The Hindu Business Line : General insurance officers oppose IPO move

"The disinvestment in PSU insurance is against the assurance given by the Union Government while moving the Insurance Regulatory and Development Authority (IRDA) Bill in 1999," Mr P.P. Mohanan, Vice-President of the association in Kerala said.

For merger

The four PSU insurance companies should be merged into a single corporation instead of privatising them if the Government sincerely wished to strengthen the State insurer's role in the country, the association said. This will help them withstand the stiff competition from private players. As of March 31, private insurers had acquired a market share of 35 per cent in the industry.

Employees, unions and associations have for long been demanding the merger of the four public-sector general insurance companies. Now, in the backdrop of premium de-tariffing from January 2007, the demand for a single corporation has become more relevant, the association said.

As there are eight private insurers to compete with there is no need for unhealthy competition among the four PSU insurers.

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General insurance officers oppose IPO move