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General Insurance Employees’ All India Association raised doubt on integrity of Jt Secy, DFS; seeks President’s intervention

General Insurance Employees’ All India Association raised doubt on integrity of Jt Secy, DFS; seeks President’s intervention

Kanwar Inder Singh/ April 24,2023

The Public Sector General Insurance Companies (PSGICs) are marked as a strategically important sector by the NITI Aayog. Profit generation is not the sole purpose of PSGICs. The most important aspects are, discharging social responsibilities by way of doing several social welfare schemes of the Government. At present the PSGICs are backbone of the, service based General Insurance Sector as they are doing a Gross written premium of more than One lakh Twenty Five thousands crores (Rs. 1,25,000+ crores).

Trilok Singh, general secretary, General Insurance Employees’ All India Association has written a letter to the President of India with copy to Prime Minister of India ,Finance Minister of India, Chairperson CVC, Chairman IRDA on April 21,2023 and requested her to intervene in their matter. He highlighted ” in last One and Half years many of the unilateral and Private Comfort centric changes have been proposed and getting implemented unilaterally by Saurabh Mishra, Joint Secretary , department of financial services (DFS), in the PSGI Industry, to destabilise the PSGI Companies indirectly and to support and strengthen the Private Insurance Companies. We are the majority Class 3 & 4 Union in the Industry and have written many complaints to the officials of Department of Financial Services for misuse of powers and misconduct against the duties by Saurabh Mishra, Joint Secretary , DFS, and acts prejudicially to the interest of the Government of India.  The said official who has entered as DFS through “lateral entry” and thereafter nominated to the Board of National Insurance Company, one of the four Public Sector General Insurance Companies as Director and has been trying to weaken the Public Sector General Insurance Companies which goes against the National interest as well as National financial security.”

He further added that “we reliably learnt that the above official has been misusing the Company’s Guest houses, cars for his family members and it is a matter of record that he has directed the Delhi Regional Office-I Management of National Insurance Company to provide a Car for his family permanently, thereby causing huge financial liability which runs into lakhs,  whereas he had been directing the officials of the company to adopt austerity measures. It has also come to our notice that the said official, who was supposed to strengthen the Public Sector General Insurance Companies by boosting the morale of top executives, has rather harassed, demoralised and misbehaved with them, including the senior most women executives.  He is in continuous habit of using foul language with unparliamentarily contents which have  broken the moral of the senior executives of these Public Sector General Insurance Companies, which made them to opt for Voluntary Resignation”.

General Insurance Employees’ All India Association raised doubt on integrity of Jt Secy, DFS; seeks President’s intervention-Photo courtesy-Internet

The association highlighted some of the wrong and unilateral implementation by Saurabh Mishra, Joint Secretary , DFS, which badly affected the PSGI Companies in their letter to the President of India:-

  1. Appointment of E & Y as Consultant to destabilise the PSGI Companies – Around10 crores paid from Public funds.

In the Financial Year 2021-22, the management of the PSGI Companies on the advice of the DFS, appointed one consultants namely, Earnest and Young( E & Y ) to diagnose and identify the reasons attributed to the losses of these companies and to design and implement the necessary changes to make it profitable.

The credibility of the auditors of E&Y are under question as it has been established that numerous of their auditors have cheated on exams required for CPA licenses for which, a huge penalty of $ 100 million has been imposed on them by the US Government. Further Germany’s audit watchdog, slapped heavy sanctions on accounting firm E&Y, which has come under scrutiny for failing to spot large-scale fraud related to Wirecard scandal.

  1. Public Sector General Insurance  Services for Tier II and III cities of the country, stopped.

The management of the PSGI Companies, in compliance of the DFS, have driven the Key Performance Indicators (KPI) and Organisational Restructuring,had closed 1000+ of their offices in last 1-2 years especially in Tier II and III cities of India which clearly affects the Penetration level of General Insurance Services to the Common man of the Society. Further it was observed by us that several profitable and viable offices have been closed with a hidden agenda to weaken the PSGI Companies. Moreover the citizen of India in Tier II and III cities will face the actual problem while pursuing their claims as Private Companies has rare offices in Tier III cities of India.

  1. Interference of Joint Secretary, DFSin the micro-management of Public Sector General Insurance Companies runs by a Sovereign Board.

The said Joint Secretary of the DFS, is continuously interfering in day to day functioning and commercial decisions of sovereign board run PSGI Companies and must respect the necessary instructions given by the ministry of Finance on 13.01.2015 vide their circular having Reference no. F.No. 4/91/2014- IR (PT). The directions given by the Prime Minister at Pune during Gayan Sangam held on 2nd and 3rd January 2015 for strengthening and assuring the freedom, fairness and effectiveness in the working of the Public Sector Banks and other financial institutions have been grossly violated.

  1. Arbitrary, Unilateral and Hasty implementation of Key Performance Indicators (KPI) and Organisational Restructuring by GIPSA and PSGI Companies at the crucial juncture of closing of Financial Year

In the meeting of Joint Forum of Trade Unions and Associations, JFTU, in PSGI Companies held at New Delhi on 12th January 2023, took strong objection and opposed the haste, arbitrary and unilateral imposition of the key performance indicators and Organisational Restructuring as proposed by DFS and being facilitated by E& Y in PSGI  Companies. The JFTU constituents unanimously rejected the KPI and Organisational Restructuring on pilot basis as  the decision was taken without taking the views of the stake holders and also decided to implement without assessing and creating pre-essential Infra and IT support. Further, the decision of pilot rollout was taken without having complete report of the consultant E & Y.

Even before submission of final report of the Consultant E & Y, the Joint Secretary pressurised PSGI Companies to move forward on the partial recommendations of the Consultant without any analysis.

  1. Fixed Percentage of Discounts across all segments of the Motor Business.

The PSGIC’s Management under pressure of the JS, DFS and E & Y has agreed to the suicidal recommendation of the Consultant by implementing Fixed Percentage on Motor Vehicle Insurance Business Policy in the operating offices which impacts, crores of Motor Insurance Premium of PSGIC being diverted to Private Insurance Companies. All the constituents of JFTU have unanimously condemned the implementation of the Fixed Percentage of Discount across all segments of the Motor Vehicle Business in the operating Offices.

“In view of the above, we strongly believe that the nonprofessional and irrational approach of Saurabh Mishra, Joint Secretary , DFS, the  interest of the common man and customer services  are being affected and  also weakening of the Public Sector General Insurance Companies.Hence, we request your good selves to intervene and direct a thorough investigation through an independent agency and to take stern action against the erred the said official to save these Public Sector General Insurance Companies.  We also enclose herewith the copies of our previous letters written to various agencies in this regard” added Trilok Singh, general secretary of the General Insurance Employees’ All India Association

(royalpatiala.in News)

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