LIC employees under the banner of the Northern Insurance Employees' Association (NZIEA) held a demonstration in all office branches on Monday. The protestors were condemning the decision of the central government of proposing ordinance for hiking Foreign Direct Investment (FDI) limit in the insurance sector.
The protesters said these moves were against the interest of the national economy and interest of the people whose savings were involved in insurance and pensions.
While addressing the gathering, divisional secretary Amarjit Singh said the Insurance Laws (Amendment) Bill-2008 that aimed at hiking the FDI limit in insurance from 26% to 49% was initially introduced by the then UPA government in the Rajya Sabha and was referred to the standing committee of the parliament.
"The same Bill was persuaded by the BJP-led NDA government and bowing to the opposition pressure, the Bill is again referred to the 15-member select committee and is pending in the Rajya Sabha for discussion," said Singh.
Divisional president Harbans Singh said the argument of the government that by promoting the FDI in this country would augment insurance penetration (ratio of the premium underwritten to the GDP) is not tenable, "as penetration depends upon growth of economy and disposable income".
Singh said there was no need of FDI for technology import as the Indian insurance industry is highly developed and technologically advanced sector.