The Government of India has approved 100% FDI in Insurance Sector. This means that now foreign companies can also invest their money in insurance sector. The government is also set to introduce a comprehensive Bill during the ongoing Budget Session of Parliament to amend key insurance laws, including the LIC Act, the Insurance Act, and the Insurance Regulatory and Development Authority of India (IRDAI) Act.
This has raised fear of privatization among the employees of Insurance Sector. A union representing employees of public sector general insurance companies has raised strong objections to the government’s proposal to allow 100% foreign direct investment (FDI) in the insurance sector, along with amendments to insurance laws.
The Joint Forum of Unions & Associations of Officers & Employees (JFTU) issued a statement condemning these moves, stating that such proposals would harm all stakeholders in the insurance sector. According to the union, the introduction of 100% FDI and the changes to insurance laws would negatively impact Public Sector General Insurance Companies (PSGICs), their employees, and the broader economy. They expressed concern that the proposals would also undermine the country’s insurance sector and its ability to serve the public effectively.
In addition to the criticism of FDI and law amendments, the union highlighted other key issues. These included the long-delayed wage revision, which has been pending since August 1, 2022. The union also called for improvements to the National Pension Scheme (NPS), seeking a 14% contribution rate, as well as an increase in the family pension benefits for employees.
