INITIATIVE: AN ACTUARY'S VETO!

SERVICE STORY : My LIC days.

by PG.POOCHERY

What is efficiency? Plain dictionary meaning of the word 'efficiency' is, the ability to do something well or achieve a desired result without wasted energy or effort.

The new business department of life insurance corporation used to copy out certain details of insurance proposal papers on a form called 'review slip'. A decision will then be taken by the underwriter and recorded on the review slip. This is an efficient practice continued in the corporation since its inception.

It was sometime in the late seventies, I raised the question why these details are being copied out on this review slip for taking a decision? It was the practice in the erstwhile insurance companies to procure business through its business centres all over India and to send the same to the head offices for final decision or 'underwriting' as it is known in insurance parlance.

At the head offices, these papers were underwritten by such important persons like managing directors or actuaries or top management level officers. It was difficult for them to go through each and every detail of these proposal papers and take a decision. Moreover there was also language problem since some of the proposal papers were in local languages.

It was therefore the practice in these offices to take out important details necessary for underwriting and prepare a review slip for facilitating the decision making process. It was practically difficult for these important persons to scan through each and every proposal papers to arrive at a decision. For the reason that even there were proposal papers in vernacular also, it was found necessary to prepare a review slip in English at the procurement stage itself and send the same to the head offices.

This review slip was therefore an inevitable part of the office system. But then, many years passed by. These private insurance companies were nationalised. More and more divisional and branch offices were opened. The work of underwriting was transferred from head offices to the local divisional offices. And from divisional offices to branch offices. There was complete transformation.

From managing directors and actuaries, the work was transferred to lower level officers in divisional offices. And finally when the work was decentralised to branch offices, underwriting work came to be handled at the clerical level.

Even higher grade assistants demanded review slips for underwriting purposes. Only when the details are rewritten on review slips, he would underwrite. Maybe on an average such an assistant received two or three or five or ten proposal papers daily. Even with the time required for preparing review slips, it was possible to go through actual details on the original proposal papers itself and note down his decision then and there itself. The only requirement was the provision of sufficient space somewhere on the proposal paper, preferably on front page itself.

Then I designed a proposal-cum-review slip. When this proposal paper is used, there was no need to prepare a review slip. I prepared a book titled 'methods' which included this proposal-cum-review slip along with several other suggestions for work improvement.

On an invitation facilitated by Mr. Chidambaram, Managing Director, I visited central office at Mumbai. There I had discussion with management systems department and actuary. Actuary Mr. Ramakrishnan was of the opinion that as long as all the questions in the proposal form are retained, he had no objection to the proposed changes.

Then it was decided to bring about the desired changes. The secretary of the concerned department and his officers were present when the details of the circular letter were discussed. I was also a proud man to be present in that meeting at the central office. Eventually the circular was issued to divisional offices.

***

I returned to Calicut. I had a discussion with the local division head. In the meanwhile he had also received the circular from the central office. To my dismay I found that this proposal form in the revised format was not introduced at all at Calicut. For sometime it was the excuse that there was huge stock of old forms. Thereafter I didn't hear any reason at all. But the neighbouring divisions had introduced the new method of completion of proposals.

That was a prejudice of a local division head. Who am I to discuss such matters with Central Office and get a circular issued? Great things should come through great people in the organisation. Actuaries thought, such ideas should come from actuaries only.

This division head had passed a few papers of this actuarial course. Perhaps he also thought that it was his prerogative to think aloud on such subjects. And surely not an employee working under him!

I only wondered what would have been the plight of the division if the division head had completed the whole actuarial course!

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