Kerala: Insurance Employees Resolve to Resist Privatisation Policies
M Ajith Kumar
INAUGURATING the 47th state conference of the Kerala State General Insurance Employees Union (KSGIEU), held in Ernakulam recently, G Anand, Vice-President, AIIEA highlighted the massive disruptions faced by the public sector general insurance companies due to the policies of the government and the Insurance Regulatory and Development Authority (IRDA).
Anand stated that the IRDA was trying to bring about changes that would have large-scale consequences. He said that the four public sector general insurance companies (PSGICs) are being disrupted through changes in the issuance of licenses, capital requirement, agency force, bancassurance and corporate agency models and investment. He pointed out that the objectives of nationalisation were to protect the consumers from fraudulent practices of private insurers, make insurance accessible to the weaker sections of society, spread insurance to remote areas and prevent the concentration of wealth in the hands of a few as per the constitutional spirit. During the last 50 years of their purposeful existence, the PSGICs strived hard to fulfill the objectives of nationalisation. In this country, where the majority of people have no assets, these companies spread the message of insurance by providing social insurance, he explained.
Anand expressed concern that four PSGI companies are formulating plans to close down branch/divisional offices at a large scale. This is being done, he said, at the instructions of the Department of Financial Services (DFS) of the union finance ministry. He revealed that DFS has reportedly given a timeline of three years for reducing the number of offices of the four companies to about 40 per cent of the present strength. He also argued that the interest of employees, agents and policyholders should be protected by ensuring the physical presence of offices throughout the country. He stressed that any plan for reducing offices should be discussed with the stakeholders. IRDA was in a hurry to change the very manner in which the insurance industry was functioning and that it was tinkering with the commission and remuneration structure. He called upon the insurance employees to come forward to fight the retrograde moves of the management at the behest of the DFS. He urged the General Insurance Public Sector Association (GIPSA) management not to proceed and precipitate the issue further.
TJ Martin, general secretary of LIC Employees Union, Ernakulam division, said public sector insurance has come under increasing attack from the government, and the government went ahead with the IPO of LIC, disregarding the overwhelming public opinion, which was to the contrary. He revealed that the sector regulator IRDAI is being used to push through regulations entirely adverse to the interests of the public sector insurance industry, particularly the LIC. He said the government intervention in the day-to-day affairs of the LIC and the PSGI companies has been making a mockery of the functional autonomy of these so-called independent board-managed institutions.
Martin said the impact of listing LIC is already visible with the administration entirely concentrating on creating more profits and value for the shareholders to the neglect of the policyholders. Further, the business model itself is undergoing change with the development and marketing of products that give better profits to the shareholders, he said.
MU Thomas, vice president, KSGIEU, who welcomed the gathering, highlighted the issues faced by the employees as a result of the arbitrary implementation of key performance indicators.
NV Baburaj, who presided over the inaugural session, condemned the management's decision to entrust organisational restructuring to a consultant with a dubious track record.
KSGIEU secretary Viju Paul Thekkekara presented the organisational report in the delegate session. M Ajith Kumar, joint secretary, KSGIEU, initiated the discussion on the report. As many as ten delegates participated in the discussion.
PR Sasi, vice president, GIEA South Zone, said the Indian economy was already in dire situation due to the implementation of GST. He added that the COVID-induced lockdown further destroyed the economy, and contrary to the expectations of a stimulus package from the government for the revival of the economy and relief to the workers, the government only laid out a road map for wholesale privatisation of the Indian economy, including the most sensitive sectors.
Ten resolutions were passed at the conference demanding the reversal of neoliberal policies, against the policy of disinvestment of PSUs, against the retrograde social agenda of the government, demanding measures strengthening PSG, and demanding recruitment in the insurance industry. MJ Varghese, vice-president, KSGIEU, presented the resolutions.
The general council unanimously elected NV Baburaj, Viju Paul Thekkekara and PK Selvaraj as president, secretary and treasurer, respectively.
The conference concluded with an exhortation to the delegates to carry forward the struggles and successfully meet the challenges coming to the fore. The conference concluded with a vote of thanks proposed by M Ajith Kumar.
