ICEU-Visakhapatnam celebrates Golden Jubilee

Golden Jubilee conference of ICEU-Visakhapatnam highlights challenges faced by insurance sector, calls for protection of LIC.

The Golden Jubilee general conference of Insurance Corporation Employees’ Union (ICEU)-Visakhapatnam was held at the Alluri Vignana Kendram here on Saturday evening.

Former president of ICEU-Visakhapatnam N. Krishna Murty (88), who is also the reception committee chairman of the Golden Jubilee conference gave a clarion call for protection of Life Insurance Corporation (LIC).

Congratulating the leadership of ICEU-Visakhapatnam on the completion of 50 glorious years, All India Insurance Employees Association (AIIEA) general secretary Srikanth Mishra elaborated on the tasks before the employees in strengthening of the organisation and also the trade union movement.

He recalled the past struggles of AIIEA in shaping the trade union movement in the insurance sector and protecting LIC relentlessly for 25 long years without allowing disinvestment in the Corporation. He applauded the contribution of each employee in maintaining the position of LIC at the top with nearly 70% market share in the number of policies and around 60% in premium count, while competing with two dozen private insurance companies.

Questioning the rationale of the Insurance Regulatory Development Authority (IRDA) on the introduction of the one year surrender policy, which came into effect from October 1, this year, Mr. Mishra said that the move would defeat the very objective of increasing insurance penetration.

AIIEA national president V. Ramesh deplored the imposition of 18% GST on the premiums paid by policy holders. The entry of private investors in 1999 and subsequently FDI in the insurance sector was projected to increase the insurance coverage. However, the insurance penetration remains the same at 4% even today, as it was in 1999. He attributed this to growing unemployment and low income levels due to the lopsided policies of the Centre.

Mr. Ramesh said that the association has been demanding total withdrawal of GST on premium and has already met the MPs in this regard. The matter has been referred to the GST Council and it likely to take a decision on the demand. The fight will be continued till the GST on insurance premium is totally withdrawn.