The Hindu Business Line : Insurance staff threaten stir on FDI

Money & Banking - Trade & Labour Unions
Industry & Economy - Foreign Direct Investment
States - Andhra Pradesh
Insurance staff threaten stir on FDI

Our Bureau

Visakhapatnam, Sept. 24

The All-India Insurance Employees’ Association (AIIEA) will continue its struggle against the proposed increase in FDI from 26 per cent to 49 per cent in the insurance sector and if the Union Government brings in a bill for the purpose, the employees will go on a day’s strike in protest, according to Mr N.M. Sundaram, President of the association.

At a press meet here on Monday, he said the Union Finance Minister, Mr P. Chidambaram, had made a statement that the bill would be introduced soon, necessitating such a course of action by the employees. Mr Sundaram said the Union Government seemed to be intent on killing the public sector insurance companies in the country to leave the field free for the private sector operators.

The argument that the Indian promoters of insurance companies did not have the requisite capital and therefore the FDI limit should be hiked was not a very convincing one, he said. He added that most of the Indian promoters did have the cash, but they were not willing to invest it.

Mr Sundaram said the AIIEA would also pursue its demand that the four public sector general insurance companies be merged into one to make it a strong company. “Mr Chidambaram talks of consolidation in the banking sector all the time. It beats me why he does not extend it to the insurance sector,” he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sub-prime and side effects

Re impact: Pharma companies expanding currency baskets

Fears of US slowdown haunt IT companies

‘Housing finance proves a challenge to banks’

ICICI Bank’s car loans at floating rates

Airline insurance market softens

Rs 16,500-cr T-bill, gilts sale

Axis Bank to advise rural rich

10.5%: Special home loan floating rate offer from HDFC

Interest rate: Immediate relief unlikely for corporate financials

IBA-unions pension talks on Oct 3

Insurance staff threaten stir on FDI

Banks’ net margins may come under pressure