Insurance Privatization: “It seems ridiculous that the Finance Minister’s argument that this is not privatization, but a step towards greater private participation.”
Companies are opposing this decision of Finance Minister
The government has decided to privatize four general insurance companies in the public sector. In protest against this, the employees of these insurance companies are on a one-day nationwide strike on Wednesday. These companies are at number one position in insurance premium collection and claim settlement. The strike has also been supported by the All India Bank Officers Confederation (AIBOC), the apex organization of bank officers.
All India General Insurance Employees Association general secretary K. Govindan said the unions have called for a one-day strike against the passage of the General Insurance Business (Nationalisation) Amendment Bill, 2021 in the Lok Sabha. He said that the employees of all the four companies of PSGI are taking part in the day-long strike.
These companies went on strike
The companies which have gone on strike include General Insurance Corporation of India, New India Insurance Company Limited, United India Insurance Company Limited and Oriental Insurance Company Limited. In fact, the Lok Sabha on Monday passed the bill without discussion, amid constant protests by opposition parties on Pegasus spying and other issues. The bill is scheduled to come up in the Rajya Sabha on Wednesday for discussion and passage. After the passage of this bill, the central government can hold less than 51 percent stake in an insurance company, that is, it can be privatized.
These companies are included in the top 5 in earnings
All India Insurance Employees Association (AIIEA) said that due to these measures, the government will be able to privatize all the four public sector general insurance companies and reinsurer GIC Re. The AIIEA said, “The Finance Minister’s argument that it is not privatization seems ridiculous that it is a step towards greater private participation.” In fact, PSGI companies occupy the first five positions in terms of premium collection and claim settlement.
( language input )
read this also:
Court seals Bill and Melinda Gates divorce, now what will happen to $150 billion worth of assets
Payments startup BharatPe joins the unicorn club, the company is valued at $2.85 billion