This is also for the first time that a serving CMD of a PSU entity is again appearing for the interview to be selected as a CMD of another PSU insurer. Earlier, there were instances, where CMD of one PSU general insurer had been shifted another PSU general insurer through an executive order of the department of financial services.(DFS)
New Delhi:
In an interesting turn of the events, the government has now decided to hold the interviews for selecting two CMDs, one for Mumbai based New India Assurance(NIA) and another for Chennai based United India Insurance( UII), together and have now added the names of Girija Subramanian, CMD, Agricultural Insurance Company (AIC) and Hitesh Joshi, general manager, GIC Re, to the existing list of four general managers, who were earlier only shortlisted for the selection of CMD of UII.
The interviews, to be conducted by the Financial Services Institutions Bureau(FSBI), for selecting two CMDs and nine executive directors across six PSU general insurers including GIC Re and AIC, will be completed over two days starting from Mar 20.
This is also for the first time that a serving CMD of a PSU entity is once again participating in the selection exercise meant to choose a CMD of another PSU insurer. Earlier, there have been instances, where CMD of one PSU general insurer had been shifted to another PSU general insurer by an executive order of the department of financial services(DFS) duly approved by the Appointments Committee of Cabinet(ACC).
However, the government had ended those practices some time back.
Asia Insurance Post had earlier reported that Subramanian may be considered for the top post of NIA.
While there is an existing vacancy at UII after Satyajit Tripathy retired in Feb end, Neerja Kapur, CMD, NIA, will be hanging her boots in Apr end.
Meanwhile, with the approval of ACC, three general manager & directors (GMDs)- G. Sundararaman of UII, Francis Titus and Smitha Srivatsava of NIA- have been upgraded as executive directors(EDs) effective from 21st December 2023-on notional basis and on actual basis from the date of the government order on 15th March 2024 till their retirement.
Sundararaman has further been elevated as CMD (officiating) of the company by the government with effect from 1st March 2024. Sundararaman will retire in Apr end.
Subramanaian was selected for the top post of AIC eighteen months back through an interview conducted by the FSIB.
Earlier, the DFS had shortlisted five general managers(GMs)- BS Rahul, Agriculture Insurance Company(AIC), Jayshree Bala and V Balkrishna from GIC Re, Sunita Gupta and Rekha Solanki from Oriental Insurance Company(OIC) for selecting Tripathy’s successor soon.
Except Rahul, rest have ben promoted as GMs just a few months back in FY 23-24. This is for the first time that the DFS has to tweak one of its important eligibility criteria, because of non-availability of eligible officials, where a GM needs to have completed at least for two years in the post, to be considered for a post of CMD in a PSU general insurance company.
“Now , it is a forgone conclusion that Girija will be selected for NIA,’’ said industry sources.
However, by the time the appointment letters are issued by the government for the newly selected officials including a new CMD for UII, it will take time as Prime minister Narendra Modi, who heads the ACC and gives the final stamp of approvals, will be busy for the Lok Sabha election during the next two months.
The FSBI is the headhunting agency for selecting officials for the posts above executive directors in the PSU banks and insurance companies.
It is headed by BP Sharma and has, among others, Vijay Joshi, secretary, DFS, Debasish Panda, chairman, IRDAI and three insurance experts, Girija Kumar,former CMD of Oriental Insurance Company, Usha Sangwan,former MD of Life Insurance Corporation, and Sujay Banarji, former member of the IRDAI.