The largest public sector life insurer, Life Insurance Corporation (LIC) is observing a one -day strike today protesting the government's proposed divestment plan. At the same time, the employees also oppose the centre's plan to privatize one general insurance company and augment the FDI limit in the insurance sector to 74 percent from 49 percent. Founder in the year 1956, the insurance company has close to 0.114 million employees and 290 million policyholders.
In the Budget 2021 announcement Nirmala Sitharaman said that the government would pare its holding in LIC via an IPO. Currently, LIC is 100% owned by the centre and the IPO is likely to be launched in the second half of FY21.
Earlier, the UFBU or United Forum of Bank Union observed a two-day strike on March 15 and March 16, 2021 that severely impaired banking services all across the country.
The All India Insurance Employees' Association (AIIEA) said it is observing the strike together with other trade unions in the sector protesting centre's plans as they do not serve the interest of the industry, the country's economy as well as its people.
Also, the National Federation of Insurance Field Workers' of India (NFIFWI) has decided to observe a 2-hour strike today.
According to the report by the Hindu, Shreekant Mishra, AIIEA general secretary said "The LIC has been very successful in meeting its objectives. Disinvestment is the first step towards privatisation. Therefore, LIC's IPO violates the very objectives of its creation". And the proposed divestment plan is the first step towards privatizing LIC.