Can LIC’s investments in public sector units hurt policyholders?

In the last five years, Life Insurance Corp. of India’s (LIC) investments in state-run banks and the government’s disinvestment programme have almost doubled, according to news reports. Moreover, of the total investments made by LIC worth ₹26.6 trillion, as of March 2019, ₹22.6 trillion went into the public sector and only ₹4 trillion went into the private sector, showed data from the Reserve Bank of India. While this may work in favour of some of the public sector undertakings (PSUs), it’s not clear how it will impact the customers of the insurer. Disha Sanghvi asks experts how this might affect…

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LICs investment in ITC makes govt party to tobacco promotion PIL

The Bombay High Court on Thursday heard a petition alleging that PSU insurers such as LIC are going against the government’s anti-tobacco stand by investing in cigarette manufacturing company ITC. The World Health Organization tobacco treaty bars the government from investing in tobacco companies, they said. The petitioners also said that the investments make the government party to tobacco’s promotion. The six petitioners include the Managing Trustee of the Tata Trusts, Lakshman Sethuraman, Ashish Deshmukh, Member of Maharashtra Legislative Assembly, Sumitra Hooda Pednekar, widow of a Maharashtra Minister who died of throat cancer, Pankaj Chaturvedi, a Surgeon…

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