Sections Particulars
Preamble
Preamble.- An Act to provide for the nationalisation of life insurance business in India by transferring all such business to a Corporation established for th...
Chapter I Preliminary
1 Short title and commencement
Chapter I: Preliminary1. Short title and commencement.- 1.     This Act may be called the Life Insurance Corporation Act, 1956.2.     It shall come into fo...
2 Definitions
2. Definitions.- In this Act, unless the context otherwise requires,—1.     "appointed day" means the date on which the Corporation is established under sect...
Chapter II Establishment of Life Insurance Corporation of India
3 Establishment and incorporation of Life Insurance Corporation of India
Chapter II: Establishment of Life Insurance Corporation of India3. Establishment and incorporation of Life Insurance Corporation of India.- 1.     With effe...
4 Constitution of the Corporation
4. Constitution of the Corporation.- 1.     The Corporation shall consist of such number of persons not exceeding fifteen as the Central Government may thin...
5 Capital of the Corporation
5. Capital of the Corporation.- 1.     The original capital of the Corporation shall be five crores of rupees provided by the Central Government after due a...
Chapter III Functions of the Corporation
6 Functions of the Corporation
Chapter III: Functions of the Corporation6. Functions of the Corporation.- 1.     Subject, to the rules, if any, made by the Central Government in this beha...
Chapter IV Transfer of Existing Life Insurance Business to the Corporation
7 Transfer of assets and liabilities of existing insurers carrying on controlled business
Chapter IV: Transfer of Existing Life Insurance Business to the Corporation7. Transfer of assets and liabilities of existing insurers carrying on controlled b...
8 Provident, superannuation and other like funds
8. Provident, superannuation and other like funds.- 1.     Where an insurer whose controlled business is to be transferred to and vested in the Corporation ...
9 General effect of vesting of controlled business
9. General effect of vesting of controlled business.- 1.     Unless otherwise expressly provided by or under this Act, all contracts, agreements and other i...
10 Provisions as to composite insurers
10. Provisions as to composite insurers.- 1.     For the removal of doubts it is hereby declared that in any case where an insurer whose controlled business...
11 Transfer of service of existing employees of insurers to the Corporation
11. Transfer of service of existing employees of insurers to the Corporation.- 1.     Every whole-time employee of an insurer whose controlled business has b...
12 Transfer of services of existing employees of chief agents of insurers to the Corporation in certain cases
12. Transfer of services of existing employees of chief agents of insurers to the Corporation in certain cases.- Subject to such rules as the Central Governm...
13 Duty to deliver possession of property and documents relating thereto
13. Duty to deliver possession of property and documents relating thereto.- 1.     Where any property appertaining to the controlled business of an insurer h...
14 Power of Corporation to modify contracts of life insurance in certain cases
14. Power of Corporation to modify contracts of life insurance in certain cases.- The corporation may, having regard to the financial condition on the appoint...
15 Right of Corporation to seek relief in respect of certain transactions of the insurer
15. Right of Corporation to seek relief in respect of certain transactions of the insurer.- 1.     Where an insurer whose controlled business has been transf...
16 Compensation for acquisition of controlled business
16. Compensation for acquisition of controlled business.- 1.     Where the controlled business of an insurer has been transferred to and vested in the Corpo...
17 Constitution of Tribunals
17. Constitution of Tribunals.- 1.     The Central Government may for the purposes of this Act constitute one or more Tribunals and each of the Tribunals sh...
Chapter V Management
18 Offices, branches and agencies
Chapter V: Management18. Offices, branches and agencies.- 1.     The central office of the Corporation shall be at such place as the Central Government may,...
19 Committees of the Corporation
19. Committees of the Corporation.- 1.     The Corporation may entrust the general superintendence and direction of its affairs and business to an Executive...
20 Managing Directors
20. Managing Directors.- The Corporation may appoint one or more persons to be the Managing Director or Directors of the Corporation, and every Managing Dire...
21 Corporation to be guided by the directions of Central Government
21. Corporation to be guided by the directions of Central Government.- In the discharge of its functions under this Act, the Corporation shall be guided by su...
22 Zonal Managers
22. Zonal Managers.- 1.     The Corporation may entrust the superintendence and direction of the affairs and business of a zonal office to a person whether a...
23 Staff of the Corporation
23. Staff of the Corporation.- 1.     For the purpose of enabling it to discharge its functions under this Act, the Corporation may employ such number of pe...
Chapter VI Finance, Accounts and Audit
24 Funds of the Corporation
Chapter VI: Finance, Accounts and Audit24. Funds of the Corporation.- The Corporation shall have its own fund and all receipts of the Corporation shall be cr...
25 Audit
25. Audit.- 1.     The accounts of the Corporation shall be audited by auditors duly qualified to act as auditors of companies under the law for the time bei...
26 Actuarial valuations
26. Actuarial valuations.- The Corporation shall, once at least in every two; years cause an investigation to be made by actuaries into the financial conditi...
27 Annual report of activities of Corporation
27. Annual report of activities of Corporation.- The Corporation shall, as soon as may, be after the end of each financial year, prepare and submit to the Ce...
28 Surplus how to be utilised
28. Surplus how to be utilised.- If as a result of any investigation undertaken by the Corporation under section 26 any surplus emerges, not less than 95 per...
29 Reports to be laid before Parliament
29. Reports to be laid before Parliament.- The Central Government shall cause the report of the auditors under section 25, the report of the actuaries under ...
Chapter VII Miscellaneous
30 Corporation to have exclusive privilege of carrying on life insurance business
Chapter VII: Miscellaneous30. Corporation to have exclusive privilege of carrying on life insurance business.- Except to the extent otherwise expressly provi...
31 Exception in the case of insurance business in respect of persons residing outside India
31. Exception in the case of insurance business in respect of persons residing outside India.- 1.     Notwithstanding anything contained in section 30 or in ...
32 Power of Corporation to have official seal in certain cases
32. Power of Corporation to have official seal in certain cases.- The Corporation may have for use in any zonal office divisional office or in any office outs...
33 Requirement of foreign laws to be complied with in certain cases
33. Requirement of foreign laws to be complied with in certain cases.- Where any property or rights appertaining to the controlled business of an insurer are ...
34 Revesting of certain shares vested in the Administrator Generals
34. Revesting of certain shares vested in the Administrator General.- Notwithstanding anything contained in the Insurance Act, all shares which have vested in...
35 Repatriation of assets and liabilities in the case of foreign insurers in certain cases
35. Repatriation of assets and liabilities in the case of foreign insurers in certain cases.- 1.     Any insurer incorporated outside India may, before the a...
36 Contracts or chief agents and special agents to terminate
36. Contracts or chief agents and special agents to terminate.- Notwithstanding anything contained in the Insurance Act or in any other law for the time being...
37 Policies to be guaranteed by Central Government
37. Policies to be guaranteed by Central Government.- The sums assured by all policies issued by the Corporation including any bonuses declared in respect th...
38 Liquidation of Corporation
38. Liquidation of Corporation.- No provision of law relating to the winding up of companies or corporations shall apply to the corporation established under...
39 Special provisions for winding up of certain insurers
39. Special provisions for winding up of certain insurers.- Where any insurer being a company (other than a composite insurer) whose controlled business has ...
40 Penalty for withholding property, etc.
40. Penalty for withholding property, etc.- If any person wilfully withholds or fails to deliver to the Corporation as required by section 13, any property o...
41 Tribunal to have exclusive jurisdiction in certain matters
41. Tribunal to have exclusive jurisdiction in certain matters.- No civil court shall have jurisdiction to entertain or adjudicate upon any matter which a Tri...
42 Enforcement of decisions of Tribunals
42. Enforcement of decisions of Tribunals.- Any decision of a Tribunal may be enforced in any civil court within the local limits of whose jurisdiction the p...
43 Application of the Insurance Act
43. Application of the Insurance Act.- 1.     The following section of the Insurance Act shall, so far as may be, apply to the Corporation as they apply to ...
44 Act not to apply in certain cases
44. Act not to apply in certain cases.- Nothing contained in this Act shall apply in relation to—a.     any insurer whose business is being voluntarily woul...
45 Special provisions regarding certain composite insurer
45. Special provisions regarding certain composite insurer.- Notwithstanding anything contained in clause (c) of section 44, the Administrator appointed to m...
46 Defects in constitution of Corporation or committees not to invalidate acts or proceedings
46. Defects in constitution of Corporation or committees not to invalidate acts or proceedings.- No act or proceeding of the Corporation or of any Committee ...
47 Protection of action taken under Act
47. Protection of action taken under Act.- No suit, prosecution or other legal proceeding shall lie against any member or employee of the Corporation for any...
48 Power to make rules
48. Power to make rules.- 1.     The Central Government may, by notification in the Official Gazette make rules to carry out the purposes of this Act.2.    ...
49 Power to make regulations
49. Power to make regulations.- 1.     The Corporation may, with the previous approval of the Central Government, by notification in the Gazette of India, m...
Schedules First Schedule
First Schedule: Principles for Determining Compensation(See section 16)PART AThe compensation to be given by the Corporation to an insurer having a share capi...
Third Schedule
(See section 36)The compensation payable to a chief agent shall consist of seventy-five per cent, of the overriding commission specified in the contract relat...
Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!