Insurance industry threatens to go on nation-wide stir

Chennai: Opposing the proposed billallowing foreign direct investments in insurance sector, the General Insurance Employees' All India Association has threatened to stage a nation-wide stir if the Centre goes ahead with its proposal. The General Insurance Employees' All India Association comprises four public sector general insurance companies - National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance.            

The NDA government has proposed to bring the new Insurance Bill in Lok Sabha next week to replace the ordinance it had promulgated in December to hike the FDI limit in the insurance sector to 49 per cent from the existing 26 per cent and has been caught in a logjam with the Congress-led opposition insisting that it be referred to a select committee.            

"The government has brought the ordinance in a hurry. This will only curb the insurance industry. We have given crores of dividend to the government," General Insurance Employees' All India Association General Secretary G Satyanarayana told reporters.            

Noting that the members of the Association have expressed unhappiness over the Bill and have met the Finance Ministry officials in this regard, he said, "as a next move, they are planning to bring it in Lok Sabha. We strongly oppose it." "As part of protesting it, we will stage a countrywide strike on the very next day when the government brings the Bil in Lok Sabha," he said.            

Around 75,000 employees would participate in the strike across the country, he said. "Our demand is that similar to Life Insurance Corporation, all the four public sector insurance companies should be merged. Second, the Insurance Bill should not be passed", he said.