Industry officials said Nari Shakti will pursue two of the government-owned non-life insurance companies.
The Central Government has decided to appoint SN Rajeshwari, General Manager, New India Assurance Company Limited as Chairman-cum-Managing Director (CMD) of Oriental Insurance Company Limited.
A formal order is expected to be issued soon.
Once, a chartered chartered accountant Rajeshwari took over at Delhi-based Oriental Insurance, she would become the second woman to command a public sector general insurance company.
The first woman to head a government-owned general insurance company was Tjinder Mukherjee, CMD of National Insurance Company Limited.
A senior industry official told IANS, “National Insurance and Oriental Insurance will be headed by two women during critical times. Companies will have to increase their solvency norms, grow their businesses and also increase profitability.”
The central government had recently changed its decision to merge United India Insurance Company Limited, National Insurance and Oriental Insurance into one company to the dismay of employees.
The government has announced a capitalization of Rs 12,450 crore in three insurance, including Rs 2,500 crore given in FY15. Of this, Rs 3,475 crore is to be invested immediately and the remaining Rs 6,475 crore.
“Due to the Kovid-19 epidemic, new business has gone down for the industry. Three government companies will not be pressurized for capital to the extent that they meet the solvency criteria. The capital that will be violated will enable the companies . ” An industry official said, “Complete the solvency norms.
To ensure optimal utilization of new capital, it issued guidelines as KPIs (Key Performance Indicators) for increasing business efficiency and profitable growth.
“At National Insurance, CMD is focusing on cutting loss making business. The company is back on track. It would also be good if it swiftly approves appointments on compassionate grounds like the other three companies.” The General Secretary, General Insurance Employees All India Association, told IANS.
Be that as it may, female power is coming to the forefront in the government-owned insurance sector as there were three women contenders besides men for the top position in Oriental Insurance.