The move will save RSA �10m a year

It said the jobs will be transferred over the next two years.

RSA added that the jobs would cover a range of front and back office functions, including call centre posts.

The insurer is the latest firm to move jobs to Asia to take advantage of low wages. Rival insurer Norwich Union aims to move 7,000 jobs overseas by 2007.

'Greater flexibility'

"As far as possible the reduction in UK jobs will be managed through natural turnover and redeployment," said RSA's UK chief executive Duncan Boyle.

This announcement clearly shows that offshoring present an unprecedented threat to UK jobs and the economy David Fleming, Amicus

"We work in a very competitive environment and processing some of our work in India will not only help us control costs but will also give us greater operational flexibility," said Mr Boyle.

RSA has been shedding thousands of jobs as part of a major restructuring intended to refocus on general insurance.

The firm has also sold its life business and other assets to strengthen its finances.

'Unprecedented threat'

In recent years, thousands of jobs have been moved overseas by UK companies seeking to benefit from cheaper labour costs.

Trade unions said RSA's decision meant further bad news for the UK's service sector.

"This announcement clearly shows that offshoring presents an unprecedented threat to UK jobs and the economy," said Amicus national secretary David Fleming.

"Over 8,000 job losses have been announced over the last few weeks," he added.

Last month, insurer Norwich Union said it was moving 950 call centre jobs to India and Sri Lanka, and that it intended to have 7,000 staff working in India by 2007.