Swadeshi Jagran Manch objects to merger of public insurance firms in letter to PM, claims move will affect Central schemes

The Swadeshi Jagran Manch, in a letter to Prime Minister Narendra Modi on Thursday, has objected to the proposed merger of three public insurance companies — Oriental Insurance Co Ltd, United Insurance Co Ltd and National Insurance Co Ltd — and claimed that such a move will affect Central schemes. The Swadeshi Jagran Manch (SJM) is an affiliate of the Rashtriya Swayamsevak Sangh that deals with economic issues. Underlining the importance of the public sector companies, SJM’s co-convener Ashwani Mahajan, in a letter to the prime minister, said the Centre’s insurance schemes for farmers, health benefits and other purposes have been mostly distributed by these companies. “The merger of these three insurance companies would have adverse impact on the Centre’’s flagship schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY) and Pradahan Mantri Jan Aarogay Yojana (PMJAY),” he wrote. In last year’s Budget, the government had announced the merger of National Insurance Company, Oriental Insurance Company and United India Insurance Company into an one entity. The process of merger could not be completed due to various reasons, including poor financial health of these companies. Mahajan, in his letter on Thursday, said he fully agrees that these companies have to stop bleeding but the solution lies not in merger but in other areas such as reviewing the efficiency of staff, eliminating vested interest in payment of commissions for generating business, prudent premium charging policy keeping in view the claims settled among others. The Swadeshi Jagran Manch’s letter further states, “Further, we wish to put on record that PSUs are the ones servicing most of the claims under Motor Third Party Insurance in far flung rural areas of the country where private players do not want to enter.” With inputs from PTI