LIC IPO Disinvestment Policy

LIC IPO Disinvestment Policy

• LIC Initial Public Offering (IPO) Disinvestment Policy – AIIPA

All India Insurance Pensioners’ Association Draft of letter to be sent to Sri Narendra Modi, Hon’ble Prime Minister and Smt Nirmala Sitharaman, Hon’ble Finance Minister, For LIC Initial Public Offering (IPO) Disinvestment Policy

ALL INDIA INSURANCE PENSIONERS’ ASSOCIATION

Date: 1st March 2021

President: Com Ashok Tiwari

General Secretary: Com T K Chakraborty

Cir No: 05 / 2021

To
All Divisional / Regional / State units of AIIPA

Dear Comrades,

LIC IPO – Disinvestment policy

Please refer AIIPA Circular no. 4 / 2021of 26.2.2021.

All Pensioners Associations are advised to send letters to Prime Minister / Finance Minister, GOI, New Delhi protesting against LIC IPO and disinvestment policy.

As the Parliament is to be reconvened and meet from 8th March, 2021, all Pensioners associations are requested to send these letters immediately by email followed by hardcopy by post.

P. A.s are also to mobilse the pensioners for their participation in all programs of protest campaign, organised by Joint Front of LIC Class I Officers, Development Officers and AIIEA.

With greetings,

Comradely yours

(T K Chakraborty)
General Secretary

Encl : Draft of letter to be sent to P. M. / F.M.

1) Sri Narendra Modi,
Hon’ble Prime Minister,

2) Smt Nirmala Sitharaman,
Hon’ble Finance Minister,
Government of India, New Delhi.

To
Shri Narendra Modi / Smt Nirmala Sitharaman,
Hon’ble Prime Minister / Hon’ble Finance Minister,
Government of India,
New Delhi.

Dear Sir / Madam,

Re: LIC IPO / Disinvestment policy

An affiliate of All India Insurance Pensioners’ Association (AIIPA), vehemently conveys its strong protest against the Disinvestment Policy enunciated and against decisions, in relation to Financial Sector. This Organisation urges upon the Government not to resort to indiscriminate divestments and also to drop the moves pertaining to Insurance and Banks.

Reiteration of the intention of the Government on LIC IPO, even in the face of protests by all stakeholders and assertion of democratic opinion against, makes one feel that the Government is not ready to listen.

Our Organisation is of the firm opinion that amendments to LIC Act 1956, as part of Finance Bill is an attempt, to rush through the legislation, probably even without a proper debate in Parliament.

LIC has been a major contributor to the National Exchequer, in the form of Income Tax and GST and already Employees have made out a case against levy of GST on Life Insurance Premium.

Funds mobilised by LIC by collection of premium, have been made available, year after year, for Government Projects and have been a continuous source of support for Infrastructure development. LIC has given a helping hand to the Government, in achievement of disinvestment targets and disinvestment in GIC Re and New India Insurance are cases in point. Take over of IDBI Bank with huge NPAs and under the radar of RBI for PCA was done by LIC. As an important and a key player in the Stock Market, LIC had been investing Crores and Crores and there had been no need to look for funds from the market.

Sixty Four years of history of LIC shows, it has earned the full confidence of the policyholders and public and there had been no occasion to invoke the Sovereign Guarantee.

All the arguments in favour of an IPO in LIC fall through, if one considers the performance of LIC and we demand of the Government to take back the proposed amendments We also like to urge upon the Government that LIC be allowed to remain wholly owned by the Government and LIC IPO be shelved.

The announcement that one of the Public Sector General Insurance Companies will be privatised, tantamounts to negation of the earlier decision to merge three public sector general Insurance Companies. Wholesale privatisation implies, not only change of ownership but also transfer of scarce resources to private capital, may be even MNCs.

Allowing upto 74 % FDI in Insurance Companies which are now mostly joint ventures between Corporates and Foreign entities, will drastically alter the character of these and Management will vest with foreign monoliths. Not that Corporate India cannot fulfill the increased capital needs and it may be noted that actual FDI, had been much less than the 49% allowed earlier.

Private Companies with higher FDI and a weakened Public Sector General Insurance in the backdrop of one company changing hands, may lead to a private sector monopoly, that is not in the interests of economy or Public Sector.

Urges the Government to merge all four public sector general insurance Companies and to restore status-quo as regards FDI.

We request that All India Insurance Pensioners’ Association’s (AIIPA) views be considered favourably by the Government in the interests of Public Sector and for the good of the National Economy.

Thanking You,

Yours Faithfully,

General Secretary

Source: http://cziea.org/