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 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.

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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

Lloyds 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 companys

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.

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

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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

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 GENERAL INSURANCE

PERSONAL BUSINESS MISCELLANEOUS

PRODUCT PRODUCT 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 ones 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 insureds 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 insureds 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 :

a. Insurable interest

b. Utmost good faith

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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 Companyhave together grown at a

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

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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 years 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 formers 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.

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

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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

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.

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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 :-

Branch Manager A.O/AAO

Core Clerical Staff

Sr. Assistant Assistant Assistant Assistant

Sub Staff - 1 Sub Staff - 2

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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 potentialindividuals' capabilities, time, and talentsmust 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 organizationsthose with fewer than a hundred employeesthere

may not be an HR department, and so a line manager will be responsible for the functions of

HRM. In large organizationsthose with a hundred employees or morea human resource

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

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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.

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

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 HRM IN GENERAL INSURANCE COMPANY

detail when advertising the positioneither 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.

Performance Appraisals

Once a talented individual is brought into an organization, another function of HRM comes into

playcreating 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;

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 HRM IN GENERAL INSURANCE COMPANY

(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.

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.

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 changethrough

downsizing or expansionthe need for training and development programs continues to grow.

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 HRM IN GENERAL INSURANCE COMPANY

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).

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

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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.

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).

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 HRM IN GENERAL INSURANCE COMPANY

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 issuesnamely, 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 peacefullybefore the union

finds it necessary to strike or picket and/or management decides to institute a lockout

(Cherrington, 1995).

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).

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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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 HRM IN GENERAL INSURANCE COMPANY

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

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. Interview

VI. 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.

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A specimen proforma of the check list is given below-

(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

Communicating
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 HRM IN GENERAL INSURANCE COMPANY

(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. travelling

II. unsocial hours

III. unpleasant working condition

IV. demanding physical or mental effort

V. security risk

VI. 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

4. Other allowable expenses such as entertainment, club, etc

5. Days and hours of work

6. Holidays and leaves

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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.

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
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 HRM IN GENERAL INSURANCE COMPANY

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

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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 HRM IN GENERAL INSURANCE COMPANY

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 follows-

The 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 centres 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 centres 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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 HRM IN GENERAL INSURANCE COMPANY

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

follows:-

SEMINAR ON LOSS CONTROL-

The 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 SEMINAR-

The 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 SEMINAR-

The 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, personal, and management services personnel 6

administration.

PERSONAL DEVELOPMENT COURSE-

It 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

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 HRM IN GENERAL INSURANCE COMPANY

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 COURSE-

The 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 COURSE-

It 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 COURSE-

It 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.

MANAGERS COURSE-

This 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.

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 HRM IN GENERAL INSURANCE COMPANY

TRAINING PROGRAM PROVIDED BY GIC.

TYPE OF COURSE COURSE ELIGBLE JOB GRADE

DURATION
IN DAYS
FUNCTIONAL TRAINING

project management course 3 Officers between the Dy. Manager and

AAOs

Electronic documentary processing 3 Supervisory grade officer

appreciation course

Audit seminar 2 AAOs and Sr.asstt

Hindi seminar 3 Supervisory and grade II officer

MANAGEMENT TRAINING

Personnel development course 4 AGM and below

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

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 HRM IN GENERAL INSURANCE COMPANY

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

O.D.TRAINING

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 3 AAOs and above up to asstt. manager

GIC

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 HRM IN GENERAL INSURANCE COMPANY

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 by 10th January

To controlling div. office each year

b. From concerned div. office by 20th January

To controlling regional office each year

c. From concerned regional office by 31st January

To the head office each year

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

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 HRM IN GENERAL INSURANCE COMPANY

For officers and staff in division

a. From concerned div. office to by 20th January

Controlling regional office each year

b. From concerned regional by 31st January

Office to head office each year

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

II. For officers and staff in regional office

a. From concerned regional by 31st January

Office to head office each year

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

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 HRM IN GENERAL INSURANCE COMPANY

PROMOTION, DISCIPLINE AND HANDLING OF GRIEVANCES

OF THE GENERAL INSURANCE CORPORATION

(1) PROMOTION POLICY FOR SUPERVISORY CLERICAL AND SUBORDINATE

STAFF-

In 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 DRIVER-

Sub-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

candidate passing a driving test conducted by an examiner nominated by the promoting authority

and also subject to the condition .

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 HRM IN GENERAL INSURANCE COMPANY

(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

clerks post. Selection for promotion shall be based on seniority, work record and

qualification.

(3) PROMOTION TO THE CADRE OF ASSISTANT-

(a) CLERICAL-

The 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.

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 clerks scale.

Selection for promotion shall be made on the basis of seniority, qualification,

work record and interview.

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 HRM IN GENERAL INSURANCE COMPANY

(b) TYPIST

Record clerks 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

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 officer-

o 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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 HRM IN GENERAL INSURANCE COMPANY

(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 BINDINGS-

1. 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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 HRM IN GENERAL INSURANCE COMPANY

MISCONDUCT-

The 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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 HRM IN GENERAL INSURANCE COMPANY

(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 governments 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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BIBLIOGRAPHY

Website

www.google.com

www.indiacore.com

www.icici.com

www.rilinsurance.com

www.bajajalliaz.co.in

www.gic.com

www.nationalinsurance.com

Books / Journals

Insurance Magazines

IRDA book

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