letter to GIPSA on Housing Loan Revision - oicoa

THE ORIENTAL INSURANCE COMPANY OFFICERS ASSOCIATION(Central Committee)Regn. No. 2916/CNI(AFFILIATED TO THE NATIONAL CONFEDERATION OF GENERAL INSURANCE OFFICERS' ASSOCIATIONS)4. Collateral Security by way of Housing Loan Redemption Insurance Policy - The housing loangranted <strong>to</strong> the officer/ Employee should be secured by way of collateral security in the form ofHousing Loan Redemption policy <strong>to</strong> be purchased by the company. This will not only serve as akind gesture <strong>to</strong>wards the aggrieved family members as they will not be bothered <strong>to</strong> repay thebalance loan but it will also serve as a firm security <strong>to</strong> the loan granted by the company.It is requested that the idea of outsourcing the Housing Loan function in our Industry should berejected for all times <strong>to</strong> come because of the following:1. Housing Loan <strong>to</strong> Staff is not shown under “Non-Performing Loan” in the public disclosure,meaning thereby it is a performing loan. In Oriental itself an interest of about Rs. 8 Crores+ isearned every year against a loan of Rs. 120 Crores granted <strong>to</strong> its staff.2. Housing Loan <strong>to</strong> officers/ employees is not a loosing proposition, it is profit making venture byway of interest earning. Approximately Rs. 45-50 crores of interest is earned by way of housingloan <strong>to</strong> officers/ employees across the industry.3. Housing Loan function deploys hardly 7-8 officer/employees on full time basis at Head Officelevel. At Regional office level it deploys officers/ employees of personnel dept. on part timebasis. There is hardly any expenditure on maintaining housing loan in-house function.4. Out sourcing of housing loan activity will involve a subsidy <strong>to</strong> the financial institution involvedand would cost about Rs. 100 Crores by rough estimates <strong>to</strong> the industry. Which is not arecommended by any means.We hope that these recommendations shall be deliberated with a positive frame of mind during thenext Governing Board Meeting at <strong>GIPSA</strong> and the Housing Loan Scheme shall be simplified andrestructured as proposed above. Even if an officer/ employee gains monetarily, organisation will alsogain in tangible and intangible forms both as only a happy & satisfied internal cus<strong>to</strong>mer can make theexternal cus<strong>to</strong>mer happy and ultimately keeps the organisation growing.Thanking you,Yours faithfully,CC.: Dr. R K Kaul, CMD, The Oriental Insurance Co. Ltd.Shri M. Ramadoss, CMD, New India Assurance Co. Ltd.Shri NSR.Chandraprasad, CMD, National Insurance Co. Ltd.Shri Yogesh Lohiya, Chairman, GICShri M. Pershad, CMD, Agriculture Insurance Co. Ltd.(VIVEK SAXENA)GENERAL SECRETARYADDRESS: web www.oicoa.net e-mail: viveksaxena@orientalinsurance.co.in; wewakesaxena@gmail.comOffice: C/O IT Dept., 2 nd Floor, Oriental House, The Oriental Insurance Co. Ltd., Head Office, New Delhi 02Cell - 09871278625; LL 011-43659216 (Off) ; FAX – 23269087 (C/O DGM – IT)Association Office: 2 nd Floor, Mittal Building, 4/12, Asaf Ali Road, New Delhi 110002 Phone: 011-23268595