MUMBAI, Feb 5: In a bid to optimise the utilisation of existing manpower in the general insurance industry, the General Insurance Corporation (GIC) has suggested the closure or merger of over 300 branches of all four subsidiaries across the country. This effectively means relocating over 600 officers and over 1,200 class III staff of the four subsidiaries.On the basis Vision 2001 report, prepared to provide the necessery strategic directions to the general industry, GIC set up a commitee under KN Bhandari, general manager, National Insurance. The panel has conducted a sample study of Delhi and Chennai regions and concluded that reorganisation through reduction in one tier will result in colsure of a number of offices rendering a substantial part of the existing manpower surplus.
The committee had suggested that the proposed three-tier structure of the subsidiaries should be implemented in phases. Strongly advocating a three-tier structure, the committee has said the new system will be functionally,finnacially and administratively more effective.
While recommending a three-tier structure, the Bhandari Committee has identified the following drawbacks in the present system: dilution of service to customers, delayed decision-making, duplication of scrutiny, non-availability of specialised skills, inadequate utilisation of manpower and high cost of operations.
To improve managment effectiveness, the committee had suggested that the reporting levels in all offices are reduced for achieving greater customer satisfaction amd managment effectiveness. This will also result in a leaner and thereby more responsive vibrant organisational srtructure, said the committee.
The time-lag in between reporting of a claim and payment of cheque has to be curtailed down to the minimum and the development officers and agents be delinked, the committee has suggested. The development officers may be promoted as officers to help improve customer service, it said.The functional activities as well as responsbilities ofadimistrative officers and assistant administrative officers should be redefined, it said.The National Confederation of General Insuarnce Officers' Association, the apex union of the officers of all the subsidiaries, have strongly opposed GIC's move of closing down offices and introducing a three-tier structure. The restucturing exercise, if implemented, will close down one-third of GIC offices across the country, said the confederation. ``We will allow the closure of any branch provided GIC allows opening up another branch somewhere else,'' said union officials. The association has demanded that instead of attempting to close/merge offices, GIC should think in terms of strenghtening the existing office network by opening more offices with a view to achieving optimum manpower utilisation.
Quoting the Bhandari committee's report, the association officials said that the committee itself had said that the present network of the companies is one of strengths of the industry and every endeavour should be madeto capitalise on this strength. Closure of offices to this extent would result in large re-deployment of manpower and necessity to hire office outlets. The cost of the redeployment and hiring large offices would push up cost and loss of the promotional vacancies in all classes, said the confederation.
The disaggrement between the trade union and GIC over the restructuring is likely to weaken the management's gameplan to meet the new challenges once the industry is thrown open to the private sector.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
