8 important Organisation Scheme of the LIC

8 important Organisation Scheme of the LIC

As per the suggestions of Era-Sezhiyan Committee, the LIC has adopted reorganisation schemes of its divisional and branch offices. At present the reorganisation work has been completed in all the divisions and branches.

Reorganised Divisions: The reorganised divisions have nine departments. The marketing department, planning and review department and divisional management committee are important departments of the divisions. There are discussed in the following sections:

1. Marketing Department:

It is responsible for branch performance and is the single point of contact for supervising them. The department is responsible for judging the quality of work done in branches through its sections sales, policy-holders’ service section, sales training section and branch support section.

(a) Sales Section:

It is responsible for carrying out supervisory functions relating to sales and the field-force and customer-satisfaction.

The major task of the sales managers in charge of the sales section is the supervision of the sales functions at the branches and the performances of the field-personnel.

This section is also responsible for spreading awareness among the general public about the benefits of life insurance and the nature of cover that LIC’s policies provide and how section assesses the quality of business of the various branches and effectiveness of their plans in penetrating the respective territories and markets assigned.

(b) Policyholders’ Service Section:

It is responsible for supervising the policyholder servicing function including claims and the operational function of early settlement of claims. It handles matters referred to divisional office by branches in respect to all policyholder’s service functions.

It may undertake the training of branch staff and carry out time liners and the quality of the service rendered by the branches to the policyholders. This section has also to deal with the individual cases referred to by branches. All old claims have to be got investigated and settled by this section.

(c) Sales Training Section:

This section is entrusted with responsibility for training in product, in selling and sales planning in the field personnel. It arranges and conducts training of field-personnel, such as ABM (D), development officers and agents.

(d) Branch Support Section:

It is responsible for providing secretarial support to the various sections in marketing department. It provides administrative support to the sections under the Marketing Manager. This section is responsible for analysis of budget proposals and monthly review of data.

They analyses the performance data, raise special issues concerning the performance of branches and generally help the various sections in the marketing department to process work and perform liaison work with other departments and take up routine functions as assigned to them.

They have to undertake general follow up of routine matters with the branches and with other departments of the Divisional Office.

The marketing department controls the entire sales and service functions in the Divisional area and also services as a single point contract between the branches and the departments of the divisional office.

2. New Business and Actuarial Department:

New Business and Actuarial Department is responsible as specialists to decide on the proposal referred to the divisional office in respect to all individual, SSS and GSD proposals, cheque, Declined Life Index Cards and undertake supervisory, inspection tasks, vis-a-vis branches.

They also have the responsibility to train new business incumbents in branches according to their judgment of their capabilities and of their needs. This department is responsible for supervision of branch functions from under-writing to issue of policy, appointment and control of medical examiners etc.

It underwrites proposals of higher sum assured, which are beyond the powers of the branches and conducts actuarial valuation and undertakes actuarial research.

3. Accounts Department:

The Accounts Departments is responsible for supervision of accounts in the branches, collection of branch accounts and all the accounting functions in the division, also training of staff and test-checking how well the work in branches is being done. Accounts department has two sections:

(a) Branch Accounts Section has responsibility for supervision of branch accounts, expenses and training of staff. They analyses the trial-balances from branches and recommend suitable action to divisional management, (b) General Accounts Section which has three units: (i) Cash and Banking Section; (ii) Salary and Provident Fund Section; and (iii) Final Accounts Section.

4. Legal and Mortgage Department:

The legal and mortgage department has the responsibility for all legal and mortgage loan work in the division. They advise branches when required for mortgage loans and legal matters.

5. Office Management Department:

The office management department consists of two divisions; (a) Purchase Section which has responsibility for purchases, inventory and materials utilisation and (b) Service Section that consists of security dispatch, duplicating and office services, transportation etc.

6. Machine Department:

It is responsible for data processing and offers service to user-departments in the Divisional office and to branches that do not have machine support.

It has two sections (a) System Section which is responsible to oversee the systems and programmes of data processing machines in branches and division; (b) Operations Section that is responsible for providing machine support to branches that do not have an in-house system, as also to the divisional office.

7. Personnel Department:

It consists of three sections:

(a) Management Development Section:

This section is responsible for management forecast, management development and career planning of staff. It has responsibility to ensure that branches implement the policies laid down in letter and spirit. They carry out periodic personnel audit to ensure that the corporate plans and policies are implemented satisfactorily.

(b) Industrial Relations Section:

It is responsible to develop relations with trade unions and to carry out negotiations in matters that relate to the division as a whole.

(c) Training Section:

It is responsible for organising programme for supervisors and middle management personnel within the division. This section is also responsible to organise functional programmes according to the needs of various departments in the divisional office.

8. Planning and Review Department:

The planning and review department has responsibilities in two main areas. One is the operation section with responsibility for locality data suitable for planning, education and developing among concerned people.

The other is the Special Studies Section with responsibility for undertaking studies that the performance data may indicate or the divisional management may consider necessary.