India:Court Says Bank Board Lacks Authority To Appoint GMs Of State -Owned General Insurers
The Delhi High Court has ruled that directors and general managers of public-sector general insurance companies should be selected on the basis of seniority. They should not be appointed by the Banks Board Bureau (BBB) because it is not a competent body.
The Delhi High Court thus set aside five appointments made by the BBB between 2018-2020 to these posts. They were contrary to amendments to the General Insurance Business (Nationalisation) Act, 1980.
The case for selection based on seniority was filed by National Insurance Co general manager Shri Ravi, according to local media reports.
Sources in the industry say that Mr Ravi was set to receive a promotion to director under earlier seniority-based rules. But, when it fell to the BBB to make the appointments, he was not selected.
In its order, the Delhi High Court said, appointments made on 13 December 2018, 9 November 2019 and 9 June 2020—to hire new directors and general managers at New India Assurance, Oriental, National and United India Insurance—will be set aside. The Court directed the government to adhere to the later.
China: CBIRC Urges Insurers, Banks To Support Coal Sector
China’s banking regulator said yesterday that lenders and insurers, including policy banks, must ensure that the financial needs of the coal and power sectors are met so that consumer heating during winter is not affected, according to a Reuters report.
Beijing is racing to deliver more coal to utilities to restore supply as nearly two-thirds of provinces grapple with power rationing. Officials say the power supply situation remains challenging.
We should guide banking and insurance institutions to actively cooperate with local governments and support the main coal-producing areas and key coal enterprises in Shanxi, Shaanxi, Inner Mongolia and Xinjiang to increase the supply of power and coal,” the CBIRC said in a statement.
But funds must not be used for speculating and profiteering on bulk commodities such as coal, steel and non-ferrous metals, the CBIRC warned, nor for speculating on high-end consumer goods such as Moutai, a popular Chinese liquor, or Pu’er tea.
Illegal inflows of funds into stock, bond and futures markets that affect the prices of bulk commodities must be prevented too, it added.
It is also strictly prohibited to withdraw or cut off loans to coal-fired power plants, coal mines and other enterprises and projects that meet requirements, in a “one-size-fits-all” approach, the regulator said.
Near-term coal supplies could come under further pressure as bad weather disrupts production.
Source: Asia Insurance Review
