Association demands merger of four insurance companies

Patna, Oct 6 (UNI) General Insurance Employees' All India Association today demanded floating of a new insurance company through merger of the four existing insurance companies.

President of the association M S Upadhya told mediapersons here that four insurance companies - United India Insurance, National Insurance, New India Insurance and Oriental Insurance - should be merged into one company to prepare it for facing the challenges from the private sectors.

A sort of undeclared embargo had been imposed on recruitments in these insurance companies and it should be lifted immediately, he added.

Mr Upadhya castigated the Union Government for the new pension policy introduced in insurance sector and said prevailing practice of out-sourcing should be stopped forthwith as it was proving detrimental in the growth of this sector.

Any move of the government to raise the limit of Foreign Direct Investment(FDI) in private Indian insurance companies from existing 26 per cent to 49 per cent would be vehemently opposed, he warned.

'' The two-day general convention of the association will conclude tomorrow, '' Mr Upadhya said.

UNI