Reacting sharply against the Budget proposal to list LIC in the stock exchange and sell part of its stake via public offering, the entire workforce of the LIC Dharwad division went on a one-hour strike here on Tuesday.
The insurance employees and officers affiliated to the Federation of LIC Class I Officers Associations, the National Federation of Insurance Field Workers of India (NFIFWI) and the All India Insurance Employees Association (AIIEA) staged the one-hour strike from 12.30 p.m. to 1.30 p.m.
The protesting staff staged a demonstration in front of the LIC divisional office here, condemned the Union government’s move to sell of one of the premier public sector enterprises and urged the Centre to drop the proposal and take steps to strengthen the LIC in the larger interests of the people.
A release issued here stated that the joint front of three major unions representing over 90 %of LIC staff strongly opposed the Union government’s move. The LIC mobilises small savings of the people and makes them available for national development. Since its inception in 1956, the LIC has earned the trust and goodwill of millions of Indians and has set unprecedented performance records in the life insurance business.
Commencing its operations with a paltry sum of ₹ 5 crore in 1956, the LIC, today, commands an astronomically huge asset base of over ₹ 31 lakh crore. The total Life Fund of the LIC as on March 31, 2019 was ₹ 28.28 lakh crore and its market share in the insurance business is over 73 %, despite competition from private players during the last two decades.
Besides, the LIC has the proud distinction of contributing over 25 % to the total budgetary efforts and it recently paid a dividend of ₹ 2,611 crore to the Union government against an initial equity of ₹ 100 crore. The total dividend paid by LIC till date stands at ₹ 26,005.38 crore. LIC’s contributions to Independent India’s planned development and its investments in the social sectors of the economy have been phenomenal, the release said.
Union leaders U.M. Gadagkar, Krishna Anavatti, L.A. Naik, B.N. Poojary, Ashok Bongale, N.B. Kadam, Abdul Khan and others led the protest. The employees have also threatened to launch an intensified struggle if the Union government fails to drop the proposal.