Insurance Regulator Clears 7-year Old Issue In 7 Days After Parliamentary Question!

The identification of sensitive posts and action to prevent corruption under provisions of the central vigilance commission ought to be central to the working of any regulator. Astonishingly enough, this key decision isn’t for a regulator. The Insurance Regulatory and Development Authority of India (IRDAI) had sat on this issue for seven long years until it was finally pushed to make a decision, in just seven days, when prodded by a question in parliament. 

On 26 November 2019, the IRDAI chairman approved a reply to a question in the Parliament with regard to the regulator filling up sensitive posts, which had been pending since 2013. A flurry of activity to decide this important issue began, only on 20 November 2019, after an email from the Rajya Sabha secretariat to the department of financial services (DFS) seeking response to question in parliament by Mr Javed Ali Khan.

In a written reply to a question by Rajya Sabha member, Javed Ali Khan on 3 December 2019, minister of state for finance stated, "IRDAI, in compliance of Central Vigilance Commission (CVC), guidelines (No. 18/Misc/02-392171 dated 23/08/2018 vide order dated 26/11/2019) has identified sensitive posts in the departments, which include positions handling registration and renewals of insurance intermediaries viz. corporate agents, insurance brokers, insurance marketing firms, surveyors and loss assessors and third party administrators, and those handling insurance product approvals."

The issues of sensitive posts in IRDAI started in September 2013 with the CVC issuing a circular (No03/09/13 dated 11 September 2013) that contain instructions for effecting rotational transfers of officials posted on sensitive posts. In the circular, the CVC had asked to identify sensitive posts and staff working in these posts and ensure that they are strictly rotated after every two-three years to avoid developing vested interests. 

The chief vigilance officer (CVO) of IRDAI prepared a note on 16 December 2013, in response to the CVC circular stating that "the nature of our organisation is such that the most of the functions are technical in nature and require specialisation, which come only after continuous exposure to the relevant fields." This is revealed in an office note dated 2 June 2014 prepared by the human resources (HR) department in IRDAI.

Meanwhile the CVC kept sending reminders to IRDAI and the vigilance department brought it to the notice of HR department. There were two specific notes dated 16 December 2013 and 20 May 2015, which the vigilance department put forth to the HR department. Both these notes and the CVC reminder was expected to reach the IRDAI chairman's desk for a decision.

However, instead of a decision, the CVO at that time, mentions in an office note that "Discussed the Chairman. We may have discussions with Departments for identifying Sensitive Positions/ Posts". This is revealed in reply to an application filed under Right to Information (RTI).

After this note, nothing moved in IRDAI and it appeared that this issue would also meet with same fate as the office notes dated 16 December 2013 and 20 May 2015. There was complete silence in IRDAI on this issue and everybody almost forgot about it, till the MP asked the question.

While after taking seven years, IRDAI had finally identified sensitive posts, it is not known whether it had rotated the staff and employees posted there as mandated by the CVC. 

Here is chronology of what happened in these seven days...

20 November 2019 - Rajya Sabha secretariat sent email to DFS informing them about the Parliamentary question

21 November 2019 - Umesh Chandra, under secretary in the DFS sent email to IRDAI seeking information to the Parliament question.

25 November 2019 - An office note dated "NIL" is prepared by the Vigilance Department in IRDAI that stated: "1.  As advised, a draft office identifying sensitive posts as marked in the pre-page is placed on the file for approval".

25 November 2019 - The CVO and chairman of IRDAI signs on it the office note on the same day i.e. 25 November 2019 identifying the sensitive posts in IRDAI.

26 November 2019 - An Office Note dated 26 November 2019 from the vigilance department is sent to the chairman of IRDAI for his approval to be sent to the DFS in reply to their email of 21 November 2019. This note states: "Authority has issued the list of Sensitive Posts vide its Office Order NO. IRDAI/Vigilance/Ord/Misc/210/11//2019 dated 26.11.19".

26 November 2019 - Chairman of IRDAI approves the reply to be sent to DFS regarding the Parliamentary question.