The GIPSA, the coordinating agency for four PSU general insurers and GIC Re, on Tuesday has informed that the department of financial services has agreed to revive the free health cover facilities for GMDs who were affected by the Delhi HC judgment in “Ravi Vs Union of India and others’ case
Sources in the ministry point out that preparations are on to appoint new GMDs after new selection body FSIB(Financial Services Institutions Bureau), in place of BBB, has been set up recently
New Delhi:
The government has restored the life time free health covers of 12 general manager directors(GMDs) who had lost their their directorship after the Delhi High Court (HC) had pronounced that Banks Board Bureau(BBB) was not empowered to select GMDs.
The GIPSA, the coordinating agency for four PSU general insurers and GIC Re, on Tuesday has informed that the department of financial services has agreed to revive the free health cover facilities for GMDs who were affected by the Delhi HC judgment in “Ravi Vs Union of India and others’ case.
Out of 12, six have already retired while others are still serving as general managers(GMs) in different companies.
When GMs are appointed as GMDs in a PSU general insurance company, unlike banking the officials continue to get the same salaries but just get one additional benefit- life time free health cover.
Sources in the ministry of finance (MoF) point out that preparations are on to appoint new GMDs after new selection body FSIB(Financial Services Institutions Bureau), in place of BBB, has been set up recently.
There are expectations that those GMDs who had to quit their directorship and still in service may once again be made director.
In fact, the PSU general insurance industry has not been able to complete its annual exercise to appoint new GMs this year, an exercise that gets completed by May –June of every year, till now as they are waiting for the government’s move to complete the selection of GMDs.
Each of the companies, New India India Assurance(NIA), Oriental Insurance Company(OIC), National Insurance Company(NIC),United India Insurance Company(UII) and GIC Re has posts of two GMDs.