PSU Non-life insurer merger-United India may take the lead
India’s Insurance History
Insurance in India has its history dating back to the year 1818, when Oriental Life Insurance Company was to cater to the needs of European community. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business.
In 1972 with the General Insurance Business (Nationalization) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
United India Insurance Company is an Indian leading general insurance company fully owned by Government of India and is headquartered in Chennai, India. It was incorporated on 18 February 1938, and was nationalised in 1972.
United India Insurance co. was formed by merging of Twelve Indian insurance companies, four co-operative insurance societies, five foreign insurers with Indian operations and the general insurance operations of the southern region of Life Insurance Corporation of India.
Now the Govt. has planned to to merge the three public sector insurance co’s namely united India insurance, national insurance & oriental Insurance co. The question in the mind of policy holders & employees of these co’s that in which company the other two will merge.
At present United India has 29 Regional office, & no’s of LCB’s, over 400 divisional offices & around 700 branch offices The total strength of offices which includes micro office is around 2200 & employee strength touching 15000 across India..
The Gross Domestic Premium for the Financial Year 2018-19 was Rs.16385 Cr. Even in the current year when the economy is slowing down & auto sales are dipping, united India is matching the industry growth with growth rate of 10% as compare to the 5% growth rate of other PSU bigwigs like oriental insurance & national insurance co. The solvency ratio & claim ratio has also brought to the manageable level by the current higher management executives.
Girish Radhakrishnan was appointed as CMD of the united India insurance co in oct, 2018. He is also a board member of the GIC housing finance ltd. Radhakrishnan. Prior to the current posting he served as a general manager in the New India Assurance Company Limited (NIACL). He is supposed to act as CMD of united India insurance co. till he attains the age of 60 & will be retiring in June 2021. He is left with sufficient time to lead the company to newer heights.
He is being supported by very competitive & highly efficient team of officers at head office as ell as at reginal offices.
Smt Sushmita Mukherji, GM, previously she served as GM in oriental insurance, at Mumbai. Associated with Board of education of insurance institute of india.
Smt D Nagalakshmi
Ms. Gauri Venkatesan
M Shahul Hameed Y K Shimray Shri B Rajaram
General Manager General Manager General Manager
D T V Sastri
General Manager V. Sundaresan R A Sankara Narayanan
CVO MD &CEO, Vijaya Bank
So keeping in view the above comparative positives, the other two companies may be merged with the UIIC & Mr. Girish Radhakrishnan may be asked to lead the merged entity, India’s biggest non-life insurer.
But As per sources the govt. can also appoint an IAS officer to head the co.to for 2/3 initial years, much like government has done in the banking sector. to avoid the favoritism in transfers & postings
Of late ,there have been other speculations also that Prime Minister Office is toying with an idea to appoint a private sector professional to head the big sized merged entity which is going India’s biggest non-life insurer. It effectively means the post of CMD of merged company will be advertised again and private sector professionals will be allowed to apply.