General Insurance companies opt for merger

Puducherry, Aug 11 (UNI) Employees of the four General Insurance companies in the government sector have urged the Centre to merge all the four companies in order to compete those in private sector.

A resolution to this effect was adopted at a meeting of the companies in Puducherry, Cuddalore and Villuppuram districts today, General Secretary of the Employees Federation Nandakumar told a press conference here.

Mr Nandakumar said the general insurances were started in 1972 with an investment of Rs 20 crore and were earning a profit of Rs.4000 crore an year Its growth was double compared to the global growth in the sector.

He said the NDA government had permitted 26 per cent FDI in the insurance sector, following which eight foreign companies had entered India and demanded that the government should ensure that there would not be anymore privatisation of the sector.

UNI