Hit by recession and unhealthy price competition in the domestic general insurnace industry, the Bajaj Allianz General Insurance Company, second largest private sector non-life insurance company, has laid off 350 staffs.
The latest lay off number is big compared to the figure of the last fiscal when nearly 200 staff of the company were issued the pink slip. Confirming the development, Swaraj Krishnan, chief executive officer, Bajaj Allianz General Insurance, told FE that ?Laying off the staff was the part of the company?s normal strategy and the staff that have been laid off this fiscal so far were working in different wings of the company.?
The company has also seen one of its most important bancassurance tie-up with HDFC Bank scrapped recently.
However, Krishnan dened the reports that most of the laid off staff were those that were involved in selling its products through the HDFC Bank. The company had reached an agreement with HDFC Bank to sell its product during the year, 2008. But, after floating its own joint venture in the non-life, HDFC Ergo, the bank will now stop selling the products of Bajaj Allianz General Insurance.
Commenting on it, Krishnan said that ?As the new non-life company, which has been floated by the HDFC, is yet to come up with its own products and they will continue to sell our products as per the agreement,? said Krishnan.
Asked about the closure of his company?s branches in places like New Delhi and Mumbai, Krishnan said, ?We have not closed any of our branches so far.? However, he agreed that relocation of branches are going on at the places where the rental lease agreement of the properties are being renewed.