Date:30/01/2006 URL: http://www.thehindubusinessline.com/2006/01/30/stories/2006013000671200.htm

Back Union wants merger of PSU general insurers

Our Bureau

Kochi , Jan. 29

IN order to avoid unhealthy competition among the four public sector general insurance companies and to provide the best of services to the customer, the General Insurance Employees Union (GIEU) has demanded that the United India Insurance Company, New India Assurance Company, Oriental Insurance and National Insurance be merged to form a powerful, single monolithic corporation.

The GIEU has also opposed moves to raise FDI in general insurance industry from 26 per cent to 49 per cent.

If this proposal is allowed, it will enable foreign insurers to acquire control over the management of the company and absolute control at the end of the stipulated period of 10 years, Mr N.D. Sundaresan, General Secretary, GIEU said.