At LIC, govt may shun seniority to usher in SK Roy’s successor

By: | Updated: June 24, 2016 7:14 AM

The government will name a successor to Life Insurance Corporation (LIC) chairman SK Roy, who has tendered his resignation citing “personal concerns”, by the end of July, official sources said.

SK RoySK Roy took charge as LIC chairman on June 29, 2013 for a five-year term. He began his career in LIC as a direct recruit officer in 1981. (Reuters)

The government will name a successor to Life Insurance Corporation (LIC) chairman SK Roy, who has tendered his resignation citing “personal concerns”, by the end of July, official sources said.

Roy will remain in charge till his resignation is accepted by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. Roy’s successor will be selected by the government from within the organisation, but not on the basis of seniority, sources said.

While there were speculations about the reason for Roy’s resignation two years ahead of completion of his 5-year term, officials dismissed rumours of any pressure on Roy from the government.

“For some months, he has been talking about his personal concerns (and wanted to quit). There was no pressure from the government as such for any investment,” an official said. LIC uses its commercial judgement and that not a single call has been made by the government for any investment decision, the official added.

LIC, the country’s insurance behemoth, invested close to R2.7 lakh crore in equity and debt instruments in FY16. Of this, it invested R65,000 crore in equities.

LIC has invested heavily in stocks of public sector banks, who are going through a capital constraint due to sharp increase in their bad loans. The insurer has also invested substantially in most of the Centre’s big disinvestment in PSUs in the recent years, including in the R9,369 crore offer for sale in Indian Oil Corporation in 2015.

Roy took charge as LIC chairman on June 29, 2013 for a five-year term. He began his career in LIC as a direct recruit officer in 1981. While technically, Roy can still continue his service in LIC even after quitting from chairman’s post, the official said going by the nature of the problems mentioned by Roy, it seems he is quitting service as well.

Out of three managing director posts in LIC, only two are occupied by VK Sharma and Usha Sangwan while one is vacant.

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