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Govt-owned insurers goes for organisational rejig, calls for consultants

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Is the central government moving towards merging its four general insurance companies into one?

The question pops up as the four general insurers have decided to restructure the organisation towards profitable growth and have called for Request for Proposal (RFP) from consultancy firms.

The assignment is called “Organisational Efficiencies and Performance Management in Public Sector General Insurance Companies.”

The four insurers are: The Oriental Insurance Company Limited, National Insurance Company Limited, The New India Assurance Company Limited and United India Insurance Company Limited.

Of the four, The New India Assurance is listed in the stock exchanges.

As per the tender, the companies are calling for one consultant for the assignment which is logical as the process, human resource policies and procedures are uniform in the four companies, a senior industry official told IANS.

Though the central government did not proceed further on its earlier announcement to merge the three unlisted non-life insurers- The Oriental Insurance, National Insurance and United India Insurance- or to privatise one of the three.

Given this, the current move seems to be the logical step towards that, say senior industry officials.

Further, the employees in the four companies also demand the same.

According to a senior industry official, the privatisation move is still on the cards and merger is not in consideration of the government.

Be that as it may, as per the RFP, the four companies are undergoing a transformative journey for the last two years with successfully running on the path to profitable growth and efficiencies, optimisation.

“This, being the third year, is earmarked for Organisational Efficiencies.”

Accordingly, there is a proposal for restructuring the organisation to bring in profitable growth and employee development through Performance Management and Capability
Management, in alignment with the key performance indicators (KPI) devised the public sector general insurance companies.

The four companies have found a need for a consultant who could quickly absorb itself into this journey of ongoing reforms and permeate them into each and every branch and staff by designing, handholding and successfully implementing the process of such transition through organisational restructuring, performance management and its real-time measurement, allocation of specific roles and responsibilities as well as performance indicators for sales, non-sales and support staff, capacity and capability building and carefully crafted change management approach.

As on 31.03.2022, the four insurers together have procured a total premium of Rs.75,116 crore with a market share of around 34 per cent.

The total employees’ strength is around 44,743 spread over 6,759 offices.

The expected duration of the proposed assignment for the selected consultants is 10 months, with a provision for extension, if required on existing terms.

As per the RFP, the scope of work involves organisational restructuring that is irreversible providing for digitally enabled workflows to convert operating offices into customer experience and business development centres while centralising underwriting/claims/accounts and others into the Regional Hubs;

– activate all three key channels for retail business growth namely, Agency, Bancassurance and Alternative channels through suitable sales management, incentives and rewards processes;

– create/shift large corporate businesses (both direct and broker-driven) at select6-8 locations, directly reporting to the Head Office.

– provide capacity planning framework through manpower redistribution for both Business Development (BD) and Non-BD roles, with a clear focus on retail business through pre-underwritten products and simplified processes;

– provide a comprehensive reskilling/up – skilling and capability building framework for BD, Non-BD, large corporate and vertical teams to cope with the above restructuring in a confident and motivated manner;

– handhold the insurers in implementing the new organisation structure across functions and geographies by providing carefully designed and sensitively implemented change management approach and communication framework;

– designing objective and quantifiable KPIs for each unique role along with their measurable outcomes and its integration with the performance appraisal system for each PSGIC to achieve y-o-y milestones;

– based on the above KPIs, creating performance dashboards for each sales and non-sales staff at the Operating Offices, Regional Offices and Head Office as well as across functions linked with the core system.

While the majority of the work is centered around a common approach for all the four insurers, the implementation shall happen at individual company level.

“Broadly, 80 per cent of the proposed assignment shall be allocated towards creating unified/common strategies/methodology and frameworks while 20 per cent of the proposed assignment will be allocated towards customising and rolling them out at individual company level,” the RFP said.

Interested consultancy firms should submit their proposals to the Chief Executive, General Insurers’ (Public Sector) Association of India (GIPSA), the coordinating body for the project.

International

Scenes emerging of London-bound plane crashing in Ahmedabad devastating: British PM

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London/New Delhi, June 12: Several global leaders, including British Prime Minister Keir Starmer, on Thursday expressed shock and grief after an Air India flight bound for London, carrying over 240 passengers crashed shortly after taking off from the Ahmedabad airport, triggering a massive emergency response. The incident occurred near the Meghaninagar area of the city.

“The scenes emerging of a London-bound plane carrying many British nationals crashing in the Indian city of Ahmedabad are devastating. I am being kept updated as the situation develops, and my thoughts are with the passengers and their families at this deeply distressing time,” Starmer posted on X.

At least 169 Indians and 53 British nationals were travelling in Air India’s flight AI171 from Ahmedabad to London’s Gatwick airport.

British Defence Secretary David Lammy also expressed grief at the devastating plane crash and offered condolences to those affected.

“Deeply saddened by news of a devastating plane crash in Ahmedabad, India. My thoughts are with all those affected. The UK is working with local authorities in India to urgently establish the facts and provide support,” Lammy posted on X.

British Conservative Party MP Priti Patel urged the UK government to work with the Indian authorities to support the affected British families.

“My thoughts and prayers are with everyone affected by the plane crash at Ahmedabad and with the emergency services at the scene. This will be a worrying time for the families of those on board. As further information comes forward, the Government needs to ensure it is working with Indian authorities to support British families affected,” said Patel.

Ukrainian President Volodymyr Zelensky also took to social media, offering his deepest condolences on the tragic accident.

“Horrible news of a passenger plane crash in India. My deepest condolences to Prime Minister Narendra Modi and the entire people of India on this tragic day. Our thoughts are with all victims’ relatives and close ones in India, the UK, Portugal, and Canada. We share your shock and grief on this tragic day. We all pray for as many lives to be saved as possible and wish a speedy recovery to those injured,” Zelensky posted on X.

Russia’s Ambassador to India, Denis Alipov termed the accident as a major catastrophe.

“Heartbreaking news is coming from Ahmedabad. My heartfelt sympathy to the families and near ones of the victims and to all Indian people and the Government of India over this tragic major catastrophe!”, he said.

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National

Ruckus in Bengal Assembly as BJP MLAs protest over Maheshtala violence, Murshidabad riots

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Kolkata, June 12: Pandemonium broke out in the West Bengal Assembly on Thursday after Speaker Biman Bandyopadhyay refused to admit two adjournment motions, moved by opposition BJP, seeking discussions on the communal violence in Murshidabad in April and the clashes in the Maheshtala area in South 24 Parganas district.

As the members of the BJP’s legislative team moved the two adjournment motions soon after the House began, the Speaker refused to admit them on the grounds that both matters were sub judice and hence could not be taken up for discussion.

The refusal irked the BJP legislators, who, led by LoP Suvendu Adhikari, started protesting in front of the Speaker’s chair after coming down to the well of the Assembly.

The security personnel of the Assembly raised a human wall between the Speaker’s chair and the protesting legislators.

The BJP legislators shouted slogans and waved flags. They also protested by tearing apart paper documents on the House proceedings distributed among the legislators.

As the West Bengal Minister of State for Finance (independent charge), Chandrima Bhattacharya protested against this action, there were heated conversations between the BJP and Trinamool Congress legislators within the House.

“These paper documents are not any personal property that they can be destroyed in such a manner,” Bhattacharya was heard saying.

The BJP legislators continued with their protests even as the Trinamool Congress MLAs continued with their speeches in the House as per schedule.

Adhikari is scheduled to meet Governor C.V. Ananda Bose on the issue of Maheshtala violence

The BJP leader has sought the intervention of the Governor in initiating disciplinary action against the inspector-in-charge of the local Rabindra Nagar police station for allegedly remaining inactive in preventing clashes.

Earlier in the day, he approached the Calcutta High Court seeking a National Investigation Agency (NIA) probe into the Maheshtala clashes and deployment of Central Armed Police Forces (CAPF) personnel in the area where clashes broke out on Wednesday

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National

CM Fadnavis and Raj Thackeray meet in Mumbai hotel amid alliance buzz with Shiv Sena(UBT)

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Mumbai, June 12: Amid talks of an alliance between two estranged brothers, Uddhav Thackeray and Raj Thackeray, ahead of the upcoming elections for the BrihanMumbai Municipal Corporation (BMC), Chief Minister Devendra Fadnavis on Thursday met with the Maharashtra Navnirman Sena (MNS) chief.

The meeting lasted over 45 minutes. Sources said it was about the MNS’s entry into the MahaYuti for contesting as an alliance partner in the local and civic body elections. The meeting between the two has created a buzz in the state political circles.

Although the details of the meeting are not known yet, the state BJP sources confirmed that CM Fadnavis and Raj Thackeray met at the city’s five-star hotel, but preferred not to comment on the outcome of the meeting. However, there has been no confirmation yet from MNS.

The pro alliance advocates from both Shiv Sena(UBT) and MNS were caught unawares about CM Fadnavis’ move to hold an interaction with Raj Thackeray.

Incidentally, CM Fadnavis enjoys a good rapport with Raj Thackeray. Also, the Shiv Sena chief, Deputy CM Eknath Shinde, has good relations with the MNS chief. Both the CM and deputy CM want the latter to be part of the MahaYuti to take on Uddhav Thackeray-led Shiv Sena(UBT) and the Maha Vikas Aghadi in general in the BMC elections and also in the rest of Maharashtra.

Both Fadnavis and Shinde have favoured Raj Thackeray. The association is perceived to checkmate Uddhav Thackeray and also to impress the Marathis in general.

Raj Thackeray did not win even a single seat in the state Assembly elections, but he enjoys a large-scale support from the Marathis, which has been the key vote bank of the Shiv Sena, founded by late Balasaheb Thackeray in the 1960s.

CM Fadnavis, in particular, has been pitching for hoisting the flag atop BMC, and in MahaYuti has been attempting to capture power in India’s richest body, thereby ending the control of Uddhav Thackeray-led Shiv Sena. In addition, the MahaYuti, by bringing Raj Thackeray in its fold, wants to continue its victory march after the stellar performance in the state Assembly elections held last year.

As far as Raj Thackeray is concerned, a section of party workers believe that going with the BJP-led MahaYuti will benefit the party to spread its wings by effectively playing Hindutva and Marathi Manoos cards. They also argue that Uddhav Thackeray has compromised on Hindutva as practised by Balasaheb Thackeray by joining hands with Congress and NCP to come to power in 2109 by ditching the traditional ally BJP. Another section claimed that aligning with Uddhav Thackeray may spoil its poll prospects and erode the Hindutva and Marathi Manoos voters.

The meeting between CM Fadnavis and Raj Thackeray comes two days after the state urban development department issued a notification on initiating the drafting of ward boundaries for 29 municipal corporations, including the BMC, especially in the wake of the recent Supreme Court order directing the state government to complete the election process in four months.

The other key civic bodies include Pune, Nagpur, Thane, Nashik, Pimpri-Chinchwad, Navi Mumbai, Vasai-Virar, Chhatrapati Sambhajinagar, and Kalyan-Dombivli.

The Urban Development department has asked the Municipal Commissioners to start preparing ward boundary drafts, which will be sent to the State Election Commission (SEC) for approval. These civic bodies will also need to invite suggestions and objections from citizens and provide hearings before finalising the boundaries. Currently, these civic bodies are under the administrator’s rule.

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