Proposal to hike FDI insurance: ICEU threatens strike

Insurance Corporation Employees’ Union (ICEU) threatened to go on nation-wide strike protesting against the government’s proposal to increase foreign direct investments in insurance sector to 49 per cent from present 26 per cent.


“The Centre has said that it will introduce a bill during the ongoing Parliament session seeking to increase FDI investments to 49 per cent and to sell the stakes of public sector insurance companies. We consider it as a ‘dangerous’ move against the welfare of nation and to the future of insurance industry”, ICEU (Chennai division), President M Dhanaselvam said in a statement.

Noting that the Centre’s argument of industry seeking foreign investments was ‘baseless’, he said in the last 11 years the insurance sector attracted only Rs 6,831 crore of foreign investments.

“During the 11th Five Year Plan, the Life Insurance Corporation (of India) has made contributions of Rs 7.04 lakh crore to the Government and in the last 11 years, the dividend amount that was presented to the Centre by LIC was Rs 7,848 crore, higher than the foreign direct investments received by this sector”, he said.

Observing that the Union has been conducting several rallies and agitations across the country against the Government’s proposal, he said the Centre should immediately stop its decision to introduce the bill in the Parliament.

“We have already sought 200 Parliamentarians to support us in this matter. Employees across the Insurance sector will go on strike if the Bill is passed in the Parliament”, he said.

He said the Union would conduct a public meeting on December 14 in Chennai, in which representatives of various political parties would participate.

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