Former Life Insurance Corporation of India (LIC) chairman T S Vijayan is likely to become the next chairman of the Insurance Regulatory and Development Authority (Irda). According to sources in the sector, he has been proposed by the Union finance ministry and the application sent for final approval. The current chairman, J Hari Narayan, leaves office on Wednesday.
Though the Central Vigilance Commission (CVC) had cleared Vijayan's name for the post last month, the Appointments Committee of the Cabinet (ACC) has yet to approve. Finance ministry officials said the appointment notification would be issued once this was done.
Usually, the ACC doesn't turn down a name once the CVC clears it. Insurance sector sources say Vijayan would get a five-year term. Under the rules, the chairman’s tenure is five years from the date of entering office but not beyond the age of 65 years.
For being eligible, a government circular had said the person should have at least two years of residual service on the date of vacancy, meaning he/she should not be more than 63 years of age as on this Thursday, when the position will become vacant. The chairman is entitled to a salary of Rs 3.75 lakh a month.
By the Irda Act 1999, its head chairperson and members would be appointed from persons of ability and integrity with experience in life insurance, general insurance and allied fields useful to the Authority. For being eligible, an individual would need to have 30 years of experience and should have worked as secretary to the Union government or its equivalent in a state government or other institutions.