LIC CHAIRMAN TO COMPLETE TERM

Even as the government has notified rules to relinquish the position of Chairman at Life Insurance Corporation of India (LIC), M R Kumar would continue serving the post until he completes his term, said a government official. The position of chairman at LIC would be relinquished over a period of time, he added.

As part of a series of changes being undertaken for the Ipo-bound company, the government has abolished the position of chairman at the insurer, and will have a chief executive officer (CEO) and managing director (MD).

“For now, there will be a chairman at LIC whose role will be phased out gradually,” said the official. Through the rules, the position of chairman will be dropped, but it will not be done immediately, and over a period of time. Even when a CEO is appointed, the existing chairman can complete his term, and a new chairman can also be appointed, the official quoted above said.

In the case of LIC, many powers are vested with the chairman, and changes will be made, over a period of time, to transfer these powers to the board and the CEO, he said. Until then, the position of chairman would continue.

Last week, the government had amended the Life Insurance Corporation of India (Staff) Regulations, 1960, to allow the LIC Chairman to complete his term even if he attains 60 years of age. The amendment allowed the chairman to finish his tenure or until he attains the age of 62 years, whichever is earlier.