After a gap of 15 years, it's again going to be a six-day week for the 85,000-odd state-owned general insurance employees. Competition is forcing the General Insurance Corporation's former four subsidiaries to scrap the luxury of a five-day week, beginning April 1.
The employees are, however, opposing the decision. The General Insurers' Public Sector Association of India (Gipsa) met in Chennai on January 19 to thrash out the issue. But there was no change in the decision to revert back to a six-day week owing to an increasing demand for better customer service.
Till February 28, 1986, state insurers were working half day on Saturdays, and started their day at 10 am. At present, settlement of claims and acceptance of policies do not take place on Saturdays. This is one of the reasons for the delay in customer service, the management of the state-run outfits feels.
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The Chennai meeting was attended by K N Bhandari, chairman and managing director (CMD) of New India Assurance Company, Ajit Saran, joint additional charge as CMD of Oriental Insurance Company and V Jaganathan, CMD of United Insurance Company. In the absence of P C Ghosh, CMD National Insurance Company, one general manager represented the management.
Despite being open on Saturdays (till 1 pm), the number of working hours in a week will remain unchanged at 35 1/4 hours a week. This will be done by stretching the lunch hours and shrinking working hours marginally on week days. "As the number of working hours will be the same, it is not necessary to give any special allowance," said Gipsa officials.
Employees opposing the decision argued that when the staff does not have adequate work for five days, increasing the number of working hours or the number of days will not serve any purpose.
"One employee settles eight claim documents in a year. There is no work," said NOUN Insurance Officers' Association all India general secretary Amresh Sinha.
Employees also said that adding to the number of working hours would enhance the administrative costs. According to the Insurance Regulatory and Development Authority (Irda), administrative cost should be brought down to 19 per cent of the total cost as per Section 40 C of the Insurance Act. The administrative cost of the four state run outfits has already crossed 24.5 per cent of total costs.
The employees have suggested to the management that since the idea was to offer customer service, 24-hour, seven-day-a-week centres could be set up, which would require just 500 to 600 employees. "There is no need to have all the 80,000 odd employees working, when administrative offices do not directly service the customer," said Sinha.