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The insurance regulator is likely to contest an unprecedented appellate order seeking the ouster of one its members in a corruption case.

The decision comes following a recent order by the Securities Appellate Tribunal seeking removal of PJ Joseph, member, non-life, IRDAI, who had passed an order pertaining to the UK-based insurance brokerage, Atkins Special Risks.

The appellate body said that the order passed by Joseph amounts to ‘aiding and abetting corruption in the insurance business’ by the regulator 'that cannot be tolerated.'

A senior official associated with the development said that the regulatory body’s new chairman is likely to be appointed by the end of March, after which "we will move the highest court in April so that a decision could be out before the SC closes for summer vacations in mid-May."

Once, the Supreme Court closes for summer vacations, it will only resume on July 2.

The case

From 2002 to 2012, Atkins had provided international re-insurance cover to Jagson International, an off-shore drilling company.  Atkins has alleged, in its submission to SAT, that Jagson and its officials demanded a cut from the commission it received from 2010. Atkin says it declined. Post this, the UK company alleges, the reinsurance business was given to Marsh India Insurance Brokers.

The appellant alleged that detailed investigation by a globally reputed investigating firm showed some alleged kickbacks given by Marsh to Jagdish Gupta, Chairman of Jagson. It also filed a complaint with IRDAI (which was heard by P J Joseph), and the case was disposed of.

However, Marsh in a statement has denied any wrongdoing. It has also pointed out that SAT has not taken any view of the case.

SAT in its judgement stated that it has not expressed any opinion on the merits of the complaint filed by the appellant.

However, the appellate body asked IRDAI to pass a fresh order on a case involving alleged financial irregularities in awarding insurance broker contract to a broking firm. It also directed IRDAI to entrust the matter to a ‘competent officer other than P J Joseph, Member (non-life)’.

There have also been demands to have an insurance expert on the SAT to look into the sectors matters. Currently, it does not have any.

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Post the disclosure of the Nirav Modi scam, there have been heated debates within the banking sector on whether the government should privatise public sector banks (PSB). While many industry experts are in favour of privatisation of PSBs, like Uday Kotak who has said that there is no need for so many state-run banks, State Bank of India chief, Rajnish Kumar says otherwise.

Talking on the subject of ownership and whether privatisation of banks would help solve the problem of non performing assets (NPAs) at News18 Network's Rising India Summit, he had said that ownership of a bank should not matter – whether private or public – and that it is all about ethics.

Kumar claimed that the masses have a lot to thank public sector banks for. "Firstly, when you drive on a highway, enter an airport or feel good about the power situation, do not forget the bank. Let us understand the importance of public sector banks," said Kumar.

In an earlier interview to Economic Times, the SBI chairman had said that state-run banks play a definite role for the betterment of society which the private sector would not be willing to do. “There is a huge socio-economic agenda which only public sector banks cater to,’’ said Kumar.

According to him, what people need to keep in mind when talking about privatisation is that it is the government ownership that is saving the day. If it were a private bank, the government would have to step in to bail it out, and this is applicable across the world.

“People who speak about privatisation are missing the point. I am not advocating private or public sector banks or which model is better. All I am saying is that whatever the structure, there will be issues,” he noted.