SME Times News Bureau | 21 Jun, 2020
Three unions in Life Insurance
Corporation of India (LIC) representing officers, field workers and
class III employees on Saturday said the move to sell equity of the
insurer will impact the economy and vulnerable sections of the Indian
people.
In a letter to the Union Finance Minister Nirmala
Sitharaman the three unions - Federation of LIC Class I Officers'
Associations, National Federation of Insurance Field Workers of India
and All India Insurance Employees' Association- requested her to
withdraw invitation of bids for appointing pre-Transaction advisors for
LIC's initial public offering (IPO) and reconsider the decision of
disinvestment in LIC.
The three unions wrote to Sitharaman after
reports appeared in the media with the Department of Investment and
Public Asset Management (DIPAM) issuing a Request for Proposal (RFP)
regarding engagement of pre-Transaction Advisors for assistance in the
processes related to the IPO of LIC.
Referring to their earlier
letters to Sitharaman, the Unions said: "Our arguments against the
equity sale are not on any partisan interests but are based on the
interests of the national economy and the Indian society."
"We
had hoped that the government would give a serious look at our arguments
and would give us an opportunity to present our case considering the
fact that the employees are one of the most important stakeholders in
the institution. We are disappointed that no such initiative came from
your side," the Unions said.
According to them, LIC today is managing assets in excess of Rs.32 lakh crore.
"Since
this expansion has taken place through funds collected from
theApolicyholders, LIC has functioned more like a mutual benefit
society. This is an important fact that has been overlooked while
deciding to sell a portion of the stake in LIC," they said.
