Absence of full-time CMD, directors affects public sector non-life insurers
The absence of full-time Chairman and Managing Director for the listed New India Assurance Company and full-time Directors for all the public sector non-life insurers, failure of IRDAI in curbing the unethical market practices of private players, are some of the issues affecting the government owned non-life insurers, said a union leader.
Referring to the wage hike offer made by General Insurers' (Public Sector) Association of India (GIPSA), Girish Khurana National Convener, Joint Forum of Trade Unions and Associations (JFTU), in the government owned non-life insurers also said the management seems to be intent on humiliating and demotivating the workforce 'without any sense of shamefulness'.
In a letter to Suchita Gupta, Chairperson, GIPSA, Khurana also said the insurers are underwriting Group Mediclaim Policies for corporates where the claims ratio is about 150 per cent.
"The prudence in continuing such policies year after year should be examined. Connivance of certain vested interests / unethical brokers, TPAs and external agencies cannot be ruled out," he said.
"Ever since the superannuation of CMD of New India in February 2022, there is no regular CMD till date. Earlier also regular CMDs were not posted for all the four companies in time and the trend is continuing resulting in delay in decision-making process and loss of business," Khurana said.
He also pointed out the absence of full-time Directors on all the public sector non-life insurers and there was no visible action plan to make such appointments within any timelines.
Khurana said the company managements have failed to ensure / insist for level playing field for the government insurers and the private players.
"The unethical practices of the private sector and failure of the Regulator in controlling them has been detrimental to our (public sector insurers) business interest and performance," he said.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Free Helpline
Legal Credit