LIC ACT 1956 & Its Provisions

1. LIC act 1956
its provisions
Submitted by:
Aarti
m.Com 3rd sem
3111

2. Act passed by parliament on june 18, 1956
Came into effect from july1,1956
Lic of india is a body corporate having
prepectual succession
common seal
Having the powers
to acquire, hold and dispose of property
can sue and be sued by its own name
Introduction to the act

3. Provisions of LIC Act 1956
 constitution
Capital
Office branches and agencies
Committee of the corporation
Authorities
Finance accounts and audit
miscellaneous

4. constitution
Not exceedind 16 presons and CG can appoint one of them as to be
the chairman.
Person appinting have no such financial intrest and other interest.
capital
Shall be 5 crores of rupee. Other conditions can be determined by
CG

5. Office branches and agencies (sec 18)
Place shall be determined in the official gazzete by CG
Zonal offices shall established in mumbai calcutta delhi kanpur and
chennai
Territorial limits of each zone may be specify by the corporation.
Committee of the corporation (sec 19)
Not more than 5 members execute the committee to exercise all the
powers delegated by the corporation.
Investment committee also constitute for advising relating to
investment.
They may also constitute other committees.

6. Authorities
(A) MANAGING DIRECTOR
1.corporation may appoint one or more persons as MD.
2. shall be a whole time director.
3. have to perform duties delegated by executive
committee or corporation.
(B) ZONAL MANAGER
1. corporation may appoint a person as Zonal manager for
the supervision of zonal office.
2. also have to perform duties delegated within the
jurisdiction of zonal office.

7. Finance, accounts and audit
(A) AUDIT (SEC 25)
1. auditor audit the accounts of the corporation.
2.appointed by corporation with the approval of CG.
3. remuneration fixed by the CG.
(B) Auctorial valuation reports to be submit once at least every two
years to CG (sec26)
(C) Annual report to be prepared at the end of each financial year.
(sec27)
(D) Any surplus emerge,95% of such surplus shall be allocated to
reserved for the policyholder.(sec28)
(E) Auditor report and report on activities are laid before the both houses
of parliament(sec 29).

8. • Exclusive privilege of carrying on business in India until
the certificate of corporation shall not be cease.
Corporation to have exclusive privilege of carrying on
life insurance business(sec 30)
Power of corporation to have official seal in certain
cases. (sec 32)
• The corpration may use official seal in any zonal and
divisional office or any office outside india affixed to any
deed or document to which the corporation is a party.

9. Requirement of foreign law to be complied with certain
cases (sec 33)
insurer Property
/rights
corporation
the insurer shall comply with the law for the purpose of
securing that ownership of property.

10. Reputation of assets and liabilities in the case of
foreign insurers in certain cases.
Insurer
Outside
India
property
India
building
up
insurance
business
in India
Should not be
transferred to
the
corporation
Exception
anything
contained in
section 7

11. Corporatio
n outside
India
Have liability in foreign
currency on the lives of
outside India
TRANSFER TO
CORPORATION

12. POLICIES TO BE GURANTEED BY CG
Sum assured of policies
includes any bonus
CG have to pay them
in cash
Subject to the
provisions of
sec 14

13. • The corporation shall not be placed into liquidation save
by order of the CG and in such manner the government
may direct
Liquidation of corporation

14. Winding up of certain insurers
INSURER CORPORATION
TRANSFER
BUSINESS
MONEY AS COMPENSATION
PROPERTY TO INSURER

15. • If any person willfully withholds or fails to deliver to
the corporation as required by section 13 be
punishable
 imprisonment extended up to 1 year.
 1,000 rs or both
PENALITY FOR WITHOLDING PROPERTY

16. • No civil court shall have jurisdiction to
entertain or adjudicate upon any matter
which the tribunal is empowered to decide.
Tribunal to have exclusive jurisdiction in certain
matters (section 41)

17. THANK YOU