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June 4, 1998

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Insurance unions opposed to a role for private sector

Six major trade unions have announced their decision to protest against the Union government's Budget proposal to open up the insurance sector to private Indian companies.

The All-India LIC Employees Federation, All-India Insurance Employees Association, Federation of LIC Officers Association, National Organisation of Insurance Workers, NFI Field Workers of India, and All-India Life Insurance Employees Association, in a joint statement, expressed resentment over the budgetary announcement of the finance minister of opening up the insurance sector to the private companies as a part of reform in the financial sector.

They said on Wednesday that they would resist such moves through a joint agitational programme of actions which would be chalked out at a national level meeting shortly.

According to trade union leaders, the new move for providing better insurance cover and mobilising resources for infrastructural development sounded "hollow and meaningless." They said LIC now covered more that 70 million lives and was committed to providing Rs 300 billion towards infrastructural development during the ninth five-year plan.

The unions felt that privatisation, if pursued, would harm the interest of the nation as well as 70 million policy holders and about 200,000 officers and employees working in the insurance sector.

They also decided to hold joint protest demonstrations at all divisional centres at LIC during lunch hours on June 8.

Budget '98

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