Insurance News: Insurance employees protest

Insurance employees staged a demonstration in front of the LIC divisional  office here on Friday to protest against the decision of the Union cabinet  to approve Insurance Laws’ Amendment Bill and PFRDA Bill. The major  amendments to the insurance laws are: to increase the FDI limit in the  insurance sector from present 26% to 49%; and to disinvest the public  sector general insurance companies. Massive demonstrations were held in  front of the insurance company offices at different places by all classes of employees and agents. Their protest against these measures is premised on the fact that these would do more harm than any good both to the people of India and Indian economy.

“Foreign capital, when it comes, comes to make profit. It is does not come to benefit the people our country. Foreign capital means business. The government says that with the increase in FDI limit, capital will flow. Nation was told the same thing when the insurance sector was being opened to private sector. How much capital has flown in the sector where it was wanted? Not even near to what was told that will flow,” said Uday Gadagkar, leader of Insurance Employees’ Union.

Another leader Uday Kurtakoti explained that the FDI which came into India in the insurance sector during the ten year period of 2001-2011 is a mere Rs.6,813 crores as equity in 33 private insurance companies. As against this, LIC alone provided for Rs.7,04,151 crore into social sector and infrastructure sector during the eleventh five year plan (2007-12).

“The decision to disinvest the public sector general insurance companies is to pave for privatization.

Same thing will happen in the pension sector. Pension is the life-line of the pensioner. With what has happened in US and Europe, it can be easily imagined as to what will be the fate of our senior citizens. In our country, where no old-age social benefits exist, prowling of the foreign capital will play a havoc with the lives of the people” Kurtakoti asserted. DV Subbarao, office bearer of the employees union said the decision of the Union cabinet taken on Thursday, with regard to increasing the FDI limit in insurance sector and disinvesting public sector general insurance companies’ shares is smack to democracy. The Standing Committee of Parliament to which the Insurance Laws (Amendment) Bill was referred has in its Report which was placed in the Parliament on 13th December 2011 has said. “There is no need to increase the limit of FDI to 49% as the government seems to have decided upon this issue without any sound and objective analysis of the insurance sector following liberalization”.

It has further cautioned the government of the global financial crisis and has recommended that the private companies may explore avenues to tap the domestic capital instead of increasing the FDI limits. Despite this the Union Cabinet has taken a decision to approve the Bill.

http://timesofindia.indiatimes.com/city/hubli/Insurance-employees-protest/articleshow/16693858.cms