Mysore/Mysuru: Employees of Public Sector General Insurance (PSGI) companies staged a protest here on Wednesday against the proposed privatisation of State-owned insurers.

The protest was held under the banner of Joint Forum of Unions and Associations of Public Sector General Insurance Companies (PSGIC) in City. 

The unions had given a call for one-day strike against the passage of the General Insurance Business (Nationalisation) Amendment Bill 2021 in the Lok Sabha, General Insurance Employees Mysuru District President N. Ravikumar said. 

Employees of all four PSGI companies, National Insurance, National Assurance, United India, New India Oriental Insurance participated in the day-long strike. The bill has been passed by the Lok Sabha on Monday without discussion amid continuing protests by opposition parties on the Pegasus snooping and other issues.

As per the statement of objects and reasons of The General Insurance Business (Nationalisation) Amendment Bill, 2021, it seeks to remove the requirement that the Central Government should hold not less than 51 percent of the equity capital in a specified insurer. “These measures will therefore enable the Government to privatise all the four public sector general insurance companies and the reinsurer GIC Re. The argument of the Finance Minister that it is not privatisation but an effort towards greater private participation sounds somewhat ludicrous,” contended union leaders.

One should not forget that even today the PSGI companies occupy the first five slots in terms of premium and also claims settlement, they said.

In the year 2020 and 2021 penalties were imposed against private insurance companies only and the number of grievances registered against private insurance companies was 82 per cent as against 18 per cent against public sector insurance companies, AIIEA said.

Finance Minister Nirmala Sitharaman in the Budget 2021-22 had announced a big-ticket privatisation agenda which included two public sector banks and one general insurance company. “We propose to take up privatisation of two public sector banks and one general insurance company in the year 2021-22. This would require legislative amendments, she had said at the time.

As of date, there are four general insurance companies in the public sector – National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and the United India Insurance Company Limited.

LIC employees stage protest: Meanwhile, Life Insurance Corporation Employees Association members also staged a protest in front of the LIC Divisional Office in Bannimantap yesterday to lodge their protest against the proposed privatisation of the public sector insurance company. The protest was held during lunch break.  Association Mysuru Division President Ramu, General Secretary S.S. Nagesh, Zonal Joint Secretary G. Suresh and others led the protest.