Merge Four Public Sector General Insurance Companies and stop dis-investment

Merge Four Public Sector General Insurance Companies and stop dis-investment

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General Insurance Employees’ All India Association started this petition to Prime Minister of India

The Hon’ble Prime Minister,

Government of India,

New Delhi.

Respected Sir,                             

We are of the opinion that the decision taken by the Cabinet to shelve the proposal of merger of three PSGI Companies viz., National Insurance, Oriental Insurance and United India Insurance and also to allow these companies to raise their resources through disinvesting their shares is not in the interest of public at large. 

These PSGI Companies were Nationalized with an intention not to allow the wealth to concentrate in the hands of few and also to ensure easy accessibility of insurance to the common man and carry it to their door steps, which PSGI companies have justified through opening up of their offices even at the remotest corner of the country.  They have put a full stop for swindling the public money and arrested the black money generation which were common before Nationalization. 

It is unfortunate the Government has decided not to proceed with its own proposal placed in the Parliament by ex-Finance Minister Late.Sri.Arun Jaitley on 1st February, 2018 of merging -3- PSGI Companies even after treading the path for its implementation through:

1. Appointment and submission of report by Consultant viz., M/s.Ernst & Young    
2. Suitable amendment to GIBNA Act, 1972
3. Passing of required resolution has taken place in the respective Board of three companies viz., National, Oriental and United India which were held in the month of January, 2020

Not only the above, but also the Government infused an amount of Rs.2500 Cr in these companies during the financial year 2019-20 and further approval is made by the Parliament for the proposal of the Government to infuse additional capital of Rs.6950 Cr in the current financial year 2020-21.  

One of the reasons stated for reversing the proposal of merger is to focus on their profitable growth. We, as a citizen of the country, experienced these companies issue many policies ignoring the factor of profit alone, in the interest of common man and as a social security measure, in spite of their high claim ratio viz., Crop Insurance Policies; Pradhan Mantri Suraksha Bima Yojana which offers protection against death / permanent disability due to accident at the cheapest rate to all SB Account holders; Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana policy – the pet project of Hon’ble Prime Minister etc.  For PSGI companies servicing the Society is the priority over profitable growth.

To make them financially strong; effectively compete with private players and to save crores of premium which they lose due to intra-competition among them and to pass on the same to public at large, we request you to reconsider the decision and merge not only three companies but all four PSGI Companies viz., National Insurance, New India Assurance, Oriental and United India into ONE SINGLE ENTITY and not to go for dis-investment of their shares which will defeat the concept of Nationalization and allow them to be one of the Public Sectors which saved the country from World Economic Crisis of 2008 and  continue its services to the Nation.

We the undersigned call upon the Honourable Prime Minister of India “to shelve the decision of shelving the merger of PSGI Companies and dis-investing the shares” as they will be in the forefront in achieving Atma Nirman Bharat – Self reliant Economy.