New Delhi
The Swadeshi Jagran Manch (SJM), an affiliate of the Rashtriya Swayamsevak Sangh(RSS) ,and all employees' unions of public sector general insurance companies have opposed the government's decision to privatise one of the PSU general insurance companies.
SJM ,which favours swadeshi or indigenous production over foreign products, has also strongly opposed the Finance Minister Nirmala Sitharaman’s proposals,in her Budget-2021-22, on disinvestment in PSUs, privatization of PSU banks and one of the general insurance companes and increasing FDI limits in the insurance sector.
The All India Insurnace Employees' Association(AIIEA) has also opposed the government's move to hike FDI limit from 29 per cent to 74 per cent.
Anxious about “which one of the four PSU general insurers will be privatised’,Employees' unions in the PSU non-life insurance sector have decided to launch agitation against the government’s move from Wednesday.
After 2018, that had announced the merger of three PSU general insurers, National Insurance Company, Oriental Insurance Company and United India Insurance Company, which was called off in 2020, the announcement in Budget-2021-22 to privatise one of the PSU general insurers, has again given rise to conjecture and confusion, said a statement by officials of different uinons, which had supported the mergers of three companies. .
Putting the public sector general insurance companies ,which rose to the occasion and served the insuring public during the pandemic situation, in such turmoil is absolutely unwarranted and that too in a situation when three of these companies are struggling to survive with adverse financials, said the statement.
“We sincerely appeal to all rank and file in the PSU general insurance industry to observe one hour Strike on 3rd February positively from 12.30 to 1.30 pm. All classes of employees and officers in their cities may assemble in one place in coordination with leaders of all four companies and hold demonstration against the GIPSA Management and the derogatory approach of government and also against the step motherly approach of government against the public sector general insurance companies.
SJM National Co-Convenor Ashwani Mahajan stated that the announcement of privatisation of public sector banks and an insurance company is worrying.
‘’It would be better that instead of doing a strategic investment of these undertakings, efforts are made to improve the performance of these enterprises; and after that only their equity is disinvested in the market. The strategic disinvestment of the enterprises created by taxpayers’ money is not right. Sale through equity route would be a far better and transparent option, after improving their performance,’’ said Mahajan.
Raising the FDI limit in the insurance sector from 49 per cent at present to 74 per cent is also worrisome as increasing foreign dominance in the financial sector is not a prudent step. ‘’This increases foreign dominance over the financial resources of the country and impacts the development of the country,’’ added Mahajan.