Trinamool opposes Insurance Bill in Rajya Sabha

Leader of Trinamool Congress in Rajya Sabha, Derek O’Brien, today opposed the Insurance Bill which seeks to increase the cap on FDI in insurance sector from 26% to 49%.

He said, “In the last five years, the insurance penetration has dropped by 1%. FDI in insurance, has given you Rs 7,800 crore and LIC Dividend has given you Rs 12,000 to 14,000 crore in the last 10 years.”

He raised the point that average annual premium that an individual has to pay, for the private insurance companies is Rs 60,000 whereas for LIC is it only Rs 9,000.

Regarding claim settlement, Derek O’Brien said, “LIC’s settlement figure is at 99.86 % whereas private sector is at 79%. These are IRDA figures. Lapse ratio for LIC is 5% as compared to 47% in private sector insurance.”

He warned the Government of the dangers of exposure to global recession and reminded the Government of how AIG had to be bailed out with $ 200 billion.

Trinamool Congress walked out of Rajya Sabha on this Insurance Bill issue.

Click here for the transcript of Derek O’Brien’s speech