SUCI(C) vehemently opposes BJP government’s decision to allow 100% FDI in Insurance
Comrade Provash Ghosh, General Secretary, SUCI(C), has issued the following statement on 14.12.2025: In pursuit of its privatization spree, the BJP-led central government has now opened avenue for total privatization of Indian insurance companies by taking up a decision to allow 100% FDI in insurance including LIC having fund of more than Rs 34 lakh crore. Not only that. It has also approved a lower paid-up capital requirements (portion of authorized capital actually paid for) as well as a composite licensing system (one permit for making forays into both General and Life insurances implifying regulations and reducing costs). The government claims that this would facilitate faster claim settlement, wider product choices, better digital services, more competition-driven pricing and stronger regulatory protections without elaborating how would such benefits accrue to the insured. Rather, the decision would push up premium as private companies are driven by profit maximization motive, would concentrate on more profitable urban sector, may strenuously deny claims, which can indirectly impact the overall cost of coverage and contrary to government claim, whole hog privatization would lead to market consolidation entailing only a few dominant players and thus a lack of healthy competition would result in increased premiums. It is evident that such a measure has been adopted to woo the foreign giant multi-nationals mostly with an origin in US, Germany and UK. It bears mentioning that countries like US where competition is rife in the insurance industry, have been characterized by a large number of failures because of being engaged in dirty tricks and unethical behaviour of denying claims, delaying payments to boost profit. Dozens of private insurance companies in the large imperialist countries are being declared bankrupt every year, because of speculative investments and unethical practices. So, we vehemently oppose such an out and out anti-people, pro-multinational policy of the BJP government and urge upon the working people irrespective of the industries they are in to foster a struggling unity and unleash a sustained organized powerful movement to thwart this ruinous design of reckless privatization.