In a rare moment of political camaraderie, the two major fronts in Kerala came together in the Assembly on Wednesday to unanimously pass a resolution urging the BJP-led Centre to desist from the moves to sell the shares of Life Insurance Corporation (LIC) and retain it in the public sector.

"This Assembly is of the opinion that it would do no one any good to surrender to the whims of private investors an institution that has done commendably well for the development of the nation and the welfare of its people," the resolution, which was read out by Chief Minister Pinarayi Vijayan, said.

The resolution said that LIC was nationalised to protect shareholders from the exploitation of private companies and to provide insurance cover to the weaker sections in the backward regions of the country. "It is such a company that the Centre is attempting to privatise without the scrutiny of, and even a discussion in, the Parliament by including the proposal in the Finance Bill," the resolution said.

It said that the sale of LIC shares was the first step towards privatisation. "The Centre is trying to justify the move by saying that only 5 per cent of the shares were being divested and that this was not privatisation," the resolution said. Opposition Leader V D Satheesan, while backing the government-sponsored resolution, also said that the sale of 5 per cent shares was just the beginning.

The resolution said that LIC was one of the biggest insurance companies in the world in terms of the number of policies and the efficiency in settling claims. "LIC's emphasis has always been on the interests of policyholders. It distributes as bonus 95 per cent of its profit. This is far higher than what private insurance companies offer," it said.

Further, the resolution said that 24 per cent of LIC officers were in rural areas. This is just 3 per cent for private companies. Till now, LIC has invested ₹37 lakh crore for the country's growth.