Ensuring a good future

With the imminent entry of global players in the insurance sector, the Indian companies are beginning to feel the winds of change, and gearing up to meet the challenge.

WITH the wave of liberalisation sweeping across the nation, hitherto protected sectors are beginning to see and feel change. The skies opened to admit private airlines and the telecom world to accommodate private players. Banking saw the advent of professional, competitive organisations that rapidly weaned away harassed customers, fed up by dreary waits in dusty, chained vestibules, noisome and reeking with the discomfort of collapsed sofas, with the stuffing erupting from rat-infested springs. The next area to fall victim to the dawning of age of convenience is the actuarial sector.

The insurance sector saw its emergence in India before the dawn of the nineteenth century, where services were extended only to British expatriates. In 1872, the Bombay Mutual Life Assurance Company was established to provide cover to Indians. There was rapid growth between 1903 and 1912. The spread was encouraging till the Government of India took over the industry in 1956, handing over the monopoly to the Life Insurance Corporation of India.

Most of the activities of the insurance sector ran alongside the socialist policies of successive governments and the reach and dispersion of the industry permeated every aspect of customer concern. The LIC, the GIC and Postal Life Insurance are the major players in the field and deal with every aspect of life and human endeavour in the country, abroad, and in space.

The work deals with the calculation of risk, premiums and pension programmes. Actuaries also help in the solution of long-term liabilities of organisations. Careers exist in the industry at various levels, as working actuaries, as external agents and as surveyors.

An aspirant to a career in the insurance sector has to pass an exam conducted by the Actuarial Society of India. The Postal Life Insurance facility follows the recruitment pattern of the Postal Department. An insurance surveyor will need to hold a licence from the competent authority. An agent requires to be a matriculate or its equivalent. There is no formal examination, though the insurance companies conduct intensive training to enable aspirants to discharge their duties effectively. The annual openings for insurance agents are around 30,000, generally filled by people who prefer to do this work on a part-time basis. All agents retained by them require to be averagely literate, having good communication skills, and a tenacity of purpose that lends itself to persuasive strength. Agents need to pass a confirmation test before the expiry of one year to be retained by the insurance companies. This test is designed to test their personality, language and mathematical ability.

The nature of the work in an insurance company is loosely divided into four areas. In Administration, officers deal with the registry of claims within certain pre-determined limits, as also with the construction of policies and the examination of the numerous clauses and details of policies. A development officer will be required to meet clients, train agents, recruit new ones, and develop the business of the organisation. This is a sales function calling for a pleasing, people- friendly personality that engenders trust. An Accounts Officer will deal with the disbursement and management of funds, both of the customer/client as well as of the corporation's staff.

Investment Officers will, as the designation suggests, be responsible for the investment of the company's funds in a manner determined by the corporation's board. This calls for considerable skill as the suggestions of the officer will generally be taken into serious account while the corporate decision is made. The eligibility for the Class I or upper grade (direct recruit) is a graduate or post-graduate in any discipline with a minimum aggregate grade of B or 50%. A Class II officer will need to be a graduate in any discipline, while Class III and Class IV need to be senior secondary school leavers.

An Insurance Surveyor is appointed to access the loss claimed by clients. This job carries with it the onerous responsibility of making certain that claims put forward by clients are not false in any respect. While the idea is to minimise the loss to the corporation, the surveyor also has the responsibility of seeing that justice is done to the client whose loss must be compensated. Most surveyors are not employees of the corporations, but are approved by them for affiliation. A surveyor becomes eligible for his licence only if s/he is granted a fellowship or associateship of the Institute of Insurance Surveyors and Adjusters, Mumbai after passing an exam.

A successful candidate could also be a graduate or diplomate of any recognised institute of engineering, or a graduate in naval architecture or regular architecture. Fellows or associates of the Institute of Chartered, Cost or Works Accountants are also eligible.

Assistant Administrative Officers need to pass an objective exam that is designed to test their intelligence and general awareness apart from quantitative aptitude and logical reasoning. Successful candidates are called for interview and sent to training centres. The six-month training programme takes the candidate through the abilities expected of them after which they are appointed to their posts. Class II officers need to pass a test in English and Mathematics, followed by an interview.

Insurance Corporations offer ideal situations for those candidates who revel in field as well as desk jobs, love travelling and meeting prospective clients. Persons with a legal bent of mind, good at problem solving and possessing sound business sense will find this job fulfilling.

With the privatisation of the industry, it is expected that the induction process will streamline itself into areas of specialisation such as finance, marketing, sales, and client servicing. The sector is likely to become more professional and, in consequence, better remunerated. Service to the customer is expected to be of international standards and the industry will be perceived as being people-friendly. Jobs in this area will demand higher qualifications at most levels where the quality and extent of professional competence will make a considerable difference.

A. Siddhartha

hinduone@yahoo.com