Insurance Employees observe Strike Against FDI in Insurance Industry

By 121 News Reporter

Chandigarh 09^th March:- To increase Foreign Direct Investment in insurance industry from 26% to 49%. Hundreds of employees working in LIC and GIC at Chandigarh, under the banner of All India Insurance Employees Association observed one day strike against the undemocratic and unconstitutional move of the government and  gathered in front of Divisional Office, Sector 17, Chandigarh and raised slogans against the NDA Government and condemned the passage of Insurance Laws (Amendment) Bill, 2015.  The meeting was presided over by Brij Lal, President, Northern Zone Insurance Employees Associtaiton, Divisional Committee, Chandigarh.

While addressing the gathering Brij Lal, President, NZIEA, Chandigarh and Rajeev Sehgal, Divisional Secretary, NZIEA, Chandigarh cautioned about the serious and devastating effects of the Insurance Bill on national economy.  He said that today there is a consensus world over that domestic savings play a large role in capital formation and economic development and therefore it is not prudent to allow the foreign capital to have greater access and control over the domestic savings by increasing the FDI limit.  He further said that It must be understood that the bill is an attack on the public sector insurance industry and the Indian economy and will not end with the FDI hike to 49 percent. More attacks are bound to come sooner than expected at the dictum of corporate houses. The bill facilitates the foreign investors to gain further access to the domestic savings of the people of this country, leading to the surrender the economic sovereignty to foreign players. This apart the bill also enables the disinvestment of profit making general insurance sector.  The business tycoons like Chairman of the HDFC and representative of Kotak Mahindra who play a very important role in decision making processes of the government have already raised the demand for unlocking the value of LIC.  In simple terms they are demanding the privatization of the most successful public sector financial institution. 

While addressing the rally Manjit Singh, President, Chandigarh Region General Insurance Employees Association said it must be noted with serious concern that Insurance Laws (Amendment) Bill 2015 will open Public Sector General Insurance Companies  for   privatization.    These  companies  having  market share 56% provided Rs. 599 Crores as dividend to Government of India on total assets of Rs. 600 Crores in the year 2013-14.