Employee body opposes FDI in insurance

In connection with the 32nd state level conference of the south zone Insurance Employees' Federation to be held from August 3 to August 6, the body is planning to meet over one lakh people as part of its 'Meet the Public' programme.

One of the key highlights under the meet would be expression of opposition to FDI ( foreign direct investment) in insurance. The government recently decided to raise the sectoral FDI cap in insurance from 26% to 49% under the automatic route wherein companies investing do not require prior government approval. "If you see the claims settlement experience of private insurance companies, in many cases, the unsettled claims are as high as 40% to 50%," K Swaminathan, general secretary, south zone Insurance Employees Federation said.

"There are no new products for the public as a result of the FDI hike," Swaminathan added. In addition, the meet the public programme would also highlight the need for insurance penetration in the country. The south zone federation has a membership of 8,000 while at the national level; the membership of the body is one lakh.



Keywords:Insurance Employees, programme, key highlights, FDI , foreign direct investment, insurance, companies investing ,new products, public programme ,Business news