Call for withdrawal of revised guidelines for top appointments in public sector insurance companies

The northern chapter of the All India Insurance Employees Association has raised objections to a recent executive order issued by the Appointments Committee of the Cabinet approving “revised consolidated guidelines” for the appointment of Whole-time Directors, Managing Directors, Executive Directors, and Chairpersons in public sector insurance companies, including the Life Insurance Corporation of India, and the General Insurance Corporation of India.

Rajeev Sehgal, president of the association’s northern zone, on Tuesday (October 14, 2025) said in statement that these institutions were governed by Acts of the Parliament, including the Life Insurance Corporation Act, 1956, and the General Insurance Business (Nationalisation) Act, 1972. Public sector insurance companies’ management structures, roles, and appointment processes have been clearly defined in these laws, the statement said. “The issuance of new guidelines without amending the enabling Acts amounts to executive overreach, and an undermining of parliamentary authority,” the association said, adding that the move strikes at the very ethos of nationalisation, which ensured banking and insurance served public interest rather than private profit.

“The revised guidelines open the door for greater private influence and eventual privatisation of these eminently successful public sector financial institutions. These would threaten the economic sovereignty of the nation, apart from endangering the security of people’s savings. Public sector banks and insurance companies have been the backbone of inclusive growth and social security,” the statement said.

“We demand the immediate withdrawal of the revised guidelines and urge the government to uphold parliamentary procedures, and public ownership, and engage in transparent consultation before making any such far-reaching policy changes,” the association said.