As the government tabled insurance bill in the Parliament on Monday, trade unions of public sector firms called for a strike on Tuesday against the move that aims to raise FDI limit in the private insurers to 49 per cent and the minimum paid up capital in LIC [Get Quote] to Rs 100 crore (Rs 1 billion).The All India Insurance Employees Association, a body comprising the staff of public sector insurance firms, said the nation-wide strike is to protest the government's intention to raise FDI limit from 26 per cent to 49 per cent.
"It is beyond imagination as to how the companies which are struggling in their own countries are being allowed to increase stake in India," said All India Insurance Employees Association Joint Secretary A K Bhatnagar.
It is agreed that the impact of global financial meltdown was not severe because the financial sector continues to be dominated by public sector, he said.
The government on Monday tabled Insurance Laws (Amendment) Bill in the Rajya Sabha amid loud protests by the Left and AIADMK. At the same time the government also tabled amendment to LIC Act 1956 in Lok Sabha.
According to the All India LIC Employees Federation, which has 1.14 lakh members, the move indicates the government is serving the interests of reformist agencies who wish to further strengthen their grip on the fast expanding insurance industry in the country.
The call for strike on Tuesday is the first step and if the government does not budge from its ill-conceived action, the employees shall be forced to go in for prolonged strike, said All India LIC Employees Federation Joint Secretary B S Rawat.
Rawat said Class I, III and IV would be part of the strike, while Class II comprising of field officer would take part in protest.
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