LIC staff warn flash strike if Centre decides to list it

Three-day conference of AIIEA concludes on Thursday

AIIEA national president Amanullah Khan addressing the media in Visakhapatnam on Thursday.

The silver jubilee general conference of the All India Insurance Employees’ Association (AIIEA) concluded on Thursday, with employees of Life Insurance Corporation threatening to go on a flash strike if the Centre announces listing of the LIC in the Budget proposals.

“There is the possibility of it happening. If the government makes such an announcement, LIC employees will go on a flash strike,” AIIEA national president Amanullah Khan and vice-president K. Venugopal told reporters on Thursday.

Speaking on the resolutions adopted at the three-day conference that ended at AU Convention Centre, they said 84% employees of LIC are members of AIIEA.

Mr. Khan said that LIC enjoyed a 72% market share in terms of premium collection with 1.15 lakh employees, and the four public sector general insurance have an employee strength of 60,000 with close to 50% market share. He said AIIEA was in favour of maintaining the status quo for LIC and amalgamation of four public sector GI companies.

However, he pointed out that there was an attempt to merge only three GI firms leaving New India to continue as an independent entity as its financial position was better than the other three companies. He said that they would not oppose the decision if all the four were to be merged.

Inheritance tax

Commenting on the Union Budget to be submitted on February 1, Mr. Khan said that the government should introduce inheritance tax as a separate category in addition to discounts allowed for savings made up to ₹1.5 lakh under 80C of the Income Tax Act. He said as LIC funds were being used for developmental purpose, the government should encourage investment in LIC and exempt 18% GST in insurance premium.

On raising revenues, he said that the government should introduce 0.5% inheritance tax on properties which go to the legal heir of parents. The government should encourage investments in policies as the amounts collected from them were spent mostly on health and education.

Mr. Khan said that they are opposed to the move to increase FDI in insurance sector from 49% to 74%.