Employees protest against FDI in insurance sector

Ujjain : All India Insurance Employees Association is the largest and the oldest organisation of employees working with Life Insurance Corporation of India and Nationalised General Insurance. They have played a creative role in the development of nationalised insurance industry in last six decades. It is better known that nationalised insurance industry plays a vital role for the safety of financial sovereignty and economical development of the nation. They protest against the increase of the limit of foreign direct investment (FDI) from 26 percent to 49 percent in insurance sector.

These views were expressed by the Insurance Employees Union Ujjain unit joint secretary Prashant Sohle while addressing a press conference at Press Club on Tuesday. Sohle said that the BJP government is also following the path of UPA government. The UPA government had put an Insurance Law Bill 2008 in the parliament for the provisions of increase in FDI in insurance sector. Parliament has sent the bill to financial affairs Standing Committee. Former finance minister Yashwant Sinha chaired the meeting and rejected the proposal of increasing FDI to 49 percent from 26 percent. The BJP had gone against the bill at that time and it has come into support of the bill today.

Insurance sector is facing recession across the world. The income from insurance premium has decreased in developed countries. According to a report of Global Insurance Assessment Agency Sigma in March 2014, the rate of annual premium increase in North America is – 29 percent and – 3.7 percent in Osonia and – 0.6 percent in Western Europe. Multinational Companies which are on the verge of bankruptcy in these nations want to earn profit from Indian Insurance Sector.

On the call of All India Insurance Employees Association, employees have sent letters to Union finance minister in regard to the matter. Joint secretary Insurance Employees Union Indore and joint secretary Anil Qurel were also present.