Effectively, for the PSU insurance industry , such a stand by the Election Commission of India, will stall all the new appointments, including Member(Distribution), IRDAI , two CMDS-New India Assurance and United India Insurance and nine executive directors (EDs) across the six general insurance companies including GIC Re and Agriculture Insurance Company, till June 4 when the election results will be declared
New Delhi:
The Election Commission of India(ECI) has clarified that under the Model Code of Conduct(MCC ) enforced due to the upcoming general elections in the country, the Ministry of Finance(MoF), PSU banks and insurance companies can’t go for new recruitments and fresh appointments till the polls are over. June 4 is the day for the counting of votes and the last day for the MCC in the country.
Earlier, department of financial Services(DFS) had sought clarification from the ECI whether it can go go ahead with promotions, transfers and new recruitments when the Model Code of Conduct is in force in the country.-
The MCC is in force since March 16, when the schedules for the general elections were announced by the ECI and polls will be held in the country from 19 April to 1 June.
“The Commission has no objection, from MCC angle, to the promotion/transfer of officers subject to the condition that no official involved in the election work in any capacity is relieved/dislocated till the election process is over. Further, the recruitment/fresh appointment shall be deferred till completion of the election process,’’ said a letter from the ECI to the MoF on Mar 28.
Effectively, for the PSU insurance industry, such a stand by the ECI, will stall all the new appointments including Member(Distribution), IRDAI , two CMDS-New India Assurance and United India Insurance and nine executive directors (EDs) across the six general insurance companies including GIC Re and Agriculture Insurance Company, till June 4 when the results for the general election will be declared.
Selection exercises for the IRDAI member and other senior positions in the PSU general insurance industry are already completed by different panels and currently names of the selected candidates are undergoing further scrutiny in the department of financial services before being sent to the Appointments Committee of Cabinet (ACC) headed by Prime Minister Narendra Modi for the final approval.
Besides, all the PSU general insurance companies, including GIC Re, are in the process of recruiting large number of officers and clerks to expand their dwindling workforce and they have to now wait till the conclusion elections to issue the appointment letters.
Also, as a fallout, the PSU general insurance industry now can’t conclude its wage settlement with the government. After PSU banking industry and Life Insurance Corporation(LIC),it is now the turn of the PSU general insurers including Agriculture Insurance Company and GIC Re to finalise the wage negotiations with the government.