Shreekant Mishra general secretary All India Insurance Employees Association
| Photo Credit: GIRI KVS
The All India Insurance Employees Association (AIIEA) has opposed the Central government’s decision to raise the Foreign Direct Investment (FDI) cap in the insurance sector to 100% and to give the nod for Insurance Laws (Amendment) Bill. The association said that the decision would have serious consequences for the Indian economy and also the Indian insurance companies.
The Union Cabinet, led by Prime Minister Narendra Modi, on December 12, approved a range of pro-capital economic reforms, including raising the FDI cap in insurance sector to 100% and nod for Insurance Laws (Amendment) Bill. The Insurance sector has been denationalised with the passage of the IRDA Bill 1999, AIIEA general secretary Shreekant Mishra said in a statement on Sunday (December 14).
He added that a large number of private insurance companies with foreign partners have been operating in both the life and non-life insurance industry. Capital has never been a constraint for these companies to run their businesses. In fact, the total FDI in insurance is only around 32% of the capital employed. This being the case, it is irrational for the government to enhance FDI limit to 100% and give total freedom to foreign capital to operate in India.
The AIIEA is of the firm understanding that allowing total freedom and greater access to foreign capital could only hamper the orderly growth of the insurance industry with the focus shifting more on profits rather than providing the people much needed security. It will have disastrous impact on the interests of the marginalised sections of the Indian society.
The association futher emphasised that foreign capital cannot be a substitute to the domestic savings. This being the case, handing over domestic savings to foreign capital makes no economic or social sense. India being a welfare State must necessarily have greater State control over the national savings for economic development which benefits all its citizens.
Reiterating the demand for revoking the decision on hiking FDI limit in insurance, the AIIEA leader also warned the government against the retrograde proposal to amend the Insurance Laws including Insurance Act 1938, LIC Act 1956 and IRDA Act 1999. He also sought the reorientation of economic policies from the corporate bias to people centric measures.
G. Varaprasad, general secretary, Insurance Corporation Employees’ Union (ICEU) Visakhapatnam Division, also condemned the government approach.
Published – December 14, 2025 09:32 pm IST
