Reflections of Readers

LETTERS   RECEIVED FROM READERS FOR THE FRONTLINE COVER STORY ON

Opening up insurance

 

AMANULLAH KHAN highlighted the UPA II government’s pro-capitalist policies. The government’s motives behind its decision to increase the FDI limit in insurance became clear on reading the interview.
ANU MALHOTRA
Ludhiana, Punjab

THE Cover Story (November 2) on FDI in the insurance sector was excellent. The interviews gave one great insight into the current economic issues and highlighted the dissent of the working class against the United Progressive Alliance’s policies. Let such opposition from all classes of people ring a warning bell for the UPA.
Santha Lakshmi K.M.
Vellore, Tamil Nadu

IN 1994, Frank Wisner, the U.S. Ambassador to India, remarked, “The insurance sector is the flagship of American business. You let it in, and the rest of the fleet will follow in full strength.” Such is the lure of the insurance sector. The issues covered by Frontline are a must-read for those actively resisting financial sector reforms.

V. Sugumaran
Cuddalore, Tamil Nadu 

INDIA is being invaded by multinational corporations of powerful capitalist countries. These profit-seeking foreign players remind us of the plundering of the country by the East India Company a few centuries ago. Very few Indians have retirement benefits such as pensions. If this nest egg is left to the mercy of private insurers, it will spell doom for the nation as a whole (Cover Story, November 2)

 G. Anuplal
Bangalore 

THE cover legend “Inviting invasion” aptly captures the government’s moves on foreign direct investment (FDI) in the insurance and pension sectors. Frontline provides a comprehensive picture of the insurance scenario. While R. Ramakumar’s essay exposes the state of affairs in the health insurance sector in the United States, the interview with Amanulla Khan, president, All India Insurance Employees’ Association (AIIEA), demolishes the myths advanced in favour of increasing FDI in the insurance industry in India.

 S.V. Venugopalan
Chennai 

DESPITE the fact that the Indian population is heavily underinsured, most insurers chase people who are already adequately covered, leading to overinsurance of a few. With a number of private insurers in the marketplace, one expects higher coverage of the population, but that unfortunately is not the case. FDI in the sector may bring more professionalism into the sector, but it is doubtful whether it will bridge the gap between the insured and the uninsured.

Bal Govind
Noida, Uttar Pradesh 

LIFE insurance and non-life insurance industries should be considered separately. The life insurance segment does not need any FDI to expand its business and earn profits. In fact, the LIC, the giant organization that leads the business, is able to penetrate into rural areas and has a large capital base. FDI in this segment can be counterproductive. At the same time, as our industries grow, there is a need for increased coverage in the general insurance fields such as fire and other damages that may run up to huge sums. Allowing FDI in this segment will be a reasonable move.

Jacob Sahayam
Thiruvananthapuram

FRONTLINE deserves praise for putting the spotlight on the ill-effects of the infusion of FDI into the insurance sector. That UPA II intends to open this Pandora’s box ignoring the recommendations of the Parliamentary Standing Committee amply demonstrates how democratic norms are sought to be trampled on.

The Cover Story exposed the character of the Centre dancing shamelessly to the tune of globalisation policies, endangering the security of 35 crore policy holders’ savings. Amanullah Khan, president of the All India Insurance Employees’ Association, in his interview, blew the lid off the Centre’s arguments in favour of FDI in insurance.
C. Chandrasekaran
Madurai, Tamil Nadu