Merger delays impact business decisions at government insurance firms

Companies post huge losses and market share

With the merger exercise of three public sector general insurance companies — National Insurance, United India Insurance and Oriental Insurance going slow, vacancies are piling up. According to rough estimates, in the officers grade alone close to 600-900 posts remain vacant over the last one year. At the clerical and subordinate level, the staff shortage is around 12000, say sources in the companies.

The impact is already telling about the financial performance of the companies. Also, at least two companies, National Insurance and United India Insurance, significantly lost their market share. While National lost the market share from 10.78 per cent