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The Election Commission of India (ECI) directive to the Finance Ministry barring fresh recruitment and appointment till the completion of the election process will stall top-level appointments in the insurance sector.
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 six general insurance companies including GIC Re and Agriculture Insurance Company till June 4 when the results for the general election will be declared, said an insurance sector official.
“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,” ECI said in a letter to the Finance Ministry.
The 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) for 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.
The Financial Services Institutions Bureau (FSIB), the head-hunting agency for PSU banks and insurance companies, has selected Girija Subramanian, Chairperson and MD, Agriculture Insurance Company (AIC) and Bhupesh Sushil Rahul, General Manager, AIC, as the next CMD of New India Assurance and United India Insurance respectively.
DFS had earlier shortlisted Subramanian and six General Managers for selection of two CMDs. The post of CMD at UII is already vacant after S Tripathy retired in February while the top post at NIA will fall vacant after Neerja Kapur retires in April end. NIA is the largest insurance company in the country. Meanwhile, the FSIB, for the first time, has selected nine executive directors for PSU general insurers including GIC Re and AIC.
