Madhulika Bhaskar, general manager, New India Assurance
`The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for entrusting financial and administrative powers and
functions of the post of Chairman-cum-Managing Director (CMD), New India Assurance
Company Limited (NIACL) on additional charge basis, for a period of three months with effect from the date of assumption of the charge, or till assumption of the charge by the regular appointee to the post,” said a DoPT order on Tuesday
New Delhi:
The government on Tuesday has entrusted Madhulika Bhaskar, general manager, New India Assurance(NIA), the additional power of the company’s CMD for a period of three months or till a regular appointment to the post is done, with immediate effect.
“The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for entrusting financial and administrative powers and
functions of the post of Chairman-cum-Managing Director (CMD), New India Assurance
Company Limited (NIACL) on additional charge basis, for a period of three months with effect from the date of assumption of the charge, or till assumption of the charge by the regular appointee to the post, or until further orders, whichever is the earliest.” said a DoPT order on Tuesday.
Though, Bhaskar was shifted from GIC Re to NIA in March after Atul Sahai retired as the CMD of the company in February end, to be an acting CMD of the company, she was not given the necessary power to function as a CMD of the company .
Currently, the government can’t make a regular appointment to the post of CMD of any PSU general insurance company as there is a case ` Inderjeet Singh vs Indian Government’ pending with the Delhi High Court challenging the power of Banks Board Bureau(BBB) to select any CMD.
Yesterday, the Delhi HC had adjourned the case to Sept 8. Till, the Delhi HC’s final verdict on the matter is out, the government can’t make any regular appointment of NIA CMD, said industry observers.
Also, though the government has already formed Financial Services Institution Bureau (FSIB) in place of BBB to select the top management of PSU banks and insurers, it can’t use FSIB platform currently to appoint a new CMD of NIA as the Delhi HC case is still pending.
In the absence a NIA CMD, the promotional exercises of the PSU general insurance industry from the post of deputy general manger (DGM) to general manger (GM), have got stuck as rules provide CMDs or directors of five PSU general /reinsurers have to be part of interview panel to approve the promotions.
Now that Bhaskar has been given the additional power of CMD post, she can participate in the promotional exercises which can be completed soon, said sources.