Four into one and 40 per cent hike AIIEA demands

10 December 2007

Chennai: Merger of the four non-life insurers into one entity, the appointment of two consultants to suggest revamp measures for the four outfits and quick revision of wages are going to be the key points to be discussed at 21st general conference of the All India Insurance Employees' Association's (AIIEA) at Kanpur on 8-12 December, 2007.

Says J Gurumurthy, secretary, AIIEA, “There is no justification for the government to own four different companies — National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited, carrying on the same business.“

According to him 22 members of Parliament, cutting across party lines, have started writing to the prime minister and the finance minister in support of the merger.

Replying to one of the MPs, P Chidambaram, finance minister has stated that “the officer concerned, in the ministry is being asked to look into the matter for appropriate action. After having the matter examined, I shall send you a reply as early as possible“, claims Gurumurthy.

He also found fault with the Insurance Regulatory and Development Authority (IRDA) for turning a blind eye on the unethical practices- paying more than the stipulated commission / brokerage to the insurance intermediaries, refusing to accept socially necessary risks- indulged by the private sector.

“The misfeasance of the private insurers is common knowledge but the regulator is unaware of it,“ he quips.