The CPI(M) opposes the clearance given by the Centre for disinvestment of shares in the five public sector general insurance companies. The party said in a statement that the decision to disinvest 25 per cent shares in each of these companies will weaken the nationalised general insurance companies which have been running well. “They have been regularly earning profits and contributing to the government's revenue,” the party’s Politburo said on Thursday.

It added that unlike the private sector insurance companies, it is the general insurance companies that are executing the insurance based welfare schemes announced by the government.

“The Modi government is undertaking this disinvestment measure as part of the overall plan to liberalise and privatise the financial sector. The way will be opened for more participation of foreign insurance companies. This is not in the interests of the people and the country,” the statement added.