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The Life Insurance Corporation Act, 1956

Central

An Act to provide for the nationalisation of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto.

Act number
31 of 1956
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
18 Jun 1956

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

79 sections

  1. Section 1Short title and commencement.
  2. Section 2Definitions.
  3. Section 3Establishment and incorporation of Life Insurance Corporation of India.
  4. Section 4Board of Directors
  5. Section 4ADisqualification to be director.
  6. Section 4BDisclosure of interest by director and senior management.
  7. Section 4CRelated party transactions.
  8. Section 4DAdjudication of penalties
  9. Section 5Capital of Corporation.
  10. Section 5ATransferability of shares.
  11. Section 5BRegister of members, etc.
  12. Section 5CDeclaration in respect of beneficial interest in shares.
  13. Section 5DShares to be securities.
  14. Section 5ERight of registered members to nominate.
  15. Section 6Functions of the Corporation.
  16. Section 6APower to impose conditions, etc.
  17. Section 7Transfer of assets and liabilities of existing insurers carrying on controlled business.
  18. Section 8Provident, superannuation and other like funds.
  19. Section 9General effect of vesting of controlled business.
  20. Section 10Provisions as to composite insurers.
  21. Section 11Transfer of service of existing employees of insurers to the Corporation.
  22. Section 12Transfer of services of existing employees of chief agents of insurers to the Corporation in certain cases.
  23. Section 13Duty to deliver possession of property and documents relating thereto.
  24. Section 14Power of Corporation to modify contracts of life insurance in certain cases.
  25. Section 15Right of Corporation to seek relief in respect of certain transactions of the insurer.
  26. Section 16Compensation for acquisition of controlled business.
  27. Section 17Constitution of Tribunals.
  28. Section 18Offices, branches and agencies.
  29. Section 19Executive Committee.
  30. Section 19AInvestment Committee.
  31. Section 19BNomination and Remuneration Committee
  32. Section 19CAudit Committee.
  33. Section 19DOther Committees.
  34. Section 20Managing Directors.
  35. Section 21Corporation to be guided by the directions of Central Government.
  36. Section 22Zonal Managers.
  37. Section 23Staff of the Corporation.
  38. Section 23AAnnual general meeting and other general meetings
  39. Section 24Funds of the Corporation.
  40. Section 24ABooks of account, etc.
  41. Section 24BFinancial statements.
  42. Section 24CBoard's report.
  43. Section 24DPenalties.
  44. Section 25Appointment of auditors.
  45. Section 25ARemoval and resignation of auditor.
  46. Section 25BPowers and duties of auditors and auditor's report.
  47. Section 25CInternal auditor.
  48. Section 25DSpecial auditor
  49. Section 26Actuarial valuations.
  50. Section 27Annual report of activities of Corporation.
  51. Section 28Surplus from life insurance business, how to be utilised.
  52. Section 28AProfits from any business (other than life insurance business) how to be utilised.
  53. Section 28BDeclaration of dividend.
  54. Section 28CUnpaid Dividend Account.
  55. Section 29Reports to be laid before Parliament.
  56. Section 30Corporation to have the exclusive privilege of carrying on life insurance business.
  57. Section 30AExclusive privilege of Corporation to cease.
  58. Section 31Exception in the case of insurance business in respect of persons residing outside India.
  59. Section 32Power of Corporation to have official seal in certain cases.
  60. Section 33Requirement of foreign laws to be complied with in certain cases.
  61. Section 34Revesting of certain shares vested in the Administrator-General.
  62. Section 35Repatriation of assets and liabilities in the case of foreign insurers in certain cases.
  63. Section 36Contracts of chief agents and special agents to terminate.
  64. Section 37Policies to be guaranteed by Central Government.
  65. Section 38Liquidation of Corporation.
  66. Section 39Special provisions for winding up of certain insurers.
  67. Section 40Penalty for withholding property, etc.
  68. Section 41Tribunal to have exclusive jurisdiction in certain matters.
  69. Section 42Enforcement of decisions of Tribunals.
  70. Section 43Application of the Insurance Act.
  71. Section 43A. Omitted.
  72. Section 44Act not to apply in certain cases
  73. Section 45Special provisions regarding transfer of controlled business of certain composite insurer.
  74. Section 46Defects in constitution of Corporation or Committees or in appointment or nomination of directors not to invalidate acts or proceedings.
  75. Section 47Protection of action taken under this Act.
  76. Section 48Power to make rules.
  77. Section 49Power to make regulations
  78. Section 50Form, manner, etc., for companies to apply with modifications.
  79. Section 51Power to remove difficulties.