Ludhiana: Life Insurance Corporation (LIC) employees staged a protest in Ludhiana on Thursday (March 18) against the government's decision to raise the Foreign direct investment (FDI) limit in the insurance sector to 74 per cent and to bring an IPO of the LIC. LIC was established in 1956 and has 290 million policyholders along with 1,14,000 employees. 


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The LIC employees are protesting against the government's proposal to privatise the corporation and enhance the FDI limit in the insurance sector from 49 per cent to 74 per cent.


"There is a strike across the country. We are protesting against the proposal of bringing an IPO of the LIC. It is an attempt to push LIC towards privatisation. We demand the government to drop this idea. We are also against raising the FDI limit in the insurance sector to 74 per cent," Ritu Aban, one of the protesters told ANI.


The All India Insurance Employee's Association (AIIEA) has called the strike along with other trade unions from the industry. They said the protest is against the government's policy as it is not in the interest of the insurance industry not just that but the nation's economy and its people. 


In February, Finance Minister Nirmala Sitharaman proposed to amend the Insurance Act 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards.


During her budget speech, she said: "I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards."


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