New Delhi: India plans to select a member of the private sector as the first chief executive of the Life Insurance Corporation of India in an effort to modernize its biggest insurer after a disastrous debut in the stock market, according to two government sources. This would be a first in the 66-year history of India’s largest insurer, which oversees 41 trillion rupees ($500.69 billion) in assets.
One of the government representatives, who wished to remain anonymous as the talks are confidential, said that “the government is going to broaden the eligibility criteria for selection of LIC CEO so that applicants from the private sector can apply.”
The officials made no mention of the potential appointee’s area of expertise.
Though the government had in principle reached a decision to hire people from the private sector, it was still examining whether more legal changes were necessary and whether it would offer salaries competitive with those in the private sector, according to the first official. Can
In general, private businesses pay more than the public sector. In the past, the government has appointed people from the private sector to other government organizations such as banks.
(with inputs from Reuters)