United India Insurance Chief quits

MUMBAI, HYDERABAD, JUN 4: MK Garg, chairman & managing director, United India Insurance has put in his paper on Monday. Garg confirmed to FE that he has resigned from his post on personal grounds.
“I am quitting because of health reasons,”said Garg, who had another four years to go. Garg, a charted accountant, was appointed as the chief of United India two years ago. He had one of the longest stints at the company along with other three chiefs of state owned general insurance companies, Oriental Insurance, New India Assurance and National Insurance.

Garg who was a general manager New India Assurance before taking over as the chief of United India was of late was keen to transferred to Delhi.
However, ministry of finance was to yet act upon Garg’s request to be shifted to Delhi. Meanwhile United India Insurance Company Ltd (UII) is planning to rope in management consultants with professional expertise who can advise, assist and partner with them and help in transforming the entity to meet the future market challenges and customer demands. The company has embarked on this initiative to get back its market share in the non-life insurance industry.

The insurance company, according to information available with FE, has been losing marketshare to its competitors over the past three years. It registered the highest loss ratio of 91.80% and management expenses to net premium ratio of 43.88% among all companies. Claim settlement ratios were lower than other public sector insurers. So to put in place a total connectivity between all operating offices and to stop erosion of its market share, a massive campaign is being implemented all over the country. The company is also developing a core insurance solution. As part of this overall exercise, UII is taking the help of management consultants.

According to information available, the mandate of the consultant would be to prepare a vision statement for UII upto 2025, chart out business strategies to be adopted to become a leader in the insurance industry and identify areas of new businesses which can be explored. Besides, the consultant would also work out strategies for expansion of the company both in the domestic and international markets. The consultant would work on various processes like policy issuance, claims settlement, grievance redressal and redesign them keeping in mind the customer responsiveness and efficiency of the organisation.

Source: Financial Express 4th June 2007 (Bureaus)