Investing in tobacco firms not banned, LIC tells Bombay HC

Mumbai city news: LIC was replying to a public interest litigation objecting to public sector insurance companies investing in firms manufacturing tobacco products

Investing in tobacco companies indirectly is neither prohibited nor banned by any authority, the Life Insurance Corporation of India (LIC) said in an affidavit filed in the Bombay high court.

“Secondary investment in tobacco companies is neither prohibited nor banned by any authority,” says the affidavit filed by Vikas Chaturvedi, assistant secretary (investment operations) of LIC. (AFP file photo)

LIC was replying to a public interest litigation objecting to public sector insurance companies investing in firms manufacturing tobacco products.

“Secondary investment in tobacco companies is neither prohibited nor banned by any authority,” says the affidavit filed by Vikas Chaturvedi, assistant secretary (investment operations) of LIC. “LIC is a corporate body and must function on business principles as far as possible. Ninety-five per cent of its surplus goes to policy vendors,” added the affidavit.

It added that the investment was in accordance with the provisions of the LIC Act, the Insurance Act and guidelines laid down by the Insurance Regulatory and Development Authority, and other prevailing rules and regulations. “LIC looked at several companies with a good track record for investment options,” said the affidavit, adding, “ITC is one such company.”

Read: Bombay HC issues notice to LIC for investing in cigarette company