All Class I, III and IV employees in the Life Insurance Corporation of India and all Class III and IV employees in the four subsidiaries of General Insurance Corporation of India will go on strike on Tuesday to lodge their emphatic protest against the 'ill-advised' two Bills of the Government of India which have been introduced -- one in Rajya Sabha and another in the Lok Sabha -- on Monday.
While one Bill amending the Insurance Regulatory and Development Authority Act, 1999, provides for increase in Foreign Direct Investment in the insurance sector from 26 per cent to 49 per cent and the General Insurance Business Nationalisation Act, 1972, provides for 50 per cent disinvestment in the four subsidiaries of GIC, the second Bill, amending the LIC Act, 1956, provides for increase in the share capital of the government from Rs 5 crore (Rs 50 million) to Rs 100 crore (Rs 1 billion).
In a joint statement issued here on Monday, the office bearers of Insurance Employees' associations said the increase in FDI limit under external pressure results in increased access to private foreign capital over domestic savings, thereby weakening the public sector LIC of India.
'Disinvestment in the four subsidiaries of GIC not only weakens them but reduces the government's control to the extent of 50 per cent and is nothing but partial privatisation. Though government's proposal to increase its initial share capital of Rs 5 crore (Rs 50 million) invested in 1956, when LIC came into existence by nationalising 243 private Indian and foreign insurance companies, looks harmless superficially, the hidden danger is that, if in future government decides to disinvest in LIC also, the larger capital base makes the proposal attractive for disinvestment and results into weakening of public sector LIC and proportionate reduction in the government's holding,' the statement said.
The joint action committee said 'it was unfortunate and reprehensible that at a time when the deep and serious economic crisis has hit USA and is impacting the whole world including India, instead of strengthening the public sector LIC and GIC which have registered impressive growth and have been enormously contributing to the national economic development and socially oriented public welfare schemes, the government buckling under the pressure of World Bank-IMF-WTO and foreign capital has chosen to amend the relevant Acts in insurance and these measures are totally uncalled for as they are against the interest of national economy, public sector LIC / GIC and policyholders.
'Since elections to Lok Sabha are expected to be held in April/May, 2009, the Congress-led UPA government appears to be in a great hurry to please their imperialist masters to further open up the insurance sector in the name of 'reforms' to the advantage of the private insurance companies whose foreign partners have gone bankrupt in hordes in their parent countries and to the serious disadvantage of public sector LIC / GIC which have been rendering a great service to the nation and the people. It is undemocratic that the government is also not heeding to the ongoing national campaign against the so-called 'economic reforms' which have turned disastrous for the country and people at large.'
While expressing regret for the inconvenience which may be caused to the insuring public the action committee sought wholehearted support of the people for their struggle in defence of LIC and GIC (premier public sector undertakings) 'which are in real terms the property of the people of this country.'
