Federation opposes FDI in insurance sector

Vijayawada: The National Federation of Insurance Field Workers of Republic Of India (NFIFWI) is opposed to the Centre's move to raise the Foreign Direct Investing (FDI) in the coverage sector.

Federation Secretary-General R. Jayaprakash, in a release here, claimed that the projected move would assist foreign companies to derive sole control over the nest egg of the people in the sector.

The move was aimed at appeasing the foreign coverage companies in the country, which were incurring immense losses, he alleged.

Jayaprakash said the "nefarious design" to retreat the autonomous warrant for all coverage policies of the public sector, on the stalking-horse of offering a degree playing ground, tantamounts to treachery of the basic aim of the industry.

The Centre's move would also strip the citizens of their lone beginning of societal security, he said.

The NFIFWI, the lone representative organic structure of 21,000 development military military officers of Life Insurance Corporation of India, organised a Parliament March on March 5 to protest the move to "destabilise" the Corporation and high spot the "oppressive measures" initiated by the LIC direction against the development officers to phase them out from the industry, Jayprakash said.

Though a Memo of Understanding on service statuses was signed by NFIFWI and LIC in 1989, the direction and the Centre were trying to change the service statuses to pave manner for private players, he alleged.

The NFIFWI also sought continuation of autonomous warrant ensured for LIC policies, protecting the involvement of the agents and conducting a comprehensive reappraisal of the post-privatisation epoch before taking any critical decisions, he added.

Insurance sector to touch Rs 2,00,000 cr by 2010: Assocham

NEW
DELHI: Riding on the dorsum of new participants and increasing penetration, the
insurance sector is expected to traverse the Rs 2,00,000 crore grade in concern by
2010, a survey by industry organic structure Assocham said on Monday. At present, size of the
insurance sector is estimated at Rs 50,000 crore, which have seen a Compound
Annual Growth Rate (CAGR) of around 175 per cent in the last few years, the
study named 'Insurance in Next Two Years' stated. The coverage sector, both
life and non-life, is likely to turn by over 200 per cent, and private insurers
are expected to accomplish a growing charge per unit of 140 per cent as a consequence of aggressive
marketing technique, it said. The growing of state-owned
insurance companies is likely to be 35-40 per cent. "On business relationship of intense
marketing schemes adopted by private coverage players, the marketplace share of
state-owned insurance companies like GIC, LIC and others have come up down to 70 per
cent in last 4-5 old age from over 97 per cent," Assocham President Venugopal
Dhoot said. The survey said
private coverage companies would further follow aggressive selling techniques. Despite regulation, the private participants are offering 35 per cent charge per unit of return
to its policy holders against 20 per cent by public-sector insurers. This factor is mainly
responsible for a tramp in private coverage marketplace share that volition turn further,
it said.