Relaxation in Selection Criteria for LIC’s New Chairman Possible

New Delhi

Govt is looking to interview at least five candidates for the top job including some EDs

The selection criteria for the new chairman of the country’s largest insurer, Life Insurance Corporation (LIC), may be relaxed as the government is looking to interview at least five candidates for the top job including some executive directors, a senior government official said.

“We are in the process of finalizing the norms. We will start the selection process shortly ,“ he said, adding that an interview panel will be soon set up which might also have a representative from the insurance regulator, Insurance Regulatory & Development Authority of India as a member.

According to the insurer’s last annual report there are three managing directors and around 27 executive directors in the firm.

LIC Chairman SK Roy had unexpectedly resigned in June, two years before the end of his term. Roy later requested the government to relieve him under the VRS after realising that he stands to lose benefits including pension and other emoluments if he quit.

According to the LIC (Employees) Pension Rules, 1995, forfeiture of service, including resignation, dismissal, removal, termination and compulsory retirement, entail loss of past service and pension benefits.

“If the process takes time, then in the interim period, the seniormost candidate will be given the charge as officiating chairman,“ the above quoted official added.

Roy assumed charge as managing director for a month before being selected as the chairman in June 2013. Prior to that, he was head of the international operations division of the insurance firm.

Of the three managing directors in LIC, VK Sharma is the senior most and is tipped to succeed Roy once the appointments committee of the cabinet (ACC) accepts Roy’s request for VRS. The other two MDs are Usha Sangwan and SB Mainak. “The ACC has been apprised of Roy’s request and it is expected to take a decision within this month,“ said another official aware of the developments.

Roy’s resignation is a rare instance of a top LIC executive leaving prematurely . GN Bajpai resigned as chairman to join Sebi and TS Vijayan stepped down as MD to become chairman of IRDAI.

 

Source: The Economic Times

Date: 19th August, 2016

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