Proposal for 49% private share in insurance sector opposed

Proposal for 49% private share in insurance sector opposed

Addressing media persons on his visit to the City on Sunday, he said the LICAOI would observe the day of the discussion of the LIC of India (Amendment) Bill 2009 in the Parliament as “Black Day”, and if the Bill was passed, all the office functions would be boycotted on that day.

The idea behind increasing the private share in the insurance sector from the existing 26 per cent to the 49 per cent, is to increase the same to 100 per cent in the days to come, thus to privatise the insurance sector totally, he said.

Acharia said if the new Amendment Bill is passed, at least 9.8 lakh out of the total 13.3 lakh LIC agents (75 pc) will lose their jobs. Even though 20 private insurance firms are operating in the country for the past 10 years, LIC of India has been successfully functioning. Its claim settlement percentage is 99.5 per cent, while the private firms are experiencing a huge loss, he noted.

The Swaroop Committee Report has recommended to the Centre that the system of giving commission to the agents may be terminated by 2011. It also mentioned that the LIC of India need not canvass policies but interested people will approach the LIC and take policies. The recommendations will be a big blow on the insurance sector, he stressed.

He said the Left Parties would organise massive rallies in all state capitals urging dropping of the LIC of India (Amendment) Bill 2009. There will be branch-level demonstrations too all over India till the problems are solved, he added.

Price hike
Criticising the Union government for continuous rise in the prices of essential commodities, Acharia said life has become difficult for the common men.
“With a target of achieving 4 per cent growth in the agriculture field, the Centre is investing Rs 2500 crore, but the present scenario shows that the sector would record only a negative growth,” he said.

LICAOI General Secretary P G Dileep, Vice President C A Joseph and others were present at the press meet.