Insurance employees association opposes increase of FDI in Insurance sector

KOCHI: All India Insurance Employees Association today strongly opposed Centre's decision to increase FDI in insurance sector to 49 per cent and to disinvest the public sector general insurance companies.

These moves, through major amendments to the Insurance laws, are against the interest of the national economy and against interests of the people whose savings are involved in insurance and pensions, the association said.

Increase in FDI in insurance would lead to increased control of FDI over savings of the people of India, it said in a statement here.

While the Parliamentary Standing Committee on Finance in its report before the Parliament last year had opposed the increase in FDI in Insurance sector, the Cabinet decision to raise the FDI in the sector was clearly against all democratic norms, the association said.

The Insurance Laws (Amendment) bill also provides for disinvestment of the public sector insurance companies. AIIEA also opposes this move since it would weaken the PSU General Insurance companies, it said.

Demonstrations were held today in front of LIC offices and public sector general insurance offices here to protest against the government move.