The February 4th of 2020 will observe the employees' union of Life Insurance Corporation (LIC) going on a one hour strike to protest regarding the strong opposition toward the government's plan to sell a part of it's holding in the country's largest financial institution through a public offer.
"The listing of LIC will certainly harm the economy and growth of our country. We vehemently opposes this move of the government and to protest and resist such act of the government, we have decided to go for lunch hour demonstration on Monday and one-hour strike on Tuesday as an initial response across the country" said SanjivK Gupta, All India Joint Secretary, National Federation of Insurance Field Workers of India
He also stated, "We vehemently oppose this move of the government. To protest and resist such an act of the government, we have decided to go for lunch hour demonstration on Monday and one-hour strike on Tuesday as an initial response across the country,"
Presenting the Budget on the 1st of February, 2020, the Finance Minister Nirmala Sitharaman said that LIC would be listed as part of the Government disinvestment initiative. The Government proposes to sell a part of its holding in the LIC through an Initial Public offering (IPO).
With such an announcement, the basic nature of state-owned LIC of India is apprehended to come to a disastrous change to affect crores of policy holders and the country as a whole. "The faith and trust bestowed on the LIC by the common people of India to save blindly their hard-earned money will be cracked,” he added.
Union members added that the foundation of LIC has been so strong that even after 20 years of opening up of the insurance sector it remained the market leader with more than 70% of the shares, competing with as many as 23 other life insurance companies. In fact, this financial year, the LIC has regained 6% market share and its growth is more than the industry growth. They have requested the government to reconsider its proposal.
LIC was established in 1956, it is fully owned by the Central Government and holds the highest market share in the country's life insurance segment regime.
Author: Dyuti Pandya