By Insurance Employees Association, Thane
Affiliated to All India Insurance Employees Association (AIIEA) through Western Zone
Insurance Employees Association (WZIEA)
The appeal highlights the predicted adverse effects of privatisation of the Life Insurance Corporation (LIC) on the policyholders and the country as a whole. The appeal calls upon the policy holders to oppose the plan of the Central Government to issue an IPO of LIC of India.
(English translation of Appeal in Marathi)
Policyholders, please beware!
From 1956 onwards, LIC has raised huge sums of money through insured household savings of policy holders. That money was made available to implement many development projects of the central government and thus helped in advancing people’s interests. This organization does not need any additional capital. But still, the government wants to sell off part of its shares in the share market. This is neither in the interest of policy holders nor the country as a whole.
Many renowned economists, investors, and experienced people of our country have warned that this IPO will have many adverse effects in future.
They have warned that this IPO is the first step towards privatization and privatization will possibly have the following adverse effects:
1) Insurance may become more expensive and Insurance will get tied to the share market. As a result of this, it may not be affordable for rural and economically disadvantaged citizens of the country.
2) Life insurance of common people may get neglected. In fact, rich people may get more focus.
3) People from rural and far-flung areas may be deprived of insurance services.
This was precisely the situation in our country before the formation of LIC. As a solution to that problem, the then Finance Minister, C.D. Deshmukh had nationalised the insurance business. The current government is going in exactly the opposite direction.
Hence we call upon all the citizens to participate wholeheartedly in the signature campaign against the LIC-IPO!
Thank you!
Insurance Employees Association, Thane (Affiliated to AIIEA through Western Zone Insurance Employees Association ((WZIEA))
Very correct in opposing LIC ipo. It put safety of policyholders savings in question mark as it was during pre 1956 periods. More than 100 s of private companies went bankrupt, dissolved, diverted money to private gains , etc. It is there in parliament records of 1956.