The new members are Usha Sangwan, former MD, Life Insurance Corporation representing the life segment, A.V. Girija Kumar, former CMD, Oriental Insurance Company(OIC), for non-life, Sujay Banarji, former member,(Distribution), for re-insurance or actuarial science
New Delhi:
The government, on Monday, has inducted three new insurers in to the Banks Board Bureau(BBB), an autonomous head hunting agency to select and recommend the names for top posts in the PSU banking and insurance industries.
The new members who have been added to the BBB are- Usha Sangwan, former MD, Life Insurance Corporation representing the life segment, A.V. Girija Kumar, former CMD, Oriental Insurance Company(OIC), for non-life, Sujay Banarji, former member,(Distribution), for re-insurance or actuarial science.
This is also for the first time, the government has sought approvals of appointments committee of the cabinet(ACC) to name the members of BBB. Since the beginning of the formation of BBB, it was ministry of finance(MoF) that has been deciding the names of the members of BBB which has also banking and finance experts to selects MD and CEO, executive directors of public sector banks.
“The appointments committee of the Cabinet (ACC) has approved the proposal for appointment of three part-time, non-governmental members of the BBB for the purpose of selection and appointment of directors on the boards of public sector insurance companies, for a term of two years,” said a communication from Department of Personnel and Training.
However, currently there is a big question mark about the role of BBB in selecting candidates for the posts of directors and CMDs of PSU general insurers. as , at present, there is a case going on in the Delhi High Court which in one of its earlier verdict has already disallowed the jurisdiction of the BBB over making any selections of directors for the public sector insurers.
The Delhi HC had given such a verdict in case of Ravi vs.Union of India & Others had said BBB can only make select candidates for the banking industry and not for the PSU insurance industry.
It is not immediately known whether government has taken into account the earlier judgement of Delhi HC while inducting three new part-time members into BBB as the initiative to add insurance members in the BBB had started much earlier, said industry sources.
After that, Inderjeet Singh, general manager, New India Assurance(NIA), has also filed a case in Delhi HC pleading that the government hasn’t appointed him as the CMD of Chennai based United India Insurance though he was selected by the BBB and has challenged appointment of Satyajit Tripathy,for the same post, despite the fact that he was the reserved candidate for the post.
Justice V Kameswar Rao J of Delhi High Court, while admitting Singh’s case had reminded him about his earlier judgement which had disqualified BBB’s from selecting directors in the public sector general insurance companies as it was constituted to select the top officials the PSU banking industry.
After being pointed by the Delhi HC about its previous judgement disqualifying BBB from making any director level appointments in the psu insurance industry, Singh, though, had withdrawn his plea to become the CMD of UII, has challenged Tripathy’s appointment as CMD of UII.
The Delhi HC has already sough responses from government of India and Tripathy on Singh’s plea which will be now heard on Feb 3.
The government on 17th December hearing had informed the court that all the directors(except Tripathy) who were appointed by the government on the basis of selection by the BBB have been reverted back to their earlier position of general manger.
It is yet to be known after implementing court order in the matter of directors of PSU general insurers, what stand the government will take on the BBB, with regard its power to select top officials of the insurance industry, before Delhi HC which has a bearing not only on Tripathy’s appointment but also on some other appointments including a few CMDs of PSU general insurance companies and GIC Re, managing directors, and chairman of Life Insurance Corporation.
Also it is yet to be known whether in view of Delhi HC earlier verdict, BBB can continue its function to conduct interviews and select candidates for a few forthcoming vacancies in PSU insurance sector space including chairman and one post of MDs in LIC and CMD of NIA.