Oriental Insurance; the merger is unlikely to result in a large number of layoffs, as all three firms have reduced hiring and are operating with an optimal workforce, Consultancy Ernst & Young (EY) has suggested that the state-run National Insurance, United India Insurance and Oriental Insurance should be merged in the Business Standards Report within 18 months. The report stated that the management consultancy had evaluated several options, including merging the three insurance companies with New India Assurance.
“All scenarios were studied by the consultant. A government official said that the biggest problem of the merger of the three companies with New India Assurance was the subsequent listed status.
Money control could not independently verify the story.
The report said that a core committee constituted by the three insurance companies to look into the merger also recommended a time frame of 18 months.
In February last year, the government announced plans to merge National Insurance, United India Insurance and Oriental Insurance. It also announced its intention to list the merged entity on the stock exchange.
The three companies appointed EY in July to formulate a merger plan. The merger is unlikely given that all three firms have reduced hiring and are operating with an optimal workforce, the article stated.
EY stated that they would conduct a property valuation exercise of the three companies and submit the project report within a time frame of 18 months.
The report stated that the integration of work culture was to challenge a common software and rationalization of branches. The three companies have a total of 6,000 offices across India.
Oriental Insurance Company widow Rs 4.5 lakh
Five years after losing her husband in an accident, Manisha Devi, the widow of a CRPF jawan, was finally pronounced in her favor by a District Consumer Forum in Delhi. Noting that the action of the insurance company was “unfair”, the District Consumer Disputes Redressal Forum (East) gave Oriental Insurance Company Rs 4.5 lakh as insurance to the widow and compensation for “harassment, mental anguish and suffering” Is asked to pay an additional Rs 1 lakh.
The forum also directed the company to deduct compensation from the salary of the branch manager who rejected Manisha’s claim. “We direct that this amount of Rs. 1 lakh will be recovered by the insurance company from the salary of the branch manager, which rejects the claim of the complainant. The compensation amount is the result of an unfair action by the officers of the insurance company, who The complainant claimed, “The chairman of the forum NA Zaidi and one member T Vijayan passed the order.” The bench also remarked that “we are seeing in the case of insurance companies that they are interested in prolonging the insurance and their main objective is to reject the claim on one land or the other, whether that land is available or not”.
In 2010, Manisha filed a complaint with the District Forum in the capital, in which the insurance company rejected her claim. Vijay Kumar had two insurance policies worth Rs 4,50,500, with Manisha being a nominee. Before going to the East Delhi Forum, Manisha filed a complaint with the District Forum in Narnaul and the Haryana State Consumer Disputes Redressal Commission. The Narnaul District Forum rejected the claim on the basis of “lack of territorial jurisdiction”.
Manisha had sought an amount of Rs 1 lakh as compensation and Rs 50,000 as the cost of litigation. The company stated that “the claim filed by the complainant was against the terms and conditions” stipulating that the claim made after seven days from the date of the loss would not be entertained.