By amending the Life Insurance Corporation of India (Staff) Regulations, 1960, the government has increased the retirement age of IPO-bound LIC Chairman to 62 years.
According to a government notification dated June 30, 2021, the amendments to the regulations will be known as the Life Insurance Corporation of India (Staff) Amendment Rules, 2021.
“Notwithstanding anything contained in these rules… government appoints the Chairman for a term of office that extends beyond sixty years of age, or extends his term of office to a period beyond… shall not superannuate till he completes such term…[or] attains the age of sixty-two years, whichever is earlier,” the gazette notification stated.
In light of the employer’s expected public offering near the end of current fiscal year, the government has allowed a nine-month extension for LIC Chairman M R Kumar until March next year.
Kumar’s term has been extended by the government from June 30, 2021, to March 13, 2022, when he will complete his three-year term.
To support the public sale, the government has indeed modified the Life Insurance Corporation Act of 1956 and the Finance Act of 2021. To enable the IPO, the government boosted the LIC’s allowed capital to Rs 25,000 crore from Rs 100 crore as part of the legislation.
The government holds the entire stock of LIC. With a projected worth of Rs 8-10 lakh crore, it is poised becoming the country’s largest corporation by market cap once it is listed.
The great deal of attention insurer in the country with a total asset base of Rs 31,96,214.81 crore.
According to provisional figures, LIC received the highest ever new business premium of Rs 1.84 lakh billion in the fiscal year ending March 31, 2021.