After spilitting the post of chairman and managing director in the public sector banking industry,the government now may be intending to institute similar arrangements for the public sector insurance sector.
For the first time,the government has constituted a seven-member panel to select managing directors of public sector insurance companies.According to sources, the panel would be headed by Banks Board Bureau (BBB) chairman B P Sharma.In 2014 the Modi government had constituted BBB to select managing directors and chairmen for public secto banks after the post of CMDs was bifurcated into two seprate positions as non-executive chairman and managing director.
The other members of the panel are Financial Services Secretary, Department of Public Enterprises Secretary and Chairman of Insurance Regulatory and Development Authority of India, sources said.
Besides, three insurance sector experts — G N Bajpai, Mathew Varghese and T Bhargava — have been appointed on the selection panel.
All the state owned general insurance companies like New India Assurance, United India Insurance, National Insurance Company, Oriental Insurance Company, Agriculture Insurance Company and ECGC are currently headed by CMDs.
Similarly, state owned GIC Re has a CMD at its helm.
However, the Life Insurance Corporation is managed by an executive chairman and four managing directors.
If Sharma panel will have to look for non-executive chairman for four public sector general insurance companies as all the CMDs of these companies have two to three years of residual services.
Alice Vaidyan,CMD,GIC will be retiring in Juy 2019.