The partial privatization of LIC is an anti-national conspiracy.
Report received from Shri Jaimin Desai, Convenor, Surat Trade Union Council (STUC)
The main points raised in the state level conference organized by AIIEA today:
- The decision to sell the capital of LIC is dictatorial. It has been decided to sell the capital without any discussion with the corporation’s employees and officers, consumer protection boards and taxpayers boards as well as the opposition.
- There are 23 life insurance companies in the country and yet LIC’s contribution in the life insurance market is 65%. It also shows that people have faith in LIC.
- It is an illusion that private insurance companies operate efficiently. 72 insurance companies went bankrupt in the United States during 1991-2019. What happens to policyholders when this happens in India?
- Article 39 of the Constitution of India states that the disabled, the sick and the elderly have the right to receive state assistance. LIC was created for this purpose by amalgamating 245 private companies in 1956. Now, if privatization proceeds slowly, that very purpose will be defeated.
- The government wants to get one lakh crore rupees by selling the capital of LIC. He can even get it by borrowing from the people of the country. Even if the government imposes a 25 per cent inheritance tax on the property of the deceased, leaving a property of over Rs 50 crore, it is likely to collect the amount in a few years.
- If the government wants to bring transparency and accountability, it should include leaders of civil society, consumer protection groups and employee unions on the board of LIC. There is no need to sell capital for this.
- This is a conspiracy to gradually shift LIC not only to private hands but also to foreign companies.
- Private insurance companies are not accountable to the people. Government insurers are accountable to Parliament and indirectly to the people. LIC’s performance can be improved by discussing LIC in Parliament and bringing together staff and consumer protection groups. The idea that performance only improves if capital is sold is absurd. The problem is that the Modi government does not believe in discussion and dialogue.
- There is not a single large sector of the economy in which thousands of crores of rupees are not invested by LIC. This is his contribution. Then the move to make it private is called treason.
- Selling LIC capital is politically unethical. If the capital has to be sold, give shares not only to the employees and policyholders, but to all the citizens of the country, because the LIC arose from the tax money of all the citizens of the country.
– Pro. Hemant Kumar Shah,