The introduction of the Insurance Regulatory Authority Bill 1999 seeks to privatise the insurance industry which has been functioning very efficiently since its inception. The pretence of the government that the LIC and GIC would remain in the public sector and that the IRA bill introduced in parliament allowed only private companies to participate in insurance business with 26 per cent of equity, cannot deceive anyone. This kind of opening up would result in the private companies confining their all social obligations to the public sector. In the ultimate analysis, the LIC and GIC would be weakened and altogether destroyed. The opening up of insurance sector has no justification considering the successful manner in which the LIC and GIC have been fulfilling the twin responsibilities of providing diverse insurance covers as well as enormous resources for development.

The government has been simultaneously proceeding apace to dismantle the public sector banks and other financial institutions. What had started with disinvestment of banks' shares now threatens the entire banking industry in the public sector. The government has announced further disinvestment even to the extent of the government holding being reduced to less than 50 per cent. If unofficial statements by those in authority are taken into consideration, the bogey of non-performing assets is raised as a justification to weaken further the public sector banks when it is within the power and capability of the government to rectify the situation by resorting to strong legislative and other actions for recovery of these bad debts. The government, which refuses even to publicise the names of defaulters and take appropriate action for recovery, is shifting the blame on to the bank officers and employees for the dismal situation.

The Verma committee report concerning three public sector banks in difficulty, throws a Hobson's choice of either the government recaptialising the banks to the extent of over Rs. 3,000 crore or, alternatively, to close down the banks. With the finance minister having gone on record that the government would not provide required capital, the option of the government with regard to these three banks becomes crystal clear. The position of other banks in the public sector cannot be different in such a situation. Besides this indirect attack, the Verma committees came down blatantly with recommendations which attack the wages and job security.

The meeting of banks and insurance employees is of the firm opinion that the attack is not to be construed as a mere offensive on the officers and employees working in these institutions. Considering the enormous responsibilities shouldered by public sector insurance and banking sectors and the resources they have generated for the social and economic development, particularly in the rural and other backward areas hitherto untouched either by way of financial protection or investment, this attack could only be construed as a move to weaken the Indian economy in its totality and destroy its capacity for self-reliance and development. The attempt would lead to indenturing of India's economy and sovereignty to the MNCs and to the political interests they represent. This meeting, therefore, calls upon all sections of the trade unions and the general masses to prepare to resist this all-out offensive. The meeting further decided on the following programmes of action as the immediate response.

1. A massive morcha to parliament to be organised in New Delhi on November 29, against the privatisation of insurance, banking and other financial institutions with specific reference to the IRA bill 1999, disinvestment of bank shares and Verma committee report as well as against the attacks on the workers'job security and rights.
2. Within a week thereafter, similar morchas will be organised in all other state capitals and metro centres.
3. All the central and state level trade union organisations will be approached for their support and solidarity.
4. Most of the participating unions in banks and insurance corporations will observe a one day strike on the day the IRA bill is taken for discussion in parliament. The rest of the organisations will consider the strike proposal after discussing in their respective forums and take appropriate decisions.
5. The meeting also agreed that further mobilisation including strike actions would become necessary in response to further offensives coming from the government side.
6. A national convention against privatisation of insurance and banks and other financial institutions would be organised in New Delhi, followed by similar programmes in other state capitals and metro centres.
7. A powerful campaign will be taken to explain to the people at large the crucial need of preserving the financial sector (insurance and banking) in the public sector in order to protect the national economy, self-reliant economic development and sovereignty of the country. Particular attention will be given to mobilising the opinion of the direct beneficiaries of public sector financial institutions.