GIEAIA calls for merger of four public sector insurers

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GIEAIA seeks PSU insurer merger and better employee benefits

Chandigarh, September 25

The General Insurance Employees’ All India Association (GIEAIA), Northern Zone, on Friday intensified its campaign to strengthen public sector general insurance companies, calling for the merger of the four PSU general insurers into a single entity, increased recruitment, better employee benefits, and changes in insurance-sector policies.

The association’s Officers’ Wing, Class III Wing and Pensioners’ Wing conducted an outreach campaign across offices in Haryana and Punjab before holding interactions with employees and office-bearers in Chandigarh.

The GIEAIA said the four public sector general insurance companies — National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited — play an important role in providing insurance coverage and social and economic security to citizens, farmers, workers and small businesses. The Department of Financial Services (DFS), under the Ministry of Finance, is the nodal department for the insurance sector and administers laws and matters related to public sector insurance companies.

The association demanded that the Government of India merge the four PSU general insurance companies into a single public sector insurance corporation on the lines of the Life Insurance Corporation of India (LIC). The GIEAIA argued that competition among the four public-sector companies has weakened their financial position and affected their ability to serve policyholders.

The demand comes amid continued government-level reviews of the public sector general insurance companies. In a September 2 review, DFS examined the financial and business performance of the insurers and advised them to improve profitability, reduce claim ratios, expand insurance coverage and strengthen customer grievance redressal.

The GIEAIA representatives also raised concerns over what they described as heavy discounts and competition in the insurance business, saying that public sector insurers should not be weakened through pricing practices that could increase risks for the companies and ultimately affect policyholders.

On the regulatory side, the association sought stronger coordination between DFS and the Insurance Regulatory and Development Authority of India (IRDAI) and demanded measures to ensure that legitimate insurance claims are settled. It also called for higher third-party insurance premiums and stronger regulation of private hospitals, particularly on insurance claims and treatment costs.

The association said public sector insurers have helped respond to major disasters, including floods and earthquakes, by compensating affected policyholders. It said such institutions should be strengthened to continue fulfilling their public-service role. The GIEAIA also raised concerns about the movement of insurance business from public sector companies to private insurers and said it would undertake a nationwide public-awareness campaign to discuss the role of public sector insurance and seek public opinion on the issue.

On employee-related matters, the association demanded adequate recruitment across cadres, saying staff shortages had increased the burden of non-core work. It also sought reforms in promotion policies, timely wage revision and full pension benefits for employees covered under the National Pension System (NPS). The association demanded regularisation of contractual workers and caretakers, along with better pay scales. It said some caretakers had worked for decades on low salaries without adequate employment benefits, while contractual workers struggled to obtain even basic leave and service benefits.

The GIEAIA also sought early pension updation for pensioners and advance preparations for the wage revision due in 2027, on the lines of the banking sector. The association said it would continue its outreach across the country and involve citizens in discussions on the future of public sector insurance. The Chandigarh campaign will include visits to insurance offices and interactions with employees about the industry’s current situation.

The visiting team included GIEAIA General Secretary Trilok Singh, Pradeep Sharma, Parveen Kumar, Uttam Kumar, Deepak Kumar, Madan Lal, Rajan Verma, Sarvpreet Singh Bedi, Mohit Sharma, Sukhpreet Singh, Yogesh Gupta, Dalbir Singh Rawat, Rajesh Kumar, Ranjit Singh and Yogender, besides office-bearers and representatives from Haryana, Punjab and Chandigarh.