United India’s restructuring proceeds at good paceDecember 31st, 2008 - 5:36 pm ICT by IANS
Chennai, Dec 31 (IANS) The restructuring initiatives at the city based non-life major United India Insurance Company Ltd are progressing at a good pace, said a top company official Wednesday. “On the advice of Boston Consulting Group (BCG), we are creating business verticals, setting up exclusive centralised offices for faster claims settlement,” G. Srinivasan, chairman and managing director, told reporters here launching two new health insurance products.
According to A. Asthana, director and general manager, as a part of the rejig exercise, the company is in the process of drawing up new performance appraisal system and also new human relations model.
“Under the proposed scheme, which is being discussed with the union finance ministry, performance incentive schemes for people at the operating offices are being structured,” he told IANS.
At the market place, the company is signing up exclusive arrangement with automobile dealers whereby the latter will sell the company’s motor insurance policies.
“We are targeting to sign up at least 30 motor insurance dealers. Already around seven dealers have started selling our policies,” said Asthana.
United India is also opening specialised offices to cater to the needs of bancassurance partners and large corporates.
Meanwhile, borrowing the top-up concept from the mobile telephony companies, United India has launched two new top-up health insurance covers.
“At present health insurance cover over Rs.500,000 is not available for the public from Indian non-life insurers under a single policy. Those wanting an higher cover have to take another policy paying similar premium,” said Srinivasan.
The top-up policies allow a person to increase his health insurance coverage at a lower cost over and above Rs.500,000.
“The top-up covers can be bought not only by our own policyholders but also by those having health insurance policies from other insurers,” he added.
According to Srinivasan the two new policies introduce a concept of coverage beyond a threshold level chosen by the policyholder.
If the medical expenses exceed the threshold level chosen say Rs.300,000, then the top-up policy will provide cover for the amount spent above that subject to the sum insured selected.
The new covers can be taken on a family basis with a single sum insured or on individual basis where the sums insured are specified for each person.
He said in the last fiscal the health insurance premium accounted for nearly 18 percent of the total premium of Rs.37.40 billion (Rs.3,740 crore).
“This fiscal we expect to increase that to 21 percent. The company has earned a total premium of Rs.27.50 billion (Rs.2,750 crore) till November.