AIIEA Opposes Appointment of Private Sector Candidates to the top Positions of LIC and PSGI Companies

Ludhiana, October 15, 2025: The All India Insurance Employees’ Association (AIIEA), one of the oldest and main Association of LIC Employees lodges its strongest and unequivocal protest against the recent executive order issued by the Appointments Committee of the Cabinet (ACC) approving ‘revised consolidated guidelines’ for appointment of Whole Time Directors (WTDs), Managing Directors (MDs), Executive Directors (EDs) and Chairpersons in public sector insurance companies like the LIC and Public Sector General Insurance (PSGI) Companies and the Public Sector Banks including the State Bank of India.
 
These institutions are governed by Acts of Parliament- the LIC Act 1956, GIBNA Act 1972 and State Bank of India Act 1955. Their management structures, roles and appointment processes are clearly defined in these laws. The issuance of new guidelines without amending the enabling acts amounts to executive overreach and an undermining of parliamentary authority. 
 
This move strikes at the very ethos of nationalisation, which ensured that banking and insurance serve the public interest rather than private profit. The revised guidelines open the door for greater private influence and eventual privatisation of these eminently successful public sector financial institutions. These would threaten the economic sovereignty of the nation apart from endangering the security of people’s savings. Public sector banks and insurance companies have been the backbone of inclusive growth and social security. Any attempt to dilute their public character or shift control away from Parliament and the people is unacceptable.
 
While releasing the Press Statement, Divisional Secretary, Maan Singh said that the Opening the top-most positions of these vital institutions to outsiders from the private corporate sector by way of lateral entry will demoralise the officers already giving their best to these institutions and will be fraught with the possibility of disrupting internal career progression. The removal of APAR- based merit evaluation and employing private HR agencies for behavioural assessment will fundamentally alter the appointment framework mandated by Parliament. The AIIEA therefore demands the immediate withdrawal of the revised guidelines and calls upon the government to uphold parliamentary procedures, public ownership and engage in transparent consultation before making any such far reaching policy changes.