Analyzed Insurance

The Indian Finance Ministry is to start searching for a regular chairman and managing director for state-owned New India Assurance following the suspension of chief, M. Ramadoss.

New India Assurance, the largest public sector unit (PSU) general insurance company, the government has to appoint a regular CMD. Also, it is difficult for the interim chairman to manage the affairs of Mumbai-based New India Assurance from Chennai, sources said.

The ministry will soon initiate the process. The search panel, headed by the Finance Secretary, will shortlist the candidates, sources said.

Subsequently, the appointment will be made by the Appointments Committee of Cabinet (ACC), sources added.

It is to be noted that G. Srinivasan, the CMD of United India Insurance, was given the additional charge of New India Assurance last month following the suspension of Ramadoss for alleged irregularities in the grant of credit insurance cover to a private airline.

Ramadoss has been suspended for alleged irregularities in the grant of credit insurance cover to Paramount Airways during his tenure as the head of Delhi-based Oriental Insurance Company.

Ramadoss is facing a probe for providing credit insurance cover to the airline in violation of Insurance Regulatory and Development Authority (IRDA) norms.

The source further said that Ramadoss could also face the possibility of a departmental enquiry for irregularities during his tenure as Oriental Insurance CMD.

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