LIC Employees Oppose Privatization

Life Insurance Corporation (LIC) is the only and largest Insurance company in India. Government has proposed to bring the Initial Public Offers (IPO) of LIC. They also said that this IPO will be largest ever and mother of all the IPOs.

The government has already allotted the Deloitte and SBI Caps as pre-transaction advisors to assist in the IPO process. LIC has net assets of more than Rs 31 Lakh crore and is way bigger than TCS and RIL in terms of market capitalization may end up taking away liquidity from markets.

The world’s number one life insurer has 40 crore policyholders. 

LIC Privatization Is Against National Interest : K. Jones K.Jones, zonal secretary of Federation of LIC Class-I Officers’ Associations said that the proposed sale of the Centre’s stake in LIC intended at privatizing the public sector behemoth is against national interest. Mr. Jones said on 19 December while addressing the media persons that the government invited bids from actuarial firms to decide the embedded value of assets of LIC. 

He pointed out that LIC has come to the rescue of the economy many a times, and has condemned the government’s arbitrary move to divest its stake in the LIC. 

Mr. Jones said that the employees of life insurance corporation will protest the government move to bring the IPO and disinvestment in LIC.

Wage Revision In LIC:-

Federation divisional president P.V. Srinivasa Rao and secretary V. Srinivas said wage revision in LIC was due since August 1, 2017 but no concrete proposal was received yet from the management. According to their demands, performance of the corporation, its paying capacity and parity with comparable organizations should be the basis of wage revision. 

Also Read - LIC Union Demands For 40% Wage Hike

They added that steps should be taken for improving pension scheme, enhancing family pension to 30% and scrapping Defined Pension Scheme.