GICA to seek support of public against Insurance Bill

COIMBATORE: The General Insurance Employees' Association will seek support of the public, particularly over 30 crore policyholders, to defeat the government move to pass the Insurance Bill in Parliament, which would adversely affect the public insurance sector, a top association official said.

"The government, which introduced the Bill in Parliament in 2008, is making efforts to pass it in the winter session despite opposition from the Standing Committee, to give effect to enhanced FDI in the insurance sector and also divestment of Public Insurance companies," G Anand, General Secretary, GIEA, South Zone," told reporters here.

He said the zone's three day 15th General Conference beginning here tomorrow would resolve to oppose the move, adding the Association would seek support of more than 15 lakh agents and 30 crore policyholders after creating awareness on the adverse affect of the bill, if passed, on the sector.

Anand said the four general insurance companies in India have a 58 per cent market share in the total insurance sector and if FDI is enhanced and the public companies divested, the market would shift to private sector insurance firms, "majority of which were controlled by Multi Nationals".

Also, competition in the sector has reduced premium of public insurance companies to the tune of Rs 10,000 crore so far, Anand claimed.

The conference, to be attended by representatives from Kerala, Andhra Pradesh, Karnataka, Tamil Nadu and Puduchery, would also resolve that association members, agents and policy holders support political parties which are against the Bill, in the 2014 Lok Sabha elections, Anand said

If the Bill is passed, all employees of public sector insurance companies would observe a one day strike the next day, he added.