To protest against the “step-motherly” treatment being meted out to the public sector insurance companies on the issue of wage revision, employees of the insurance sector went on a two-day strike on 23-24 March 2005. The insurance workers contend that the government is trying to increase foreign direct investment (FDI) in the insurance sector and “outsource” health insurance.

About 80,000 officers and Class III and IV employees of the five public sector general insurance companies – General Insurance, National Insurance, New India Assurance, Oriental Insurance and United India Insurance - participated in the two-day strike. Insurance business transactions in the four subsidiaries of GIC had come to complete stand still through out the country.

The striking employees staged demonstrations in several cities, including Madurai and Dindigul in Tamil Nadu, and Kozhikode and Kochi in Kerala. Workers are threatening a prolonged strike if their demands are not met.

The insurance employees always had the benefit of higher perks and allowances. But, when the UPA government came into power, it decided to maintain parity with other financial institutions like banks and LIC. The agreement that followed with each sectors resulted in 13.5 per cent wage revision for both banks and LIC. But the agreement with the other insurance companies ended up with only an 8.5 per cent hike.

General Insurance Employees All India Association (GIEAIA) president Gurudas Dasgupta along with other union members met Finance Minister P Chidambaram. The Minister assured the trade unions that he would look into the matter at the earliest. The trade union delegates also have plans to meet Prime Minister Manmohan Singh. According to the protesting employees, this token strike was only an indicator of the prolonged battle the employees are preparing for, if their demands are not met.