Don't privatise insurance industry

Recently government has been increasing FDI flow in the insurance sector and thereby privastizing it indirectly. The foreign players would be taking away a share of the Indians' savings to the American and European markets which are already facing a credit crunch. There is no guarantee that companies won't default on public money, their committments and insurance amount.



Intead our very own LIC has a world record in claims settlement (99.66%). LIC has registered a surplus of Rs.16,600 Crores for current year out of which around 830 Crore is Given to Indian government as dividend on its capital and balance amount is given to policy holders in the form of Bonus.



The reason that India is not hugely affected by the recession is the good Indian tendency to save for the rainy day, which is prompted and helped for by LIC. Also there are some areas where private players do not provide services, like death due to murder and terrorism.



LIC’s performance has been significantly better than its counterparts in the developed countries. Big insurance companies across the globe are waiting to be bailed out by their governments, whereas LIC is making profits and giving bonuses!



Only a strong public sector insurance company can give much needed security for the money. Given the market situation an average Indian would never trust a foreign player with his hard earned money, but would blindly trust LIC.



Hence this request to oppose the flow of foreign investments at least in the insurance sector.