IRDA reject's Shah Rouf's appointemnt as Tata-AIA Life Insurance's MD and CEO

MUMBAI: The insurance regulator has rejected the appointment of Shah Rouf as managing director and CEO of Tata AIA Life Insurance, citing his governance and accounting lapses during his tenure as the head of Aviva in Romania.

The Insurance Regulatory and Development Authority ( IRDA) rejected the appointment after finding out Rouf’s failures, which, a person in the know said, the joint venture between Tata Sons and AIA International did not mention in its filing for approval.

A Tata AIA Life spokesperson, in an e-mail response, however, said, "All information pertaining to the appointment was completely disclosed to the regulator." The development comes as a setback for the already struggling insurance venture of the Tatas.

Tata AIA Life registered 22.47 per cent year-on-year drop in new business premium income last fiscal when the overall life insurance industry reported 11.56% jump in new premiums.

Rouf, former CEO of AIA Sri Lanka, was brought in as CEO designate of Tata AIA Life after M Suresh quit the firm as managing director and CEO in March. His appointment was subject to regulatory approval.

The person quoted earlier said Rouf ’s candidature was rejected after Irda learnt that the regulator in Romania had barred him from insurance industry on governance and accounting failures.

Rouf, who has about 18 years of experience in the insurance industry, was with Aviva NDB Insurance in Sri Lanka, before it was acquired by AIA Group in December 2012 and was retained by new AIA.

AIA International holds 26% in Tata AIA Life, which is the maximum permissible in the sector under the current foreign direct investment norms, with Tata Sons holding the rest.