Chennai, Nov 30, : A couple of officials lost their board positions due to the Delhi High Court’s decision that the Banks Board Bureau could not select the General Manager and Directors for public sector general insurances. The court order had an impact on “a few officials in the government’s general insurance companies,” the official, who declined to be identified, told IANS.
General Insurance Corporation of India (GIC RE), a listed reinsurer, has announced that Madhulika Bhaskar has resigned as General Manager following the Ravi vs Union of India & Others order by the Delhi High Court.
In October, the Delhi High Court ruled that the BBB could not select the General Managers and Directors of public-sector general insurers because it is not a competent entity.
It also directed that appointments made pursuant the selections of General Managers and Directors of public-sector general insurers be canceled.
The decision was based on a case brought by National Insurance Company Ltd General Management Ravi.
He claimed that two people who were junior to him were chosen by the BBB to hold the Director position in public sector general insurances – in May 2021 and August 2020.
The court also ruled that the circulars allowing BBB to select the General Management and Directors of government-owned general insurers were not legally valid and were rescinded.
“The BBB could not have made the impugned selections.The impugned selections of General Management and Directors of PSICs (public-sector insurance companies) will be invalidated.It was ordered accordingly.”
The other question that might arise is: If the BBB isn’t competent to select Directors then how competent is the BBB to select the Chairman or Managing Directors for the public sector general insurances?
An industry official stated that there is no additional pay for a General Manager who is chosen as a Director, but that he/she and their families get the medical insurance benefit.
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