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New India on hiring drive, uncertainty continues for other 3 non-life PSUs
New India on hiring drive, uncertainty continues for other 3 non-life PSUs

Chennai, Aug 25 (TIWN) Even as the public sector general insurer The New India Assurance Company Ltd is on a massive recruitment drive, suspense continues in the case of the remaining three government owned non-life insurers, said industry officials.

Govindan said the government is yet to appoint the Chairman-cum-Managing Director for United India Insurance.  The Central government had earlier announced its decision to privatise one of the three unlisted general insurers and there is a recruitment freeze on them. 

"Already the three companies are suffering from severe staff shortage," a senior industry official told IANS preferring anonymity.  "The operating offices are short staffed, impacting customer service. Retirements of about 150-200 employees are happening in each company and this number is set to increase soon. There is a dire need to beef up the staff strength at the lower level," Govindan said. 

If recruitment is not possible, then the other option is to merge the offices -- divisional/branches -- and save on rental outgo and rebalance staff deployment, industry officials said.  Bulk of the staff in service now in the public sector general insurers were recruited in the 1980s and in 1990 and they are set to retire soon, a senior industry official had told IANS.  At an average the PSU insurers have about 12,000 employees and about 1,600 offices.  Further the ratio of class I officers to other cadres is nearly 1:1 which shows the companies are top heavy and the span of control is low, said the senior industry official.

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