Irdai seeks increase in retirement age of members

Insurance regulator Irdai wants increase in the retirement age of its members.
The Hyderabad-based watchdog has written a letter to the Centre, urging it to raise the retirement age of its members to 65 years from the existing 62.
According to Irdai, members of other financial regulators remain in office till the age of 65 and this benefit should be extended to their counterparts in the insurance watchdog too.
Irdai had discussed the issue at its recently held board meeting and has now written to the finance ministry to bring about the necessary changes in the Insurance Act in this connection, a senior official of the regulator told PTI.

Section 5 of the Irdai Act says the tenure of whole- time members should be for a term of 5 years provided that no person continues as a whole-time member once he/she attains the age of 62.
Irdai has argued that the corresponding provision relating to whole-time members under the SEBI Act provides for a tenure of 5 years or till they attain the age of 65, whichever was earlier.

"With a view to bring parity in respective provisions of the Irdai Act, 1999 and SEBI Act, 1992, the regulator agreed to the proposal that the matter be referred to the DFS (Department of Financial Services) in the Ministry of Finance along with any other substantive amendments required in any other provisions of the IRDAI Act," the official said.

Currently, Irdai has three members and two other posts are lying vacant.
Irdai chairman T S Vijayan will retire in February next year on completion of his five-year term. VR Iyer (member finance and investment) retired in May.
The retirement of PJ Joseph (member, non-life) is due in June 2019 whereas Nilesh Sathe (member, life) will hang up his boots in May 2019.
Pournima Gupte (member, actuary) is the youngest among them as she has another three years at Irdai before she retires.