Around a hundred employees associated with Life Insurance Corporation (LIC) staged a demonstration outside the LIC Raichur Divisional Office here on Monday opposing the hike of foreign direct investment (FDI) cap in the insurance sector to 49 percent from 26 percent.
The demonstration was organised under the banner of Insurance Employees Union (IEU), affiliated to All India Insurance Employees Association (AIIEA).
The agitating employees expressed concerns over the possibility of foreign capital gaining greater control over household savings with least security to the savings. They condemned the Union Government for “suppressing the democratic process” in the entire issue.
“The Union Government has, by misusing constitutional provisions, resorted to promulgate the ordinance as the Insurance Laws (Amendment) Bill, 2008 could not be passed in the parliament owing to collective disapproval of Opposition. It is nothing but the suppression of democratic process,” IEU’s general secretary for Raichur Division, M. Ravi criticised.
He opined 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. It would essentially serve the foreign capitalists and enable them to make more profits providing no security for savings,” he said.
Shridhar, another leader of the Association, criticised Bharatiya Janata Party (BJP) for making U-turn on the issue.
“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, 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 made U-turn after assuming power at the centre,” he said.
BSNL employees’ union secretary, Basavaraj addressed the employees supporting the agitation.
