Employees of the Life Insurance Corporation (LIC) and members of various trade unions staged a protest in Chennai on December 18 against the Union government’s decision to allow 100% Foreign Direct Investment (FDI) in the insurance sector. The protest was part of a nationwide agitation called by major trade unions from the banking and insurance sectors after Parliament passed the Everyone’s insurance, everyone’s protection 2025 Bill on December 16.
Introduced by Union Finance Minister Nirmala Sitharaman, the bill raises the FDI cap from 74% to 100%, a move the government claims will enable capital infusion, technological advancement, and sectoral growth.
Chennai Protest Highlights Fears Over Full FDI and Erosion of Public Sector Insurance
In Chennai, protestors gathered outside the Bombay Mutuals Building at Parry’s Corner, raising slogans against the legislation and warning that it could destabilise the insurance industry. Demonstrators highlighted the gradual liberalisation of the sector, noting that FDI was first allowed at 26% in 1999, raised to 49% in 2015, and further increased to 74% in 2021. However, they argued that permitting complete foreign ownership threatens the long-standing public sector–led insurance framework in India.
Former South Zone Insurance Employees Federation general secretary Swaminathan said India’s 200-year-old insurance legacy would be undermined by the move, alleging that it primarily benefits large corporate players while weakening public sector undertakings. Sarvamangalam, a divisional general secretary in Chennai Division 2, warned that insurance agents would be adversely affected, as foreign companies could now operate independently without Indian partners or government support, raising concerns over accountability if such firms collapse.
LIC Officers Raise Democratic and Rural Impact Concerns, Warn of Wider Protests
Opposition to the bill has also emerged from within LIC’s officer ranks. Padmanabhan, a Class 1 LIC officer, criticised the government for passing the bill without adequate parliamentary debate and cautioned that foreign insurers would prioritise urban markets while neglecting rural areas. Protestors warned that larger nationwide agitations would follow if the Union government does not withdraw or reconsider the decision.
Summary:
LIC employees and trade unions protested in Chennai against the Sabko Bima Sabko Raksha 2025 Bill allowing 100% FDI in insurance. Protesters warned of destabilisation, erosion of public sector insurance, harm to agents and rural coverage, and alleged inadequate parliamentary debate, threatening nationwide agitations if the decision is not withdrawn.
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