Parliament of India passed the Life Insurance Corporation Act on 19th June 1956, and Life Insurance Corporation of India was created on 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. Section 6 of Life Insurance Corporation Act, 1956 speaks about powers and functions of Life Insurance Corporation.
Power and functions of the Life Insurance Corporation -
Chapter III, Section 6 of the Life Insurance Corporation Act, 1956 - Functions of the Corporation
(1) Subject to the rules, if any, made by the Central Government in this behalf, it shall be the general duty of the Corporation to carry on life insurance business, whether in or outside India, and the Corporation shall so exercise its powers under this Act as to secure that life insurance business is developed to the best advantage of the community.
(2) Without prejudice to the generality of the provisions contained in sub-section (1) but subject to the other provisions contained in this Act, the Corporation shall have power-
(a) to carry on capital redemption business, annuity certain business or reinsurance business in so far as such reinsurance business appertains to life insurance business.
(b) subject to the rules, if any, made by the Central Government in this behalf, to invest the funds of the Corporation in such manner as the Corporation may think fit and to take all such steps as may be necessary or expedient for the protection or realisation of any investment; including the taking over of and administering and property offered as security for the investment until a suitable opportunity arises for its disposal;
(c) to acquire, hold and dispose of any property for the purpose of its business. (d) to transfer the whole or any part of the life insurance business carried on outside India to any other person or persons, if in the interests of the Corporation it is expedient so to do.
(e) to advance or lend money upon the security of any movable or immovable property or otherwise;
(f) to borrow or raise any money in such manner and upon such security, as the Corporation may think fit;
(g) to carry on either by itself or through any subsidiary any other business in any case where such other business was being carried on by a subsidiary of any insurer whose controlled business has been transferred to and vested in the Corporation under Act;
(h) to carry on any other business which may seem to the Corporation to be capable of being conveniently carried on in connection with its business and calculated directly or indirectly to render profitable the business of the Corporation;
(i) to do all such things as may be incidental or conducive to the proper exercise of any of the powers of the Corporation.
(3) In the discharge of any of its functions, the Corporation shall act so far as may be on business principles.
Establishment, Constitution and Capital of the Life Insurance Corporation of India
Duties, Powers and Functions of Insurance Regulatory and Development Authority (IRDA)