The Hindu Business Line : Employees oppose FDI in insurance

Insurance employees have expressed their opposition to any hike in Foreign Direct Investment in insurance. The President of the All India Insurance Employees Association, Mr N.M. Sundaram, who was here to partake in the four-day conference of the association, termed the move as `unhealthy and unsafe.'

Speaking to Business Line on the sidelines of the conference, he said: "Insurance companies accept premium in cash for a promise. A small office without much expense on establishment should suffice. Since the market in the West is either saturated or registering negative growth, foreign players have come to India as they see significant growth among the middle class. But for us to open an office in these countries is not easy. ," he said.

Questioning the underwriting powers of the private insurance companies, he asked: "If these companies can break even only after seven years, how can they be allowed to underwrite the risk which they have not provided for?"

He said while private players maintain that they were settling the claims in full, in truth, they negotiated the claims.

More Stories on : Trade & Labour Unions | Foreign Direct Investment | Insurance

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