Nationwide protest launched by public sector general insurance companies’ employees in support of their demands

189

Nationwide protest launched by public sector general insurance companies’ employees in support of their demands

Kanwar Inder Singh/ royalpatiala.in News/ December 16,2024

As announced, protest demonstrations were held today, on 16th December, during lunch hours across the country, opposing 100% Foreign Direct Investment (FDI) in the insurance sector and demanding the merger and strengthening of Public Sector General Insurance Companies (PSGICs).

The unions and associations in public sector general insurance companies lodged protests and demonstrations nationwide, strongly opposing 100% FDI and demanding merger and strengthening of PSGICs. They firmly believe that the proposal to allow 100% FDI in the insurance sector should be dropped.

“Past trends indicate that increasing FDI limits has not significantly improved insurance penetration in the country. Instead, FDI flows have primarily focused on profit generation and capital repatriation, rather than serving the socio-economic needs of India. This raises serious concerns about the long-term impact on the stability and accountability of the insurance sector” said Darshan Kumar Wadhwa, secretary general, GIEAIA Class 1, 3 & 4

“The unions and associations fear that allowing complete foreign ownership will further marginalize public sector insurers and compromise their role in serving the people, especially in rural and semi-urban areas where private insurers have historically shown limited interest” said the spokesperson of the agitating employees association.

According to government data, FDI utilization in the insurance sector to date is merely 32.67% of the current limit of 74%, indicating limited demand for such capital. FDI prioritizes profit generation and capital repatriation over serving the people and fostering national progress.

Nationwide protest launched by public sector general insurance companies’ employees in support of their demands. The unions and associations have demanded:

Merger of PSGICs: To create a single, robust monolithic corporation, avoiding inter-company competition, rate cuttings, and serving customers and citizens more effectively and efficiently.

Infusion of Adequate Capital: To expand operations and serve citizens and common people through government social security schemes, such as Pradhan Mantri Fasal Bima Yojana, Rashtriya Swasthva Bima Yojana, and others.