LIC employees stage demonstration against disinvestment in NIACL

LIC employees staging protest in Srinagar.
LIC employees staging protest in Srinagar.

Excelsior Correspondent

SRINAGAR, Nov 1: Northern Zone Insurance Employees’ Association (NZIEA), Srinagar Division today held demonstrations in front of LIC offices to oppose the decision of the NDA Government to disinvest 14.56% of shares of New India Assurance Company Limited (NIACL), a public sector company in business of General Insurance through IPO (Initial Public Offer).
The demonstrations were led by Pawan Gupta, secretary, NZIEA Srinagar Division and AM Tantray, president of NZIEA Srinagar Division. Due to this IPO, the Government of India has aimed to earn around Rs 9600 crore to its exchequer.
Pawan Gupta said, “Despite our strong opposition, The New India Assurance Company Limited has declared the schedule of its IPO. The same has opened today and will close on 3rd November. The apparent reasons, as put forth by the Management for floating IPOs are augmenting of Capital base, better branding of the Company, enhanced efficiency and transparency in its operations”.
He said they are well aware that these arguments are specious and do not stand the reality. He alleged that a lion’s share of the money to be mobilized through the IPO will be taken away by the Government.
“The Company will be able to raise not more than Rs 2000 crore through this whole exercise. With 2.7 crore of client base and holding number one position on the claim settlement parameter and having a market share of 16 percent, the argument of enhancing branding and efficiency, seems to be a facile one”, he added.
He said that their association has always been fighting for protection and strengthening of PSGICs, because they are aware that the PSGICs have played a major role in building the self reliant economy of the country, besides making the Insurance service accessible to the common people of India at affordable cost.
In Jammu region, apart from Divisional Committee members- Romesh Chand, Raj Kumar Sharma, Rajesh Kumar, the demonstrations were led by Rajesh Gupta at Jammu-1, Karan Kumar Jammu-2, Nanak Chand Jammu-3, Vijay Verma at Kathua, Tilak Raj at Samba, Paramjeet Singh at R.S.Pura, Neeraj Khajuria at Udhampur, Ram Raj at Doda and Neeraj Sharma at Rajouri.