Employee unions have once again called for the merger of all four public sector general insurance companies into a single corporation. They believe this step will create a financially stronger and more stable entity, helping these companies survive ongoing financial challenges.
The General Insurance Employees’ All India Association (GIEAIA) reaffirmed this demand during its all-India working committee meeting held in Kochi. The meeting focused on key issues affecting public sector general insurance companies (PSGICs) and their employees.
Concerns Over Financial Struggles and Policy Changes
During the meeting, union representatives highlighted the financial distress faced by PSGICs. These companies, once important for India’s economic growth, are now struggling with declining revenues and increasing operational challenges.
Union leader Singh raised concerns about the government’s proposal to further liberalize the insurance sector. The plan to increase the Foreign Direct Investment (FDI) limit from 74% to 100% could weaken public sector insurers, shifting control toward private corporations. He warned that such a move could reduce the role of government-owned insurance firms in favor of private businesses.
Call for Urgent Policy Interventions
In light of these challenges, unions have urged the government to take urgent policy measures to protect public sector insurance companies. They argue that merging the four insurers into one corporation will help improve financial stability and operational efficiency.
Last month, various trade unions, associations, and welfare organizations held a seminar in New Delhi. During the event, they passed a resolution opposing the FDI limit increase and demanded the merger of all four PSGICs.
The unions continue to push for government action to safeguard the future of public sector insurers and ensure their long-term viability in India’s competitive insurance market.
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