The Employees Provident Fund Organisation (EPFO) is proposing to increase the maximum amount assured for its Employees’ Linked Insurance Scheme from Rs. 3.6 lakhs to Rs. 5.5 lakhs. This is a much needed change since the earlier amount was fixed years back.
Rajya Sabha yesterday, 12th March 2015, passed the Insurance Laws (Amendment) Bill 2015, increasing FDI in Insurance Sector from 26% to 49%. The Congress and NDA shamelessly supported the bill and allowed it to pass in the Rajya Sabha, where the ruling party is in a minority. The amendments moved by the Left Parties, which strongly opposed the bill, were defeated jointly by the NDA and UPA.
The Corporates and MNCs were jubilant and expressed their happiness that the Modi Government has passed the bill. According to some of them, more than Rs. 20,000 crore foreign funds are expected after the passing of the bill.
But the sinister fact is that the entire insurance sector, where there is big profit, is going to be taken away by foreign finance. Serious attack will come on the PSU insurance companies. The present subscriber satisfaction will come down.
The Insurance workers have organised a s complete strike on 9th March against the bill, which was a complete success. They are sure to continue the struggle to save the Insurance Sector. Our full support and solidarity to them.
Sustained struggles are required to defeat the anti-working class policies of the government.
Using its brute majority, the BJP government ensured that the the Lok Sabha to day passes the Insurance Bill amidst strong protests from the opposition benches. The bill passed will increase the FDI in Insurance sector from 26 % to 49%. Both the UPA as well as the NDA governments have been pushing for the increase of FDI in Insurance Sector for the last two decades, but could not succeed. The US and other imperialists have been putting much pressure on the Indian government to fully open the Insurance sector which is a very profitable sector.
The entire working class in the country is opposed to the increase of FDI in Insurance. In fact it will destroy the confidence of people in Insurance since the claims will be denied and delayed under private companies as happened earlier, before the Life and General Insurance was nationalised by taking over from the private companies.
We strongly oppose this anti-people decision of the government.
Shri Pranab Mukherjee, President of India, has signed the two ordinances on increasing FDI in Insurance from 25% to 49% and allotment of coal blocks, as forwarded by the Cabinet.
The BJP, which earlier opposed the ordinance route, has taken the same course, when in Government. Unable to pass in the Rajya Sabha, these bills have been pushed through ordinances. This is not good for democracy.
As we stated earlier, the government is bent upon pushing the so called ‘reforms’ in the Insurance sector by increasing the FDI from 26% to 49%. This is being much pressed by the MNCs and corporates for a long time. Now they have got a government who are prepared to satisfy them. And lo! US President is also visiting India at the time of Republic Day.
Though the Insurance Amendment Bill could not be passed in the Rajya Sabha, the NDA government is not bothered. Now the cabinet has approved the ordinance to be issued in lieu of passing the Act. Corporates, MNCs and president Obama will be very happy.
Cabinet has also adopted ordinance on the Coal block allotment which was also pending.
We strongly oppose both the ordinances, which are only in the interests of the corporates and big business.
The government is proposing for increasing FDI in Insurance Sector from 26% to 49%. A Cabinet Note is being prepared for the purpose. It is to be noted that the governments, both UPA and NDA had been trying for the same but could not do so for the last two decades, because of the stiff opposition in the Parliament.
But this time, the BJP seems to be determined since it has got the numbers in Lok Sabha. But it is difficult to have the numbers in Rajya Sabha.
The Unions in the Insurance sector has been strongly opposing any increase of FDI in the sector. It is sure that it is not an easy matter for the government to increase the FDI.