The Hindu : Karnataka News : LIC employees oppose amendments to Act

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Karnataka

LIC employees oppose amendments to Act

Staff Reporter

BANGALORE: The Insurance Corporation Employees’ Union, Bangalore Division 1, on Thursday opposed the amendments to the Life Insurance Corporation Act, 1956,, which is pending in Parliament.

Geetha S.K., general secretary, Insurance Corporation Employees’ Union, said that in the first amendment to the LIC Act, the Union Government wanted to increase the capital base by Rs. 95 crore. “It also wants to change the pattern of distribution of dividend, by reducing the bonus distributed to the policy holders by 5 per cent,” she said.

“Such amendments will go against the interest of the corporation, and its policy holders which are close to 26 crores in this country,” she said. “The LIC already has a capital base of Rs. 8.7 lakh crore. Additional capital will be available after disinvestment at a later date.

She said that the Centre also wanted to increase the Foreign Direct Investment to 49 per cent from the existing 26 per cent.

“This will give foreign companies direct access to our people’s savings, and as we have seen in the global slowdown, this is a risky thing to do,” she added. As in the case of other countries, we do not have social security schemes for people, she said.

“Their savings are the only backup they have, and we must keep that as top priority,” she said.

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