Centre plans to make 2% CSR spending mandatory for Life Insurance Corp

LIC Act does not have CSR provisions; the corporation had a surplus fund over Rs 440 billion

The government is planning to bring state-owned insurer Life Insurance Corporation (LIC) under the ambit of corporate social responsibility (CSR). This would lead the insurance behemoth to spend at least 2 per cent of its surplus fund on social activities.

According to a senior government official, the Centre is of the view that LIC, the country’s largest insurer, should contribute a portion of the surplus fund on social welfare. At present, there is no obligation on the insurer to spend a fixed amount on such activities. 

The parliamentary committee, which met in Mumbai on April 25, reviewed the compliance of