BBB to hold interview to select LIC Chairman on January 4

1995-96 || Manmohan Singh’s last full budget announced a major financial sector reform plan, which set the stage for opening up a sector that was dominated by public sector companies. What reform is this? Ans: Singh proposed to establish an independent Regulatory Authority for the insurance industry that eventually led to the setting up of the Insurance Regulatory Development Authority (IRDA) of India. (Image source: Reuters)

A high level search panel headed by former DoPT Secretary B P Sharma is scheduled to conduct interview for selection of the chairman and a managing director of insurance behemoth LIC on January 4, sources said.

Vacancy of chairman post arised after retirement of V K Sharma on December 31, 2018, while position of MD fell vacant after superannuation of Usha Sangwan in September last year.

Life Insurance Corporation (LIC) executive board comprises of one chairman and four managing directors (MDs).

According to sources, as many as eight candidates are in the fray for the two position, including M R Kumar, Zonal Manager, Delhi, HS Shashi Kumar, Zonal Manager, Bhopal, Raj Kumar, CEO of LIC Mutual Fund and TC Susheel Kumar, Zonal Manager, Hyderabad. All of them are on executive director rank.

Since three remaining MDs are scheduled to retire this year itself, the chairman is likely to be appointed from the shortlisted executive directors.

Incumbent MD Sunita Sharma is scheduled to retire on March 2019, B Venugopal in May this year and Hemant Bhargava in July.

This is the first time an interview for the top position of LIC will be conducted by Banks Board Bureau (BBB) which so far used to select top management of public sector banks. Earlier, it was done by a panel constituted by the finance ministry.

Last month, the government constituted a separate seven-member panel to select managing directors of public sector insurance companies. The panel is headed by BBB chairman B P Sharma.

The other members of the panel are Financial Services Secretary, Department of Public Enterprises Secretary and Chairman of Insurance Regulatory and Development Authority of India.

Besides, three insurance sector experts -- G N Bajpai, Mathew Varghese and T Bhargava -- have been appointed on the selection panel.

The selected name will be forwarded to Appointments Committee of the Cabinet headed by the Prime Minister.