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EXCERPTS Contd...GlobalizationIn December 1987, GIC, along with its subsidiaries set up a subsidiary in Singapore, known as India International Pte. Ltd. with a paid-up capital of S$25 million. It offered a wide range of insurance policies including those for motor, marine hull and cargo, personal accident, workmen's compensation, public liability, fire and miscellaneous accidents. India International became a leading insurance company in Singapore. During the same period, GIC also set up The New India Assurance Company (Sierra Leone) Limited and The New India Assurance Company (Trinidad & Tobage) Limited. Human ResourcesGIC's employees were grouped as Class I, II, III and IV. The officers were the Class I employees, development officers were the Class II emloyees, clerical and supervisory staff were the Class III employees, and subordinate staff were the Class IV employees. In 1997, a new wage revision policy was proposed and two new practices were introduced - 12% wage hike for all, and concept of Productivity Linked Lumpsum Incentive (PLLI). Prior to the implementation of this wage revision policy, the wages for the employees were revised in accordance with the wage revision for the banking industry. The new wage revision took place once in every five years. Social ResponsibilityFinanceIn 2001, GIC and its subsidiaries reported a total loss of Rs 17.22 billion as compared to the losses of Rs 12.14 billion in 2000, and Rs 6.87 billion in 1999. The net premium from fire insurance business stood at Rs 21.50 billion compared to Rs 24.04 billion in 2000. The net premium from marine insurance business stood at Rs 8.28 billion as against Rs 8.46 billion in 2000. The motor insurance business reaped a total premium amounting to Rs 33.62 billion in 2001 and Rs 23.17 billion in 2000... Future OutlookThe Indian General Insurance IndustryIn the 1970s, the general insurance industry was nationalized in order to increase the penetration of insurance in the country and make it available to the lower segments of the society, particularly the rural population. However, even after 40 years of nationalization, only 25% of the insurable population was covered by insurance. This was one of major reasons that lead the GOI to liberate this sector, so that private players could work towards extending the reach and coverage of insurance across the country.
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