'PM must stop public sector insurance companies merger'

Swadeshi Jagaran Manch urges PM to stop merger of public sector insurance companies

Swadeshi Jagaran Manch (SJM)

 Ahead of the Union Budget, the Swadeshi Jagaran Manch (SJM) has urged Prime Minister Narendra Modi not to go ahead with plan for the merger three public sector insurance companies, saying it will have an adverse impact on the Centre's schemes launched for the welfare of people including farmers.

The government had announced the merger of National Insurance Company, Oriental Insurance Company and United India Insurance Company into a one entity last year but the it could not be done due to various reasons which included poor financial health of these companies.

“The merger of these three insurance companies would have adverse impact on the Centre's flagship schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY) and Pradahan Mantri Jan Aarogay Yojana (PMJAY)," the SJM's co-convener Ashwani Mahajan said in a letter to Modi.

These schemes have mostly been distributed by three public sector insurance companies, he pointed out.

The SJM is a Rashtriya Swayamsevak Sangh (RSS) affiliate.

Mahajan said he was fully convinced that the three public sector insurance companies have to stop bleeding but the solution does not lie in their merger.

Reviewing the efficiency of staff, eliminating vested interest in payment of commissions for generating business, prudent premium charging policy are among the areas which could be looked into to find ways to make them financially viable, he suggested.