LIC employees flay 100% FDI in insurance sector

The LIC staff under the banner of All India Insurance Employees’ Association held a demonstration today in protest against Finance Minister Nirmala Sitharaman’s proposal to hike Foreing Direct Investment (FDI) in insurance sector from 74 per cent to 100 per cent.

Pankaj Bhardwaj, divisional secretary, NZIEA, Jalandhar, said this decision was unwarranted and would have serious consequences for mobilisation of precious

resources for the development of Indian economy and meeting the obligation of the state towards its citizens. “The All India insurance Employees’ Association (AlIEA) condemns this decision and will mobilise the public opinion against this move,” he said.

Ved Kumar, divisional president, NZIEA, Jalandhar, said the insurance sector was denationalised with the passage of the IRDA Bill-1999, which permitted the Indian firms to operate in the insurance industry in partnership with the foreign companies. Initially, the FDI was restricted to 26 per cent but later on was raised to 74 per cent.

“A large number of private insurance companies with foreign partners have been operating in both life and non-life insurance industry. Capital has never been a constraint for these companies as they are owned by big business houses in partnership with top multinational companies,” he said.

Ved added that if their demands were not met then they would be compelled to take agitation to the next level.