Government weakening state-run insurance companies: CPI-M

New Delhi, Jan 19 (IANS) The Communist Party of India-Marxist (CPI-M) on Thursday accused the central government of weakening state-run general insurance companies through disinvestment, which it said is "not in the country's interest".

"The CPI-M strongly opposes the clearance given by the Union Cabinet for disinvestment of shares in the five public sector general insurance companies," the Left party said in a statement.

The Union cabinet on Wednesday gave in-principle approval for the listing of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company and General Insurance Company.

The government's shareholding would be decreased from 100 per cent at present to 75 per cent over time.

"By this step, the government is weakening the nationalised general insurance companies which have been running well. They have been regularly earning profits and contributing to the government's revenue," the CPI-M said.

It said that unlike the private sector insurance companies, it is the general insurance companies that are executing the insurance-based welfare schemes announced by the government.

"The Modi government is undertaking this disinvestment measure as part of the overall plan to liberalise and privatise the financial sector. A path will be opened for more participation of foreign insurance companies. This is not in the interests of the people and the country," it said.