The delay in appointing the new chairperson of Insurance Regulatory and Development Authority of India (IRDAI) is likely to prolong rollout of some key initiatives which are in the pipeline.

Debasish Panda, who joined as insurance regulator in March 2022 after serving as Secretary, Department of Financial Services, superannuated from IRDAI on March 14, 2025. The issue of notification inviting applications for the top post was released only a one week before his retirement and the last date for applications is April 6, 2025.

In his term of three years, Panda has initiated many initiatives that can transform the industry, some of which however are yet to be rolled out fully.

KEY INITIATIVES

The most important inittive was the Bima Trinity model - comprising of Bima Sugam, an insurance electronic marketplace, is being established as a robust digital public infrastructure enabling seamless integration with various services to facilitate purchase, sale, servicing of insurance policies, settlement of insurance claims and grievance redressal.

Bima Vistaar, the first-ever composite product covering death, personal accident, property and surgical hospitalisation at an affordable premium, is originally planned to be launched from April 2025.

The portal for Bima Vahak, the localised women-centric insurance field sales force, is near completion and gearing up for a soft launch for the Vahak onboarding starting April 2025.

The operationalisation of announcement in the Union Budget FY26 permitting 100 per cent FDI in insurance will also come into effect from the next financial year while there are hectic discussions with all stakeholders on the matter of removing GST on health cover.

“There things are at different levels of implementation which needs a vision of a Chairman to take them forward while the state lead insurer model, launched as part of the vision for Insurance for all by 2047, a brain child of Panda, has successfully taken off,’‘ said CEO of a private insurance company.

A few corporate honchos are also expected to throw their hats in the ring for the much-coveted post. According to sources, there was a response from the top CEOs of private insurers in the previous rounds of selection after the appointment of TS Vijayan, ex-chairman of LIC, as IRDAI’s chief in 2013 after the retirement of J Hari Narayan. However, the position has been a bastion for senior bureaucrats almost always. 

As per the notification issued by the Department of Financial Services, Ministry of Finance, the applicants should preferably have at least 30 years of relevant work experience, should have worked as Secretary to Government of India or its equivalent level in Government of India or State Government or other institutions.

Applicants from the private sector should have worked as CEO or equivalent of a large financial institution. The applicant age should not exceed 63 years as March 14, 2025. No one can hold office as chairperson after attaining the age of sixty-five years. 

The IRDAI chairperson gets a consolidated pay and allowances of ₹5,62,500 per month, without the facility of house and car. 

When contacted a senior IRDAI official said while the Chairman was key for major decisions, the routine administration will go on as per the procedures under the supervision of IRDAI members. 

Published on March 23, 2025