Page 31 - Insurance Times September 2021

WHAT IS AILING

GENERAL

INSURANCE

PSU 'S

Introduction insurance business by the government of India was much
hyped over expected venture not only to please its
With premium income of about Rupees one lakh thousand
stakeholders but to find out an alternative to spread
crores, Indian government general insurance industry
catering nearly 75,000 vast manpower and feeding its benefits of insurance down to rural India and to generate
several million agents all across India, can not be ignored rural employment as a part of ambitious 20 point
as a great contributor to the National economy. These programme by the government of the day.
companies have also contributed immensely in implementing
various government sponsored socially benefited welfare Existing Facts
insurance schemes from time to time. Of late, these Government General Insurance Companies
are primarily struggling for their survival, mainly in terms
History of procuring profitable business, generating underwriting
profits, maintaining requisite solvency levels, reducing claim
But post nationalisation era of 40 years of this Indian loss ratios, controlling management expenses, downsizing
insurance sector has neither served the very purpose of its
their huge manpower, adopting rapid changing advanced
penetration down to the masses nor it has generated cost
technological techniques and due to various other cost
effective market competition lagging behind in terms of its efficient working parameters.
services to its citizens besides generating negligible
improvement in its customer services. Overtaking of general On top of these operational constraints, at the helm of
their affairs, remain their short tenured week higher
About the author management, mostly succumbing to their staff unions
mostly concentrating on their HR issues and relying on
Dr. Daleep Pandita
inaccurate feedback resulting in to incorrect decisions, only
Ex. Regional Manager, NIACL add to their failure story of pre occupation with purposeless
Resident Editor - J & K
issues at the cost of their core business. Lot of over benefits
The Insurance Times, September 2021 31