On Tuesday, the employees in the insurance sector struck down work to protest against the introduction of two Bills in Parliament to amend the Life Insurance Corporation (LIC) Act, 1956 and the Insurance Laws (Amendment) Bill. Due to the strike the work in the insurance offices was affected. The LIC Amendment Bill, which was introduced in the Lok Sabha, seeks to increase equity from Rs.5 crore to Rs.100 crore while on the other hand the Insurance Laws (Amendment) Bill, which was tabled in the Rajya Sabha, seeks at increasing foreign direct investment (FDI) cap to 49 per cent from 26 per cent. It also allows the four State-owned insurance companies to go public and raise funds from the capital markets. The financial meltdown globally has affected the insurance sector in U.S., Europe and Japan.
“It is beyond imagination as to how the companies, which are struggling in their own countries, are being allowed to increase their stakes in India”, said A.K. Bhatnagar, Northern Zone Insurance Employees'' Association. He also said, “India cannot totally escape from the impact of this global meltdown. It is agreed that the impact on our financial sector is not that severe simply because the Indian sector continues to be dominated by the public sector”.
“The LIC (Amendment) Bill is nothing but a farce and a step for its privatisation. Given the LIC''s assets, investment and returns, making it a weak organisation will be an imprudent and retrograde step of the government”, the Association said in a statement.
The Northern Zone Insurance Employees'' Association, along with the General Insurance Employees'' Association, organized a march to Parliament, where the employees were addressed by All-India Trade Union Congress general secretary and MP Gurudas Dasgupta and Centre of Indian Trade Unions president M.K. Pandhe. They cautioned the government against FDI describing it as "anti-national," "anti-people" and "anti-employees.
“It is beyond imagination as to how the companies, which are struggling in their own countries, are being allowed to increase their stakes in India”, said A.K. Bhatnagar, Northern Zone Insurance Employees'' Association. He also said, “India cannot totally escape from the impact of this global meltdown. It is agreed that the impact on our financial sector is not that severe simply because the Indian sector continues to be dominated by the public sector”.
“The LIC (Amendment) Bill is nothing but a farce and a step for its privatisation. Given the LIC''s assets, investment and returns, making it a weak organisation will be an imprudent and retrograde step of the government”, the Association said in a statement.
The Northern Zone Insurance Employees'' Association, along with the General Insurance Employees'' Association, organized a march to Parliament, where the employees were addressed by All-India Trade Union Congress general secretary and MP Gurudas Dasgupta and Centre of Indian Trade Unions president M.K. Pandhe. They cautioned the government against FDI describing it as "anti-national," "anti-people" and "anti-employees.
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