BUDGET 2009

DO NOT PRIVATISE PUBLIC SECTOR INSURANCE COMPANIES
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The Government should not go for disinvestment of public sector general insurance companies. Our former Finance Minister had publicly admitted
that because of the strong presence of Public Sector banks and insurance
companies, the recession was not much affected our Country. As a corrective measure to contain 'global meltdown', Western countries are introducing stiff
regulations and control over their private financial institutions. We cannot
forget the fact that to bail out the insurance giant AIG (American International Group) from rout, the USA government had to spend crores of dollars from the
Public exchequer.

In our country in the last financial year United India Insurance Company, one of the four PSU general insurers could attain a record growth of 14 per cent as premium income. Moreover, the Company Board has recommended a divident of Rs.96 crore to the central government. The other three State owned insurance companies are also making similar contributions to the growth of our economy. We earnestly appeal the Finance Minister to take steps to strengthen the Public Sector general insurance companies by forming a single Corporation.

P.P.MOHANAN
Kerala State General Secretary
General Insurance Officers All India Association
Kochi.
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