Government clears appointment of PSU insurance chiefs

NEW DELHI: After a delay of almost a year, the government has cleared the appointment of a new chairman for country's largest general insurer New India Assurance.

G Srinivisan who was earlier heading United India Insurance will take over as CMD of New India Assurance.

New India Assurance was without a chairman since August 2011 when the government had suspended M Ramadoss, the then chairman of New India Assurance for alleged violations in issuing insurance cover to a private airline when he headed another general insurance firm Oriental Insurance.

The government has also cleared appointment of Milind Kharat who was heading Agriculture Insurance Company of India Ltd or ACIL as CMD, United India Insurance and PJ Joseph will take over as new chairman and managing director for ACIL.

The investigations against New India assurance ex chairman Ramadoss are still not over. Central Bureau of Investigation was examining Ramadoss' role in the irregularities in distribution of credit insurance cover to Paramount Airways.

This was the second instance when head of a public sector insurance firm was removed. Earlier, chairman of India's largest insurer Life Insurance Corporation, TS Vijayan was denied an extension after there were complaints against him.

Ramadoss was the CMD of Oriental Insurance when the credit insurance cover to Paramount Airways was approved. Oriental Insurance had confirmed that the company did not make any losses on Paramount's Account.