Lucknow, Feb 27: Samajwadi Party chief Akhilesh Yadav has strongly opposed the Centre’s decision to allow 100% foreign direct investment (FDI) in the insurance sector, warning that it could put the entire industry and policyholders at risk.
Taking to social media, Yadav addressed Indian policyholders in a post on X, questioning whether handing over complete control of such a crucial and crisis-sensitive industry to foreign entities was in the nation's best interest.
The Union Finance Minister, Nirmala Sitharaman, announced in her Budget 2025-26 speech that the FDI limit in the insurance sector would be increased from 74% to 100%. The move is expected to attract global insurance giants and bring in substantial foreign investment.
However, Yadav highlighted concerns over potential diplomatic tensions that could arise between India and foreign nations, questioning who would be accountable if international insurers decided to withdraw or modify their policies under such circumstances. "Who will insure against this uncertainty?" he asked.
The former Uttar Pradesh chief minister also expressed concerns that while the move provides security to foreign insurers, Indian policyholders remain vulnerable. He questioned whether these companies would reinvest at least half of their profits in India or repatriate them entirely.
Calling for greater transparency, Yadav urged the government to ensure that policy terms, often hidden in fine print, were clearly communicated to the public. He cautioned against rushing such significant policy changes without thorough deliberation.
Additionally, he alleged that the BJP-led central government could exploit foreign insurers for political funding and later permit them to increase premiums, burdening the common people. If the ruling party genuinely cared for citizens, he argued, it should first eliminate the tax on insurance premiums imposed during its tenure.
"The government’s responsibility is to strengthen healthcare infrastructure and reduce medical expenses, not to tax essential services like health and life insurance," Yadav asserted.
Accusing the BJP of prioritizing profits over public welfare, he claimed that the party treats citizens as mere customers rather than beneficiaries of government policies. He reaffirmed the Samajwadi Party's commitment to protecting Indian policyholders from potential risks associated with complete foreign ownership in the insurance sector.
Taking to social media, Yadav addressed Indian policyholders in a post on X, questioning whether handing over complete control of such a crucial and crisis-sensitive industry to foreign entities was in the nation's best interest.
The Union Finance Minister, Nirmala Sitharaman, announced in her Budget 2025-26 speech that the FDI limit in the insurance sector would be increased from 74% to 100%. The move is expected to attract global insurance giants and bring in substantial foreign investment.
However, Yadav highlighted concerns over potential diplomatic tensions that could arise between India and foreign nations, questioning who would be accountable if international insurers decided to withdraw or modify their policies under such circumstances. "Who will insure against this uncertainty?" he asked.
The former Uttar Pradesh chief minister also expressed concerns that while the move provides security to foreign insurers, Indian policyholders remain vulnerable. He questioned whether these companies would reinvest at least half of their profits in India or repatriate them entirely.
Calling for greater transparency, Yadav urged the government to ensure that policy terms, often hidden in fine print, were clearly communicated to the public. He cautioned against rushing such significant policy changes without thorough deliberation.
Additionally, he alleged that the BJP-led central government could exploit foreign insurers for political funding and later permit them to increase premiums, burdening the common people. If the ruling party genuinely cared for citizens, he argued, it should first eliminate the tax on insurance premiums imposed during its tenure.
"The government’s responsibility is to strengthen healthcare infrastructure and reduce medical expenses, not to tax essential services like health and life insurance," Yadav asserted.
Accusing the BJP of prioritizing profits over public welfare, he claimed that the party treats citizens as mere customers rather than beneficiaries of government policies. He reaffirmed the Samajwadi Party's commitment to protecting Indian policyholders from potential risks associated with complete foreign ownership in the insurance sector.
