Excelsior Correspondent
JAMMU, Oct 11: On the call given by All India Insurance Employees’ Association, Northern Zone Insurance Employees’ Association Srinagar Division represented by LIC employees of Jammu & Kashmir, held massive demonstrations today in front of LIC offices to oppose the decision of the NDA Govt to disinvest 14.22% of shares of General Insurance Corporation of India (GIC Re) through IPO (Initial Public Offer).
Due to this, the Govt of India has aimed to earn around Rs 11000 crore to its exchequer. The Public Sector GIC Re is the only reinsurance company in India. It has earned a profit of Rs 3121.37 crore during Financial Year 2016-17 and paid a dividend of Rs 1002 crore to the Govt of India. The asset value of GIC- Re as at 31.03.2017 is Rs 94,913.80 crore and investments in various Central Govt welfare schemes is Rs 64,744.92 crore till 31.03.2017. At the closure of FY 2016-17, GIC Re has Rs 18015.77 crore as reserves and surplus with a healthy solvency margin of 2.4%.
GIC is not only earning profit every year but also paying dividends to Govt of India. For the Year 2014-15 Rs 540 crore, 2015-16 Rs 860 crore and 2016-17 Rs 1002 crore was paid as dividend to the Govt of India. NDA Govt issued an ordinance on 26.12.2014 to make provision to disinvest up to 49% of shares in Public Sector General Insurance Companies. Even though the GIC does not require any financial assistance or further capital infusion, the Govt has decided to sell 14.22% of its shares to private players in the name of public issue. The BJP Govt has also decided to go for disinvestment in all the four Public Sector General Insurance Companies, which will hamper our economy and is against the interest of common public.
Motive of the Govt is to benefit foreign private reinsurance players. It will pave the way to Indian Corporates and multinationals to take away part of the profits of GIC Re. By this act, the Govt decided to part its dividend with private players.
The demonstration at Srinagar was led by A M Tantray, president NZIEA Srinagar Division.
In Jammu region, apart from Divisional Committee members, Romesh Chand, Raj Kumar Sharma, Rajesh Kumar, the demonstrations were led by Rajesh Gupta at Jammu-1, Karan Kumar Jammu-2, Nanak Chand Jammu-3, Vijay Verma at Kathua, Tilak Raj at Samba, Paramjeet Singh at RS Pura, Neeraj Khajuria at Udhampur, Ram Raj at Doda and Neeraj Sharma at Rajouri.
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