Employees of the Life Insurance Corporation of India (LIC) under the All India Insurance Employees Association (AIIEA) recently protested against the increase in foreign direct investment (FDI) limits in the insurance sector, as announced by Finance Minister Nirmala Sitharaman in the Budget. The protest was sparked by the decision to increase the FDI limit from 74% to 100%. The protesting employees believe that this move will be harmful to the Indian economy, common people, and the state’s responsibilities. They argue that the privatisation of the insurance sector began in 1999, allowing Indian money to operate in partnership with foreign companies. Currently, private insurance companies operate in both life and general insurance sectors with foreign partners, but the employees claim that the total FDI in the insurance sector accounts for only 32% of the invested capital, raising questions about the government’s decision to grant full independence to foreign capital.
The protesting employees, led by Neeraj Arora, divisional secretary of the association, fear that if existing foreign partners decide to operate independently, it could lead to hostile takeover bids for existing Indian companies. They believe that this could severely impact Indian companies and potentially lead to a loss of control and ownership. The employees also claim that there is no shortage of money, as private insurance companies are owned by major business houses and operate in collaboration with top multinational firms. Overall, the protest is aimed at highlighting the potential risks and consequences of increasing FDI in the insurance sector and challenging the government’s decision to grant full independence to foreign capital.