Govt pursuing 'sinister plan' to hit common man: Congress

Latching on to the employees provident fund (EPF) rate cut and a move to hike the life and vehicle insurance premiums, the Congress on Sunday accused the Narendra Modi government of pursuing “a sinister plan” to break the back of the common man and only shedding "crocodile tears" for them.

While the retirement fund manager EPFO has decided to cut the interest rate on provident fund deposits by 15 basis points to 8.5% deposits for the financial year 2019-20 in a move that could hit about six-crore subscribers, the insurance regulatory and development authority of India (IRDAI) recently came up with a proposal to increase the premium for third-party insurance of cars and two-wheelers.

The insurance regulator has also proposed to increase the premium for life insurance.

“This series of events indicate a sinister plan to break the back of the common man," Congress spokesperson Abhishek Singhvi told reporters.

Noting that the insurance regulator has proposed more than 20% hike in third-party vehicle insurance premiums, Singhvi said this will hit the most to the owners of two-wheelers and three-wheelers besides four-wheelers under 1500 cc category.

Noting that a similar hike has been proposed by the regulator for life insurance premiums as well, he said, “the government alone can stop it. But, it has done nothing. It is watching by the sidelines, pouring crocodile tears even though the hike in premiums will hit the middle and lower-class the worst”.

“We demand very clearly and categorically that government must stop the move to hike insurance premiums,” he added.

Slamming the government over the EPF rate cut, the Opposition party said that it has come at a time when the country was witnessing the lowest employment-generation rate in 45 years.

“It will hit at least six crore employees. This is being done by a government which talks about giving protection to the common man,” Singhvi said.