Kerala Assembly unanimously passes resolution against LIC disinvestment

The Kerala Assembly on Wednesday unanimously passed a resolution against the Centre going ahead with the disinvestment of the Life Insurance Corporation (LIC).

The 140-member Assembly wanted the Centre to ensure that LIC remains in the public sector.

Moving the resolution under Rule 118, Chief Minister Pinarayi Vijayan said giving up LIC to the interests of private investors is against national interest and so the Centre should not go ahead with it.

"The Centre amended the LIC Act by including it in the financial bill and without due deliberation in Parliament," Vijayan said.

Presenting the financials of the LIC, Vijayan said the assets of LIC has been valued at Rs 38,04,610 crore, which is equivalent to the central government's one-year budget estimate.

The profit of the LIC which on an average every year is in excess of Rs 4 lakh crore is being used for the developmental activities of the country and till now it has invested Rs 36,76,170.31 crore, he stated.

Elaborating further, Vijayan said the LIC gave 95 per cent of its profits as bonus, which is much higher than what the private sector pays and almost a quarter of the LIC offices are in the rural areas.

Those who spoke from various political parties were perfectly in sync with what Vijayan said and the resolution was passed without any protest.