LIC chairman SK Roy, another UPA appointee, resigns before his 5-year term

Another UPA government appointee at the country’s highest public institution has decided to step down abruptly. This time state-run life insurance behemoth LIC Chairman S K Roy has resigned from his post with nearly two years remaining to complete his five-year term. [caption id=“attachment_2850666” align=“alignleft” width=“380”] SK Roy. Reuters[/caption] Roy, who took charge as chairman in June 2013, has been with LIC since 1981. He has cited personal reasons for his premature exit from the country’s biggest public sector financial institution. Last Saturday, the current RBI governor Raghuram Rajan said he is not seeking any extension after his term ends on 4 September, and he will pursue academia at Chicago. Although, Rajan’s decision to call it quits was marred by several controversial statements by a key government person made in past few months, Roy’s exit announcement has so far been free of any negative press so far. According to sources, Roy has officially tendered his resignation and the Finance Ministry will send it to the Appointments Committee of the Cabinet for acceptance. However, the exact reason for his sudden exit is not yet known. In fact, he had made similar request some months ago but the Finance Ministry asked him to reconsider that, sources told PTI. After the approval from ACC, the Finance Ministry would begin search for his replacement, the sources have added. He assumed charge as Managing Director of LIC on 31 May 2013. Prior to his elevation, he was head of the International Operations division. A senior finance ministry official said Roy wanted to quit before this year’s budget. According to another official, LIC Managing Director VK Sharma may succeed Roy at the helm, Economic Times reported . “He has more tenure left and unless there is a decision to bring someone from the outside, he may sail through,” the person said. The other managing director with an outside chance is Usha Sangwan, the person said. Having taken charge as chairman in June 2013, Roy was focused on regaining market share lost to private insurers that promised better returns and customer service. After slipping to around 65 percent, LIC’s share of the insurance pie has climbed up to 71 percent. According to a ToI report, Roy had complained about being poorly paid. The corporation’s chairman is paid a gross salary of Rs 1.7 lakh per month. The corporation has assets worth over Rs 21 lakh crore and is more than 20 times larger than the next life insurance company. With agency inputs