LIC ActCentral laws1956
The Life Insurance Corporation Act, 1956
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 No. 31 of 1956 · Ministry of Finance
- Sections
- 79
- Chapters
- 7
- Classified offences
- 1
Contents
IPreliminary§ 1–22 sections
IIIFunctions of the Corporation§ 6–6A2 sections
IVTransfer of Existing Life Insurance Business to the Corporation§ 7–1711 sections
- 7Transfer of assets and liabilities of existing insurers carrying on controlled business.
- 8Provident, superannuation and other like funds.
- 9General effect of vesting of controlled business.
- 10Provisions as to composite insurers.
- 11Transfer of service of existing employees of insurers to the Corporation.
- 12Transfer of services of existing employees of chief agents of insurers to the Corporation in certain cases.
- 13Duty to deliver possession of property and documents relating thereto.
- 14Power of Corporation to modify contracts of life insurance in certain cases.
- 15Right of Corporation to seek relief in respect of certain transactions of the insurer.
- 16Compensation for acquisition of controlled business.
- 17Constitution of Tribunals.
VManagement§ 18–23A11 sections
- 18Offices, branches and agencies.
- 19Executive Committee.
- 19AInvestment Committee.
- 19BNomination and Remuneration Committee.
- 19CAudit Committee.
- 19DOther Committees.
- 20Managing Directors.
- 21Corporation to be guided by the directions of Central Government.
- 22Zonal Managers.
- 23Staff of the Corporation.
- 23AAnnual general meeting and other general meetings.
VIFinance, Accounts and Audit§ 24–2917 sections
- 24Funds of the Corporation.
- 24ABooks of account, etc.
- 24BFinancial statements.
- 24CBoard's report.
- 24DPenalties.
- 25Appointment of auditors.
- 25ARemoval and resignation of auditor.
- 25BPowers and duties of auditors and auditor's report.
- 25CInternal auditor.
- 25DSpecial auditor.
- 26Actuarial valuations.
- 27Annual report of activities of Corporation.
- 28Surplus from life insurance business, how to be utilised.
- 28AProfits from any business (other than life insurance business) how to be utilised.
- 28BDeclaration of dividend.
- 28CUnpaid Dividend Account.
- 29Reports to be laid before Parliament.
VIIMiscellaneous§ 30–5124 sections
- 30Corporation to have the exclusive privilege of carrying on life insurance business.
- 30AExclusive privilege of Corporation to cease.
- 31Exception in the case of insurance business in respect of persons residing outside India.
- 32Power of Corporation to have official seal in certain cases.
- 33Requirement of foreign laws to be complied with in certain cases.
- 34Revesting of certain shares vested in the Administrator-General.
- 35Repatriation of assets and liabilities in the case of foreign insurers in certain cases.
- 36Contracts of chief agents and special agents to terminate.
- 37Policies to be guaranteed by Central Government.
- 38Liquidation of Corporation.
- 39Special provisions for winding up of certain insurers.
- 40Penalty for withholding property, etc.
- 41Tribunal to have exclusive jurisdiction in certain matters.
- 42Enforcement of decisions of Tribunals.
- 43Application of the Insurance Act.
- 43A. Omitted.
- 44Act not to apply in certain cases
- 45Special provisions regarding transfer of controlled business of certain composite insurer.
- 46Defects in constitution of Corporation or Committees or in appointment or nomination of directors not to invalidate acts or proceedings.
- 47Protection of action taken under this Act.
- 48Power to make rules.
- 49Power to make regulations.
- 50Form, manner, etc., for companies to apply with modifications.
- 51Power to remove difficulties.
Establishment of Life Insurance Cororation of India§ 3–5E12 sections
- 3Establishment and incorporation of Life Insurance Corporation of India.
- 4Board of Directors
- 4ADisqualification to be director.
- 4BDisclosure of interest by director and senior management.
- 4CRelated party transactions.
- 4DAdjudication of penalties.
- 5Capital of Corporation.
- 5ATransferability of shares.
- 5BRegister of members, etc.
- 5CDeclaration in respect of beneficial interest in shares.
- 5DShares to be securities.
- 5ERight of registered members to nominate.