Chennai, Nov 7 (IANS) The central government is mulling to appoint Executive Directors in its four non-life insurers and the national reinsurer as it exists in the nationalised banks, said a senior industry official, adding that an interesting story had earlier led to the change of designations .
Currently the four primary non-life insurers — National Insurance Company Ltd, The New India Assurance Company Ltd, The Oriental Insurance Company Ltd and United India Insurance Company Ltd — and the national reinsure General Insurance Corporation of India Ltd — have two executives designated as GMDs.
“Several such posts are vacant now in different companies. It is said the government is mulling to have Executive Directors as in the banks instead of having two General Managers doubling up as Directors,” the industry official not wanting to be quoted told IANS.
According to the official, in the banks, the Executive Directors are higher in hierarchy and have higher pay than the General Managers. But in the non-life insurers, the GMDs have the same pay as that of other General Managers but have a seat on the Board and the responsibilities.
Further, the public sector non-life insurers are headed by Chairman-and-Managing Director (CMD) and the separation of the roles — Chairman and Managing Director has not happened there.
In the case of Life Insurance Corporation of India (LIC), there is a Chairman and four Managing Directors. The Executive Directors are not board members, the official added.
He also told an interesting story of how the original designation — Director and General Manager became General Manager and Director.
“A leading national newspaper reporter shortened the designation of a Director and General Manager as DGM in his report that got published. On seeing the new report that official got furious as DGM generally means Deputy General Manager, a couple of rungs below his position. In a way the reporter was right. So, in order to avoid such a situation in the future, the designation got changed to General Manager and Director,” the industry official laughed.
Incidentally, the listed government owned The New India Assurance has the original designation — Director and General Manager — instead of the changed GMD.
(Venkatachari Jagannathan can be reached atv.jagannathan@ians.in)
–IANS
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