LIC employees protest increase in FDI to 100%

Employees of the Life Insurance Corporation of India (LIC), under the banner of All India Insurance Employees Association (AIIEA), recently staged a protest at the divisional office in the city against the increase in the foreign direct investment (FDI) limit, as announced by Finance Minister Nirmala Sitharaman in the Budget.

Noting that the Finance Minister had announced that FDI would be increased from 74 per cent to 100 per cent, the protesting employees called it harmful to the Indian economy, common people, and the state’s responsibilities. Neeraj Arora, divisional secretary of the association, said the privatisation of the insurance sector began in 1999 with the passage of the Insurance Development Regulatory Authority (IRDA) Act, which allowed Indian money to operate in partnership with foreign companies.

Currently, several private insurance companies operate in both life and general insurance sectors with foreign partners.

There was no shortage of money, as these companies were owned by major business houses and operated in collaboration with top multinational firms, he claimed.

He alleged that, ironically, the total FDI in the insurance sector accounted for only 32 per cent of the invested capital, raising questions over the government’s decision to grant full independence to foreign capital.

“If existing foreign partners decide to operate independently, it could severely impact Indian companies, potentially leading to hostile takeover bids for existing firms,” he said.