Actuaries protest govt 'interference'

Actuaries have upped the ante against the finance ministry's proposal to provide charter status to the Actuarial Society of India (ASI), saying the move will increase the government's interference.

ASI functionaries said as part of the proposed legislation, already cleared by the Cabinet, the government proposed to increase the strength of the ASI board from 12 to 16.

Additionally, four government nominees were also proposed to be on the board. The ASI board is the apex decision-making body for the actuarial profession.

"The move will only give powers to bureaucrats, who have no knowledge of the profession. They will meddle in our affairs in the same way they do in case of some other professional bodies," an ASI functionary said.

"For a profession to grow, it has to grow without government interference," ASI Chairman Liaquat Khan said at the Sixth Global Conference of Actuaries here.

ASI's comments come at a time when the department of company affairs in the finance ministry is planning to amend the Chartered Accountants Act, 1949, which among other things will provide more powers to the government.

Though the ASI had originally proposed the legislation, actuaries decided to oppose the proposed bill as no government assistance was planned under the new dispensation.

A similar Bill was also cleared for surveyors and loss assessors employed by insurance companies. Both the bills were cleared by the Cabinet some time back, but were not introduced in the Lok Sabha.

Following the entry of new players, the government had planned the two Bills to bring about greater professionalism in the two specialised fields.

Actuaries, who are the backbone of insurance companies, provide the inputs before the launch of each policy and determine the premium, based on mathematical calculations.

The move to provide a legislative backing to the ASI was aimed at increasing the credibility of the institution, as actuaries are dwindling in numbers. With the entry of private players, however, things changed and over the last three years.