Govt likely to pick new LIC chief by July

The government is likely to appoint the new Life Insurance Corporation (LIC) chairman by next month following the premature exit of the incumbent, S K Roy.

The selection process will begin after acceptance of Roy's resignation by the Appointments Committee of the Cabinet headed by the Prime Minister Narendra Modi.

“The selection of the new chief should happen by next month. The candidate would be selected from within the organisation after interview,”senior officials in the Finance Ministry said.

Currently, there are two managing directors -- V K Sharma and Usha Sangwan. Besides, there is one vacancy of a managing director as well.

Asked about the reasons for Roy's resignation, officials said: “For some months, he has been talking about his personal concerns. There was no pressure from the government as such for any investment. Investment decisions are taken by the LIC based on commercial consideration.”

Roy, appointed by the previous United Progressive Alliance (UPA) government, has resigned nearly two years ahead of completion of his five-year term. He has been with LIC since 1981 and became chairman of life insurance behemoth in June 2013.

On May 31, 2013, he had assumed charge as managing director of LIC and a month later, he was elevated as chairman. Prior to his elevation as MD, he was head of the International Operations division.