VRS Round II: PSU insurers plan 15% cut in workforce

NEW DELHI: A second round of VRS for employees of PSU general insurance companies is in the offing to cut flab by 10-15% and improve efficiency. While the first round of VRS was offered to class-II or development officers last fiscal, officials of General Insurance Public Sector Association (GIPSA) said, adding the second VRS would be offered to class-I, class-III and class-IV staff. The proposal was given by GIPSA to the finance ministry but the companies have not been intimated about the details, a senior ministry official told.
Government targets to reduce staff in New India Assurance, United India Insurance, National Insurance and Oriental Insurance. “The second VRS would be announced hopefully in the later part of this fiscal. It will target about 10-15% of the 16,000 officials in the top management and lower grades,� senior officials in Oriental Insurance said.