Insurance employees protest in Dharwad

The officers, development officers, employees and agents connected with the Indian public sector insurance industry staged a demonstration before the LIC divisional office in Dharwad on Thursday.

They were protesting the Centre’s  move to increase the foreign direct investment (FDI) cap from the present 26 per cent to 49 per cent in the private insurance companies doing business in India, and also against selling stakes in the four public sector general insurance companies to the general public.

The leaders who addressed the protesters said, all people connected with the public sector insurance industry were concerned by and agitated over the move.

Referring to the media reports that the Joint Select Committee of the Rajya Sabha to which the Insurance Laws (Amendment) Bill–2008 was referred to for vetting, had placed its report on Wednesday in the Rajya Sabha recommending an increase in the FDI limit from 26 per cent to 49 per cent  the leaders said. This was done overriding the dissension expressed by the opposition parties mainly CPM, Samajwadi  Party, Janata Dal (U) and Trinamool Congress.

“It should be noted that the BJP, when in opposition, had been consistently and vehemently opposing the increase of FDI in the insurance sector.  Not only that, when the Insurance Laws (Amendment) Bill – 2008 was referred to the Standing Committee of the Parliament headed by former finance minister and senior leader of BJP Yashwant Sinha. The committee had then given a report  rejecting the suggestion to increase the FDI in the insurance sector and said that such a move will be detrimental to the interests of the Indian insurance sector and also to the national economy,” the protesters said.

They added: “But now, after coming to power the BJP unfortunately has taken a U-turn and the Select Committee of the Rajya  Sabha headed by BJP MP Chandan Mitra has submitted the report recommending for increase in FDI.”

“All those concerned with the nationalised insurance sector, security of the people’s savings, infrastructure and social sector growth of Indian economy are very worried over the decision of the government to increase FDI in this vital financial sector which has been contributing to the development of the economy.  Because, the increase in the strength and say of the foreign partners in the Indian insurance companies will pose a serious challenge to LIC and four Public Sector General Insurance Companies as they get added capability to indulge in cut-throat competition,” Uday Gadagkar, president of LIC Employees Association asserted.

The decision of the government to increase FDI in the insurance sector is being opposed by all classes of employees and field force in LIC and public sector general insurance companies.