Towards expanding horizons
`Oriental' was incorporated in 1947
at Mumbai and has celebrated its Golden Jubilee during year 1997-98 coinciding
with India's Golden Jubilee Year of Independence.
`Oriental' was also the first General
Insurance Company to come under the State Sector, way back in 1956. As
a Government of India Undertaking `Oriental' enjoys the reputation for
its sound financial strength, as reflected in its large capital base of
Rs. 40 crores and free reserves of Rs. 684.54 crores in 1997-98. The Company
is also known all over for its underwriting expertise, and professional
management.
The Management team is spearheaded
by its Chairman-cum-Managing Director, Shri S.N. Mathur, a professional
with long stint in `Oriental' both in India and abroad. Shri Mathur has
also worked in Insurance Regulatory Authority as Member before coming back
to `Oriental' as CMD. There are four General Managers, all professionals
each with over three decades of experience in the Insurance Industry.
`Oriental' has a network of 18 Regional
Offices, over 970 Divisional Offices & Branch Offices. The Company
also operates in Nepal, Dubai and Kuwait. It has manpower of over 20,700
employees, apart from the Agency force. The Company has the requisite technical
expertise and financial capability to underwrite all kinds of general insurance
business, regardless of the complexities of risks involved and their magnitude.
The company has been assigned a
"AAA" rating by the Credit Rating Information Services of India Ltd. (CRISIL).
DEVELOPMENT SINCE NATIONALISATION
A unique experiment in economic
development has been conducted in India, where the nationalised service
industries like banking and insurance have been used as instruments of
socio-economic development in the country. The banking industry provides
credit to lubricate the process of socio-economic development, while the
insurance industry acts like an umbrella providing cover and security to
entrepreneurs engaged in all economic activities (whether agriculture,
industrial or trading), allowing them to freely take risks in the process
of developing their economic interests. Thus, both banking and insurance
can be said to be acting as catalysts in the process of socio-economic
development in the country.
OBJECTIVES OF NATIONALISATION
The preamble of the General Insurance
Business Nationalisation Act, 1972 envisages the following role for the
General Insurance Industry :
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To serve better the needs of the Economy
by securing the development of General Insurance Business in the best interest
of the Community.
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To ensure that the operation of the
economic system does not result in the concentration of wealth to the common
detriment, and
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To regulate and control General Insurance
Business and matters connected therewith or incidental thereto.
The Act has outlined the functions of
the General Insurance Corporation of India and its subsidiaries. The main
functions affecting `Oriental' have been detailed below:
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To develop General Insurance Business
to the best advantage of the community.
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To act a far as possible on business
principles, subject to any direction that may be received from the GIC.
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To enter into such Contracts of Reinsurance
or Reinsurance Treaties as it may think fit for the protection of its interests.
Taking into account the role assigned
to the General Insurance Industry and its subsidiaries and keeping in mind
the priorities spelt out in the National Plans, the key objectives before
`ORIENTAL' can identified as follows:
ORDERLY GROWTH OF GENERAL
INSURANCE BUSINESS
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Generate greater insurance consciousness.
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Develop Insurance needs of the masses
in urban/semi-urban/rural areas.
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Ensure widespread geographical coverage
to meet the needs of the rural sector and the economically weaker sections
of society.
EFFICIENT SERVICE TO CUSTOMERS
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Prompt issuance of Documents.
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Speedy settlement of Claims.
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Promote Risk Management.
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Settle Grievances quickly.
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Minimise losses with the help of the
Loss Prevention Association.
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Simplify Documents, Procedures and Systems.
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Provide Insurance covers at reasonable
cost.
CONDUCT REINSURANCE AND FOREIGN
OPERATIONS IN THE BEST INTERESTS OF THE INDUSTRY AND THE COUNTRY
-
Optimise retention of the India Business.
-
Obtain the best possible terms for Reinsurance
cessions abroad, as well as acceptances.
-
Maximise inflow of foreign exchange.
DEVELOPMENT OF INVESTIBLE FUNDS
-
Improve yield on investible funds.
-
Adopt a judicious mix of Investment
portfolios.
-
Adhere to Government guidelines and
directives on matters relating to Investment.
MAINTAINING ORGANISATIONAL
EFFECTIVENESS AND ECONOMIC VIABILITY
-
Earn satisfactory profits after tax.
-
Ensure adequate return on capital deployed.
-
Maintain the growth of Capital and free
reserves.
-
Contribute to the nation's progress
by contributing to the exchequer.
HUMAN RESOURCES DEVELOPMENT
-
Development the latent skills of the
existing employees in the Company.
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Induct qualified and experienced persons
to take care of specialised needs.
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Ensure adequate Training at all levels.
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Initiate Performance Counselling, Career
Planning and Succession Planning.
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Inculcate a sense of belongingness amongst
the employees of the Company.
-
Raise the morale of the employees of
the Company.
QUALITATIVE DEVELOPMENT
The massive expansion since nationalisation
was essential order to broaden the base of the Company, both in terms of
quality and quantity. From being concentrated in the four metropolitan
centres, the insurance business of `Oriental' has spread to all corners
of the country in order to provide service to the masses and tap hitherto
untapped business potential. From being exclusively at the service of large
industry and business, the insurance business of the Company has been brought
to the doorstep of the common man. Apart from the quantitative expansion
since nationalisation, which is easily visible and measurable, there has
also been qualitative development, which is in no way less important, in
the Company. The rigid, traditional policies of the pre-nationalisation
era, restricted to only a few areas, have given way to non-traditional,
innovative covers of the postnationalisation period, especially designed
to provide insurance protection to the economically weaker sections of
society in the rural areas. Before nationalisation, technical expertise
was available only in the four metropolitan centres and most cases had
to be referred to these centres for decisions; eighteen years after nationalisation,
technical expertise has been spread to all the major centres of the country
`Oriental' can truly claim credit for having converted class insurance
to mass insurance in the country.
Twenty five years have passed since
nationalisation and most districts have been brought within the insurance
map of the Company. Since the basic objective of orderly expansion of general
insurance business to all parts of the country has now been achieved, the
Company has evaluated all aspects of the massive expansion programme undertaken
since nationalisation. Oriental' is now set to usher in and era of consolidation
and rationalisation before embarking on fresh expansion in a planned manner.
NEW INITIATIVES
-
`Oriental' is the pioneer in computerisation
of its Branch Offices and Divisional Offices.
-
All the policies are now being issued
on the Computers.
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Claims up to Rs. 20,00 are being assessed
in house by employees of `Oriental'
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Risks are being inspected more vigorously
and loss control measures are being suggested to clients.
-
`Oriental' is the pioneer in introduction
of financial insurance covers.
-
`Oriental' has launched the "Jald Rahat
Yojana" for prompt settlement of Third Party claims out of Court.
CONCLUSION
There has been substantial growth
for `Oriental' since nationalisation and the Company has gone a long way
in meeting the hopes and aspirations of the common man. However, the future
holds fresh challenges for the company. Personal and Household insurances
the expected to be the high growth areas in the future, given India's huge
middle-class consumer base. During the Ninth Five-Year Plan, the Company
is required to direct all efforts to serve the common people in a variety
of ways.
The Company has already taken the
necessary steps to tune itself to the new challenge of the next decade.
In line with the Chairman Shri S.N. Mathur's vision, the key thrust areas
for the next decades is "CUSTOMER SERVICE", of high quality, client care
and consumer satisfaction. The organisation has been prepared internally
to be sensitive to and have empathy with the clients and their needs. |