Stop the listing of LIC for an Aatmanirbhar India

Stop the listing of LIC for an Aatmanirbhar India

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The proposed Disinvestment in LIC go against the policy of Aatmanirbhar Bharat. Disinvestment in LIC will be a stepping stone for privatisation in future which will be against the national interest.

LIC of India since its inception in 1956 has been spearheading the spread of life insurance to the vast majority of the populace and in particular to the rural areas and to the socially and economically backward classes with a view to reach all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. True to the objective of nationalisation, the Corporation has mobilized the funds invested by the people in the life insurance for the benefit of the community at large. National priorities and obligation of reasonable returns to the policyholders have been the main criteria of LIC’s investment. The total funds, so invested for the benefits of the community at large are ₹29, 84,331 crore as on 31st March 2019.

The proposed public offer through disinvestment in LIC will change the way surplus is distributed. Higher share of surplus to shareholders will affect the rate of bonus to policyholders and this in turn will affect future new business.

Listing of LIC will also change LIC’s operational approach and investment policies. LIC was establishing with the prime objective to mobilise money for infrastructure development, protecting the policyholders’ interest and at the same time spreading life insurance at a low cost to the common man. LIC has always been at the service of the people and nation and attempts to disinvest in LIC will change the Corporation motive from service to profit making and the aim will be to maximise the return to its shareholders. This will also discourage LIC from providing insurance coverage to the underprivileged section of the society. In order to survive the cut throat competition LIC may be pushed to review its investments in the social sectors like housing, power, irrigation, water supply, sewerage, road, port & bridges, railways and other infrastructure investment. We want LIC for a better India, developed India.

Selling LIC is against the idea of Aatmanirbhar India. It’s like killing the goose which is laying golden eggs.

We the undersigned call upon the Honourable Prime Minister of India to rescind the decision of disinvesting in LIC in national interest. Selling LIC is against the idea of Aatmanirbhar India.