Hyderabad: General Insurance Employees All India Association (GIEAIA) General Secretary K Govindan said the ‘Central government should merge the public insurance companies under one entity instead of privatizing them’.
Delivering his lecture on the ninth day of the month-long AIBEA National Webinars to commemorate the 52nd anniversary of Bank Nationalisation on theme ‘Vibrant Banking for Vibrant India’ and focus ‘people’s money for people’s Welfare’, on Friday night, he took the attendees through the entire journey of banking system in India and the significant events on bank’s nationalization that have eventually resulted in ripe fruit for the nation.
On the contrary, in the current scenario public sector units including banks and insurance companies are being pushed towards privatization, Mr Govindan said and narrated as to how before Nationalisation of general insurance companies in 1971, there had been a mushroom of private general insurance companies and due to their mismanagement and failures, general insurance companies were nationalised under four Public Sector General Insurance Companies — National Insurance Company, Oriental Insurance Company, United India Insurance Company and New India Assurance.
Since the nationalisation of general insurance companies, the business of the general insurance got improved manifold. At the lowest rate of premium, the public sector insurance companies are able to provide general insurance coverage to the people of the country especially to the common man, he said.
Suggesting the alternative, the GIEAIA General Secretary said, “the government should merge public insurance companies under one entity instead of privatizing them.”
Pointing towards the wrongful approach of the government, the speaker shared that the insurance sector is dealing with other challenges like working with the hospitals that do not follow standardized charges. Instead of acting enablers for this public institution, the government is just dismantling or privatizing them, he remarked.
On his recent meeting with the Finance Minister Nirmala Sitharam, Mr Govindan said, “When we met her last week we did ask when there are already 21 private insurance companies then why add one more.”
He said the Finance Minister assured to protect all the benefits, however, there would be some benefits that might not be available post the anticipated privatization of the sector like job security, social security and reservation.
The speaker said that while AIBEA is fighting to safeguard the public sector banking, the GIEAIA too wants the Insurance sector to remain a public institution.