Life Insurance Corporation of India (LIC) may soon get a Chief Executive from the private sector. In a major development, government is reportedly seeking to choose someone from the private sector to lead the country’s largest insurer LIC.
According to a Reuters report, after LIC made a disappointing debut in the stock market, government is now looking at bringing someone from the private sector lead this state-owned entity. The report adds that LIC, the country’s largest insurer manages about Rs 41 trillion in assets and if a private sector professional is brought on board to lead, it will be a first in its 66-year long history.
As of now, LIC is headed by a chairman who largely overlooks the operations at the insurer. However, this post may be scrapped when the term of the present incumbent ends in March, as per the report. Once this happens, the government is expected to resort to finding someone from the private sector to lead it.
“The government is planning to broaden the eligibility criteria for appointment of LIC CEO so that private sector candidates can apply,” the Reuters report quoted a government official as saying. Another official, as per the report added, “The move will lead to more choices and send good signals to shareholders.”
The report goes on to elaborate on the appointment of the private sector professional as, “While a decision on appointing from the private sector had been made in principle, the government was considering whether further changes to the law were required and if the government could offer pay in line with the private sector.”
