The Union Government has recently extended the superannuation age of IPO-bound LIC Chairman to up to 62 years.
- The superannuation age was extended by amending the Life Insurance Corporation of India (Staff) Regulations, 1960.
- The changes made in rules are to be called as “Life Insurance Corporation of India (Staff) Amendment Rules, 2021.
- The retirement age for top executives of the majority of PSUs is 60 years except in the State Bank of India (SBI).
- As per the notification, if Central Government appoints Chairman for a term of office extending beyond 60 years of age, or extends the term of office to a period beyond 60 years, he shall not superannuate till such terms are completed or till he attains the age of 62 years, whichever is earlier.
- The central government had approved a nine-month extension to LIC Chairman M R Kumar from June 30, 2021, to March 13, 2022, recently in the backdrop of the insurer’s proposed initial public offer towards the end of the fiscal year 2021-2022.
- In her Budget speech this year, Finance Minister Nirmala Sitharaman had said that the Initial Public Offer (IPO) of LIC would be floated in 2021-22 as part of the ambitious Rs 1.75 lakh crore disinvestment target.
- The government has already amended the Life Insurance Corporation Act, 1956 along with the Finance Act 2021 to facilitate the public offer.
- Under the amendment, the government significantly increased the authorized capital of LIC to Rs 25,000 crore from Rs 100 crore which will facilitate listing.
- Life Insurance Corporation Act, 1956 mandates that, the authorized share capital of LIC will be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each.
About LIC of India:
- Life Insurance Corporation (LIC) of India is an Indian government-owned insurance and Investment Corporation.
- It is under the ownership of the Ministry of Finance, Government of India (GoI).
- The Parliament of India passed the Life Insurance of India Act on 19 June 1956 creating the Life Insurance Corporation of India, which started operating in September of that year.
- LIC of India was established on 1 September 1956.
- Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.
- The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least 17 sectors of the economy, including life insurance.
- It is headquartered in Mumbai, Maharashtra.