IRDA member actuary's appointment could be some time away

Life insurers feel delay in appointment is affecting the industry

The position of Member Actuary at Insurance Regulatory and Development Authority (Irda), which has been lying vacant for more than two years, is expected to take longer to fill. While the final appointment order is yet to be passed, life insurers are expressing concerns over the vacant seat.  

R Kannan, Former Member-Actuary at Irda retired in early 2011 and the position is vacant since then. The finance ministry in December 2012 had bought out an advertisement for filling the post. Three people including Irda joint director Meenakumari J, Irda deputy director Shyama Prasad Chakraborty and Pournima Gupte, an actuary at Reliance Life Insurance had been interviewed for the post.

However, no final decision has been taken on the candidate who would take up the position. Finance ministry officials said that Gupte is the likely candidate, but added that the name is still to be cleared. Irda had earlier advertised for the post, but did not receive sufficient response.

"The industry is suffering because of the absence of the member actuary at Irda. Since product approvals are at its peak, delays could have been avoided if the position was filled earlier," said a senior life insurance official.

Senior appointments under the Government of India require the approval of the Appointments Committee of the Cabinet (ACC). The Prime Minister of India, Minister of Home Affairs and Minister in-charge of the concerned ministry are members of ACC.

ACC is yet to take a final call on the SBI Chairman, since the PM was on an international visit. The other appointments that are pending before the ACC include the two new managing directors at Life Insurance Corporation of India (LIC).

Department of Financial Services, a unit of the finance ministry that looks after the insurance, banking and pension sectors invited applications for the post of Whole-time Member (Actuary), IRDA, on deputation basis/direct recruitment on contract basis. While the pay was fixed at Rs 3.12 lakh per month for this post, industry experts opined that actuaries could be paid much higher in private sector companies.