``We will gradually convert ourselves from the role of a regulator to that of a facilitator in the general insurance industry,'' he told The Financial Express in an exclusive interview soon after taking charge as chairman of GIC.

Sengupta, who continues to hold concurrent charge as chairman-cum-managing director of New India Assurance, the GIC's largest subsidiary, says that he favours total operational freedom for the four companies. Unlike his predecessor, he does not want the subsidiaries to be merged in order to face the competition. He feels they are strong enough on their own. ``Each of the companies is worth a thousand crores (net worth) and they do not need any supervision from GIC,'' he says.

Moreover, he believes that mergers are difficult to digest.Pointing to the experience of the seventies, when several score insurance companies were merged to create the four nationalised subsidiaries of GIC, Sengupta says that it "took almost 10 years for things to settle down" after these mergers.

``There is no need for a merger of the four subsidiaries to face the new challenge of private sector entry in the industry,'' says Sengupta, but hastens to add that the ultimate decision will rest with the government of India. ``No private or foreign company can ever beat them in the domestic market,'' he asserted.

Sengupta says he is a firm believer in giving the GIC subsidiaries total freedom, with GIC being only a facilitator in creating a common code of conduct for providing customer service and evolving norms for profit recognition.

The Malhotra committee report on insurance reforms had suggested that GIC could remain as a national reinsurer and investment company and act as a holding company like Tata Sons, Sengupta points out.

``I do not want to interfere inthe management of the subidiaries,'' he asserts. This would include complete freedom in personnel policies. ``Why should GIC be worried about the number of people a subsidiary will have or the number of people the subsidiaries should promote?'' he asks.

However, the companies have to share a common standard in certain aspects of their operations as they are accountable to Parliament, the Comptroller and Auditor General, the ministry of finance and, above all, customers. In this connection, he said that he would be meeting the chiefs of the subsidiaries soon to identify the "common and individual areas of action".

Expressing deep dissatisfaction over the present state of affairs in the insurance industry, Sengupta said: ``I will give a maximum time limit of one year to myself to reorganise things in the industry.''

``We must also try and put a time-limit for all the four companies for delivering any kind of service,'' says Sengupta, who has worked 35 years in the industry and has been given an initialthree-year term as GIC chairman.

Among other issues which are high on Sengupta's agenda are the appointment of a consultant to reorganise the business of the industry and prepare a long-term business plan, including a well-laid-out succession plan for key officials.

Sengupta has already started meeting all sections of the unions to build up a consensus on the need to make changes in the industry. According to him, the four subsidiaries can make make vast improvements in productivity by opting for appropriate reward-punishment systems.

The GIC subsidiaries have enough products with the right pricing to take on any new players. Each one is a high net-worth, well-managed company with extensive national and international network. ``How many companies like these exist in India?'' he asks.

Sengupta, however, wants the industry to be given a level playing field vis-a-vis the other financial institutions which are planning to enter the insurance sector. He feels that the public sector insurance companies mustbe free to set up banks and expand their term-lending business.

Sengupta is also in favour of the subsidiaries setting up their own health insurance outfits, which runs counter to his predecessor KC Mittal's plans to centralise the operations with the holding company. Instead, he favours centralisation of the foreign operations of its subsidiaires. He also feels that GIC, if needed, could set up its own health insurance business.