Pan India lunch hours protest announced by Public Sector General Insurance Companies to press for their genuine demands

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Pan India lunch hours protest announced by Public Sector General Insurance Companies to press for their genuine demands

Kanwar Inder Singh/ royalpatiala.in News/ December 13,2024

The Unions and Associations in Public Sector General Insurance Companies strongly believe that the proposal to allow 100% FDI in the insurance sector must be withdrawn. Past trends indicate that increasing FDI limits has not significantly improved insurance penetration in the country. Instead, FDI flows have been primarily profit-driven, focusing on capital repatriation rather than addressing the socio-economic needs of India.

This raises serious concerns about the long-term stability and accountability of the insurance sector. We fear that allowing complete foreign ownership will further marginalize public sector insurers and compromise their crucial role in serving people, particularly in rural and semi-urban areas where private insurers have historically shown limited interest.

Government data reveals that FDI utilization in the insurance sector to date is only 32.67% of the current limit of 74%, indicating limited demand for such capital. Furthermore, FDI has prioritized profit generation and capital repatriation over serving the people and fostering national progress.

Pan India lunch hours protest announced by Public Sector General Insurance Companies to press for their genuine demands. The Unions and Associations demand the following:

Merger of Public Sector General Insurance Companies
To create a single, robust monolithic corporation to eliminate inter-company competition, prevent rate cuts, and serve customers and citizens more effectively and efficiently.
Infusion of Adequate Capital
To expand operations and better serve citizens and the common man through government social security schemes such as Pradhan Mantri Fasal Bima Yojana, Rashtriya Swasthya Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana, and other similar initiatives.
Ensuring a Level Playing Field in the Insurance Market
To safeguard fair competition and uphold the interests of public sector insurance companies.