Life Insurance Corporation Act 1956 was passed by the Indian Parliament which came into force from 1st September 1956. Chapter II, Section 3, Section 4 and Section 5 of the said Act, provides for the establishment, Constitution and Capital of the Corporation respectively.   

What is life insurance -


       Life Insurance is a contract.  It is a contract between the policyholder and the insurer. In this type of contract, insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.


Definition of life insurance -


         It is difficult to define  Life Insurance there is no statutory definition of life insurance.

        According to Sharma R.S. " Life Insurance contract may be defined, whereby the Insurer, in consideration of premium paid either installment, undertake to pay an annuity on the death of the insured of a certain number of years."
   
       " Life Insurance is a contract to pay a certain sum of money on the death of a person in consideration of the due payment of a certain annuity for his life calculated according to the probable duration of life". [ Dalby Vs India and London Life Assurance Co (1854)  15 CB 365; 139 ER 465]

       According to Maggee J.H. "Life Insurance contract embodies an agreement in which broadly stated, the insurer undertakes to pay a stipulated sum upon the death of insurer to a designated beneficiary.



Establishment of Life Insurance Corporation of India -


Establishment and incorporation of Life Insurance Corporation of India ( Chapter II Section 3)

            (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be established a Corporation called the Life Insurance Corporation of India.

           (2) The Corporation shall be a body corporate having perpetual succession and a common seal with power subject to the provisions of this Act, to acquire, hold and dispose of property, and may by its name sue and be sued.



Constitution of the Corporation -


According to Section 4 of the  Life Insurance Corporation of India

           (1) The Corporation shall consist of such number of persons not exceeding sixteen as the Central Government may think fit to appoint thereto and one of them shall be appointed by the Central Government to be the Chairman thereof.

          (2) Before appointing a person to be a member, the Central Government shall satisfy itself that the person will have no such financial or other interest as is likely to affect prejudicially the exercise of performance by him of his functions as a member, and the Central Government shall also satisfy itself from time to time with respect to every member that he has no such interest; and any person who is, or whom the Central Government proposes to appoint and who has consented to be, a member shall, whenever required by the Central Government so to do, furnish to it such information as the Central Government considers necessary for the performance of its duties under this sub-section.

             (3) A member who is in any way directly or indirectly interested in a contract made or proposed to be made by the Corporation shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest to the Corporation; and the member shall not take part in any deliberation or discussion of the Corporation with respect to that contract.



Capital of the Corporation -


According to Section 5 of the Life Insurance Corporation of India -

           (1) The original capital of the Corporation shall be five crores of rupees provided by the Central Government after due appropriation made by Parliament by law for the purpose, and the terms and conditions relating to the provision of such capital shall be such as may be determined by the Central Government.

           (2) The Central Government may, on the recommendation of the Corporation, reduce the capital of the Corporation to such extent and in such manner as the Central Government may determine.



See also...


Marine Insurance: Meaning, Definition and Types of Marine Insurance

Power and Functions of The Life Insurance Corporation

Employees State Insurance Corporation (E.S.I.C) : Constitution, Powers of the Employees State Insurance Corporation 



27 comments:

  1. Hello, A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work.investment

    ReplyDelete
  2. Consumer insurance site, people looking to get info. on all types of consumer insurance (life, health, auto, homeowner's).
    homeowner's insurance

    ReplyDelete
  3. Usually I do not read article on blogs, however I wish to say that this write-up very compelled me to take a look at and do so! Your writing taste has been amazed me. Thank you, very great articleBurial insurance for seniors

    ReplyDelete
  4. I simply look at your site and I discover it exceptionally fascinating and educational. I can hardly wait to peruse bunches of your posts.Cheapest homeowners insurance

    ReplyDelete

  5. Love because of this write-up. Which can be virtually all When i can certainly help describe. Any person virtually all without doubt include manufactured this kind of web site web site towards anything at all unique. Any person undoubtedly really realize what we work lack of with, you have insured having insurance policies plenty of features. best would like. For more visit life insurance blog to get the best type of information about insurance policy.

    ReplyDelete
  6. You have shared a nice article here about the insurance. Your article is very informative and useful to know more about the benefits of health insurance. Thanks for sharing this article here.diseño páginas web

    ReplyDelete
  7. You are right here especially if you are a young driver. Just the thought of making a claim makes me cringe and i can see my premium going through the roof when i have to renew it.Versicherungsmakler Gran Canaria

    ReplyDelete
  8. I really thank you for the valuable info on this great subject and look forward to more great posts. Thanks a lot for enjoying this beauty article with me. I am appreciating it very much! Looking forward to another great article. Good luck to the author! Medicare advisor nyc

    ReplyDelete
  9. When i can certainly help describe. Any person virtually all without doubt include manufactured this kind of web site web site towards anything at all unique. Any person undoubtedly really realize what we work lack of with, you have insured having insurance policies plenty of features. best would likehealth Insurance

    ReplyDelete
  10. Hello, Thank you for sharing this useful information. For me, as a business owner, it is very important and relevant because I want to keep abreast of the latest news. I believe that the insurance broker should be a trusted person and be responsible for all trusted financial manipulations.cheap insurance

    ReplyDelete


  11. I really thank you for the valuable info on this great subject and look forward to more great posts. Thanks a lot for enjoying this beauty article with me. I am appreciating it very much! Looking forward to another great article.georgia truck insurance

    ReplyDelete
  12. A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work.insurance too expensive

    ReplyDelete
  13. This blog is giving excellent information. We are a team, the Indian investment, and financial industry to take excellent practices in research and delivery of its services to customers.Insurance Blog

    ReplyDelete
  14. This is my husband and I's story exactly. We already had a kid, but I wanted my step daughter on my insurance. I originally approached him to get paperwork for a common law marriage, and my husband said if we were going to get paperwork, why not just get married. And 4 years after we got married, he made a big deal of proposing to me and giving me an engagement ring. Net worth

    ReplyDelete
  15. Thanks a lot for enjoying this beauty article with me. I am appreciating it very much! Looking forward to another great article. Good luck to the author! private health insurance plans

    ReplyDelete
  16. I really thank you for the valuable info on this great subject and look forward to more great posts. Thanks a lot for enjoying this beauty article with me. I am appreciating it very much! Looking forward to another great article. Good luck to the author! All the best.Insurance

    ReplyDelete
  17. Really decent post. I just discovered your weblog and needed to say that I have truly delighted in searching your blog entries. After all I'll be subscribing to your food and I trust you compose again soon!private health insurance plans

    ReplyDelete
  18. A a very good article for me to read as a growing travel entrepreneur. introduce me tjandra limanjaya, it's very difficult to understand business. when I read this article I called enlightenment for me. Thank you very much my friend.what is the cost of private health insurance

    ReplyDelete
  19. Excellent read, Positive site, where did u come up with the information on this posting? I have read a few of the articles on your website now, and I really like your style. I'm from cash for scrap cars hobart. Thanks a million and please keep up the effective work.Rate your Life Insurer

    ReplyDelete
  20. It's good to know that if a driver drops debris on your car then they're responsible for the damage. I have a really big chip in my windshield because the truck in front of me kicked up a rock and it hit my car. I know that they're not responsible for this now, but it's still frustrating.Cheap Health Insurance Australia

    ReplyDelete

  21. Hello, Thank you for sharing this useful information. For me, as a business owner, it is very important and relevant because I want to keep abreast of the latest news. I believe that the insurance broker should be a trusted person and be responsible for all trusted financial manipulations.car insurance

    ReplyDelete
  22. Really I enjoy your site with effective and useful information. It is included very nice post with a lot of our resources.thanks for share. i enjoy this post. agent and dealer resources

    ReplyDelete
  23. I am usually to blogging we actually appreciate your articles. This content has really peaks my interest. I am about to save your blog and keep checking for brand spanking new data.commercial insurance utah

    ReplyDelete

  24. If you would like me to research other topics and post about them, please inform me or leave a comment and I will research it for you best I can. Thank you for your comment and please share.Expert Texas Insurance Advice

    ReplyDelete

  25. Thanks for your marvelous posting! I really enjoyed reading it, you happen to be a great author. I will remember to bookmark your blog and may come back in the foreseeable future.Divorce Court Ordered Life Insurance

    ReplyDelete

  26. I really thank you for the valuable info on this great subject and look forward to more great posts. Thanks a lot for enjoying this beauty article with me. I am appreciating it very much! Looking forward to another great article. Good luck to the author!Insurance Brokerage

    ReplyDelete

See Also..