Andhra Pradesh - Kurnool   

Plea against enhancing FDI in insurance sector

KURNOOL: All-India Insurance Employees Association leader K.V.V.S.N. Raju has urged the government to drop the proposal to enhance the foreign direct investment (FDI) in the insurance sector from 26 per cent to 49 per cent.

Addressing a meeting here, he said it was ironical that the Indian government was toying with the idea of increasing the FDI in the insurance sector at a time when overseas insurance companies were collapsing one after the other.

The US Federal Government came to the rescue of AIG Insurance company by giving a package of 150 billion dollars (Rs. 7,50,000 crore in Indian currency) and the Dutch government supported the ING Group with 13.5 billion dollars.

Newyork Life, Metlife and Prudential companies represented to the government for a bailout package if they were to continue the business.

Saying that the companies were conducting insurance business in India too, he said it was not prudent to go about the FDI rise even after observing the crisis in the West. He said the public sector LIC and four General Insurance Companies were doing well in the Indian market.

The LIC paid a dividend of Rs. 826 crore and the General Insurance Companies Rs. 450 crore to the government.

The assets of LIC rose to Rs. 7,51,000 crore and that of the General Insurance Companies to Rs. 62,922 crore.

District secretary of General Insurance Employees Association B. Venkateswarlu, Raghubabu, Gouse Desai and others were present.

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