Having worked as revenue secretary for more than two-and-half-a-year for the Union government, Chellapilla Satyanarayana Rao, the new Insurance Regulatory and Development Authority chairman, sees a near-term resolution to the financial independence issue raised by his predecessor for over two years.
"Let me understand the issues raised by IRDA and the ministry of finance first and then come to a decision. The issue will be resolved soon and I do not foresee any major problem in this," Rao, who assumed charge on Tuesday, told Business Standard.
Former IRDA chief N Rangachary was vehemently opposing the ministry's directive on transferring of IRDA funds to the public accounts. "I consider the move to be a threat for the authority's financial independence. If I have to go and beg for some money daily from the ministry, then you do not expect me to be independent," Rangachary had said in a recent interview.
The new chief though said that he still has to understand issues related to the insurance sector, emphasised that there need to be a level playing field for all players.
"Insurance is the fastest expanding area and has lot of potential. Players should recognise that better consumer satisfaction, protecting their interests and better compliance with regulations will pave way for better penetration," Rao said.
There are number of areas and geographical spread that has not been covered yet by the existing players. There are many sections of the society waiting to be tapped, Rao, who retired from the government service on May 31 after 36 years of service in the Indian Administrative Service, said.
However, the industry is making headway by experimenting with new products and bringing in new services, he complimented the players.
"My predecessor has laid a strong foundation and I now need to just build some more super structure to make it robust. I would like to continue the transparent system, the previous regime has established," he said.
C S Rao joined the IAS in 1967 and was allotted to Andhra Pradesh cadre. He had a long stint with finance ministries at both centre and state by spending almost 24 years in various positions out of his 36 years service.
In May 1990, when Andhra Pradesh was affected by a major cyclone, Rao was instrumental in getting a $265 million assistance from the World Bank.
In early 1998, he returned to the centre as additional secretary and financial advisor, ministry of food and consumer affairs, during which he was involved in the divestment of Modern Foods.
He was elevated as secretary expenditure in October 2001 and posted as revenue secretary in October 2002. He retired from government service in May 2003.
