All India Insurance Employees’ Association (AIIEA) on Saturday held a convention in Bengaluru against Life Insurance Corporation’s (LIC) initial public offering (IPO) announced by the government.
The convention was hosted at the Secretariat Club in Bengaluru in the presence of Amanulla Khan, former President, AIIEA, as the chief guest. It was inaugurated by Suresh Kudoor, an activist. Some leaders from the Central Trade Union and state representatives from political parties like the Aam Aadmi Party also participated in the event.
“The IPO is the first step towards privatisation of LIC. LIC has been providing funds to the government to enable development in other sectors like Railways and water supply. The IPO will put an end to the flow of financial assistance that the government benefitted from all this while,” said P Nagendra, President of Bengaluru Division, Insurance Corporation Employees’ Union.
LIC, which was started in 1956 with an initial capital of Rs 5 crore, today manages assets of around Rs 38 lakh crore.
The privatisation will not only affect the government but also impact the dividend-paying capacity of the company, Nagendra added.
Since its inception, the government has received a cumulative dividend amounting to over Rs 28,695 crore from LIC, AIIEA said in a statement.
“Anyway the government has allowed the private players to do insurance business. It is like the government is trying to kill the golden goose,” he said.
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