LIC Staff To Hold Nationwide One-hour Strike On Feb 4 Against Govt's IPO Move

Describing the proposal of partial disinvestment of LIC as "against national interest", Mukherjee said the company was now India's biggest financial corporation in terms of assets, even surpassing the State Bank of India.

LIC, Life Insurance Corporation building can be seen In New Delhi, India, on 22 July 2018. (Photo by Nasir Kachroo/NurPhoto via Getty Images)

Budget 2020: Life Insurance Corporation of India employees will hold a nationwide one-hour strike on February 4 in protest against Union Finance Minister Nirmala Sitharaman's budget proposal to sell a part of the Central government's holding in the state run financial institution.

"We will hold a one-hour nationwide strike on Tuesday from 12.15 to 1.15 p.m. We will stage a demonstration in all our offices also then," Life Insurance Employees Association's Kolkata division Vice President Pradip Mukherjee told IANS. "We will then hit the streets to protest and resist the step. We will also go to all the MPs," he added. Describing the proposal of partial disinvestment of LIC as "against national interest", Mukherjee said the company was now India's biggest financial corporation in terms of assets, even surpassing the State Bank of India. As per figures released in December, LIC cornered about 80 per cent of the market share in the insurance business despite the presence of 24 private companies. The year on year growth is 19 per cent, despite the business slowdown in the country and the global economic downslide, said Mukherjee. "We have given a dividend of Rs 2611 crore to the government for the financial year 2018-19. We have an income of over Rs 3 lakh crore," he said. "Since its formation in 1956, LICI has made signal contribution in nation building, and spends lakhs and crores of rupees in implementation of schemes in every five year plan, besides an unparalleled role in social sector reforms. "The efforts which the centre was making to open its doors to serve the interest of Indian and foreign private capital, has been formally announced by Sitharaman today. We feel it is a big danger to the nation's economic sovereignty," he said, appealing to all patiriotic and right thinking people to support and express solidarity with the struggle of the LICI employees. Also opposing the government's decision to list LIC through an initial public offering (IPO), the All India Insurance Employees' Association (AIIEA) had said will first go on one hour walk-out strike on February 3 or 4, a top union leader said on Saturday. "We are opposed to the move. We will first go on one hour walk-out strike on February 3 or 4. After that we will plan our further course of action," AIIEA General Secretary Shrikant Mishra told IANS in Chennai. He said that the process of listing LIC may not be easy as there are several procedures that have to be followed including the approval of the Parliament. Mishra said the government was not able to attract any buyer for Air India and it has to show some blue chip disinvestment and hence, decided on LIC. Employees of public sector general insurance companies will also show their support by holding demonstration outside their offices on that day. "If listed and LIC turns into truly board managed than, the biggest cash cow may not be available for the government in its disinvestment process as it the case of listing of General Insurance Corporation of India, IDBI Bank and New India Assurance," an industry official told IANS preferring anonymity. "The pensioners of LIC and the four public sector general insurers will also join the protest," J.Gurumurthy, vice President, All India Insurance Pensioners' Association told IANS.