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Bar News Acts League

The Life Insurance Corporation Act, 1956

Act ID: 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 the Life Insurance Corporation."

Table of Contents

53 Sections

Ch. 1

PRELIMINARY

S.1Short title and commencement.S.2Definitions.

Ch. 2

ESTABLISHMENT OF LIFE INSURANCE CORORATION OF INDIA

S.3Establishment and incorporation of Life Insurance Corporation of India.S.4Board of Directors S.5Capital of Corporation.

Ch. 3

FUNCTIONS OF THE CORPORATION

S.6Functions of the Corporation.S.6APower to impose conditions, etc.

Ch. 4

TRANSFER OF EXISTING LIFE INSURANCE BUSINESS TO THE CORPORATION

S.7Transfer of assets and liabilities of existing insurers carrying on controlled business.S.8Provident, superannuation and other like funds.S.9General effect of vesting of controlled business.S.10Provisions as to composite insurers.S.11Transfer of service of existing employees of insurers to the Corporation.S.12Transfer of services of existing employees of chief agents of insurers to the Corporation in certain cases.S.13Duty to deliver possession of property and documents relating thereto.S.14Power of Corporation to modify contracts of life insurance in certain cases.S.15Right of Corporation to seek relief in respect of certain transactions of the insurer.S.16Compensation for acquisition of controlled business.S.17Constitution of Tribunals.

Ch. 5

MANAGEMENT

S.18Offices, branches and agencies.S.19Executive Committee.S.20Managing Directors.S.21Corporation to be guided by the directions of Central Government.S.22Zonal Managers.S.23Staff of the Corporation.

Ch. 6

FINANCE, ACCOUNTS AND AUDIT

S.24Funds of the Corporation.S.25Appointment of auditors.S.26Actuarial valuations.S.27Annual report of activities of Corporation.S.28Surplus from life insurance business, how to be utilised.S.28AProfits from any business (other than life insurance business) how to be utilised.S.29Reports to be laid before Parliament.

Ch. 7

MISCELLANEOUS

S.30Corporation to have the exclusive privilege of carrying on life insurance business.S.30AExclusive privilege of Corporation to cease.S.31Exception in the case of insurance business in respect of persons residing outside India.S.32Power of Corporation to have official seal in certain cases.S.33Requirement of foreign laws to be complied with in certain cases.S.34Revesting of certain shares vested in the Administrator-General.S.35Repatriation of assets and liabilities in the case of foreign insurers in certain cases.S.36Contracts of chief agents and special agents to terminate.S.37Policies to be guaranteed by Central Government.S.38Liquidation of Corporation.S.39Special provisions for winding up of certain insurers.S.40Penalty for withholding property, etc.S.41Tribunal to have exclusive jurisdiction in certain matters.S.42Enforcement of decisions of Tribunals.S.43Application of the Insurance Act.S.43A. Omitted.S.44Act not to apply in certain cases S.45Special provisions regarding transfer of controlled business of certain composite insurer.S.46Defects in constitution of Corporation or Committees or in appointment or nomination of directors not to invalidate acts or proceedings.S.47Protection of action taken under this Act.S.48Power to make rules.S.49Power to make regulations