The Bill tends to privatise the insurance sector which has been under the exclusive privilege of LIC and GIC—the noted Indian companies. In fact the bill also allows divestment of shares of Indian promoters as well as active participation of foreign capital in the field of insurance. So there is plan of not only introducing the private sector, but it a deliberate process to liquify domestic companies in the field of insurance. The first would be that the government should shrug off its shoulders and the next step would be dissolution of domestic companies.

It is the social sector which has been worstly affected in the liberalisation regime. In the spreee to privatise all the spheres, the social sectors which cater to the welfare of the people of the country have fallen victim to the whims of the private sector. The private sector looking for profits can hardly listen to the voice of the needy. The need, the want may not coincide with the areas of emerging profit. One cannot resolve the clash. Hence the need and want of the people are neglected.

This is going to be the fate of the insurance sector as correctly visualised by many within the country.

Other evils are going to come as well. Opening up of insurance to private companies including foreign investors would be meaning practices like undercutting of premium, aggressive marketing , misleading people, transfer of funds by unfair means and the like. The enterprise to care for the security of the people would be implying the highest amount of insecurity. Uncertain future would be the company of people who simply wants to save for the years to come. The foreign financial investors are so big that they are capable of undercutting premia incurring even losses during the few initial years to snuff out the domestic companies. The experience of the other countries which have gone through these changes are not pleasant.

The companies that ply in the world are not in very good shape or reputation for their works. They are involved in litigations and they have been able to wipe out domestic companies within a very short peroiod of time. They are even not known to lure in huge foreign investments.

The growth of insurance in advanced capitalist countries. Domestic savings haver also been stagnating in our country. Any single competition would be thus be sufficient to wipe out the domestic companies. The public companies LIC and GIC have also been functioning efficiently. There have been absolutely no evidence of their failure. They have maintained efficiency and growth despite national stagnation. They have thrown surpluses and submitting corporate taxes and dividends of high order to the government. There have been no complaint as far aas financial efficiency of these are considered. Hence it is only for external causes, that they are to be switched off.

The problem that is looming upon thousands and thousands of insurance workers in the country is the immediate threat of joblessness, which is bound to occur. This has already occurred in other sectors of the economy and now with introduction of the Bill it is the insurance sector which is to be affected. With massive unemployment already on the hike, it is now the fate of the insurance workers which will now be affected.