IRDAI chairman position lying VACANT for 3 months; insurance companies, customers under pressure during Covid 19

The Insurance Regulatory and Development Authority has been running without chairman for the past three months. What makes it worse is that the top position of Insurance sector regulator has been lying vacant during these difficult times of Covid 19 pandemic. This has become a big cause of concern for Insurnace companies and their customers.  

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As IRDAI's top position has been left unattended for the past three months, big policy decisions related to insurance sector have been stuck in abeyance since the last quarter. Insurnace companies are worried that this could lead to further delays in pending policy decisions.  

A MD and CEO of a private insurance company said that in the absence of IRDAI's chairman, the matters related to motor third party premium and health insurance premium have been affected adversely.  "Insurance sector has shouldered its responsibility by settling huge numbers of claims during the pandemic, however, this sector has not been provided any relief. Even banking sector was provided some relief, but the insurance sector got nothing," he said.  

This is for the first time that IRDAI chairman position has been lying unattended for such a long time. It is important that there should be a chairman to take policy decisions, said an MD and CEO of a company without divulging his name.  

An IRDAI official said that day-to-day works are being taken care of. "Even matters related to insurance companies are also being settled to a great extent, however, chairman-level decisions have to be made by IRDAI chairman only. Hopefully, appointment of new chairman will be soon," said the official on condition of anonymity.  

As per a general insurance company official, there has been great surge in claims related to coronavirus, however, third party motor insurance has not been changed for the past two years. " We make motor policy for three and five years and in this regard, a clarification is a must from the regulator," said a general insurance company's official.  

Delay in appointment-related notification one of the reasons 

It is said that one the reasons behind delay in appointment of IRDAI chairman is also due to delay in notification related to the appointment.  Earlier, the notification used to be released two months in advance of completion of tenure of the previous chairman. However, this time notification was released only one week before the Subhash Chandra Khuntia completed his tenure at the office. It was expected that Subhash Chandra Khuntia may be granted one year extension.  

As per the available information, IRDAI chairman position has seen application from around 30 to 35 candidates, of which 12 are serving bureaucrats, two serving member of IRDAI and remaining MD and CEO of private insurance companies.  

From government insurance sector, earlier General Insurance Companies CMD and LIC MD could not apply for the position because as per the new rules, only secretary level officers are eligible for this position. In that case, only LIC chairman MR Kumar is only eligible, however, he has been granted extension till March 2022. 

After Subhash Chandra Khuntia completed his tenure on May 6, 2021, the position of IRDAI chairman has been lying vacant since the first week of May.  The central government has issued a notification to fill the position of IRDAI chairman on April 30, 2021. As per information, the candidates have been shortlisted, however, the interview date has not been released yet. Given the current circumstance, it appears IRDAI chairman position may remain vacant for at least one month.