Insurance TUs to strike work Monday against 49 percent FDI

New Delhi, Aug 3 :

All trade unions in the insurance sector will go on a strike Monday to protest the NDA government’s decision to raise the foreign direct investment (FDI) cap in the sector to 49 percent.

“Almost one lakh employees across the country will strike work tomorrow (Monday) as the government’s move will not only dilute the vitality of the insurance sector but also pave the way for foreign capital coming into the most sensitive zone of the economy,” veteran CPI leader Gurudas Dasgupta said.

He said such a move would seriously jeopardise the stability and safety of the financial sector.

“All over the world private insurance companies have been found to be delinquent. If they are allowed in India, it will seriously compromise the interest of investors and also impair the safety of long-term investment in life insurance,” Dasgupta said.

The Insurance Laws (Amendment) Bill, the NDA government’s first major reform initiative, will be moved in the Rajya Sabha Monday.

Trade unions would meet shortly to take stock of the situation arising out of the government’s moves, including those to dilute labour laws, Dasgupta added.

While the government’s efforts to get the insurance amendment bill passed got a boost with the Biju Janata Dal’s (BJD) decision to support the reform, the Congress party Friday decided to back the Trinamool and Left parties’ proposal to send the bill to a Select Committee, which would scuttle any NDA move to get the legislation passed by convening a joint session of both Houses.

The Congress justified its decision saying that the amendments moved by the NDA government mark “substantive changes” from the original bill that was introduced by the first UPA government in 2008.

In the 243-member Rajya Sabha, the NDA has 59 members while the BJD has seven.

(IANS)