continues in the case of the remaining three government owned non-life insurers, said industry officials.

New India Assurance | Non-life insurance | public sector undertakings PSUs

IANS  |  Chennai 


Even as the public sector general insurer The Company Ltd is on a massive recruitment drive, suspense continues in the case of the remaining three government owned non-life insurers, said industry officials.

The Mumbai based listed New India has decided to hire 300 officers in the generalists category.

The number of posts under the economically weaker section (EWS) and unreserved are 30 and 121 respectively.

"All the four public sector general insurers are expected to see a large number of employees retiring in a couple of years. The New India, a listed company has been but not the other three companies," K. Govindan, General Secretary, General Insurance Employees' All India Association (GIEAIA) told IANS.

The other three are: National Insurance Company Ltd, The Oriental Insurance Company Ltd and United India Insurance Company Ltd.

Govindan said the government is yet to appoint the Chairman-cum-Managing Director for United India Insurance.

The Central government had earlier announced its decision to privatise one of the three unlisted general insurers and there is a recruitment freeze on them.

"Already the three are suffering from severe staff shortage," a senior industry official told IANS preferring anonymity.

"The operating offices are short staffed, impacting customer service. Retirements of about 150-200 employees are happening in each company and this number is set to increase soon. There is a dire need to beef up the staff strength at the lower level," Govindan said.

If recruitment is not possible, then the other option is to merge the offices -- divisional/branches -- and save on rental outgo and rebalance staff deployment, industry officials said.

Bulk of the staff in service now in the public sector general insurers were recruited in the 1980s and in 1990 and they are set to retire soon, a senior industry official had told IANS.

At an average the PSU insurers have about 12,000 employees and about 1,600 offices.

Further the ratio of class I officers to other cadres is nearly 1:1 which shows the are top heavy and the span of control is low, said the senior industry official.

Simply put, span of control denotes the number of subordinates a manager/class I have. The higher the number of subordinates, the broader the manager's span of control.

Be that as it may, as part of the recruitment process The New India has been decided to capture the biometric data (left thumb impression or otherwise) and the photograph of the candidates on the day of the Main Examination (Phase-II) for the candidates who qualify after the preliminary examinations (Phase-I) and appear for the main examination (Phase-II).

The biometric data and photograph will be verified on two occasions -- on the day of interview of qualifying candidates and at the time of joining of provisionally selected candidates. Decision of the Biometric data verification authority with regard to its status (matched or mismatched) shall be final and binding upon the candidates.

With new hires leaving the company within a short time The New India has also decided to ask the fresh officer recruits to give an undertaking to serve the company for a minimum period of four years including probation period.

In the event of their quitting the company before the expiry of the bond period, they will be liable to pay liquidated damages equivalent to one year's gross salary paid to them during the year of probation which could be proportionately reduced depending on the length of service rendered.

Besides, he/she will have to submit a stamped Bond duly executed by two sureties (not blood relatives) of sound financial standing for an amount equivalent to one year's gross salary.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, August 25 2021. 15:51 IST