Life Insurance Corporation employees working in the Swarnalok Complex branch on Eluru Road staged a lunch-hour demonstration on Friday protesting the Cabinet’s approval for raising the Foreign Direct Investment (FDI) cap in the Insurance sector from the present 26 per cent to 49 per cent.
Addressing the demonstrators, branch secretary Ch. Kaladhar said the Centre’s move will pave way for foreign companies to gain control over savings of the Indian masses without any tangible benefits either to the country or to its people. “This will ultimately jeopardise Indian economy,” he said.
He accused the Centre of surrendering to the pressure tactics of the US at the cost of the interests of the Indian masses.
Mr. Kaladhar said the Government must revisit its decision on the issue keeping in view the larger interests of the country and its people.
LIC Development Officers’ Association president S.H.H.N. Raju and LIC Class-I Federation leader K.V.V.S.N. Krishna Kumar also spoke. Union leaders Ramanjaneyulu, Ratna Jyothi, N.L.N. Singh, and Mani Kumari participated in the demonstration that was held under the banner of the All India Insurance Employees’ Association.
Hike opposed
Insurance employees owing allegiance to the All India Insurance Employees Association (AIIEA) held a demonstration in front of the LIC office at Arundelpet on Friday in protest against the Central Government’s decision to hike Foreign Direct Investment limit in the insurance sector from 26 to 49 per cent.
Misleading argument
Addressing the officers, employees and agents, Insurance Corporation Employees’ Union (ICEU) Machilipatnam Division Joint Secretary V.V.K. Suresh said that the hike would have an adverse impact on the economy and the government was making a misleading argument that FDI is required in insurance while the fact is that the public sector insurance companies have been providing huge capital for the nation’s growth.
The government’s decision will enable the foreign companies to gain control over the domestic savings.
As a result, the country’s economic independence will be in peril.The government should keep in mind the collapse of foreign insurance market. It may be noted that the American government was forced to give a bailout package to the international insurance giants like AIG.
Campaign
The AIIEA, with the support of policyholders and other sections of the people, would launch an intensified campaign on the ill-effects of FDI in the insurance industry, Mr. Suresh added.
Insurance officers, development officers and agents’ associations leaders S. Srinivasan, K. Sita Ramesh, B. Markandeyulu, N. Bangaru Babu, M. Rajeswara Rao, and S.M. Bhujanga Rao participated.
