Govt Appoints Former Finance Secretary Ajay Seth As IRDAI Chief

Industry officials pointed out that every time in the past, the government has kept this important position vacant for atleast three months after the retirement of chairman IRDAI.

Seth takes charge at a time when the insurance sector is up for a major overhaul. The government is expected to introduce the Insurance Laws (Amendment) Bill in the upcoming monsoon session of the Parliament that proposes to raise the Foreign Direct Investment Limit to 100 per cent and introduce composite licenses and a host of other changes in the Insurance Act.

Nilesh Sathe, former member IRDAI said, “Mr Seth will face three challenges. Firstly, he has to ensure that post the amendment to the existing Insurance Act, regulations will have to be framed within the next six months which is a humongous task. The proposed Insurance Amendment Bill itself will revise three key legislations—the Insurance Act, LIC Act and the IRDAI Act. The second challenge is that there is a possibility of introduction of a Hospital Regulator. He will have to ensure that the hospitals which inflate bills (adversely affecting insurers) are properly controlled while the third challenge is to ensure that the GST on insurance policies is quickly reduced.”

The Appointment Committee of the Cabinet (ACC) said that Seth has been appointed for a term of three years or till he attains the age of 65 years or until further orders, whichever is earlier.

A 1987-batch IAS officer from the Karnataka cadre, Seth has held several key roles in the Finance Ministry. He served as DEA Secretary since 2021 and briefly held additional charge as Revenue Secretary earlier this year after Tuhin Kanta Pandey was appointed SEBI Chairperson.

A mechanical engineer with an MBA, he has served in critical roles across state and central governments.