Coimbatore: Opposing the bills introduced in Parliament to amend insurance Laws, the All India Insurance Employees Association today said the 24 crore LIC policy holders, intellectuals, economists and other sections should be given an opportunity to place their views before the Standing Committee.
The Insurance laws (amendment) bill 2008 introduced in the Rajya Sabha on 22 December last was aimed at increasing the strength of foreign capital in Indian private insurance companies by increasing FDI limit from 26% to 49%, AIIEA joint secretary, V Ramesh claimed at a press conference here.
In the background of the global economic crisis, US and European insurance companies faced serious difficulties. Considering this, there was no merit in the move to increase foreign control in Indian Private Insurance Companies,he said
One should remember that the root cause for the crisis in developed countries was imprudent investments, where insurance companies had also invested in derivatives and lost heavily. The money which was lost belonged to policy holders, he said.
The AIIEA totally opposed the move to increase the FDI limit as the savings of people of India cannot be ‘frittered away´ as done in USA and Europe. The savings should be available for infrastructure and other social needs of the country, Ramesh said.