AIIEA wants merger of PSU insurance companies

Contrary to the depository financial institution unions' demands to hold the amalgamation of state-run banks, the All Republic Of Republic Of Republic Of India Insurance Employees' Union (AIIEA) desires the four populace sector coverage companies—United India Insurance, National Insurance, Asian Insurance, New India Assurance---to merge.

Amanulla Khan, president, AIIEA, said at at a fourth estate conference in Kolkata on Monday, that the amalgamation would make a sum plus value of Rs 73,000 crore, which would enable coverage strategies perforate in rural countries and assist the incorporate company achieve the economic systems of scale of measurement to vie with private sector coverage companies.

The members have got also sought 40 per cent addition in reward after merging costliness allowance with basic wage at consumer terms index of 2nd one-fourth of 2007.

It have also threatened to travel on a twenty-four hours long hit of April 23, preceded by agitation commencing with one-hour walk-out strike on March 26 and a two-hour walk-out strike on April 11 for withholding the publicity of social class three and four employees for the last four years.

The labor union have accused the authorities of deliberately weakening the public coverage companies to ease the privatisation of the coverage sector.

The AIIEA have also ridiculed the Union finance ministry directive to prosecute separate direction advisers for concern procedure re-engineering, astatine a fee of Rs 15.50 crore, by each public sector full general coverage company.

"The four companies are expected to pass over Rs 400 crore to develop four separate IT solutions. This is yet another mindless enactment undertaken by the public sector companies, when the amalgamation is still under the consideration of the authorities and a single IT solution will suffice," Caravansary said.

The AIIEA would also oppose any attempt of the authorities to raise the FDI bounds in the coverage sector from the present 26 per cent to 49 per cent, said Khan.

"The private sector's self-indulgences in unethical patterns offering of higher committee beyond permissible bounds to agents, and their refusal to subvent socially necessary but unprofitable concerns are being ignored by the regulator," he said.

As on 31 March 2007, the four populace sector full general coverage companies, together had marketplace share of 71.02 per cent in the segment. The net income of the four companies in 2006-07 increased from Rs 1,583 crore to Rs 3220 crore, marking a 103 per cent rise.