Members of General Insurance Employees Association, Bengaluru Region, have opposed the Union government’s proposed decision to increase the FDI cap in the insurance sector and disinvest the profit making insurance public sector undertakings.
Speaking to presspersons here on Saturday, Association General Secretary B.A. Premkumar said, “The proposal to disinvest the shares of the public sector general insurance companies will be against the nation’s interest. The four public sector general insurance companies, United Indian Insurance, National Insurance, New Indian Assurance, Oriental Insurance and Re Insurance PSU, are wholly owned by the Government of India and are making profit. These five PSUs have together posted a gross profit of Rs. 5,899 crore during the year 2013-14.”
“Increase in FDI limit in insurance will not only lead to giving the foreign capital more space and access to the savings of Indians, but would also affect the nation’s economy”, Mr. Premkumar added.
If the Union government pushes the Bill in the Rajya Sabha, insurance employees will go on a day’s strike, the very next day of the passing of the Bill, he said.
