NIC board, unions at loggerheads over CTO hiring

Mumbai: Even as National Insurance Company (NIC), a Kolkata-based state-run non-life insurer, begins its effort to appoint a Chief Technical Officer (CTO), the same has irked the trade union leaders of public-sector general insurance company (PSGIC) staff.

The General Insurance Employees All India Association has strongly opposed the outsourcing of key position of information & technology (IT) after an advertisement was published in the daily newspaper seeking applications for the post of Chief Technical Officer (CTO) at National Insurance Company, one of the oldest general insurance companies in India.

Talking to Bizz Buzz, Trilok Singh, General Secretary, General Insurance Employees' All India Association (GIEAIA) says: "It is a matter of serious concern that the eligibility criteria or the

qualifications and the experience sought and more particularly fixing of the age band of the applicant preferably from 50-52 years are against the norms. Further, stipulating the age limit between 50 and 52 years is the breach of fundamentals rights of any applicant who possess all other qualifications and experience as mentioned in said advertisement."

Interestingly, no reference of the remunerations payable to the selected candidates has been given in the said advertisement. However, in National Insurance Company's official portal a reference of the remuneration payable to such selected candidate has been mentioned at Rs 1 crore as minimum salary as against general practice of putting capping on the maximum amount payable.

It seems that the said post of CTO has been created to accommodate a particular individual and the remunerations shall be decided at the whims and fancies of the hidden forces behind it, he alleged. It is learnt that during the recently held board meeting, this decision was adopted in the presence of an important Department of Financial Services (DFS) official at the rank of Joint Secretary and also Government's nominated board member in National Insurance Company. It is also imperative to note that outsourcing of such a key position would endanger the company policies in the form of leakage of insurance data bank which could severally affect the already weaken financial position of National Insurance Company. Serious questions could be raised that if National Insurance Company's ongoing Information & Technology Team was not having the required skill and technical knowledge to run the company, then how come during past recent years, crores of rupees have been spent without such required technical skill and why accountability of such officials should not be fixed, GIEAIA pointed out in a statement.

Today when Prime Minister and the Government of India is working hard to ensure the transparency and accountability and is emphasising on the code of conduct applicable to the top most officials of the government, this type of decisions would weaken the spirit and cause of the government.

GIEAIA has requested the Chairman of National Insurance Company to immediately scrap this decision in the best interest of the company as it would otherwise tarnish the faith of its working class, failing which GIEAIA will launch a nationwide campaign against such unscrupulous practice and will take strong action.