Act 31 of 1956

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.

  • Ministry of Finance
  • Department of Financial Services
  • Enacted 1956-06-18
  • 79 sections
SectionTitle
1 Short title and commencement. Read
2 Definitions. Read
3 Establishment and incorporation of Life Insurance Corporation of India. Read
4 Board of DirectorsRead
4A Disqualification to be director.Read
4B Disclosure of interest by director and senior management.Read
4C Related party transactions.Read
4D Adjudication of penaltiesRead
5 Capital of Corporation.Read
5A Transferability of shares.Read
5B Register of members, etc.Read
5C Declaration in respect of beneficial interest in shares.Read
5D Shares to be securities.Read
5E Right of registered members to nominates.Read
6 Functions of the Corporation. Read
6A Power to impose conditions, etc. Read
7 Transfer of assets and liabilities of existing insurers carrying on controlled business. Read
8 Provident, superannuation and other like funds. Read
9 General effect of vesting of controlled business. Read
10 Provisions as to composite insurers. Read
11 Transfer of service of existing employees of insurers to the Corporation. Read
12 Transfer of services of existing employees of chief agents of insurers to the Corporation in certain cases. Read
13 Duty to deliver possession of property and documents relating thereto. Read
14 Power of Corporation to modify contracts of life insurance in certain cases. Read
15 Right of Corporation to seek relief in respect of certain transactions of the insurer. Read
16 Compensation for acquisition of controlled business. Read
17 Constitution of Tribunals. Read
18 Offices, branches and agencies. Read
19 Executive Committee.Read
19A Investment Committee.Read
19B Nomination and Remuneration CommitteeRead
19C Audit Committee.Read
19D Other Committees.Read
20 Managing Directors. Read
21 Corporation to be guided by the directions of Central Government. Read
22 Zonal Managers. Read
23 Staff of the Corporation. Read
23A Annual general meeting and other general meetingsRead
24 Funds of the Corporation.Read
24A Books of account, etc.Read
24B Financial statements.Read
24C Board's report.Read
24D Penalties.Read
25 Appointment of auditors.Read
25A Removal and resignation of auditor.Read
25B Powers and duties of auditors and auditor's report.Read
25C Internal auditor.Read
25D Special auditorRead
26 Actuarial valuations. Read
27 Annual report of activities of Corporation. Read
28 Surplus from life insurance business, how to be utilised. Read
28A Profits from any business (other than life insurance business) how to be utilised. Read
28B Declaration of dividend.Read
28C Unpaid Dividend Account.Read
29 Reports to be laid before Parliament. Read
30 Corporation to have the exclusive privilege of carrying on life insurance business. Read
30A Exclusive privilege of Corporation to cease. Read
31 Exception in the case of insurance business in respect of persons residing outside India. Read
32 Power of Corporation to have official seal in certain cases. Read
33 Requirement of foreign laws to be complied with in certain cases. Read
34 Revesting of certain shares vested in the Administrator General. Read
35 Repatriation of assets and liabilities in the case of foreign insurers in certain cases. Read
36 Contracts of chief agents and special agents to terminate. Read
37 Policies to be guaranteed by Central Government. Read
38 Liquidation of Corporation. Read
39 Special provisions for winding up of certain insurers. Read
40 Penalty for withholding property, etc. Read
41 Tribunal to have exclusive jurisdiction in certain matters. Read
42 Enforcement of decisions of Tribunals. Read
43 Application of the Insurance Act. Read
43A . Omitted.Read
44 Act not to apply in certain casesRead
45 Special provisions regarding transfer of controlled business of certain composite insurer.Read
46 Defects in constitution of Corporation or Committees or in appointment or nomination of directors not to invalidate acts or proceedings.Read
47 Protection of action taken under this Act.Read
48 Power to make rules.Read
49 Power to make regulationsRead
50 Form, manner, etc. for companies to apply with modifications.Read
51 Power to remove difficulties.Read
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