Govt adds insurance experts to Banks Board Bureau

The government has appointed insurance experts to the Banks Board Bureau to help select and appoint directors on the boards of public sector insurance companies for a two-year term.

The three part-time, non-government members chosen by the Appointments Committee of the Cabinet are former LIC MD Usha Sangwan, former Oriental Insurance CMD AV Girija Kumar and former IRDAI whole-time member Sujay Banarji.

The appointments come after the Delhi HC said in an order that the Banks Board Bureau could not appoint insurance directors. The court order had also set aside the appointment of at least six directors. The court said that the appointments were contrary to the amendments in the General Insurance Business Nationalization Act.

“Consequently, The impugned selections could not have been undertaken by the BBB”, said the HC, which directed the government to make appointments according to law.