Unlike Life Insurance Corporation, GIC and its subsidiaries, with a staff strength of around 80,000, do not have a single recognised union to date.Sengupta, who joined GIC last month, has unveiled a novel plan to revamp the industry at his first meeting with the chiefs of four subsidiaries (Sengupta is still New India Assurance chairman and managing director) last week.

"I have asked the chiefs of the subsidiaries to study the proposals and prepare a paper detailing their response. I do not want to dictate anything ... I want a consensus on a series of things before I kick off the restructuring process," Sengupta said. Heads of the subsidiaries and GIC will meet every month to decide on the future course, he said.

The other points onSengupta's agenda are redefining GIC's relationship with its subsidiaries for allowing them to open branches and pursuing their own promotion policy, preparing a well-laid out succession plan and unveiling a new approach to carry out annual assessment of staffers through a method of appreciation and counselling. Sengupta has also asked for suggestions from subsidiaries about their future relationship with the Insurance Regulatory Authority (IRA).

Explaining his efforts to introduce a productivity-related wage package, Sengupta said so far the centre had linked wage package of the general-insurance employees with that of the banking industry and LIC employees. "That ought to change," he said.

After a minimum pay scale, employees' salary should be linked to the turnover and profit they are able to generate, he said. GIC is preparing grounds for initiating dialogues with the unions to decide on the new pay scale. The productivity-linked wage package, along with a well laid-out succession plan, is necessaryto check any possible exit of the employees during the post-liberalisation period.

"Each subsidiary has to identify a pool of officers who can be entrusted with different important assignments at various levels. These officers should be informed much in advanced about their future responsibility so that they can take interest in their jobs,'' Sengupta said.

Sengupta has also asked the chiefs of subsidiaries to change the performance- appraisal procedures of the employees. "Let the authorities tell staffers about their strengths and weaknesses," he said, adding that the exercise should not be reduced to just a post mortem. The subsidiaries should independently handle the promotions of their employees save for general managers and assistant general managers. "They can take their decision without seeking approval of the GIC by sticking to clause 40 C of the Insurance Act which specifies the limit of the expenditure for the companies for their staffers and branches," he said.