Memorandum given to all Rajya Sabha MPs
(Submitted to AIFAP by Shri Sachin Halnor)
“Respected Member of Upper house of Parliament,
I am writing concerning the recent General Insurance Business Nationalization (Amendment) Bill,2021 (“GIBNA Bill”). In 1972, the general Insurance business was nationalized in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment. This bill will open the doors to privatize entire general insurance sector in India.
The 4 PSGICs dominate the Indian General Insurance business having market share of more than 55%, have always been instrumental in implementing General Insurance Schemes introduce by the various Governments, 67% of the population having Health Insurance are covered by PSGICs, the reach of the 4 PSGICs to the remotest corner of India can never be matched by any Private player. Despite above mentioned facts 82% of the total grievances are against the private players as the PSGICs have always been working on the principle ” Pay if you can, refuse if you must.”
The privatization of the PSGICs will affect the common population the most as the organizations having sole purpose to make profit can never empathies with the general public in the hour of the greatest need. Alternatively, all the 4 PSGCICs can be merged, which would result in following,
1.Increase in market share, the new company will have more than half of the market share and will be far ahead in the competition.
2.Reduction in cost of operation
3.Increased Underwriting capacity
4.Loss reduction due to cross competition
5.A stable, Mammoth General Insurer to cater to needs of common people of India
Thank you for your commitment in the past to justice and for always being accessible and from taking the time out of your busy schedule and patiently reading the mail.”