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Insurance Council Hires Ex-Industry Officials To Cut Cost

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For cutting expenses, the Insurance Council has started appointing retired officials at ombudsman centres to restore its accessible workforce comprising officials on deputation.

The council that facilitates functioning of 17 insurance ombudsman centres and employs 120 people, has previously appointed 23 retired officials from state-owned non-life insurance companies. Now, it will start appointing staff from life insurance sector as well as it seeks to cut its business costs over the next two-three years. A decision to this effect was taken by the council during a recent meeting held here.

“Our establishment cost currently stands at around Rs 27 crore per annum. In case our plan to appoint retired insurance officials at the ombudsman centers is implemented successfully, then this cost is all set to come down by almost half,” the council’s Secretary General Ramma Bhasin, said.

“At present, we are paying Rs 1 lakh per month on an average to those staff who have come to work with us on deputation from their parent organisation.

“But in case of contractual employees, we need to pay between Rs 25,000 and Rs 40,000 a month only,” she said, adding “we want to use more and more money on investor awareness programmes”.

The council has approved the appointment of retired officials to work at the ombudsman centers as specialized experts for a time frame of one year, extendable by another year.

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