THE 16th triennial conference of General Insurance Employees’ Association (South Zone), affiliated to All India Insurance Employee’s Association (AIIEA), was held in Mysore in Karnataka on June 6-8. In a resolution unanimously adopted at the conference, the Association demanded the government not to disinvest shares of public sector general insurance companies -- The New India Assurance Co. Ltd., United India Insurance Co. Ltd., National Insurance Co. Ltd., Oriental Insurance Co. Ltd. and GIC Re (Reinsurer). Another resolution, adopted at the conference, demanded that four public sector general insurance companies be merged to form a single monolithic corporation in the non-life sector. The conference was attended by 250 delegates and observers from southern states.

K V V S N Raju, secretary of Standing Committee (General Insurance), AIIEA, in his inaugural address, explained the dangerous consequences of listing the companies in the stock market which amounted to privatisation of the most successful public sector organisations in the country. Raju called for a bitter struggle, including strike actions, to defeat the government move. He called upon the employees to unleash a powerful campaign amongst the general public on the role played by the public sector insurance companies in the national development, integrate the struggles with other sections of the society and make the September 2General Strike a success.

CITU Karnataka state president V J K Nair, in his address, congratulated the insurance employees, led by AIIEA, for waging a heroic struggle against the government policies for the last three decades and thwarting the attempts to privatise the public sector insurance sector. He called upon the insurance employees to understand the society from a class perspective and to work for an alternative political force which would ensure that the living conditions of the vast majority of people of this country improved by pursuing alternate economic policies.

General Secretary of General Insurance Employees’ Association (South Zone) Anand, in his report to the conference, said it was the R N Malhotra Committee (1993) report that set in motion the attack on public sector insurance companies. He said AIIEA, through its campaigns and struggles, ensured that the shares of these companies were exclusively in the government hands. He observed that public sector insurance companies have contributed to the national growth by investing Rs 1,70,000 crore in India’s infrastructure sector. These companies have paid Rs 1,204.53 core as dividend to the central government in 2014-15.  

The report said prior to the entry of private insurance companies, public sector companies under the leadership of GIC was providing assistance to the poor and the marginalised sections through two schemes -- Personal Accident Social Security Scheme (PASS) and Hut Insurance without payment of premium. But, these schemes were withdrawn by the government. Anand said the enactment of the Insurance Laws (Amendment) Act, 2015 that hiked FDI in insurance to 49 per cent from 26 per cent was more meant to cushion indigenous capitalists rather than ensuring FDI in India or to provide better service and insurance products to the vast clientele. Out of 9.42 core policies issued under Pradhan Mantri Suraksha Bima Yojana (PMSBY), 95 per cent of the policies were issued by the public sector general insurance companies. The Indian public will be deprived of these policies if public sector companies are privatised, Anand said.

AIIEA president Amanulla Khan, in his special and concluding address, comprehensively dealt with global economic crisis and its impact on the Indian economy. In spite of the faltering performance of the economy, he said, the four public sector general insurance companies earned a combined gross direct premium income of Rs 47,717.55 crore, registering a growth rate of 12.14 per cent over the preceding year. He said these companies earned impressive profits and increased their asset base and has also been contributing immensely to the socially driven programme of the government. He argued that this great work required strengthening of the companies and these institutions are capable of raising additional capital through generation of internal resources, if required.

According to a study, the private insurance companies could collect Rs 39,692 crore only as total premium in 2015-16 after the deployment of Rs 6,226.37 crore as capital. Public sector general insurance companies could mobilise Rs 47,718 crore with a capital base of just Rs 600 crore. This proves that the patterns of capital employed in private insurance companies had nothing to do with procurement of business. Khan said the struggle for protection of the public sector insurance industry has reached a new phase after the passage of the Insurance Laws (Amendment) Act, paving the way for the hike in FDI cap to 49 per cent and provision for sale of shares of the public sector general insurance companies. AIIEA’s campaigns against FDI exposed the mala fide intentions of the government, serving the interests of the Indian big business and foreign capital, he said.

The merger of the public sector general insurance companies into a single monolithic corporation on the lines of LIC is the need of the hour, Khan said. He also highlighted the difference between life and general insurance and how the campaign to protect the public sector general insurance companies to be carried out by the employees. He also analysed the Union Budget and the bias against the public sector. Explaining the special feature of the Constitution, Khan said the Constitution has specific guidelines on how the economy should be managed, stressing on the approach to avoid accumulation of wealth in the hands of a few. It was this feature of the Constitution that enabled the creation of public sector undertakings in the country, he said.   

In his valedictory address, Khan analysed the socio-political situation prevailing in the country and explained how the Modi government is making all out attempts to impose its communal agenda on the people and dividing the unity of the people, threatening the secular fabric of our country. He said the budgetary bias of the BJP government, neglecting the social sector had further aggravated the farm crisis and rural distress and further fuelled the farmers’ suicides.

AIIEA general secretary V Ramesh, in his special address to the conference, exhorted the delegates to consolidate the organisation and fight the attempt to privatise the sector. He said it was the public sector financial institution that helped the country to stabilise the economy and survive the global economic crisis. He ridiculed the claim of the BJP government about its achievements and said the two years of the Modi government has resulted in widening inequalities between the rich and the poor in the country. He congratulated the employees of the general insurance industry for solidly rallying behind the AIIEA which helped the organisation to clinch a spectacular wage revision in the most difficult economic situation. He said privatisation of public sector companies would spoil the welfare of the working class people.

B Sheik Ali, former vice-chancellor of Mangalore University and Goa University, in his special address to the conference, criticised the central government’s policies and programmes that excluded the weaker sections of the society. He expressed concern over the deteriorating political, economic and social situation prevailing in the country. Gautam Maitra, general secretary of General Insurance Employees Association (Eastern Zone) also addressed the conference. GIEA (South Zone) president P R Sasi presided over the conference proceedings.

A walkathon and a signature campaign were held on June 7 against privatisation of public sector general insurance companies. The signature campaign drew support from eminent citizens and activists among others.