Employees’ unions oppose LIC disinvestment plan

Members of all employees’ unions to abstain from work for an hour today

Opposing the announcement to disinvest Life Insurance Corporation of India, members of All India Insurance Employees Association have threatened to intensify their agitation and drum up support from the public to stall the Centre’s move.

Terming the LIC an ‘Amudha Surabhi’ of Indian economy, the Association members said the LIC’s contribution to the 11th Five Year Plan (2012-17) was a whopping ₹14.23 lakh crore. In the 12th Five Year Plan, the Corporation had already given ₹7.01 lakh crore to the Centre in the first two years. On an average, the LIC’s annual contribution had risen from ₹2.84 lakh crore in the 11th Five Year Plan to ₹3.50 lakh crore in the 12th Five Year Plan.

The LIC’s assets stood at ₹32 lakh crore. The Corporation had invested in railways, national highways, port development, electricity, waterbodies and drinking water projects. The LIC had also invested in many government bonds, the value of which stood at ₹28.84 lakh crore. Across the country, it had close to 12 lakh agents and policies to cover people from all walks of life.

At a time when the Centre was moving fast towards closing the PSUs and justified its decisions to privatise them, the LIC was nowhere in the picture as it was no match to private players in insurance sector.

The Association members on Saturday held a demonstration in the city, where the speakers said in the last fiscal alone, the LIC had given a dividend cheque for ₹2,611 crore to the Centre.

That the Corporation, which was started with a capital of ₹5 crore in 1956, never needed government’s assistance till date was a proof of its administrative abilities. The announcement in this Budget by Finance Minister Nirmala Sitharaman had come as a big blow to millions of people across the country, they said.

The government should withdraw its announcement, failing which the employees would have to intensify their stir against the government, said Association general secretary N.P. Ramesh Kannan.

The Association members criticised the entry of foreign players in insurance sector and their exit after making good of their capital in a decade. Armed with 40 crore policy holders, the LIC had the commitment of security and safety, they noted.

As a mark of protest, members of all employees’ unions across the country would abstain from work for an hour on Monday, Mr. Ramesh Kannan said.

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Printable version | Feb 24, 2020 3:09:54 AM |

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