Lucknow: Samajwadi Party chief Akhilesh Yadav on Thursday slammed the Centre for allowing 100 per cent FDI in the insurance sector and said the move put the entire industry at risk.
In a post in Hindi on X addressed to Indian policyholders, Yadav questioned if handing over complete control of a sensitive and crisis-driven industry such as the insurance sector to foreign entities was in the best interest of the nation.
Union Finance Minister Nirmala Sitharaman announced in her 2025-26 budget speech that the permissible limit for foreign direct investment (FDI) in the insurance sector would be raised from 74 per cent to 100 per cent. The move is expected to pave the way for the entry of global insurance giants and substantial foreign investment.
Yadav pointed out that diplomatic relations between countries could fluctuate and, if any disruptions occurred, ensuring accountability of foreign insurers would be a challenge."Who will insure against this uncertainty?" he asked.
Yadav warned that while the new provision offered full security to foreign insurance companies, the interests of Indian policyholders remained uncertain. "Even if these foreign companies reinvest the collected premium within the country, a critical question remains: will they reinvest at least half of their profits in India or take all of it abroad?" he asked.
Urging transparency, the former Uttar Pradesh chief minister said the government must ensure that the terms and conditions, often written in fine print, were made clear to the public. "Rushing such policies is not advisable," he added.
The Kannauj MP further alleged that the BJP-led central government might exploit these companies for political funding and later allow them to hike insurance premiums, burdening the common people. If the BJP truly cares about citizens, it should first remove the tax on insurance premiums imposed during its tenure, he added.
"The government's primary responsibility is to strengthen healthcare infrastructure and reduce citizens' medical expenses, not to tax essential services such as health and life insurance," Yadav said, adding that the public should not have to bear the cost of the government's failure to perform its duty.
Accusing the BJP of treating citizens as "customers", the Samajwadi Party chief said, "Its mindset is purely commercial, focused on profit rather than public welfare." Yadav reaffirmed his party's commitment to protecting the interests of Indian policyholders.
