PSU bank, insurance staff plan stir on Dec 14

Employees of public sector banks and insurance companies will strike work on Thursday (December 14) to oppose outsourcing of banking operations, proposed increase in foreign direct investment (FDI) cap in insurance and de-tarrifing in general insurance.

The sponsoring committee of trade unions in the financial sector, which met today, said they were against outsourcing of certain banking operations and clearing operation to private agencies on commision basis.

The unions are also opposed to the proposed increase in FDI cap in the insurance sector from 26% to 49%. The committee said the proposal to raise cap on FDI, in a bid to raise more funds through foreign insurers, was unnecessary.

It also said the move by insurance regulator IRDA, asking LIC to carve out about Rs 2,800 crore from surplus to create solvency margin, was forced as The Insurance Act had no provision for creating such a margin by the insurer.

The committee said the agenda for the strike also includes demand for full autonomy to public sector LIC and general insurance companies.