The northern branch of the All India Insurance Employees Association has voiced strong disapproval regarding a recent executive order. This order, sanctioned by the Appointments Committee of the Cabinet, introduces ‘revised consolidated guidelines’ for selecting top-tier executives—including Whole-time Directors, Managing Directors, Executive Directors, and Chairpersons—across major public sector insurance giants like the Life Insurance Corporation of India and the General Insurance Corporation of India.
Rajeev Sehgal, president of the association’s northern zone, stated on Tuesday, October 14, 2025, that these pivotal institutions operate under specific parliamentary acts, such as the Life Insurance Corporation Act of 1956 and the General Insurance Business (Nationalisation) Act of 1972. These laws meticulously outline the management structures, responsibilities, and appointment procedures for public sector insurance companies. The association argues that introducing new guidelines without amending these foundational acts represents an executive overreach, effectively undermining parliamentary authority. They believe this action fundamentally betrays the spirit of nationalization, which was established to ensure that banking and insurance sectors serve the public good, not private gain.
The association further warns that these revised guidelines could pave the way for increased private sector influence and ultimately lead to the privatization of these highly successful public financial institutions. Such a move, they contend, would jeopardize the nation’s economic sovereignty and endanger the security of citizens’ savings. Public sector banks and insurance companies have historically played a crucial role, forming the backbone of inclusive growth and social security initiatives.
Concluding their statement, the association emphatically demanded the immediate withdrawal of these revised guidelines. They urged the government to respect parliamentary procedures, safeguard public ownership, and engage in open and transparent consultations before enacting any policy changes of such significant national impact.