As many as hundred employees of Life Insurance Corporation (LIC) staged a demonstration at the Ambedkar Circle here on Thursday opposing the Union Government’s move to increase Foreign Direct Investment (FDI) cap from current 26 per cent to 49 per cent in insurance sector.
The agitation was organised by Insurance Employees Union (IEU), affiliated to All India Insurance Employees Association (AIIEA).
The agitating employees raised slogans criticising Bharatiya Janata Party (BJP) for making its U-turn after assuming power at the centre.
“During United Progressive Alliance (UPA) regime at the centre, the Parliamentary Standing Committee on Finance headed by BJP leader and former Finance Minister Yaswant Sinha, had, in December 2011, rejected the proposal of increasing FDI cap in insurance sector to 49 percent. BJP, as an Opposition party too had opposed the proposal. The same party, after assuming power, has made U-turn,” Shridhar, Association’s leader, said.
IEU’s General Secretary for Raichur Division M. Ravi said that the increase in foreign equity cap in insurance sector would in no way serve Indian economy.
“Increasing foreign equity cap in the sector would automatically facilitate foreign capital gain greater control over household savings for making more profits,” he said. He warned that the insurance employees would have to intensify their struggle if the government would not drop the idea.
Some employees expressed concerns that the Union Government’s decision would affect the flow of funds from insurance sector to social and infrastructure sectors.
“LIC has so far paid dividend of Rs. 13,320 crore for Union Government apart from giving Rs. 18,02,266 crore for its five-year plans. If the foreign and private players penetrate into the sector, the public sector undertakings would not be able to make such contributions as their profits would automatically shrink, thanks to intense competition in the sector,” an employee said.
Association leaders H.A. Chukanatti, Sharanagowda, Parashuram, Mrityunjeshwar and others were present.
