LIC IPO is totally against interest of policyholders: NZIEA

Excelsior Correspondent

JAMMU, Feb 28: A meeting of Divisional Committee of Northern Zone Insurance Employees’ Association (NZIEA) Srinagar Division, representing LIC employees of J&K was held here today.
The meeting was attended by Pawan Gupta, divisional secretary NZIEA Srinagar Division; Romesh Chand, joint secretary; Dinesh Kumar Sharma, vice president; Raj Kumar Sharma, treasurer; Rajesh Kumar, auditor and Raj Kumar, office secretary.
In a handout Pawan Gupta strongly opposed LIC IPO and stated that the Central government has proposed to bring LIC IPO (5 per cent of its total shares) which as per reports is to open on March 2022.
He claimed that LIC IPO (5 per cent) means that 5 per cent part of LIC is being sold and it is the first step towards privatization.
Gupta also said that on a meager capital base, LIC today is managing its assets in excess of Rs. 38 lakh crore and this is an important fact that has been overlooked while deciding to sell 5 per cent part of LIC.
“There is a big question why to sell LIC to private hands? LIC which has 41 crore customers, has contributed a lot in national development, is a profitable PSU fulfilling insurance needs in rural areas, is 100 per cent owned by the government, secures policyholders’ money fully and we will never let it fall prey to private players,” he maintained.
He claimed that the equity sale by the government which may ultimately lead to privatization kills these very objectives.
“Even before LIC IPO comes, the share of policyholders in surplus has been reduced to 90 per cent from 95 per cent and also in the non participating policies, the entire share of 100 per cent surplus will go to shareholders, the policyholders will get zero share out of it,” Gupta said adding: “We appeal to one and all to extend support to the struggle of LIC employees against LIC IPO and impress upon the government to retain LIC as 100 per cent government owned PSU.”