Insurance
A one-rupee mystery at National Insurance Company
A difference of one rupee pops up between the premium mentioned in National Insurance's renewal notice and the one that appears on the cashier's screen after feeding the policy data
 
Policyholders and agents of government owned National Insurance Company Ltd. are facing what they call as the `one-rupee mystery', or `Re.1 conundrum', say agents and company officials.
 
"A difference of Re.1 pops up between the premium mentioned in the company's renewal notice and the one that appears on the cashier's screen after feeding the policy data," an employee on the condition of anonymity told IANS.
 
"I always ask my clients to add up Re.1 to the premium stated in the renewal notice while they write out the cheque," an agent told IANS.
 
The problem is faced by policyholders/agents in most of the branches where the company has installed the core insurance solution (CIS) developed by a Chinese company called eBaoTech Corporation and being implemented by HCL Technologies since 2011.
 
This is yet another problem with National Insurance Company's software systems apart from the non-availability of the systems for hours and even days together, officials at several offices told IANS.
 
"The top management, though aware of the issue, is not taking any corrective action. The core insurance solution was first implemented in one office in Chennai in 2011. Now it is 2015, still the solution has not been rolled out across the company," an agent told IANS preferring anonymity.
 
In 2009, HCL Technologies Ltd. announced that it had signed a Rs.393 crore, seven year end-to-end information technology (IT) services engagement with National Insurance.
 
A detailed list of questions e-mailed by IANS to HCL Technologies' corporate communication officials several days ago remains unacknowledged till date.
 
In response to the list of questions sent to eBaoTech Corporation, a person named Anand, claiming to be an employee of the Chinese company in India, had called IANS to check out the reasons for the questionnaire.
 
However, the questions remain unanswered by eBaoTech Corporation.
 
Officials working at the operating offices are not aware as to why this is happening-whether it is due to bug in the software or due to rounding of the premium decimals at different levels.
 
"We are not able to see the premium worksheet to know why this is happening. The premium worksheet facility is not working," an official said.
 
The problem has been flagged off by several offices but nothing seems to be happening to correct the problem, the official said.
 
According to a company staffer, their office books premium as calculated by their old software called Genisys and the excess amount is adjusted at appropriate column.
 
The Re.1 conundrum would take a serious turn if a policyholder sends the renewal premium cheque by post/courier.
 
In such cases, there is a risk of break-in insurance coverage as the premium would not be booked till the difference is made good.
 
The break-in insurance coverage will be risky in the case of vehicle and health insurance.
 
In the case of some policies, the premium difference between the old and the new software systems will be even Rs.3.
 
"Taking into account the interest of our clients I pay the difference out of my pocket. At an average I pay out around Rs.10 like this and who will compensate me the loss," the agent further told IANS.
 
At the time of announcing the multi-crore deal, the HCL Technologies said during the seven-year engagement it will be responsible for setting up and managing a new enterprise wide IT landscape for National Insurance.
 
This will cover business process re-engineering, application blueprinting and roll out of 19 applications, systems integration and management services across data centre, networks, security and helpdesk services spanning over 1,034 branches and 10,000 end-users across the country, the HCL Technologies then said.
 
According to National Insurance officials, the roll out is not even complete in the southern states.
 
As per the website of eBaoTech Corporation, the Indian insurer selected HCL Technologies as its implementation partner together with eBaoTech GeneralSystem as its core policy administration system in October 2008 to support motor, marine, fire, engineering and all other general insurance lines of business.
 
Phase one of the project went live in November 2011. The second implementation phase to roll out eBaoTech GeneralSystem to National Insurance's 1,000 branches is underway.
 
If one goes by the statement issued by HCL Technologies in 2009, the seven-year deal ends next year. It would be interesting to see how the government decides on the matter.
 
Meanwhile, "system down, come tomorrow" is one common refrain that policy-holders continue to hear from the insurer's officials.
 
Top officials of the insurer declined to comment on the matter when contacted by IANS.

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COMMENTS

Dr. Rakesh Goyal

2 years ago

This happens, when computerisation is done without proper planning and well defined global best-practice procurement process. This best-practice is not the sarkari or DGS&D type procurement procedures. How many organisations and their CMDs really know this process? Further, in case of PSUs, L1 process makes sure to deliver "not-the-best" one. Further, other considerations can not be ruled out.

This is one more proof of Chinese quality. ;-)).

Very high risk exist that National Insurance and their policy holder's data is being copied/replicated on Chinese servers.

PATTABHI

2 years ago

Many such bugs and goof-ups haunt our SBI Core Banking Systems as well, but these are getting sorted out thanks to a few Bank Officials in Belapur who appreciate the need for customer friendly systems..

Join our national movement of Make in India: Modi
Asserting that his "Make in India" campaign is not a mere brand or a slogan, Prime Minister Narendra Modi asked global businesses to follow its logo, the lion, to the welcoming and stable investment climate in his country and become a part of this new, national movement.
 
"We will make it easy to do business in India. And, we will always be eager to listen to your feedback," the prime minister said at the opening of Hannover Messe, considered the largest industrial fair in the world, where India is the partner country this year.
 
"So, my message to you is this: You will find an environment that is not only open, but also welcoming," Modi said at the event which he inaugurated with his host and German Chancellor Angela Merke, while also listing a host of advantages of investing in India.
 
Since landing here Sunday evening, Modi could not have missed the overwhelming presence of the Make in India Lion in this city -- billboards to the local trams -- that is expected to attract 200,000 visitors over five days to the fair that is also hosting 350 Indian firms.
 
"The lions are a symbol of a new India. They roar! But with a message of friendship and promise of partnership, from 1.25 billion people of India. This is also the message of 15 states, 20 chief executives and 350 companies from India participating in this Fair."
 
Modi also listed his priorities. "Whatever we choose to do, from reaching the cutting-edge of industry to meeting the most critical social need, we require investment, technology, industry and enterprise," said the Indian prime minister.
 
"That is why for me, Make in India is not a brand. Nor is it simply a slogan on a smart lion! It is a new national movement," the prime minister said.
 
He was also aware of the hardship foreign investors were facing in India and said the norms were being simplified, approvals getting converted into digital formats, and the tax regime becoming stable and predictable, with movement forward in pan-India goods and services tax.
 
The prime minister said there must be substance when top institutions like the World Bank and International Monetary Fund, along with global credit rating agencies, were speaking in one voice about the progress being made in India and the optimism it is generating.
 
"The wind of change is there, gathering speed," he said adding: "It's made us the fastest growing economy in the world."
 
Chancellor Merkel said she was rather pleased with the economic reforms being carried out in India and that there was scope for further economic engagement between the businesses of the two countries.
 
"Trade between Germany and India can be improved, even though Germany is Europe's largest trade partner of India," she said, hoping the ongoing fair will also help India to present itself as a technology leader.
 
The prime minister said, besides offering Global Inc partnerships for trade, investment and innovation, his government will also do its bit to make India an engine for growth, an anchor of economic stability and a force of peace and stability in the world.
 
"So, let me invite you to do business and make in India -- for India and the world. Let me invite you to be our partner in making a new India. I welcome you to enjoy our timeless traditions, the ceaseless celebration of diversity, and, the warm embrace of friendship."
 
The prime minister's business engagements started with a round-table with Who's Who of the German business world to whom he made a strong pitch to attract more foreign capital, especially in 25 identified sectors -- from automobiles to wellness.
 
Apart from a round-table with the chief executives, the prime minister also met several of them individually, notably Lutz Bertling of Bombardier Transportation, Hubert Lienhard of Voith, Dieter Zetsche of Daimler and Olaf Koch of Metro.

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India building predictable tax regime, Modi tells German investors
Prime Minister Narendra Modi said on Sunday that India was building a predictable, stable and competitive tax regime and the policies have been reformed towards more foreign direct investment.
 
In his addresss at the inauguration of Hannover Messe industrial fair, in which India is the partner country, he said India will play its role as an anchor of stability and a force for peace and stability in the world.
 
"We are building a tax regime that is predictable, stable and competitive. We will now address the remaining uncertainties," Modi said.
 
The prime minister said that his government was creating a stable economic environment that inspires confidence at home and abroad and German investors will find environment in India not only open but also welcoming.
 
"We have taken sweeping steps to reform our policies and open up more to foreign direct investments...We will make it easy to do business in India...The Goods and Services Tax is a long needed revolution that is becoming a reality," he said.
 
Modi said his government had resumed long stalled projects and it was adding new momentum to the country's economy.
 
"Our decision to be here in the first year of my government reflects our priority. (We) want to accelerate economic growth and create jobs," he said.
 
"India will do its part- as an anchor of economic stability; an engine for growth and as a force of peace and stability in the world," he added.
 
Modi also said India will endeavour to fuel its growth with "the cleanest and most efficient use of energy".
 
Earlier, Modi was welcomed by German Chancellor Angela Merkel at the Hannover Messe industrial fair, which is the world's largest industrial trade fair.

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