21 September, 2020

The Insurance Paradox

Differences in the United Front may hold up attempts to liberalise the insurance sector yet again

The Insurance Paradox

THIS is the long distance race with the marathon wait. A wait which began in the early '90s, during the heady days of Manmohanomics, and still shows no sign of ending ,despite indications—which later amounted only to false starts—to the contrary.

When the United Front Government surprised everyone with its Common Minimum Programme (CMP), where it made clear that liberalisation of the insurance sector was on the agenda, industry thought that its long wait might come to an end, sooner rather than later. But the news seemed too good to be true. And sure enough, that's how things are turning out.

Differences within the UF coalition surfaced immediately, as the Left parties objected to opening up insurance. Communist Party of India (CPI) General Secretary A.B. Bardhan came out strongly against private sector and foreign participation in insurance in the June 26 issue of Outlook. Said he: "The Left parties have totally rejected the plans...for the insurance sector. We had rejected this (during discussions on the CMP)...and now we...



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