LIC Unions Begin ‘Lunch Break’ Protest Against Divestment on 3 Feb

Three employee unions of the country’s largest life insurer organised agitations during lunch breaks on Monday.

Photo used for representational purposes.

(Photo: Reuters)

Life Insurance Corporation (LIC) Unions across the country have reportedly begun agitations and protests against the government's Budget 2020 decision to divest part of its stake.

According to a report by The News Minute (TNM), three employee unions of the country's largest life insurer, on Monday, 3 February, organised agitations during lunch breaks at all 2,048 branches, 114 divisional offices and eight zonal offices.

A similar protest is expected on Tuesday as well, the report said.

The three organisations represent nearly 90 percent of LIC's total workforce, the TNM report said.

“Why should LIC go for an IPO when it is a very profit making organisation?...By listing LIC, it is killing the golden goose,” a Hindu BusinessLine report quoted S Rajkumar, General Secretary, Federation of LIC Class-I Officers’ Associations, as saying.

Apart from the outfit represented by Rajkumar, the National Federation of Insurance Field Workers of India and the All India Insurance Employees Association (AIIEA) have together formed a joint forum.

'Listing Will Affect Policyholders'

Speaking to TNM, Rajkumar said that the proposed IPO listing of LIC will hit policyholders as they will receive less bonus than current levels.

He reasoned that once the company is listed, it will have more owners in the form of shareholders and a portion of the profit going to them will eat into the policyholders’ bonuses. He however said the employees do not face any threat.