The Hindu Business Line : LIC staff stage demo at Vizag

VISAKHAPATNAM: LIC employees here staged a demonstration on Thursday in front of the LIC office in protest against the hike in FDI ceiling in the sector from 26 per cent to 49 per cent.

They also urged the Union Finance Minister to withdraw the proposed service tax on life insurance premium.

Mr B.B. Ganesh, divisional general secretary of the LIC Employees' Union, said the dominance of the private foreign companies would increase in the market with the move. Instead of greater inflows of foreign capital into the sector, there would be greater outflows of premium accumulations, which would prove counterproductive, he said.

Imposition of service tax on the premium would increase the burden on the LIC by Rs 600 crore or so per annum. As most of the LIC funds were deployed in Government projects, the move was not justified, he argued.

The staff also sought wage revision pending for the past two years.

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