The LIC Agents Organisation of India (LICAOI), affiliated to the Centre of Indian Trade Unions (CITU), has opposed the Union government’s move to increase the Foreign Direct Investment (FDI) cap from 26 per cent to 49 per cent in the insurance sector.

Addressing presspersons here on Monday, Ramesh Kumar, General Secretary of LICAOI, said the Union government’s move to increase the FDI cap would spell the doom of insurance sector in the country. The United Progressive Alliance (UPA) government was trying to move an amendment to the Insurance Act to increase the FDI cap to 49 per cent. There were 30 crore policy holders in the country and there were 40 crore policies. There were 13 lakh LIC agents. The government wanted to do away with the 54 traditional policies and reduce the number of policies just to three or four. Besides, these policies would also attract service tax. “The ultimate aim of the government was to privatise the entire insurance sector”, he said. The government was using the Insurance Regulatory and Development Authority to reduce the number of LIC agents. Services of 4.5 lakh insurance agents in rural India had been terminated.

To protest against all these moves, the members of the South Central Zone of LICAOI would stage a protest in Hyderabad on September 18. As many as 250 representatives of Udupi division of LICAOI would participate in the ‘Hyderabad Chalo’ programme, Mr. Kumar said.

Naveen Suvarna, V.K. Prabhu, Sundar Poojary, Yogesh Kotian, office-bearers of Udupi division of LICAOI, were present.