It is primarily against the spirit of Atmanirbhar Bharat, say insurance employees
The members of All India Insurance Employees Association (AIIEA) have criticised the Finance Minister’s announcement in the Union Budget that the Central government would bring the LIC IPO in this financial year.
They pointed out that the LIC IPO is primarily against the spirit of Atmanirbhar Bharat.
It is an institution which does not create any profit for itself, as it distributes the entire surplus generated to the government and the policyholders, they said.
AIIEA General Secretary Shreekant Mishra said that the LIC IPO will undermine the very objectives of its creation. Rather than delivering value to the nation and its policyholders, it will be forced to work for creating value and generating profits for the shareholders, he said.
Therefore, the asset owned by all Indians will be exploited for profits by small number of rich in the country, he alleged.
The AIIEA members also oppose the Finance Minister’s budget proposal to increase FDI in insurance sector from 49% to 74% and allow foreign ownership in insurance sector with some safeguards.
“We also oppose the plans to privatise one general insurance company along with two public sector banks,” said Mr. Mishra.
FDI hike criticised
“There is absolutely no justification for FDI hike in the insurance industry. The actual share of FDI in the total investments in the private insurance industry today is much less than the current limit of 49%. Scarcity of foreign capital has never been an impediment to the growth of the insurance industry. FDI hike in insurance will only help foreign capital gain greater control over our precious domestic savings,” said Mr. Mishra.
He said that the insurance employees under the banner of the AIIEA are determined to carry forward the resistance against the moves to increase FDI, bring IPO of LIC and privatise one general insurance company.