Employees of the State Life Insurance Corporation (SLIC) have opposed the idea of privatization of SLIC and made a fervent appeal to the government to desist from taking such a step, says a press release.
The press release said that SLIC came into being in 1972 merging 32 life insurance companies in order to safeguard the savings and investments of the citizens.
Since its inception it has shown excellent results with innovative and aggressive marketing. The result is that it is the leading insurance corporation in the country with 58% of the market share in life insurance industry.
The release said that interest of around 5 million individual policy holders, 8.5 million individuals covered under group insurance policies, has been associated with SLIC along with the interest of four subsidiary organizations.
It said that state life is profitable organization and it paid Rs. 5.860 billion as dividend to the government of Pakistan since its inception in 1972. Only in 2014, dividend of 905 million has been paid.
The capital increased from Rs. 10 million in 1972 to Rs. 3,000 million in 2014. Total statutory fund of state life stands at Rs. 450,025 billion in 2014 as against Rs. 1,494 billion in 1972. As 97.55% of the profit earned by SLIC goes to policy holders (as bonuses) we feel that State Life is the property of millions of widows and orphans throughout the country.
The press release said the in view of its meritorious performance, let SLIC remain a government institution strengthening the confidence of the people. The idea of privatizing such an institution so vital to widows and orphans must not be encouraged and it be allowed to exist as before.