Life Insurance Corporation of India's (LIC) chairman M R Kumar would continue to serve his post until he completes his term.
The development comes even as the Centre has done away with the position of chairman at the state-run insurer. The chairman's position at LIC would be renounced over a period of time, a government official told the Business Standard.
As part of a slew of changes being undertaken ahead of the state-run insurer's mega IPO (initial public offer), LIC will now have a chief executive officer (CEO) and managing director (MD).
"For now, there will be a chairman at LIC whose role will be phased out gradually," the official told the publication, adding that even when a CEO is designated, the existing chairman can complete his term, and a new chairman can also be appointed.
In LIC's case, several powers are vested with the chairman, and changes will be brought about over a period of time, to transfer these powers to the state-run insurer's board and the CEO. Until then, the post of chairman would continue, the official stated.
Last week, the Centre had amended the Life Insurance Corporation of India (Staff) Regulations, 1960, to let the LIC chairman to finish his tenure even if he reaches the age of 60.
The amendment will enable the chairman to complete his term or until he attains the age of 62 years, whichever is earlier.
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