DFS, unions at loggerheads over insurance KPI norms

The matter of linking any wage revision with individual and organisational performance is proposed by GIPSA in consultation with their consultant, the letter from FinMin clarifies. On the other, trade unions are constantly opposing government's move to implement KPI

Mumbai: The implementation of key performance indicators (KPIs) has created a tug of war between Department of Financial Services (DFS) and PSGIC trade unions.

While, the Union Finance Ministry is adamant on implementation of KPI, the PSGIC trade unions are strongly opposing the same. It was on this backdrop that GIPSA had conducted a meeting of the checked-off trade union leaders on January 12.

Talking to Bizz Buzz, Trilok Singh, General Secretary, General Insurance Employees All India Association (GIEAIA), says: "We want to see that there is transparency in the policies being implemented by the government. But, here we have observed that there was a conflict between the government's saying and the way it is being implemented."

Let me clarify here that quite a few officials in the DFS are working against the government's wish, he said.

In a letter date January 4 to Lok Sabha MP Santosh Gangwar, the Union Minister of State for Finance Bhagwad Karad said: "It is pertinent to note that the matter of implementation of KPI pertains to and spearheaded by General Insurance Public-Sector Association (GIPSA), the design thereof is prepared in consultation with the consultant hired for such purpose. DFS conducts periodic review meetings in this regard with PSGICs at GIPSA level to ensure that the KPIs are implemented properly to achieve profitable growth and efficiencies."

Bizz Buzz has seen a copy of the letter. Public-Sector General Insurance Companies (PSGICs) are board-governed companies, and closure/merger and restructuring of offices are internal matters of PSGICs and is a commercial decision in nature. As such, the central government doesn't interfere in the commercial/operational affairs of PSGICs, says the letter.

In view of their breach of regulatory solvency and poor financial conditions, the central government infused Rs12,450 crore in the three PSGICs and advised to cease the process of merger of the three PSGIC and focus instead on their growth.

IRDAI is the regulator of the insurance sector in India and provides a level playing field to all the insurers operating in the country by way of governance, regulations and supervision of all regulated entities across sector on all matters like underwriting, claims, solvency margin, investment and protection of policyholders' interests.

The matter of linking any wage revision with individual and organisational performance is proposed by GIPSA in consultation with their consultant, the letter clarifies. On the other, trade unions are constantly opposing government's move to implement KPI.

We want to see that there is transparency in the policies being implemented by the government. But, here we have observed that there was a conflict between the government's saying and the way it was being implemented

- Trilok Singh, General Secretary, General Insurance Employees All India Association (GIEAIA)