LIC employees seek functional autonomy

COIMBATORE: Seeking functional autonomy for LIC of India, the All India Insurance Employees' Association today opposed the reported move to increase FDI in the insurance sector.

With regard to FDI in the sector, Khan said it was reported that the government was thinking of increasing the FDI limits from the present 26 per cent to 49 per cent under pressure from the USA and various MNCs.

The experience since opening the sector clearly demonstrated that the Government's optimism was hopelessly misplaced, he said alleging not a penny of the global premium mobilised by the foreign partners of the private companies has been invested in Indian infrastructure, in the last six years.

It was also clear that any hike in FDI would enable the MNCs to gain greater access and control over domestic savings with the real possibility of much needed capital flowing out of the country, Khan said.

The four-day Golden Jubilee year conference of South Zone Insurance Employees' Federation, beginning here tomorrow, would discuss issues of autonomy, FDI hike and also on the demand by private companies for withdrawal of sovereign guarantee.

Kerala Education Minister, M A Baby will inaugurate the conference, in which about 300 delegates would participate, Khan said.