Hyderabad: LIC employees to stage 1-hour walk-out today

In April 2018, IMF asked the Union government to remove the explicit sovereign guarantee on every LIC policy and convert LIC into a company and the government seems to have simply complied with the diktat of the IMF risking the interests of millions of policyholders

Hyderabad: All India LIC Employees Federation has strongly opposed the government move to sell a part of its holding in Life Insurance Corporation of India through an initial public offering.

Federation general secretary Rajesh Kumar said, "It is an act of desperation at a time when the economy was in a mess. The quiet crisis, which has been mounting for some time, is visible and could soon be audible. An ostrich can bury its head in the sand, but the governments simply cannot. How long can the government continue to sell its national assets (Public Sector companies) to meet its revenue need? In April 2018, IMF asked the Union government to remove the explicit sovereign guarantee on every LIC policy and convert LIC into a company and the government seems to have simply complied with the diktat of the IMF risking the interests of millions of policyholders."

"Listing of LIC is against the national interest. Over the years, the LIC has been playing a pivotal role in nation building activities. On a capital base of Rs 5 crore, LIC's valuation surplus was Rs 53,211.91 crore, Life Fund being Rs 28,28,320.12 crore and asset under management being over Rs. 31,11,847.28 crore at the end of 2019 financial year. Being one of the biggest financial institutions of India, any move to privatize LIC will shake the confidence of the common man and will be an affront to our financial sovereignty. The very purpose of LIC to provide insurance coverage to socially and economically backward classes at a reasonable cost will be defeated and the motto will change from service to profit", he added.

"As an immediate reaction to the proposal to list LIC, All India LIC Employees Federation will hold one hour walk-out strike on February 4. We will launch a series of agitational programs to oppose the government's decision to disinvest in LIC. We call upon all the officers, employees and agents to wholeheartedly support our campaign and make our program a success. We will also be reaching out to the common man to make him understand the dangerous implication for the country if LIC was listed.", he added.