Govt hardens norms on Irdai, public insurer top brass' post-retirement jobs

The Union government has asked top brass of Insurance Regulatory and Development Authority of India (Irdai) and public sector insurers to make a declaration that their post-retirement assignments do not involve conflict of interest and their employer is not involved in intelligence gathering. 

The Department of Financial Services (DFS) has mandated the chairman and members of Irdai, chairman and managing directors of Life Insurance Corporation (LIC), and other public sector insurance companies (PSICs) to seek the Centre’s prior permission before taking up any post-retirement jobs, and share their professional/personal and the future employer’s details. 

This comes after the Centre had reportedly received complaints against two past Irdai chairpersons, Subhash Chandra Khuntia and T S Vijayan, for accepting post-retirement positions that were related to the insurance sector.

The IRDAI Act requires that chairman and members of the insurance regulator do not accept any central or state government position and appointment in an insurance company without prior approval from the Centre. Former Irdai chairman Khuntia was appointed as the part-time chairman of Jana Small Finance Bank, which also sells insurance products of private insurers as a corporate agent. Vijayan joined as a director in YES Bank that was also a corporate agent to insurers.

The government has now sought details from officials that include sharing their last association with the regulator or PSIC and the nature of business and services provided by their future employer. They have also been asked to share whether the official had any dealings with their post-retirement employer during their past three years of service with Irdai, LIC or PSICs. 

Officials will also have to share a description of their future duties and the remuneration they would receive, besides sharing if the position was advertised. If not, they would be required to share how they landed with the job. 

If officials are proposing to set up independent practice, they will be required to share their professional qualification in the field of practice and the nature of proposed practice. 

Besides, officials will have to provide a declaration that they were not privy to any sensitive information in the last three years of service, which is directly related to the areas of interest of the organisation they wish to join. They will have to declare that their involvement does not hamper India’s foreign policy or national security, and that the organisation is undertaking any activity for intelligence gathering. 

They will also be required to declare that the remuneration and benefits they are entitled in their new job, and whether it is in conformity with the industry standards.

TIGHTENING NORMS

• Steer clear of conflict of interest
• Declare last association with Irdai or public insurers
• Disclose nature of business at future employer
• Share remuneration to be received
• Declare that involvement does not hamper India’s foreign policy or national security