Bengal House Opposes Opening Up Insurance

The West Bengal Assembly yesterday expressed its grave concern over the Union governments decision to open up the insurance sector to private companies, and urged the Centre to withdraw the Insurance Regulatory Authority (IRA) bill.

Despite opposition from Congress members, the House adopted a resolution, urging the Centre to give up all measures for opening up of the insurance sector to private and foreign capitals.

The resolution, moved by Rabin Deb of the CPM, said the IRA bill has been introduced in the Lok Sabha as a prelude to legalise the decision to open up the insurance sector.

The House also expressed concern over Union finance minister P Chidambarams statement in his budget speech that medical insurance and pension hitherto under the monopolistic jurisdiction of GIC and LIC would be opened up to private sector or joint ventures. The motion said the LIC and GIC had been functioning most successfully as public sector monopolies, serving insurance customers and generating enormous resources for economic and social development.

The move to open up the industry would impair the successful functioning of lic and gic and would lead to private control of enormous resources for private profit to the detriment of the welfare of the common man, the resolution cautioned.

Opposing the motion, Saugata Roy (Cong), charged the Left front with double standard as it was not only supporting the United Front at the Centre but also a member of the United Front steering committee.