September 1, 1956, is a vital day within the historical past of Indian life insurance. Today the Indian Life Insurance Corporation begins its profession of service. The step which we’ve got taken is exclusive within the annals of life insurance, for in few international locations, if any, is there a company managing life insurance on a monopolistic foundation. It all of the extra behoves us to make sure that the results of this momentous step are of lasting profit to the nation. This calls for devoted service on the a part of all these related with the company from the best to the bottom.
On January 19, when the Life Insurance (Emergency Provisions) Ordinance was promulgated, the federal government assumed momentary administration of about 180 insurance corporations — life and composite, Indian and international, differing extensively in measurement and power — and of about 70 provident societies. The whole business in drive was of the order of ₹1,250 crore and the overall funds have been ₹380 crore.
CUSTODIANS
It thus grew to become our duty to make sure environment friendly administration of all these items. As, when it comes to the ordinance, it was solely the administration which vested within the authorities and never the possession, it was essential to proceed the businesses as separate entities. For the aim of environment friendly administration, custodians have been appointed to manage them on the federal government’s behalf. Coordination of the work of those custodians throughout this era was certainly a tough activity as a result of the various sample of inner group, the extensively differing measurement, power and standing of the businesses made it crucial for particular person consideration to be paid to their issues.
CORPORATION BILL
Coincidental with the idea of administration of those corporations was the need to discharge our duty to Parliament by looking for endorsement to the federal government’s proposal to nationalise life insurance. The Life Insurance (Emergency Powers) Ordinance was thought of by Parliament which endorsed the step authorities had taken. Thereafter, Parliament took up consideration of the Life Insurance Corporation Bill. After consideration of the choose committee’s report, Parliament handed the Life Insurance Corporation Bill.
IMPLEMENTATION
Our subsequent activity after Parliament handed the Bill, was to implement it. The Act supplied for the company to be introduced into being on an “appointed day” to be mounted by the federal government. It was felt that the federal government shouldn’t retain management over the administration of those corporations for a day longer than was needed, and may try and arrange the Corporation as early as doable, in order that it may soak up hand the tough and onerous activity forward. Accordingly, September 1 was settled because the date on which the Life Insurance Corporation would come into being. This determination meant that the time for the preparatory work was just a few weeks. The activity was certainly a formidable one, because it needed to cowl all features from the selection of divisional places of work to small particulars just like the finalisation of proposal types.
The Act itself has laid down that there shall be 5 zones — with the headquarters at Bombay, Calcutta, Madras, Delhi and Kanpur. We devoted appreciable thought to the placement of divisional places of work which can, for all sensible functions, perform in the identical method as head places of work of the previous insurance corporations. It was felt that the very best compromise between the pure need to have numerous divisional places of work and the paramount necessity of preserving bills down could be to start with 33 divisional places of work unfold out over the nation. Under these divisional places of work there could be a community of branches -some 180 in quantity — in order that policyholders, wherever they is perhaps dwelling, would have some workplace or the opposite of the company not removed from their place of residence. With this community of divisional and department places of work, it’s our hope that the Corporation will be capable to render immediate and environment friendly service to policyholders.
EXISTING POLICIES
A tough downside was the association for servicing the present insurance policies which quantity some 5 million. The working of insurance corporations had hitherto been extremely centralized. Practically, all work was being finished on the head places of work, the branches worrying solely with procuration of latest business. We, subsequently, confronted the formidable activity of splitting up the data of every of the 250 odd items in line with divisions; each account e book and each register needed to be gone into and new books and data ready in line with the divisional places of work in whose territory the policyholder lived.
To keep away from a breakdown in service, we thought it greatest that this activity must be unfold over a interval of months. As contemporary registers for a division have been bought prepared, the data could be transferred together with the lads attending to that work. Meanwhile the previous head places of work have been “grouped together into convenient service units”.
PROGRESSIVE OUTLOOK
To the members of the general public, I’d make a particular plea. They are conscious that each one insurance policies issued by the company have the assure of the central authorities with regard to cost. Their pursuits as regards final cost are thus 100% safe. But whereas safety is undoubtedly an necessary think about judging an insurance organisation, I’ve little doubt the company is not going to relaxation content material with merely providing safety however keep a progressive outlook conscious of the wants of all courses. The realisation of this goal would require, nevertheless, just a little time. I’d plead with the general public for just a little endurance and understanding.
I’d in conclusion ask the individuals to remember that after they take insurance cowl with the Corporation, they may, in impact, be contributing to the success of our Five-Year Plans. Here is a lever for purposeful saving within the full data that in serving to your self you might be additionally serving to, in constructing the nation. As a nation we’ve got the advantage of thrift ingrained in us. We should, all of us, canalise it into constructive and nation-building channels.
(Excerpts from an article printed in HT on September 1, 1956)
