The new norms now will allow eligible private sector professionals to apply for the CMD post of GIC Re, which has fallen vacant after N Ramaswamy retired on Sep 30

External Candidates applying for posts of CMDs of PSU general insurance companies should have minimum 21 years of experience with at least 15 years of experience in non-life Insurance (including general and health insurance) sector of which at least 2 years should be at the Board level or at least 3 years should be at the highest level below Board level (to be held on substantive basis

New Delhi: The government, since Oct 4, has thrown open one post of managing directors(out of four posts) in Life Insurance Corporation (LIC) and all the posts CMDs at PSU general insurance companies for the private sector professionals.

The Appointments Committee of the Cabinet(ACC) headed by Prime Minister Narendra Modi, from time to time, has approved guidelines for appointment of Whole-Time Directors on the board of public sector insurance companies. In order to have uniform sequencing of eligibility criteria and to align the same with the changing insurance industry, the ACC, in supersession of all the earlier guidelines on the subject, has approved the revised consolidated guidelines for appointment of whole-time directors on the board of public sector insurance companies, said ACC in a note .

These revised consolidated guidelines shall be applicable from the date of approval by the ACC which is Oct 4. In cases, where the Financial Services Institutions Bureau (FSIB), the head hunting entity of the government to select senior management(executive directors, CEOs, managing directors and CMDs of PSU financial institutions). has initiated the selection process but the candidate / panel recommendation is pending with FSIB, these revised consolidated guidelines shall apply.

The new norms now allow eligible private sector professionals to apply for the CMD post of GIC Re, which has fallen vacant after N Ramaswamy retired on Sep 30.

However, in case the FSIB has already sent the recommendation to Department of Financial Services(DFS), the process shall be completed as per earlier guidelines, said the guidelines approved by the ACC.

CMD, PSU Non-Life Companies
Age & Residual Service
The candidates should have minimum 45 years of age and 2 years of residual service [treating 60 years as the age of superannuation].

For Internal Candidates:
Minimum 1-year service as executive director or a total of 2-year service as general manager or above in a PSU non-life company on the date of vacancy.

For External Candidates:
The candidates should have minimum 21 years of experience with at least 15 years of’ experience in non-life Insurance (including general and health insurance) sector of which at least 2 years should be at the Board level or at least 3 years should be at the highest level below Board level (to be held on substantive basis.

One post of LIC MD

For the private sector candidates who are applying for one post of MD at LIC, the candidates should have minimum 45 years of age and 2 years of residual service (treating 60 years as the age of superannuation), the candidates should have minimum 21 years of experience with at least 15 years of experience in the life insurance sector of which at least 2 years should be at the Board level or at least 3 years should be at the highest level Board level

Three positions of MD shall be filled from the intemal candidates from LIC. Executive Directors/Zonal Manager (Selection Grade) with at least one-year service at that level shall be eligible.

The requirement of experience may be relaxed with the approval of the ACC, if sufficient candidates are not available.
For open position:
One position of MD will be open for all the eligible candidates from both public and private sectors. The eligibility criteria shall be-from the date of coming into force of these guidelines, the first vacancy for the position of managing director (MD) in LIC shall be treated as an open vacancy.

The period of appointment to the post of MD of LIC shall be for five years or the date of superannuation [treating 60 years as the date of superannuation], which ever is earlier.

The MD will be eligible for a fresh tenure beyond the period of five years up to the date of superannuation with the approval of the ACC.

For both LIC MD and CMDs of PSU general insurance companies, the selection process shall be in accordance with the FSIB.

FSIB may hire the HR agency for carrying out the behavior and competency assessment of the candidates.

The HR agency would be confined to only doing preliminary assessment about applicants.There shall be no marks for APARs. Candidates shall be awarded marks out of 100, on the basis of performance during interaction with FSIB.

Also, for the private sector candidates, applying for the position of MD at LIC and CMDs of PSU general insurance companies , clearances from Intelligence Bureau (IB) and IRDAI shall be required before submission of proposal to the ACC.