Despite the government speeding up the LIC IPO, the post of IRDA chairman has been vacant for 9 months
A matter of serious public interest
The importance of a well-functioning IRDA can also be gauged from the fact that India’s insurance sector is much larger than the country’s mutual fund industry. If the MF industry manages assets of about ₹ 40 lakh crore and there is any delay in its regulation, ULIPs (unit linked insurance plans) by life insurance companies alone have an AUM (under assets) of about ₹ 40 lakh crore. . In addition, the AUM of traditional policies and annuity funds is over ₹ 26 lakh crore and over ₹ 9 lakh, respectively. It simply shows that the regulatory authority of the IRDA is no less important than that of the Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI). “There is no one to ring the bell for the cat, so the government has decided to run the IRDA without a chairman for nine months. The vacant post of IRDA chairman before LIC’s mega IPO is badly reflecting the image of the government, “said the former IRDA member. There was no one among the New Delhi bureaucrats who took on the responsibility of warning the ministers about the seriousness of the appointment of IRDA chairman at a time when India was fighting the worst epidemic. However, the same government body has acted swiftly to ensure that LIC’s mega IPO is not further delayed and that funds are raised during the current financial year.
Experts say the government should start the process of appointing the IRDA chairman at least six months before the current retirement, as it is a time-consuming process. The post of IRDAI chairman has been vacant since May 5 after Subhash C. Khuntia resigned after completing his term. Applications were invited in April 2021 to fill the post.
The IRDA chairman has a consolidated salary and allowances of ₹ 4.50 lakh per month without building and car facilities. Incidentally, the government has shown great generosity in extending the tenure of the current RBI Governor Shaktikant Das and has started the process for the appointment of SEBI chairman before the current Ajay Tyagi expires in March.
January 15, 2022