Increasing FDI in insurance suicidal for economy: GIEU

Excelsior Correspondent

JAMMU, July 11: General Insurance Employees Union (North Zone) and NZIEA, under the banner of All Indian Insurance Employees Association held strong demonstration at Shalamar Chowk here in protest against the increase in the Foreign Direct Investment (FDI) from 26% to 49% as announced by Modi Government.
The Insurance employees strongly opposed the move and described it as suicidal for the economy of the country. It was part of country-wide protest programme during lunch hour by the insurance sector employees. The employees were addressed by Dalip Koul, general secretary (GIC) and Pawan Gupta, Divisional Secretary (NZIEA). They pointed out that NDA Government led by Modi has started showing its colours while coming to power. The same BJP used to oppose FDI in insurance sector when it was in opposition but now it has changed its stand after coming to power for vested interests.
The Standing Committee on Parliament led by Yashwant Sinha has unanimously submitted the report in December 2011, opposing the increase in FDI cap in insurance sector from 26 to 49 %. But surprisingly, the move of BJP led NDA Government has stunned the employees in the insurance sector as well as people of the country for taking U-turn by top BJP leadership. They said so far as insurance is concerned, the total FDI in life sector from 2001-2013 is only Rs 6040.91 crore whereas, for the same period LIC has paid dividend of Rs 10565.74 crore to the Government. As on March 31, this year the investment in Government and social sector by LIC is Rs 921371 crore. Moreover, the investment by LIC in the 11th Five Year Plan is Rs 704151 crores. The provision for raising FDI cap to 49 % is to have control on the house hold savings of this country by the foreign players and not in the development of infrastructure.