PSU insurers face uncertainty

The three PSU non-life insurers – National Insurance, Oriental Insurance and United India – are dealing with uncertainty on multiple fronts.

The Delhi high court order setting aside directors’ appointments by the Banks Board Bureau (BBB) on the grounds of jurisdiction has thrown into question the appointment of the chief executives too.

The erosion of capital has made it difficult for them to grow business or implement an overdue wage revision for employees. Also, the government announcement of privatising some of the companies even as an earlier plan to merge them hangs fire has added to the uncertainty.

In addition to appointing general managers and directors, the BBB had recommended the names of Inderjeet Singh and Suchita Gupta for the position of chairman and MD position at United India Insurance and National Insurance respectively this year.

Earlier this month, the Delhi HC, in response to a writ petition filed by National Insurance General Manager Ravi, said that appointments made pursuant to that of directors challenged in the writ petition are liable to be set aside.