NORTH EASTERN REGION

GENERAL INSURANCE EMPLOYEES' ASSOCIATION

( Affiliated to All India Insurance Employeess Association. through Eastern Zone General Insurance Employees Association)
Regd. No. 1063
__________NATIONAL INSURANCE CO.LTD., DIVISION – II. M.N.ROAD, PANBAZAR, GUWAHATI - 781 001.____
Date :14/07/2021
___________________________________________________________________________________

To
Smt. Jharna Das Baidya
Honourable Member Of Parliament
Communist Party Of India(Marxist)

Madam,

Re :- Public Sector Insurance Employees oppose attempts to privatise Public

Sector United India Insurance Co. Ltd. - your suitable intervention with
the Government at the Centre sought for.

We from AIIEA (All India Insurance Employees’ Association), the premier Trade Union organization
in the Public Sector General Insurance Companies and LIC would like to bring to your kind
knowledge that as a responsible association we oppose tooth and nail, the proposed move of the
Central Government to privatise United India Insurance Company Limited as learnt to have been
recommended by NitiAayog under its principle of “AtmaNirbar”. The Union Finance Minister Smt.
NirmalaSitharaman in her Budget speech early this year had announced that in the financial year
2021-22, one of the Public Sector General Insurance Company out of the four of them now in
operation viz., UNITED INDIA INSURANCE, ORIENTAL INSURANCE, NEW INDIA ASSURANCE and
NATIONAL INSURANCE, will be privatized.

With the Head Office at Chennai, United India Insurance Company Limited was opened in the year
1938 as a private General Insurance Company. Subsequently, following the unethical business
practices of the 106 private Companies when the General Insurance business was nationalized,
United India Insurance Company came into being as a nationalized Company. With 50 years of its
operation behind, the Company have procured Rs. 17,000 Crores premium for the year 2020-21.
Through its 1991 offices in the country situated in Metropolitan cities, Tier-2, Tier 3, Tier 4, Tier 5
and Tier 6 cities the Company services 1.74 Crores of Policyholders with its various Insurance
coverages. Apart from the major Corporate clients, the Company cater to the needs of the poor
and downtrodden people in the country thereby exceeding the service criteria of the private
insurance Companies.

# The Health Insurance Scheme of the Government of India which is one of the best schemes in
the country is being administered by United India Insurance Company for the past 12 years
through which Crores and crores of Indian people benefitted by way of timely indemnification of
the Insurance claims.
# Like-wise, the “Mahatma Jyotiba Pule Jan ArogyaYojana Scheme” which is in vogue in
Maharashtra state for the past 2 years is also been administered by the Company.

# An other pivotal Scheme of the Union Government, “Prime Minister Suraksha BeemaYojana
Scheme” is being provided at a low premium of Rs.12/- for a Sum Insured of Rs. 2 lakhs in which
considerable number of policies has been issued by United India Insurance Company than the
private Insurance Companies.

# Crop Insurance Scheme for agriculturists in the countryside, Cattle Insurance Scheme, Insurance
Coverage Scheme of Rs. 1 lakh at a low premium of Rs. 60/- under Janata Personal Accident
Scheme, Special Insurance Scheme for Corona front-line warriors are some of the Schemes which
are being extended by the Company without any profit motive.

The objectives of Nationalisation to serve the people at large as well as to uphold the social
objectives have been well met by the Company as such since the insurance coverage was provided
to rich entrepreneurs. The Company had invested about Rs. 27,930 crores in various Government
Schemes. While its service to the common man is commendable, the Company had also provided
the exchequer with a sizeable yield to its investment by paying huge dividends and taxes every year.
During the occurrence of the natural calamities like Cyclone, Floods, Earthquake etc., the Company
had indemnified them with instant claim settlement more than any other private Companies can
think off.

United India Insurance Company being a Public Sector General Insurance company strictly
implements the reservation policy in recruitment and promotions. In case if it is privatized the
private share holder is not bound by any responsibility to implement reservation in the private
company to render social justice. There will also be a huge job loss due to retrenchment and other
method which normally takes place immediately after privatization Moreover it will not satisfy the
Insurance needs of the common man.

While the Public Sector General Insurance employees are on struggle path against the move of the
Government to privatise United India Insurance Company Limited, we on behalf of ALL INDIA
INSURANCE EMPLOYEES’ ASSOCIATION, would request you to kindly use your good offices to
intervene in the matter and urge the Union Government to drop the move of privatizing the
Company in toto and strengthen the Public Sector further.

Thanking you,

Yours truly,

( Subhrangshu Ranjan Dev )

General Secretary