Union for merger of PSU insurance companies

The All-India Insurance Employee's Association (AIEA) has demanded that the four public sector general insurance companies "" United India Insurance, New India Assurance, National Insurance and Oriental Insurance Company "" be merged into a single entity.

Standing committee secretary, J Gurumoorthy, told the media that nine private companies had forayed into the non-life insurance business following the opening of the insurance sector to global service providers.

Despite the entry of these nine companies, all the four PSU insurance companies are generating profits.

He said the four insurance companies posted over 103 per cent increase in profits in 2006-07 as compared with the previous year.

The four companies, along with General Insurance Corporation of India, paid a dividend of Rs 892 crore to the government for the year 2006-07.

The association also demanded that the management commence discussions on issues like wages increase, and promotions for clerical and subordinate employees.