Madhulika Bhaskar

Unlike the old practice, where normally two general managers of a PSU general insurance company, where the vacancy is occurring, are given charge as an interim arrangement till a regular CMD is appointed, this is for the first time, a general manager of another company that too from GIC Re, will be asked to hold the charge of CMD of another PSU general insurer

“Considering the situation, not before three to four months, NIA can have a regular CMD,” said industry analysis

There may be more vacancies of CMDs in the PSU general insurance companies as the government will soon select a new member(Non-Life) in the IRDAI as incumbent TR Alamelu is calling it a day on May 7 and it is likely that one of the CMDs of PSU general insurance companies may be selected for the Hyderabad post

New Delhi:

The government on Tuesday has appointed Madhulika Bhaskar as acting chairman of New India Assurance(NIA), the largest general insurer in the country having operations in 28 overseas countries.

Bhaskar, who was handling portfolios like Property and Nuclear and Terror Pools in GIC Re ,has taken her new charge at NIA on Tuesday.

The post has been lying vacant after Atul Sahai, retired as the CMD of the listed company on 28th February.

Asia Insurance Post on 27th February had published a story indicating Bhaskar may be posted as an acting CMD of NIA after the retirement of Sahai.

“The central government hereby transfers Bhaskar, GM, GIC Re, to NIA with effect from her joining untill further order. The posting is reckoned against the vacant post of CMD of NIA for her purpose of drawing her salary in the same terms and conditions of service as are currently applicable to her,” said an order by the ministry of finance(MoF).

NIA in a regulatory filing has said,“ Bhaskar has joined the company as a GM.”

Unlike the old practice, where normally two general managers of a PSU general insurance company, where vacancy is occurring, are given charge as an interim arrangement till a regular CMD is appointed, this is for the first time, a general manager of another company that too from GIC Re, will be asked to hold the charge of CMD of another PSU general insurer.

Also, the Banks Board Bureau (BBB), which has been formed to select executive directors and MD & CEOs of PSU banks since 20216 and has been selecting directors and CMDs of PSU general insurance companies since 2018, has not started the process for selecting a CMD for NIA as the Delhi High Court recently had observed that the Bureau was not a competent body to appoint a directors in PSU general insurers.

There is also a current case pending with the Delhi HC, where Inderjeet Singh,general manager, NIA, has challenged government act of appointing Satyajit Tripathi as CMD of United India Insurance(UII) who was selected by the BBB a few months back

The case, which came up for hearing yesterday, has been postponed to March 28 for the final hearing.

Effectively, MoF can’t start the process of appointing a regular CMD of NIA till Delhi HC delivers its verdict on the case.

“Considering the situation, not before three to four months, NIA can have a regular CMD,” said industry analysis.

There may be more vacancies of CMDs in the PSU general insurance companies as the government will soon select a new member(Non-Life) in the IRDAI as incumbent TR Alamelu is calling it a day on May 7 and it is likely that one of the CMDs of PSU general insurance companies may be selected for the Hyderabad post.

Among others,all the CMDs of the PSU general insurers including Anjan Dey, CMD, Oriental Insurance Company(IOC), Satyajit Tripathy, CMD, United India Insurance, Suchita Mehta, CMD ,National Insurance Company(NIC, Inderjeet Singh, GM, NIA have applied for the post of member, IRDA for which interview will happen shortly.

Meanwhile, with Madhulika being posted at NIA, GIC Re, busy with Apr 1 renewals, is facing an acute shortage of general mangers as it has now only three GMs left.

It was expected that one of the GMs of NIA to be transferred to GIC Re but is yet to happen.