Women power to steer two of three beleaguered PSU non-life insurers
Women power will be steering forward two of the three beleaguered government owned non-life insurers, said industry officials.
The central government has decided to appoint S.N. Rajeswari, General Manager, New India Assurance Company Limited as Chairman-cum-Managing Director (CMD) of Oriental Insurance Company Ltd.
The formal orders are expected to be issued soon.
Once Rajeswari, a qualified Chartered Accountant, takes charge at the Delhi-based Oriental Insurance then she will be the second woman to head a public sector general insurance company.
The first woman to head a government owned general insurer was Tajinder Mukherjee, CMD, National Insurance Company Ltd.
“The National Insurance and Oriental Insurance will be headed by two women during a crucial time. The companies have to beef up their solvency norms, increase their business and also the profitability,” a senior industry official not wanting to be quoted told IANS.
The central government had recently scrapped its decision to merge United India Insurance Company Ltd, National Insurance and Oriental Insurance into one company much to the disappointment of the employees.
The government has announced the infusion of Rs 12,450 crore capital, which included Rs 2,500 crore given in FY20, in the three insurers. Of this, Rs 3,475 crore is to be infused immediately and the rest Rs 6,475 crore later.
“Owing to the Covid-19 pandemic, new business for the industry has gone down. To that extent there will not be pressure on the three government companies for capital to meet the solvency norms. The capital that will be infused will enable the companies to meet the solvency norms,” an industry official said.
To ensure optimum use of the new capital, it issued guidelines in the form of KPIs (key performance indicators) for raising business efficiency and profitable growth.
“In National Insurance, the CMD is focusing on cutting down the loss making business. The company is getting back on track. It will also be good if she clears fast the appointments under compassionate grounds like the other three companies,” K. Govindan, General Secretary, General Insurance Employees All India Association, told IANS.
Be that as it may, women power is coming to the fore in the government owned insurance sector as there were three women contenders apart from men for the top post in Oriental Insurance.