LIC manages Rs 41 trillion ($500.69 billion) in assets. The government is planning to broaden the eligibility criteria for appointment of LIC CEO so that private sector candidates can also apply. At present, the insurer is headed by a Chairman but that post will be scrapped when the term of the present incumbent ends in March, 2023. Changes to the law that governs the LIC were made last year to enable this. The move will lead to more choices and send good signals to shareholders.

Officials did not specify which sphere the appointee might come from. Sources informed that while the decision on appointing from the private sector had been made in principle, the government was considering whether further changes to the law were required and if the government could offer pay in line with the private sector.

The insurer's share price has taken a beating since its listing in May last year and trades 30% lower than the price at which the shares were issued, wiping off nearly 2 trillion rupees ($24.31 billion) in investor wealth.