HRM INSURANCE 100 Marks Project.(INSURANCE)

HRM IN GENERAL INSURANCE COMPANY

K.J. SOMAIYA COLLEGE OF ARTS & COMMERCE Vidyavihar , Mumbai - 400 077. Project On: “HUMAN RESOURSE MANAGEMENT IN GENERAL INSURANCE COMPANY” BANKING & INSURANCE SEMESTER-V (2012-2013) SUBMITTED In part fulfillment of the requirement for the award of Degree of Bachelor of Banking & Insurance. BY: SHAHEEN ASLAM KHAN ROLL.NO: 52

HRM IN GENERAL INSURANCE COMPANY

K.J. SOMAIYA COLLEGE OF ARTS & COMMERCE Vidyavihar,Mumbai-400 077.

CERTIFICATE This is to certify that SHAHEEN ASLAM KHAN of B.COM, BANKING & INSURANCE, Semester V (2012-2013) has successfully completed the project on HUMAN RESOURSE MANAGEMENT IN GENERAL INSURANCE COMPANY under the guidance of Mr.. -----------------------(MRS.SMITA DAYAL) CO-ORDINATOR

------------------------(DR.MRS.SUDHAVYAS) PRINCIPAL

-------------------------INTERNAL EXAMINER

-------------------------EXTERNAL EXAMINER

--------------------------(MR..) PROJECT GUIDE

HRM IN GENERAL INSURANCE COMPANY

DECLARATION I MISS. SHAHEEN ASLAM KHAN student of B.COM, BANKING & INSURANCE, Semester V (2012-2013) has successfully completed the project on “HUMAN RESOURSE MANAGEMENT IN GENERAL INSURANCE COMPANY” Wherever the data or information have been taken from any book or sources, the same have been mentioned in bibliography. The information submitted is true & original to the best of my knowledge.

----------------------------------SIGNATURE OF STUDENT (SHAHEEN KHAN) ROLL.NO: 52

HRM IN GENERAL INSURANCE COMPANY

ACKNOWLEGEMENT I have a great pleasure in presenting my project on “HUMAN RESOURSE MANAGEMENT IN GENERAL INSURANCE COMPANY” I am sincerely thankful with deep sense of gratitude to MRS. SMITA DAYAL, our guide for her kind co-operation for the fulfillment of this project. I am highly indebted to our Principal MRS.SUDHAVYAS & our Vice- Principle MR. MAYURESH MULE who took keen interest & allowed us to perform this project. I would like to thank our senior librarian who sincerely helped me getting this information & last but not the least our college for big reason that we are here in front of you presenting this project.

----------------------------------SIGNATURE OF STUDENT (SHAHEEN KHAN) ROLL.NO: 52.

HRM IN GENERAL INSURANCE COMPANY

EXECUTIVE SUMMARY This project is about HR, management in GIC. The private sector participation in health care is This project is about HR, management in on the increase because entrepreneurs and technocrats see immense GIC. The private sector participation in opportunity for earning in health care is on the increase because the GIC. The changing scenario of increasing demand, a variety of means to support the entrepreneurs and technocrats see for earning thegiven a boom to the health rendering of quality healthimmense care, andopportunity the entrepreneurial spirit,inhas GIC. The changing scenario of increasing demand, a variety of means to care industry in India. support the rendering of quality health care, and the entrepreneurial spirit, has given a boom to the health care industry in India. Many corporate hospitals and nursing homes have come up because large business houses have found this an area of opportunity. The importance of HRM is now a wide range of applications available to aid HR departments in their tasks, making possible the automation of certain tasks Many corporate hospitals and nursing homes haveothers. come up because large and aiding in the organization of many business houses have found this an area of opportunity. The importance of HRM is now a wide range of applications available to aid HR departments in their Like in an GIC, GIC‘s executives talk of possible marketing, of staff, payback tasks, making thepromotion, automationretention of certain tasks and aiding in the period, quality improvement, and so on, which incidentally are typical management technology. organization of many others. HRM strive to do things right the first time, perform our jobs with honesty, sincerity and respect to others. This has created the need for a new breed of hospital administrator, who is not necessarily a medical professional, has GIC‘s studiedexecutives management Like in anbut GIC, talkinofdepth. marketing, promotion, retention of staff, payback period, quality improvement, and so on, which incidentally are typical management technology. HRM strive to do things right the first time, perform our jobs with honesty, sincerity and respect to others. This has created the need for a new breed of hospital administrator, who is not necessarily a medical professional, but has studied management in depth.

HRM IN GENERAL INSURANCE COMPANY

INDEX SR. NO.

TOPIC

PAGE NO.

1

Introduction

1

2

History Of Insurance In India

2

3

Purpose And Need Of Insurance

3

4

How Insurance Works

4-5

5

Principles Of Insurance

6-7

6

Types Of Insurance In India

7

Introduction Of General Insurance Corporation

9-16

8

Objective And Function Of The GIC

17-18

9

Organizational Structure Of The GIC

19-21

10

Functions And Importance Of Organization Structure

22-23

11

Introduction Of Human Resources Management(HRM)

24-32

12

Features Of HRM

33-34

13

Recruitment Policy Of General Insurance Corporation

35-36

14

Selection Procedure In GIC (And Subsidiaries)

37-41

15

Training Policy Of General Insurance Corporation

42-46

16

Performance Appraisal In GIC

47-48

17

Promotion, Discipline And Handling Of Grievances Of The

49-55

8

HRM IN GENERAL INSURANCE COMPANY

General Insurance Corporation

18

Conclusion

56

19

Bibliography

57

HRM IN GENERAL INSURANCE COMPANY

INTRODUCTION WHAT IS INSURANCE ?  DEFINITION:Insurance, in law and economies, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. Insure, in economics, is the company that sells the insurance. Insurance rate is a factor used to determine the amount, called the premium , to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The business of insurance is related to the protection of the economic values of asset. Every asset has a value the asset would have been created through the efforts of the owner. The asset is valuable to the owner because he expects to get benefits from it. The benefit may be an income or something else. It is a benefit because it meets some of his needs. In case of the factory or a cow, the product generated by is sold and income generated. In the case of motor car it provides comfort and convenience in transportation there is no direct income.

Every asset is expected to last for a certain period of time during which it will perform. After that, the benefit may not be available. There is a lifetime for a machine in a factory or a cow or a motor car. None of them will last forever. The owner is aware of this and he can so manage his

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affairs that by the end of that period or a lifetime, a substitute is made available. Thus, he makes sure that the value or income is not lost. However, the asset may get lost earlier. And accident or some other unfortunate event may destroy it or make it non functional. In that case, the owner and those deriving benefits there from. Would be deprived of the benefits and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situation.

HRM IN GENERAL INSURANCE COMPANY

HISTORY OF INSURANCE IN INDIA Insurance in India has its history dating back till 1818, when oriental life insurance company started by Europeans in Kolkata to cater to the needs of European community. Pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premium being charged for the latter. It was only in the year 1870, Bombay Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at normal rates. At the dawn of the twentieth century, insurance companies started mushrooming up. In the year 1912, the life insurance companies act, and the provident fund act were passed to regulate the insurance business. The life insurance companies act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. However, the disparage still existed as discrimination between Indian and foreign companies. The business of insurance started with marine business. Traders, who used to gather in the Lloyd‘s coffee house in London agreed to share the losses to there goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first Insurance policy was issued in 1583 in England. In India, insurance began in1870 while life insurance was transacted by an English company, the European and the Albert. The first Indian insurance company was the Bombay mutual assurance society limited; formed in 1870 this was followed by oriental life assurance company in 1874, bharat in 1869 and empire of India in 1897. Later. The Hindustan cooperative was formed in Calcutta, the united India in madras, the Bombay life in Bombay, the national in Calcutta, the new India in Bombay. The laxmi in New Delhi. These were all Indian company‘s started as a result of swadeshi movement in early 1900s.

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PURPOSE AND NEED OF INSURANCE

1. Assets are insured, because they are likely to be destroyed, through accidental occurrence. Such possible occurrences are called perils. Fire. Floods, breakdowns, lightening, earthquakes etc. are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are consequential losses or damages. The risk to a owner of a building, because of the perils of an earthquakes, may be a few lakhs or a few crores of rupees, depending upon the cost of the building and the contents in it. 2. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingency that it may happen. There has to be an uncertainty about the risk. Insurance is a relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. 3. Insurance does not protect the asset. It does not prevent its loss due to peril the peril cannot be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. It only compensates the losses and that too, not fully. 4. Only economic consequences can be insured. If the loss in not financial, insurance may not be possible.

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HOW INSURANCE WORKS So you want to know that how insurance companies are compensating your loss, and how these actuaries who are sitting back behind the companies are rolling your money for making it more and more profitable so they can cover your loss, and maintain the big company fame too. Well imagine that there are thousands people who are working in insurance industry and living really pretty life and surely they deserve because they are working for protecting you and your assets. And meanwhile millions people are working indirectly who are also working for the insurance as secondary agents, their bread and butter is also on this industry, and moreover insurance companies are maintaining huge and corporate type offices. And the basic input money comes as premium which you are depositing annual or monthly basis. You can see easily in illustration which is here given for your easy understanding. Well this is pretty matrix of think tanks that are called actuaries sitting as backbone of the insurance industry. When you are submitting your premium in shape of some thousand dollars, then think that right that time there are more people who are doing same like you. And when this amount comes in the insurance company, the actuaries are figuring out that where that money can be invested. There are lots of mega investments in the market. Like stock exchange, real estate business, banks, shares in Wall Street or different hi fi Stock Exchange like Hong Kong, New York, UK, Tokyo etc. Actuaries invest that bulk amount in different sectors so the chance of downfall can be reduce. They are watching daily, even hourly basis on the ebb and tide of stock exchanges and flow of market trend, so the heavy amount can be transfer to safe and more profitable sector and with this result the share of the company grows because of its worth. You have watched the unit price of the insurance companies are increasing daily basis. The main

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reason of growing their worth is ―Actuaries‖ who are calculating very much complex matrixes and then evaluate the multiple investment sectors for further investment. So the tiny drops of your premiums become big oceans in this way. While you are sleeping, the think tanks of insurance companies are thinking about the growing of your money. We can say simply that you are the micro sleeping partners of the insurance industry. And when something happens you which is called in literary language ―rainy days‖, I mean accident or such sorts of mis-happening you are claiming for the cover. And insurance company fills the documents of your claim and for their official record they conduct enquiry and pays you the big amount of your loss. Some times the amount is 100th times bigger than your one time paid premium and sometimes thousands times bigger than your premium to your family. This is actually nature of insurance industry where it compensates and covers your all losses, but the main thing is understating and right claiming. It is dignity if you think wider, and it is huge protection if you think about your whole family.

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PRINCIPLES OF INSURANCE

The following are the main principles of insurance:  Principle of utmost good faith: Insurance must be taken not from the point of view of making profit, but to cover the risk. Insurance is generally based on the principle of good faith which means both the parties ( the insurer and the insured) to the contract must give all the facts relating to the subject matter of insurance. The insured party should not hide any fact or any information regarding the insurance to be taken. If he does not disclose all the information, the contract of insurance becomes void. Therefore, it is necessary for the party to supply information regarding the subject matter.

 Principle of insurable interest : The party insuring the life of any person or the goods must have an insurable interest while taking out an insurable policy. It is a relationship between the party taking insurance and the life of a person or the goods to be insured. Under this principle, the insured party stands to gain if it is insured or stands to lose if it is not insured. It can be said that an insurable interest exists between husband and wife, father and his children or debtor and creditor. So in order to get the full benefit of insurance, there must be insurable interest.

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 Principle of indemnity: Under this principle, the insured party is not allowed to earn any profit. If there is a loss by theft or by fire, etc. he will be compensated for the loss incurred. He can get neither more nor less than the actual loss he suffered e.g., if a house is insured for Rs 10,000, and the loss incurred by fire is only Rs. Two thousand five hundred, he can claim only Rs.2,500 and not more than that, although the house was insured for ten thousand. This is according to the principle of indemnity. This principle is not applicable to life insurance.

 Principle of subrogation: Under this principle, a special right is given to the insurance company to take possession of the property if it has paid the full amount as claim for damage. The owner of the property will have thereafter no right to his property. It is the insurance company that becomes the owner of that property. The insured party has to sign a letter of subrogation so that the insurance company can take action against the third party.

 Principle of contribution: This principle is applicable to all the contracts of indemnity where the insured has taken more than one policy on the subject matter. As per this principle, the insured can claim compensation to the extent of actual loss either from one insurer or all the

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insurers proportionately. If the insured has claimed compensation from one insurer, he cannot claim from other insurers.

 Principle of loss minimization: As per this principle the insured should take all the precautions to minimize the loss on happening of the event.

 Principle of causa proxima: The loss to the insured property may be caused due to too many reasons. The property may be insured against some causes and not all the causes. In such a case, the nearest cause if insured, the insurance company can pay compensation to the insured.

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TYPES OF INSURANCE IN INDIA

TYPES OF INSURANCE

LIFE INSURANCE

PERSONAL PRODUCT

GENERAL INSURANCE

BUSINESS PRODUCT

MISCELLANEOUS PRODUCT

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INTRODUCTION OF GENERAL INSURANCE CORPORATION  GENERAL INSURANCE:With the opening up of the insurance industry to the private sector, the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide forth establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938,the Life Insurance Corporation Act, 1956 and the General insurance Business(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries(for general insurance business).

General Insurance provides much-needed protection against unforeseen events such as accidents, illness, fire, burglary etc. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Almost everything that has a financial value in life and has a probability of getting lost, stolen or damaged, can be covered through General Insurance policy. Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty and also one‘s liability towards others can be covered under general insurance policy. Under certain

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Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory. With the opening up of the insurance industry to the private sector, the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

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

GENERAL INSURANCE:

General insurance means managing risk against financial loss arising due to fire, marine or miscellaneous events as a result of contingencies, which may or may not occur. General Insurance means to ―Cover the risk of the financial loss from any natural calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are beyond the control of the owner of the goods for the things having insurable interest with the utmost good faith by declaring the facts about the circumstances and the products by paying the stipulated sum , a premium and not having a motive of making profit from the insurance contract.‖Some of the General Rules:1. Mis-description :The insurance policy shall be void and all the premiums paid by insured may be forfeited by the insurance company in the event of mis-presentation or mis-declaration and/or non-disclosure of any material facts.2. Reasonable care :The insured shall take all reasonable steps to safeguard the property insured against any loss or damage. Insured shall exercise reasonable care that only competent employees are employed and shall take all reasonable precautions to prevent all accidents and shall comply with all statuary or other regulations.

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Fraud :If any claim under the policy may be in any respect fraudulent or if any fraudulent means or device are used by the insured or any one acting on the insured‘s behalf to obtain any benefit under the insurance policy, all the benefits under the insurance policy may be forfeited.

Some of the General Rules: 1. Mis-description : The insurance policy shall be void and all the premiums paid by insured may be forfeited by the insurance company in the event of mis-presentation or mis-declaration and/or non-disclosure of any material facts. 2. Reasonable care : The insured shall take all reasonable steps to safeguard the property insured against any loss or damage. Insured shall exercise reasonable care that only competent employees are employed and shall take all reasonable precautions to prevent all accidents and shall comply with all statuary or other regulations. 3. Fraud : If any claim under the policy may be in any respect fraudulent or if any fraudulent means or device are used by the insured or any one acting on the insured’s behalf to obtain any benefit under the insurance policy, all the benefits under the insurance policy may be forfeited. 4. Few basic principles of general insurance are :

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a. Insurable interest b. Utmost good faith c. Subrogation d. Contribution e. Indemnity 5. Risks of loss not covered under general insurance are: The loss or damage or liability or expenses whether direct or indirect occasion by happening through or arising from any consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion revolution, civil commotion or loot or pillage in connection therewith and loss or damage caused by depreciation or wear and tear. However the risk of loss or damage by war can be insured by payment of additional premium in some cases only. General Insurance in the current scenario: The total number of general insurers registered with IRDA has gone up to 22, with registration of SBI General Insurance Company Limited, a joint venture general insurance company promoted by State Bank of India and Insurance Australia Group, Australia, as a General Insurer in December 2009. The four public sector general insurance companies ‖United India Insurance, National Insurance Company, New India Assurance and Oriental Insurance Company‖have together grown at a

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slightly faster rate during the April-November period this year than the private players, for the first time since 2000 when private entry was allowed in the general insurance sector. The Gross Direct Premium Income (GDPI) for the public sector grew at 11.05 per cent during April-November 2009 as against 5.98 per cent during the same period last year and as compared to the growth of 11.02 per cent by the private sector. According to IRDA data, out of US$ 5 billion premium garnered by the industry during the period, US$ 2.84 billion came from the four public sector companies compared to US$ 2.56 billion during the corresponding period last year. The PSU insurers also held on to last year‘s market share of 57 per cent. New India managed to garner the highest premium at US$ 850 million in the first eight months of this fiscal. Private players grew 7.1 per cent during April-November period 2009-10 by collecting US$ 2 billion premium. 

Bharti AXA General Insurance Company is planning to infuse US$ 139.5 million of capital in the next five years. It is also looking at expanding its network and planning to add 500 agents during the current year.



The summer paddy crop in Palakkad district and cashew crop in many districts of Kerala will be brought under a climate-based crop insurance programme during the ongoing rabi season. The scheme is being implemented jointly by the Union Agriculture Ministry, the Agriculture Department of Kerala and the Agriculture Insurance Company of India.

Small and medium enterprises (SMEs) have become the preferred segment for general insurers, despite the former‘s small size and unorganised nature of business. Over 60 per cent of the business underwritten in the corporate side is coming from the SME segment.

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General insurance corporation on has apex body of insurance having its subsidiaries i.e. New India assurance company Ltd. (H.Q. Bombay), Oriental insurance Company Ltd. (H.Q. Delhi), United India Insurance Company (H.Q. Madras) and National Insurance Company Ltd. (H.Q. Calcutta). At the top there are a Chairman and Managing Director having his Head Quarter at Bombay. General Manager one in each subsidiary at the respective Head Qunrter Manager according to the requirement in number at their respective Head Quarters with the designation same as above controlling the various field of work, i.e. General Administration, Personnel, Finance and Revenue etc. In hierarchy there comes the jurisdiction of Manager who is appointed at the head Quarter with the assignment of his field of operation as mentioned above and e same officer can also be designated as Regional Manager at the regional level. A Deputy Manager with particular assignment-is posted at the head office and with the same designation at the regional level, Senior Divisional Manager at the division office of the same status. Assistant Manager (At H.Q. and R.O.) with the designation of Divisional Manager at Divisional Office or Senior Branch Manager at the Branch Level. Administrative officer may be at the Head Office, Regional Office, Division Office, and as Branch Manager at the Branch Office. All the placements run together in accordance with the work distribution. Assistant Administrative officer (AAO) may also be placed at H.O/R.O/D.O./Branch. He may also be given charge of a Branch office as a Branch Manager in accordance with the importance

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of placement and work load. All the officials as discussed in a hierarchy under the organizational set up are of class/category on while the below are of class/Cat. II. Development officers (formerly designated as inspectors) they are poster at Division Officers as well as at the Branch Offices. The number of Development Officers depends on the location and work load of the Division or Branch. In the same order now come the class/category III officials. At the top, there is Senior Assistance who works as the office superintendent having in the parallel category, stenographer and computer programmer then Assistant grade of clerical staff, Data Entry Operator and Class IV employees at all levels i.e. Driver, Book Lifter Messenger etc. On the guidelines based in the Personnel Hand Book of the New Indian Assurance Company Limited the set-up of the personal can be discussed as under. The set-up of the subsidiaries is given a title i.e., ―FOUR TIER SYSTEM OF ORGANIZATIONAL STRUCTURE‖. comprising Head Office, - Regional Office – Divisional office and – Branch Office. If we start from the bottom as it is having a broad spectrum of functioning and wide area of coverage of operation, it is found that Branch Office is the real operation unit. The Branch Office is headed by :-

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Branch Manager A.O/AAO

Core Clerical Staff

Sr. Assistant

Assistant

Sub Staff - 1

Assistant

Assistant

Sub Staff - 2

HRM IN GENERAL INSURANCE COMPANY

OBJECTIVE AND FUNCTION OF THE G.I.C. The every objective of insurance is to place the insured in the same financial position as he was just before the loss. It is to prevent the insured from making a profit out of loss and insures public interest at large. In other words the principal function objective can be explained that system of insurance, through a scientific and calculation of risks and an equitable distribution of financial losses of the ‗few among the many‘ who are insured can be explained under the sub heading as below  Social objective: Through the social objective the object of General Insurance Corporation it is multilateral. Man had ever been in search of security. So far as the philosophical idea is involved Sigmund Fryed Says ― security means assurance of contentment of the next, of course, which in term, reciprocates with enthusiasm and spirit to put on work. Among human beings the thought of future makes a man create new invention which made something more in the civilization every day.‖  Financial Aspect: Finance, funds, economic structure, development, standard of living etc. are the term which are frequently used in daily life. One, who puts all and more money, to help national economic development either directly or indirectly tends to be sure of his future. The General Insurance Corporation is the supporting hand behind an entrepreneur and the general people in their general behavior and helps in financial interactions.

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 Assistance to business enterprises: India is developing country. Major part of the fund of the general public is invested in the large projects. If the risk factors are more in an organization that the others, the investor would not invest. General Insurance Corporation provides the security. Modern industries involving heavy investment in any form can face any loss or damage. General Insurance provides the necessary cover. Uncertainty which is the major hinderance in the way of development can only be replaced with insurance.  Financial stability to commerce and industry: Fire can cause damage to building, plant and machinery coinciding with an interruption in production consequently causing accident to its employees. Loss is loss after all. It may be loss or profits of employment, loss of life, loss of trade to the business community. General Insurance covers the loss and gives stability to the industry and avoids economic dislocation which directly benefits the community.  Basis of credit: Commerce and Industries now a days, depends on insurance as bank and other Government and Non-Government organizations, like Industrial Development Bank of India (SIDBI) NABARD, ICICI, RFC, RIICO etc., advance loan on the basis of collateral security of insurance. No Bank or Financial Institution would advance loan unless it is insured against loss or damage by insurable policy. Insurance therefore, helps in maintaining the economic equilibrium of the nation.

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ORGANISATIONAL STRUCTURE OF THE GIC  MEANING AND OBJECTIVES: Organization provides the structure of an organization which holds a key position and plays an important part as a vital and vigorous instrument for achieving the objective of the organization the frame on which rests the management of the enterprise like structures. Its update the management functions in their totality and interrelationship aiding their movement to the set global. It is often said that efficient people can make any organization work but they will work together most effectively if they know the part which is to be played in any collaborative Endeavour and how their roles relate to one another. To design and maintain this system of roles is basically the managerial function of any organization. Theoretically there should be no ambiguity or confusion about the role of any individual in an organization though there can be conflicts within a given role sat. However, in practice, it is the function of every efficient management to keep reviewing the prevalent conditions and to initiate corrective measures without letting the situation lead to dissatisfaction among the employees. Every organization sets its objective and correlates with its structure every set of organization must be shaped and placed according to its determined position.

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 Objectives of Organization Structure: There are certain basic objectives of an organizational structure: 1. It should reflect a viril awareness of the dynamic goal of the enterprise. 2. It should reflect adequate decentralization. 3. The unity of command and line of responsibility should be clear. 4. The channel of communication should be free, easy and logical. 5. The span of control should be logical (neither too wide nor too narrow) without split in the line of control. 6. The functional levels in the organization chart should be armed with proper authority, matching their task and responsibility. 7. The level in the chart (the nods in the organization net) should represent homogenous cohesive units of functions. 8. The chart should avoid over-lapping of functions and authority. 9. Te channel of communication vertically and horizontally should be well laid out. Vertically upward each management level must know to whom he is accountable; downwards, who must take order from him. Horizontally a manager should know who shall be consulted. If consultation among managers as the same level is overdone, it causes delay and held-ups. If it is ignored or omitted it hurts co-ordination and relationship. 10. The functional aims of the departments (branches) at different levels should be drawn up and reflected with precision. 11. The hierarchical position of the staff functional level and their structural relationship with the line management levels should be stated without ambiguity.

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12. The organizational tree like structure has properties of a living organization. As the branches of a tree stem from the trunk and the twigs spring from the branches, and every branch and twig draw succor from the root of the main tree, so in an enterprise the Chief Executive is the main spring of leadership. The other levels provide the feedback and the reciprocal team support. The process is a tow-way one. The organization tree (as shown in the chart under the heading ahead) should be a living vehicle of supporting and moving forward to this two way management process. 13. The best and the most logically framed organization chart is still a Skelton. It does not come alive without the people who man it. The chart must reflect the powerful interrelationship of the human element within an enterprise.

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FUNCTIONS AND IMPORTANCE OF ORGANIZATION STUTURE It is observed that organization supplies the frame and structure to the management process. It embodies and upholds the logic of the enterprise functioning as a system aiming at its goal. A system is not the end in itself. It is nothing if it does not stand for the aim and achieve it. A system moves in revolving self adjusting cycles. It demands a dynamic element in the organization too. In this sense organization is vehicle, moving the management efforts- through the management team, with the help of the resources of enterprise to the appointed function. The function of organization is thus to fulfill the tasks of the enterprise and includes the following logical components: 1. It embodies the objective of the enterprise. 2. It helps in showing the breakdown of the objective into functional and sub divisional goal at the different levels portrayed in the organizational chart. 3. It thus helps each manager to see his task; it also tells him what authority he has to accomplish. 4. It tells each manager where his accountability lies and who (under him) are in his sphere of command. 5. The manager knows what communication to other level (up and down and laterally) is demanded from his and what he reciprocally, can expect from the others. 6. The manager is aware (through the organization net) of his rights and responsibilities to coordinate with other levels-up, down and lateral.

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7. The organization net (chart) helps the personal concerned with vigilance against loss through criss-cross (wasteful) efforts and misdirection. It shoes the way to know the different functions, level and their activities should move as a well-knit soccer team, to the goal with economy and efficiency. 8. The organization structure helps a visual appraisal of how well (or otherwise) the human talent is absorbed into the scheme of management. By blending the functional and the people-centered strategy of developing the organization it achieves two purposes. a. Securing the best out of the management team, and b. Adding the essential flexibility (and dynamics) to the structure.

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INTRODUCTION OF HUMAN RESOURCES MANAGEMENT(HRM) Humans are an organization's greatest assets; without them, everyday business functions such as managing cash flow, making business transactions, communicating through all forms of media, and dealing with customers could not be completed. Humans and the potential they possess drive an organization. Today's organizations are continuously changing. Organizational change impacts not only the business but also its employees. In order to maximize organizational effectiveness, human potential—individuals' capabilities, time, and talents—must be managed. Human resource management works to ensure that employees are able to meet the organization's goals.

"Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise" (Cherrington, 1995, p. 5). There are seven management functions of a human resources (HR) department that will be specifically addressed: staffing, performance appraisals, compensation and benefits, training and development, employee and labor relations, safety and health, and human resource research.

Generally, in small organizations—those with fewer than a hundred employees—there may not be an HR department, and so a line manager will be responsible for the functions of HRM. In large organizations—those with a hundred employees or more—a human resource

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manager will coordinate the HRM duties and report directly to the chief executive officer (CEO). HRM staff in larger organizations may include human resource generalists and human resource specialists. As the name implies, an HR generalist is routinely involved with all seven HRM functions, while the HR specialist focuses attention on only one of the seven responsibilities. Prior to discussing the seven functions, it is necessary to understand the job analysis. An essential component of any HR unit, no matter the size, is the job analysis, which is completed to determine activities, skills, and knowledge required of an employee for a specific job. Job analyses are "performed on three occasions: (1) when the organization is first started, (2) when a new job is created, and (3) when a job is changed as a result of new methods, new procedures, or new technology" (Cherrington, 1995). Jobs can be analyzed through the use of questionnaires, observations, interviews, employee recordings, or a combination of any of these methods. Two important tools used in defining the job are (1) a job description, which identifies the job, provides a listing of responsibilities and duties unique to the job, gives performance standards, and specifies necessary machines and equipment; and (2) the job specification, which states the minimum amount of education and experience needed for performing the job.

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Staffing Both the job description and the job specification are useful tools for the staffing process, the first of the seven HR functions to be discussed. Someone (e.g., a department manager) or some event (e.g., an employee's leaving) within the organization usually determines a need to hire a new employee. In large organizations, an employee requisition must be submitted to the HR department that specifies the job title, the department, and the date the employee is needed. From there, the job description can be referenced for specific job related qualifications to provide more detail when advertising the position—either internally, externally, or both (Mondy and Noe, 1996). Not only must the HR department attract qualified applicants through job postings or other forms of advertising, but it also assists in screening candidates' resumes and bringing those with the proper qualifications in for an interview. The final say in selecting the candidate will probably be the line manager's, assuming all Equal Employment Opportunity Commission (EEOC) requirements are met. Other ongoing staffing responsibilities involve planning for new or changing positions and reviewing current job analyses and job descriptions to make sure they accurately reflect the current position.

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Performance Appraisals Once a talented individual is brought into an organization, another function of HRM comes into play—creating an environment that will motivate and reward exemplary performance. One way to assess performance is through a formal review on a periodic basis, generally annually, known as a performance appraisal or performance evaluation. Because line managers are in daily contact with the employees and can best measure performance, they are usually the ones who conduct the appraisals. Other evaluators of the employee's performance can include subordinates, peers, group, and self, or a combination of one or more . Just as there can be different performance evaluators, depending on the job, several appraisal systems can be used. Some of the popular appraisal methods include (1) ranking of all employees in a group; (2) using rating scales to define above-average, average, and below-average performance; (3) recording favorable and unfavorable performance, known as critical incidents; and (4) managing by objectives, or MBO. Cherrington (1995) illustrates how performance appraisals serve several purposes, including:(1) guiding human resource actions such as hiring, firing, and promoting; (2) rewarding employees through bonuses, promotions, and so on;(3) providing feedback and noting areas of improvement; (4) identifying training and development needs in order to improve the individual's performance on the job; and (5) providing job related data useful in human resource planning.

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Compensation and Benefits Compensation (payment in the form of hourly wages or annual salaries) and benefits (insurance, pensions, vacation, modified workweek, sick days, stock options, etc.) can be a catch-22 because an employee's performance can be influenced by compensation and benefits, and vice versa. In the ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient benefits, and receive some intrinsic satisfaction (good work environment, interesting work, etc.). Compensation should be legal and ethical, adequate, motivating, fair and equitable, cost-effective, and able to provide employment security.

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Training and Development Performance appraisals not only assist in determining compensation and benefits, but they are also instrumental in identifying ways to help individuals improve their current positions and prepare for future opportunities. As the structure of organizations continues to change—through downsizing or expansion—the need for training and development programs continues to grow. Improving or obtaining new skills is part of another area of HRM, known as training and development. "Training focuses on learning the skills, knowledge, and attitudes required to initially perform a job or task or to improve upon the performance of a current job or task, while development activities are not job related, but concentrate on broadening the employee's horizons". Education, which focuses on learning new skills, knowledge, and attitudes to be used in future work, also deserves mention. Because the focus is on the current job, only training and development will be discussed. Training can be used in a variety of ways, including (1) orienting and informing employees, (2) developing desired skills, (3) preventing accidents through safety training, (4) supplying professional and technical education, and (5) providing supervisory training and executive education (Cherrington, 1995).

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Each of the training methods mentioned has benefits to the individual as well as to the organization. Some of the benefits are reducing the learning time for new hires, teaching employees how to use new or updated technology, decreasing the number and cost of accidents because employees know how to operate a machine properly, providing better customer service, improving quality and quantity of productivity, and obtaining management involvement in the training process (Cherrington, 1995). When managers go through the training, they are showing others that they are taking the goals of training seriously and are committed to the importance of human resource development. The type of training depends on the material to be learned, the length of time learners have, and the financial resources available. One type is instructor-led training, which generally allows participants to see a demonstration and to work with the product first-hand. On-the-job training and apprenticeships let participants acquire new skills as they continue to perform various aspects of the job. Computer-based training (CBT) provides learners at various geographic locations access to material to be learned at convenient times and locations. Simulation exercises give participants a chance to learn outcomes of choices in a nonthreatening environment before applying the concept to real situations. Training focuses on the current job, while development concentrates on providing activities to help employees expand their current knowledge and to allow for growth. Types of development opportunities include mentoring, career counseling, management and supervisory development, and job training.

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Employee and Labor Relations Just as human resource developers make sure employees have proper training, there are groups of employees organized as unions to address and resolve employment-related issues. Unions have been around since the time of the American Revolution . Those who join unions usually do so for one or both of two reasons— to increase wages and/or to eliminate unfair conditions. Some of the outcomes of union involvement include better medical plans, extended vacation time, and increased wages (Cherrington, 1995). Today, unions remain a controversial topic. Under the provisions of the Taft-Hartley Act, the closed-shop arrangement states employees (outside the construction industry) are not required to join a union when they are hired. Union-shop arrangements permit employers to hire non-union workers contingent upon their joining the union once they are hired. The Taft-Hartley Act gives employers the right to file unfair labor practice complaints against the union and to express their views concerning unions (Cherrington, 1995). Not only do HR managers deal with union organizations, but they are also responsible for resolving collective bargaining issues—namely, the contract. The contract defines employment related issues such as compensation and benefits, working conditions, job security, discipline procedures, individuals' rights, management's rights, and contract length. Collective bargaining involves management and the union trying to resolve any issues peacefully—before the union finds it necessary to strike or picket and/or management decides to institute a lockout (Cherrington, 1995).

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Safety and Health Not only must an organization see to it that employees' rights are not violated, but it must also provide a safe and healthy working environment. Mondy and Noe (1996) define safety as "protecting employees from injuries caused by work-related accidents" and health as keeping "employees free from physical or emotional illness" (p. 432). In order to prevent injury or illness, the Occupational Safety and Health Administration (OSHA) was created in 1970. Through workplace inspections, citations and penalties, and on-site consultations, OSHA seeks to enhance safety and health and to decrease accidents, which lead to decreased productivity and increased operating costs (Cherrington, 1995). Health problems recognized in the workplace can include the effects of smoking, alcohol and drug/substance abuse, AIDS, stress, and burnout. Through employee assistance programs (EAPs), employees with emotional difficulties are given "the same consideration and assistance" as those employees with physical illnesses.

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FEATURES OF HRM Its features include: 

Organizational management



Personnel administration



Manpower management



Industrial management

But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms, although these normally refer to the relationship between management and workers and the behavior of workers in companies. The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process. Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are

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expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations. Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being: “a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled" While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage"

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RECRUITMENT POLICY OF GENERAL INSURANCE CORPORATION Every organisation is bound with some norms of recruitment which are decided by the government authorities from time to time not inconsistent with the central regulations. General insurance corporation has divided its policies into four sectors which are as under:1) MANAGERIAL STAFF-

In the officer cadre, the AAO grade is only in entry cadre while the all managers at the apex body are-appointed through promotion even this grade is partly a recruitment grade as 50% of the AAO vacancies on the administration side are earnmarked to be filled in by promotion from clerical cadre recruitment of AAOs for general administration is made by GIC under a centralized recruitment programme. specialist officers, chartered accounts, engineers, veterinaries etc are recruited either by the companies (subsidiaries of GIC) or by the GIC itself depending on the no. of pasts for requirement. Specialist officers are normally posted at head office and regional offices while the generalist officers recruited are intended for posting at division offices and branches.

2) DEVELOPMENT STAFF-

Recruitment of development officers is now centralized. Most of the recruited officers are posted under grade II, while a few can be placed in the higher grade, development officers grade I, if

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they fulfill the guidelines. Posting of these newly recruited officers are finalized by regional officers in consultation with head office.

3) SUPERVISORY AND CLCRICAL STAFF-

In the supervisory and clerical staff cadre assistant grade is treated as entry grade. Out of the total existing vacancies 15-are filled in from within through promotions from RC/sub staff grades. Vacancies of stenographers, record clerks and drivers grade can be filled in by direct recruitment if vacancies remain unfilled even after promotion. With the implementation of the vocational education programme , insurance as one of the subject students who have passed 10+2 with the minimum required percentage of marks may also be recruited directly as apprentice assistants. This scheme is regulated by GIC. Which allows the students from schools who opted insurance as a subject at 10+2 level examination.

4) SUBORDINATE STAFF-

Except drivers, the subordinate staff is obviously a direct entry grade either on full time basis on the regular post or on part time basis where employment of regular or full time sub-staff is not justified. 25% of total full time vacancies in sub-staff cadre are reserved to be filled in by converting part timers into full timers, regional offices therefore when making recruitment for sub-staff cadre must ensure that for the RO AS a whole, at least 25% and not more than 50% of

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vacancies in regular sub-staff cadre must be set aside for conversion of part time to full time employment.

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SELECTION PROCEDURE IN GENERAL INSURANCE CORPORATION (AND SUBSIDIARIES) The following are the headlines of the procedure of selection in general insurance corporation :I.

Job analysis, description and specification.

II.

Selecting the application forms.

III.

Screening the application forms.

IV.

Conducting written test.

V. VI.

Interview Test of physical fitness.

A. Job analysis, description and specifation

In G.I.C the first step in the selection process are the job analysis, description, and job specification, which are carried out in consultation with the concerned department at heads, in the corporation and subsidiaries, the job analysis is made in the beginning of identifying the qualification and qualities which will be required in the incumbent. G.I.C prepares a check list which helps collecting the relevant information for the purpose of job analysis. This analysis helps the corporation in preparation of job specifications through the check list, information regarding the nature of the post to be filled, condition of employment and the duties and responsibilities of the incumbents are gathered.

A specimen proforma of the check list is given below-

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(1) What is the job title ? (2) In what division/department/location is the job place ? (3) To whom does the job holder report ? (4) What reports direct to the job holder ? (5) What briefly is the over all function of the job ? (6) What are the main tasks carried out by the job holder ? (7) What does the job holder need to know to be able to do the job ?this knowledge may be professional, technical, or commercial, or it may be about the machines to be operated, the material or equipments to be used or the procedure to be followed (8) What skills are required to do the job ? these may be

MANAGERIAL SKILLs  Decision making  Planning  Organizing  Coordinating  Controlling

MANNUAL SKILLS  Dealing with people  Persuading  Selling

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 Communicating

(9) what are the resources controlled by the job holder ?(for eg. Number of staff, value of sales, or drafting of budget, value of equipment used.) (10) are there any other special features of this job ? this may include

I. II.

travelling unsocial hours

III.

unpleasant working condition

IV.

demanding physical or mental effort

V. VI.

security risk promotion prospects or leave prospects

In the GIC, a general criteria is followed regarding the title of job. it is prior to decide whether it is a new appointment or a replacement and what is the reason for such selection. The nature of reporting relationship (up & down) is also to be determined. Remuneration level of incumbent and remuneration level of the staff reporting to the incumbent are the major criteria. Condition of employment 1. The extent of travelling 2. Details of salary 3. Provision of corporation conveyance or conveyance allowance

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4. Other allowable expenses such as entertainment, club, etc 5. Days and hours of work 6. Holidays and leaves

B. Selecting the application forms When the check list for job analysis and specification is prepared the job contents are determined, the recruitment salary range is confirmed. The corporation (GIC) decides about the source from where such employees may be called. In the general insurance corporation, the managers of grade a ‘A‘ and ‗B‘ are recruited from within the organisation through promotion, while in grade ‗C‘ and ‗D‘ the selection is made through both the methods i.e internal and external. Only rare cases are there where the assistant grade employees are recruited from within the organisation. When open selection is to be made GIC gives an advertisement in the leading newspapers. The format of the application form is given in the advertisement as given in appendix 5.1. in the application form all information regarding age, academic qualification, experience, caste/community, proficiency in sports and extra curricular activities are to be given. While filling up the vacancies the corporation is required to meet STATUTORY PROVISION regarding the candidates belonging to SC/ST, physically handi-capped, ex-serviceman etc.

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C. Screening application forms All the applications received by the authorized office are registered and screened in terms of the recruitment standard as prescribed in the format already published. Some under mentioned important steps are taken at the time of screening and scrutinizing the application forms:a) To check the information regarding the suitability of candidates in terms of job specification. b) History sheets of application are prepared giving their background for future reference promotion etc

D. Written test The candidate who are found eligible and up to the line mark are called for written test. The written test generally organized at the centre notified in the advertisement. The main objective of GIC of conducting this test is to select the best suitable candidate having chances of better performance. This types of test is merely considered as an extra tool or aid for evaluating the applicants. The written test organized for the selection of officers includes two parts- general aptitude and caliber to maintain discipline.

E. Interview It is probably the most widely used single method of selection. Things which can not be measured otherwise can be measured in the interview. Here it seems quite pertinent to quote

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lordship shri P.N.Bhagawati it is now admitted on all hands that while a written examination assesses the candidates knowledge and intellectual ability.

F. Test of physical fitness The candidate selected by the selection committee have to appear before a medical examiner for a general check up of his body and the appointment shall be offered to the candidate only after getting satisfactory medical report. The cost of such examination is born by the company concerned.

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TRAINING POLICY OF GENERAL INSURANCE CORPORATION General insurance corporation is pacing with its rapid growth, despite of many odds in the field. There exists challenges and opportunities for the faster advancement than in most of other organization. Rapid organizational development naturally require elaborate and well designed training programmes. For this the GIC conducts a number of training programmes which are described as followsThe GIC recognizes that human resources are its most valuable assets. It has been conducting various training programmes from time to time in order to maintain and for the augment of the skills of its employees. At present GIC has two training centre‘s situated at Bombay and Delhi. Formal in house training is organized at the corporation training centre which came into operation at the time of its nationalization. Besides the training at the above centre‘s selected personnels are also nominated for training to external training programmes conducted by various well known training institutions. In addition to this the GIC imparts training to its employees, including managerial and clerical cadres at area offices located at Delhi, Calcutta, Bombay, and Madras. arrangement are also made for on the job training. The corporation also arranges for refresher courses for its employees, from time to time.

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The different training programmes held at training centre can be discussed in brief as follows:-

 SEMINAR ON LOSS CONTROLThe main objective of such a seminar is to review the performance losses.GIC has laid down the permissible limits of such losses. The review helps the GIC in finding out ways and means for reducing these losses to the minimum possible level. AUDIT SEMINARThe seminar is organized to explain and discuss the role of internal audit in the corporation with a view to making it more effective and acceptable officers belonging to grades II called for such a seminar. HINDI SEMINARThe main objective of this programme is to provide an opportunity and exposure to do or get done the routine work of the corporation through Hindi language. This type of training also increases the ability of participants to read, write and speak in Hindi and enable them to contribute to discussions effectively. The participants of this training programme are from grade II &III working in project, finace, administration.

personal, and management services personnel 6

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 PERSONAL DEVELOPMENT COURSEIt aims at developing officers with a low potential in managerial aptitude and skills. This course is conducted by Dy. general manager , manpower planning and development for the officers belonging to grade I & II working in projects, finance, personnel &management. This course is meant for the officers who belong to a privileged class. The courses are specially designed for keeping in the view the development news of the corporation.

 STAFF DEVLOPMENT COURSEThe main objective of this course is the development of officers having good potential in managerial aptitude and skills. It is conducted by Dy. General manager manpower planning and development for grades Sr. asstt and below working in personnel and administration.  MANAGEMENT DEVLOPMENT COURSEIt offers an examination of the psychological and sociological objective of management so far as they affect productivity and motivation. It is meant for manager entering in to senior position from grades of asstt or Dy manager.  FINANCE COURSEIt explains the role of financial function in the corporation and the interpretation of financial statements such as balance sheet and profit and loss account. It also explains the use of financial statements as tools for managerial control in the corporation. Officers from grades AAOs and asstt, managers working in the projects, personnel and management services, personnel and administration are eligible to join this course.

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 MANAGERS COURSEThis focuses on the development of middle order managers in the corporation in the age group of 40 to 46 years belonging to grades AAOs and Dy, manager personnel and management services, personnel and administration are eligible to join this course.

The number of

participants is limited to 20 only.

TRAINING PROGRAM PROVIDED BY GIC. TYPE OF COURSE

FUNCTIONAL TRAINING

COURSE

ELIGBLE JOB GRADE

DURATION IN DAYS

project management course

3

Officers between the Dy. Manager and AAOs

Electronic documentary processing appreciation course

3

Supervisory grade officer

Audit seminar

2

AAOs and Sr.asstt

Hindi seminar

3

Supervisory and grade II officer

4

AGM and below

MANAGEMENT TRAINING

Personnel development course

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Staff development course

4

Office asstt. and above sr. asstt

General development course

5

Management

Managerial development course

5

AAOs and up to Dy.manager

Finance course

2

AAOs and above Dy.manager

Workshop on time management

2

AAOs and above Dy.manager

Workshop on discipline

3

Supervisory staff and officer

Workshop on negotiating skills

2

Development officer

Staff course

4

Record asstt. And above up to sr. asstt

Manager course

4

Management

Trainer development course

14

AAOs and supervisor

Workshop on organization identity

5

Newly recruited AAOs

Seminar on management concepts in GIC

3

AAOs and above up to asstt. manager

O.D.TRAINING

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PERFORMANCE APPRAISAL IN GIC In the personnel manual of the oriental insurance company ltd. It is quoted that ―the efficiency and success of an organization depends entirely on the quality of its personnels. This becomes more and more evident as we go up the ladder of managerial cadre. Merit, therefore is an important criterion while deciding promotions is any cadre of employees‖ to assess the merit of an employee the GIC has a system of confidential reporting which is meant to serve the basis of performance appraisal. Maintenance of confidential reports The confidential reports are to be written by the immediate supervising authority and for every CR at least two reviews are essential.

I.

For officers staff in branches

a. From concerned branches To controlling div. office

b. From concerned div. office To controlling regional office

c. From concerned regional office To the head office

by 10th January each year

by 20th January each year

by 31st January each year

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(except CRs of class II,III and IV employees) For officers and staff in division

a. From concerned div. office to Controlling regional office

b. From concerned regional Office to head office

by 20th January each year

by 31st January each year

(except CRs of class II,III and IV staff)

II.

For officers and staff in regional office

a. From concerned regional Office to head office

by 31st January each year

(except CR of class II,III and IV employees)

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PROMOTION, DISCIPLINE AND HANDLING OF GRIEVANCES OF THE GENERAL INSURANCE CORPORATION

(1) PROMOTION POLICY FOR SUPERVISORY CLERICAL AND SUBORDINATE STAFFIn the GIC, there is a uniform and well defined policy , for promotion of the employee in the cadres of supervisory, clerical and subordinate staff. A part from rewarding the good work done in the past the promotion policy is made in the interest of the institution, by which it should be possible to fill the vacancies from those who fulfill the minimum requirement of the posts under consideration. The promotion policy of the GIC, therefore has a good blending of a system of appraisal for the past work, as well as a system to determine the suitability of each individual aspirant to the higher post, it prescribes criteria for selection and a system of assigning weights to them. The policy aims to provide reasonable prospects for at least one promotion in deserving cases during the career.

(1) PROMOTIONOF SUB STAFF TO DRIVERSub-staff with at least 2 years of conformed service having a valid driving licence without any endorsement shall be considered for promotion (section II, Rule 24 )selection for promotion shall be based on seniority, qualification. And work record. The selection shall be conditional on the

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candidate passing a driving test conducted by an examiner nominated by the promoting authority and also subject to the condition .

(2) PROMOTION TO RECORD CLEARK-

The sub-staff including drivers who has passed S.S.C examination or any other equivalent examination with English as one of the subject or have passed the department test for the record clerk post with at least 50% marks shall be considered for promotion to the cadre of record clerk. Driver and other subordinates staff who have put in at least 5 years service in the cadre shall be eligible to appear for the department test for the record clerk‘s post. Selection for promotion shall be based on seniority, work record and qualification.

(3) PROMOTION TO THE CADRE OF ASSISTANT-

(a) CLERICALThe employee who satisfy the following conditions of eligibility shall be considered for promotion to the cadre of assistant.  Record clerks and subordinate staff who satisfy the minimum qualification laid down for direct recruitment for various categories in the assistant cadre provided they have passed with English as one of the subject in SSC/ graduate level.

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 Record clerks who have passed SSC examination or equivalent examination with English as one of the subject and have completed 5 years services as record clerk.  Record clerk who have passed at least 10th standard and have put in at least 10 years service in the cadre of record clerk; or  Record clerks who have reached the ceiling of the record clerk‘s scale. Selection for promotion shall be made on the basis of seniority, qualification, work record and interview.

(b) TYPIST Record clerk‘s who have passed SSC examination or have equivalent qualification with English as one of the subject and have passed the typing speed-test with at least 40 words per minute shall be considered for promotion to the cadre of assistant (typing) selection would be made as the assistant (clerical).

(4) PROMOTION TO THE CADRE OF SENIOR ASSISTANTS-

Employees in the assistant cadre who have put in at least 3 years service in the cadre and are qualified as association of federation of insurance(AFII) institute or association of chartered insurance institute(ACII) or have passed 2 subjects of the institute of actuaries or those who have put in at least 5 years service in the cadre and have passed licentiate examination of the federation of insurance institute (FII) or put in at least 7 years service

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in the cadre or reaching the ceiling of the assistants scale, shall be consideration for promotion to the cadre of senior assistants.

(5) PROMOTION TO THE CADRE OF AAO-

The following employees shall be eligible for promotion to the cadre of assistant administrative officero All superintendents, o Senior assistants and stenographers who are at the ceiling in the scale. o Senior assistants who have put in 7 years service in the cadre.

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(2) DISCIPLINE POLICY (CONDUCT, DESCIPLINE, AND APPEAL)RULES1975 These rules may be called as the general insurance rules 1975 and if not provided otherwise, are applicable on every person appointed to any post under the general insurance corporation of India and/or its subsidiary companies.

 GENERAL BINDINGS1. Every employees is bound at all times to maintain absolute integrity. Devotion to duty and will do nothing which is not expected from a public servent. He should conform to and abide by these rules and should observe, comply with an obey all orders and directions which may, from time to time , be given to him in the course of this official duties by any person under whose jurisdiction superintendence or control he may, for the time being be placed.

2. Every employee holding a supervisory post shall take all possible steps to ensure the integrity and devotion to duty of all employees for the time being under the control of authority.

3. No employee shall, in the performance of his official duties or in the exercise of powers conferred on him act otherwise then in his best judgment except when he is acting under such direction, obtain the direction in writing, wherever, practicable and where it is not practicable, he should obtain written confirmation of the direction as soon as possible thereafter.

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 MISCONDUCTThe omission or commission of the following acts, without any prejudice to the general definition, shall be treated as misconduct. 1. Theft, fraud or dishonesty in connection with the business or property of the corporation/subsidiaries or of the property of person within the premises of the corporation subsidiaries. 2. Receiving or giving bribes or any other illegal gratification. 3. Acting in a manner prejudicial to the interest of the corporation or its subsidiaries. 4. Habitual late or irregular attendance. 5. Neglect of work or negligence in the performance of duty including malingering or slowing down of work. 6. Damages to corporation/subsidiaries any property of the corporation/subsidiaries. 7. Sleeping while on duty. 8. Commission of any act which amounts to a criminal involvement, 9. Absence form the appointed place without permission or sufficient cause. 10. Smoking within the premises of the establishment where it is prohibited. 11. Purchasing properties, machineries, stores etc from or selling properties machineries or stores, to the corporation are its subsidiaries, with put expressed permission in writing from the competent authority. 12. Commission of any subversive of discipline or of good behavior. 13. Gambling within the premises of the establishment.

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(3) HANDLING OF GRIEVANCES How much clear the rules, norms and code of ethics are made but the organization where number of people work together and the interest are clashes, irritation and grievance occur inevitably, hierarchy of the supervisors and subordinates make it more complicated. The fraction and dissatisfaction among the employee come to an extent when the management tends to interfere and remove the cause of complaint. In the general insurance corporation of India most of the grievances are handled according to the guidelines as have already furnished in the personnel manual and the rules amended from time to time. Yet the most of the procedure of the grievance handling are some- how identical to the as shown overleaf. The stages as shown may vary in order. It is seen, after a survey that mostly the grievance do not occur due to the clear cut policy. Nevertheless, if there is any case that is settled at the local level with the help of mutual understanding and if anything happened very serious is referred to the higher authority;. The time limits as shown in chart are not followed since they are not legal binding. Most of the cases of grievance in GIC are related with disciplinary action, promotion, increment and transfer etc.

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CONCLUSION General Insurance is an integral part of any personal financial plan. The type of General Insurance and the amount of coverage you obtain all depends on your unique financial and family circumstances, and must be evaluated carefully. When considering purchasing coverage, you should review all the potential risks and the financial impact of these risks on your financial health. This will help you determine what options to look for and what questions to ask. What you need to keep in mind is that you do not want to be underinsured or over insured, which means you have to do your homework before you buy. And as with any type of financial product, you must read the fine print and consult with a competent advisor. Considering the high level of underwriting losses, going forward adjustment in premium rates would occur when the industry matures and consolidation takes place. The ability to price effectively will also imply an increased focus on risk management by the General Insurance companies. The continual entry of new private players coupled with the intense competitions parked off by the detoxification of general General Insurance sector has also resulted in strengthening the bargaining power of the customer and development of customer centric General Insurance products. On the whole, while short term scenario for the general Insurance sector appears to be challenging the long term prospects definitely present ample opportunities for growth. While the government‘s plan to raise FDI cap in insurance companies from 26 to 49per cent will lead to more capital flowing in, the untapped market potential holds the opportunity to grow faster.

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The Indian insurance sector is rapidly moving towards international standards, market pricing and new/innovative product offerings. Big changes have occurred over the last decade. The major part of the revenue earned by general insurance is from auto insurance sector. Most insurance companies in India have comprehensive policies to help their customers. Some of them have also tied up with top automobile manufacturers for a fast insurance process. Auto insurance has started special services like 24/7 service by phone and provides online assistance on all days, including national holidays.

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BIBLIOGRAPHY

 Website

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www.google.com

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www.indiacore.com

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www.icici.com

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www.rilinsurance.com

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www.bajajalliaz.co.in

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www.gic.com

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www.nationalinsurance.com

 Books / Journals

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Insurance Magazines

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IRDA book