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| LIC employees oppose hike in FDI in Insurance sector to 100% | | |  Early Times Report
JAMMU, Feb 4: LIC employees of Jammu and Kashmir under the banner of Northern Zone Insurance Employees' Association Srinagar Division held massive demonstration outside offices of LIC of India across Jammu Kashmir in the leadership of Comrade Pawan Gupta; Divisional Secretary of the Association against the central Govt.' move to increase FDI in insurance sector from 74% to 100%. Speaking on the occasion at D.O.Cell Jammu, Com. Pawan Gupta said that this decision is unwarranted and carries with it serious consequences for mobilisation of precious resources for the development of Indian economy and meeting the obligation of the State towards its citizens. LIC employees condemn this decision and will mobilise the public opinion against this move. The Insurance sector was denationalised with the passage of the IRDA Bill 1999. This Act permitted the Indian capital to operate in the insurance industry in partnership with the foreign companies. The FDI was restricted to 26 percent; since then, it has been raised to 74%. A large number of private insurance companies with foreign partners have been operating in both the life and non-life insurance industry. Capital has never been a constraint for these companies to run their businesses; as they are owned by big business houses partnering with top multinational companies. Perhaps with the exception of one, no insurance company is anywhere near breaching the 74% FDI limit. In fact, the total FDI in insurance is only around 32% of the capital employed. This being the case, it is surprising as to why the government has taken the step to give total freedom to foreign capital to operate in India. This decision will also have serious consequences for the Indian companies and the Indian economy if the existing foreign partner decides to pull out to form a separate company. The AIIEA is of the firm understanding that allowing total freedom and greater access to foreign capital could only retard the orderly growth of the insurance industry with the focus more on profits rather than providing the people and business the much needed security. It will have disastrous impact on the interests of the marginalised sections of the Indian society. Moreover, foreign capital can never be a substitute to the domestic savings. This being the case, handing over the domestic savings to foreign capital makes no economic or social sense. India being a welfare state must necessarily have greater state control over the savings for economic development which benefits all its citizensThe AIIEA lodges its strong protest against the decision to hike FDI limit in insurance and demands withdrawal of this move.
Others who spoke- Com. Rajesh Gupta -Joint Secretary,Com Dinesh Kumar Sharma-vice President, Com. Priya Sharma-Women sub-committee, Com.Harkesh Kumar Singh and Kishore Lal- Jammu-3, and others. The programme in Srinagar was led by Com. Syed Aadil Imam-President NZIEA Srinagar Division along with Coms-Amarjeet Singh,Ajaz Ah. Dar, Javed Ah Bukhari, Gulshan Singh and others. The programme was organised at Jammu-2 by R.P.Singh, Samba by Surat Singh, R.S.Pura by Jagdish and Rajesh Sapolia, Udhampur by Sham Singh, Rajouri by Vikas and Vinod Sharma, Doda by Anmol Sharma, Poonch by Raj Kumar, Kathua by Vijay Verma and Mohan Lal. |
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