LIC Employees Oppose Privatisation: Selling LIC To Private Firms Is Against National Interest

Modi government’s disinvestment plans are already making the waves. Its plan to privatize Life Insurance Company (LIC), the only government-owned life insurance company. And no wonder that it is going to be the mother of all announcements will the IPO of LIC. LIC is a large company and for it to go public, huge preparations are needed. The Centre has even engaged Deloitte and SBI Caps as pre-transaction advisors to assist in the IPO process.

LIC has net assets of more than Rs 31 Lakh crores 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.

Some are rooting for it, while others are taking it with a pinch of salt.

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 privatising 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 LIC employees would continue protesting against the government’s disinvestment proposals. He also added that the centre should contemplate pulling out of not only LIC but also railways, defence, steel, petroleum and power sector enterprises.

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.

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

Recently, regarding the disinvestment matters of Air India, employees were asked to submit the expression of interest (EoI), but also told to stay away from the strategic issues of company, and any non-compliance shall be viewed seriously calling forth necessary actions deemed fit. Is the centre going to adopt to same policy would a thing to watch for.