General Insurance Employees’ All India Association has reiterated its long standing demand for the formation of a single corporation by merging all the four public sector general insurance companies for a financially stronger and stable entity.
This has greater significance and can cater to the social and economic needs of the policyholders and the citizens of the country at large, said Trilok Singh, General Secretary of the association.
A decision to this effect was taken at the all India working committee meeting held in Kochi to discuss and deliberate on the issues confronting public sector general insurance industry and its workforce.
‘PSGICs in distress’
Singh pointed out that Public Sector General Insurance Companies (PSGICs) — once integral to India’s economic growth — are now facing unprecedented financial distress and operational challenges. The government’s recent proposal to further liberalise the insurance sector by increasing the FDI limit from present 74 to 100 per cent is a big threat to public sector insurers, potentially reducing their role in favour of private corporate interests, he said.
In this critical period, he said urgent policy interventions are needed to preserve the strength and stability of public sector insurers.
All trade unions, associations and welfare associations had convened a seminar in New Delhi last month and passed resolution against the proposal to increase in FDI in the insurance sector cent and demanded merger of all four PSGIC, he said.