Disinvestment of LIC doesn't make sense, says DMK MP

NEW DELHI: DMK MP Gautham Sigamani on Monday said that the gradual disinvestment of LIC by the government doesn't make any sense, and will affect lakhs of investors and even agents associated with the country's largest insurer.

Raising the issue during Zero Hour in the Lok Sabha, Sigamani said that "LIC is just not like any other PSU. It is connected with every common individual... Such a vital PSU is slowly being disinvested by the Union government. Privatising a profit-making PSU does not make sense. This move not only affects common public but also affects lakhs of agents".

The lawmaker from Tamil Nadu said that the LIC is a profit-making entity, but the government is privatising it.

He urged the government not do so, as it was already "selling every PSU one by one".

Already, the Union government has sold 3.5 per cent of LIC shares at a very low price, the DMK MP said.

Sigamani also said that LIC's proposed online portal Bima Sugam, which will facilitate all insurance related activities online, would ruin all the company's agents, who are dependent on it for livelihood.

"Once this Bima Sugam portal comes to act, policy holders will face huge problem as agents will not be available to serve them as it will be done online. Livelihood of agents will be erased. Already unemployment rate is increasing day-by-day. So, this new scheme will not bring any good to policy holders, but will put LIC on closure," he said.

He also urged the government to stop the proposed Bima Sugam portal.