LIC may have three managing directors

The Centre will consider strengthening the Life Insurance Corporation of India (LIC) management by inducting one more managing director, taking the tally to three MDs.

This means the government will need to appoint two MDs and one chairman after the retirement of chairman S B Mathur and managing director R K Vashishtha on October 30 and September 30, respectively.

The state life insurance company has been asking the government to induct one more post of MD in view of the size of operations.

"We have just one chairman and two MDs though our operations are far larger than that of the General Insurance Corporation of India (GIC)," said a senior LIC executive.

LIC's asset base stands at about Rs 3,40,000 crore with almost 16 crore policyholders. Further, as LIC is growing at the rate of 60-80 per cent in new premium income, and operating in a changing investment environment, as well as has plans to expand its overseas operations, the organisation perceives the need to strengthen the top management.

The LIC has also been urging the government to induct independent board members for the past two years. This has become crucial lately as there has been a short fall in the necessary quorum to hold board meetings, officials added.

The finance ministry had last month interviewed 21 candidates for the post of chairman and managing directors.

Though no formal announcement has come from the North Block, R N Bhardwaj, managing director is expected to hold the fort as current-in-charge till such a time that the government takes a view of the next chief. This is also based on the current management view to have Bhardwaj as chairman till his retirement in May 2005.

According to the government policy of appointing the top brass, an individual ought to have a minimum of two years residual service and he should have been a director for a period of one year.