LIC employees on one-day strike on the day of IPO opening

All India Insurance Employees General Secretary Shrikant Mishra said that all the employees of Life Insurance Corporation (LIC) across India will go on a one-day strike on the day the initial public offering (IPO) of the corporation opens in the market. Association (AIIIA). talking to HinduHe said that the proposal of IPO for LIC is against the basic purpose of the corporation. LIC’s structure is unique, as the claimants of benefits are policyholders, as 95% of it is distributed among them as bonus, and not the government, he said, adding that the policyholders are the actual owners, as the government’s shares are treated as equity. It was only ₹5 crore in India when it was established on September 1, 1956. But since then it has grown on its own and today its asset base is more than ₹38 lakh crore, Mr. Mishra said. In 2011, when the central government decided to increase its equity from ₹5 crore to ₹100 crore, it was internally generated and there was no contribution from the government. He also pointed out that in 2020, when the government decided to raise equity to ₹25,000 crore to the corporation through an IPO, which was strongly opposed, the corporation raised its ₹6,300 crore dividend payable to the government as capital. converted into . Technically the government may be the owner of the corporation, but in reality it is the policyholders who are the contributors, that is the aid. Mocking the government’s view that an IPO was necessary for transparency, accountability and creation of resources, he said, “Every quarter we submit a public disclosure and every year we end up with a surplus of ₹4.5 to ₹5 lakh crore. ends with. ,