Employees of state-owned insurance companies went on day-long nation-wide strike to protest the government's proposed move to raise FDI limit in the private insurance sector to 49 per cent from the present 26 per cent.
All India Insurance Employees Association, a body comprising the staff of public sector insurance firms, said the strike is to protest the government's intention to raise FDI limit.
The government yesterday tabled Insurance Laws (Amendment) Bill in the Rajya Sabha amid loud protests by the Left and AIADMK. At the same time, the government also tabled amendment to LIC Act 1956 which seeks to raise paid up capital of the insurer from Rs 5 crore to Rs 100 crore in Lok Sabha.
Also Read: Govt proposes raising FDI cap in insurance to 49%
The move indicates the government is serving the interests of reformist agencies who wish to further strengthen their grip on the fast expanding insurance industry in the country, said All India LIC Employees Federation, which has 1.14 lakh members.
Class I, III and IV is part of the strike, while Class II comprising field officers have taken part in protest march.
