Page 12 - The Insurance Times July 2025

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Govt May Relax Board Norms for Foreign Insurers mal government appointment, which
will bring stability to LIC's top manage-
Alongside 100% FDI Push ment following the completion of

The government is likely to allow foreign insurers to appoint a majority of Siddhartha Mohanty's term.
non-resident board members and key managerial personnel once the FDI
cap is raised from 74% to 100%, two senior officials confirmed. This move IRDAI Directs Insurers to
responds to longstanding demands from the US government and industry Expedite Claims in Air In-
stakeholders, including the United States Trade Representative and Coali-
tion of Services Industry. dia Crash Tragedy
"We plan to ease provisions related to board appointments. A US national The Insurance Regulatory and Devel-
or any foreign expert can be given leadership roles," said a senior official. opment Authority of India (IRDAI) has
The proposed changes are expected to be included in the upcoming Insur- issued an urgent advisory instructing
ance Bill, slated for introduction in the Monsoon Session. Officials clarified insurers to expedite and simplify claim
that while these reforms won't overhaul regulatory oversight, they reflect settlements for victims of the Air India
a more open stance toward foreign leadership in India's insurance sector. crash in Ahmedabad. Insurers have
been asked not to delay or deny claims
However, foreign insurers are still expected to rely heavily on Indian resi-
for deceased individuals listed among
dent professionals, maintaining operational continuity under IRDAI's super- passengers or those affected at the
vision. The move signals a progressive shift towards greater global partici- crash site due to procedural formali-
pation in the sector's governance.
ties. FIRs and post-mortem reports
have been waived.
FSIB Selects Doraiswamy experience, and fit with the role as IRDAI has called for a joint cell by Life
reasons for its recommendation.
as Next CEO & MD of LIC Meanwhile, Bhanoo has been granted and General Insurance Councils near BJ
The Financial Services Institutions Bu- interim charge as CEO & MD until Sep- Medical College to assist families and
reau (FSIB) has recommended R tember 7 or until the regular appoin- coordinate with insurers. Each com-
Doraiswamy for the position of CEO and tee assumes office, per a Finance Min- pany must appoint a senior-level nodal
officer for claim settlements and sub-
Managing Director of LIC, India's larg- istry notification.
mit weekly progress reports starting
est life insurer. Doraiswamy, who has
The leadership transition comes at a June 16.
been a Managing Director at LIC since critical time for LIC as it continues to
September 2023, was selected after navigate its post-IPO transformation, Insurers like LIC, Bajaj Allianz Life, and
an interface with four candidates, in- regulatory adjustments, and competi- HDFC Life have already initiated spe-
cluding Sat Pal Bhanoo, Dinesh Pant, tive pressures in India's evolving life cial measures. LIC will accept alternate
and Ratnakar Patnaik, on June 11. insurance market. Doraiswamy's con- proof of death, including government
records or official compensation. Bajaj
FSIB cited Doraiswamy's performance, firmation is now awaited through for-

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