Sample Read
Ā© Taxmann Price : ` 185
Law stated in this book is as updated till 20th December, 2025
Published by : Taxmann Publications (P.) Ltd.
Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India
Phone : +91-11-45562222
Website : www.taxmann.com
E-mail : sales@taxmann.com
Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India
Printed at :
Tan Prints (India) Pvt. Ltd.
44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India
E-mail : sales@tanprints.com
Disclaimer
Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications.
No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action.
For binding mistake, misprints or for missing pages, etc., the publisherās liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.
43.
43A. [Omitted by the Finance Act, 2002, w.e.f. 1-6-2002
45. Special provisions regarding transfer of controlled business of certain
46. Defects in constitution of Corporation or Committees or in appointment or nomination of directors not to invalidate acts or proceedings
47.
48.
49.
50. Form, manner, etc., for companies to apply with
LIFE INSURANCE CORPORATION (MODIFICATION OF SETTLEMENTS) ACT, 1976
5.
7.
8. [Omitted by the
(Amendment)
CONTENTS
9. [Omitted by the Life Insurance Corporation (Amendment) Rules, 2021, w.e.f. 30-6-2021] 77
10. Apportionment of provident fund, etc. 77
11. Transfer of service of existing employees of chief agents 78
12. Reference to the Tribunal, etc. 79
12A. Jurisdiction of Tribunal 80
13. Compensation 81
14. Employees and Agents Relations Committee 81
15. Term of of ce of members of Employees and Agents Relations Committee 81
16. Casual vacancies in Employees and Agents Relations Committee 81
17. Report 81
18. Allocation of paid-up capital of composite insurer 81
19. Transfer of business of certain composite insurer to the Corporation 82
20. Vesting of the management of the affairs of the insurer in the persons entitled thereto 82
21. Form and manner in which nancial statement may be issued, circulated or published 83
22. Manner and procedure of selection of auditors and conditions of their appointment 83
23. Other matters to be included in auditorās report 85
24. Duties and powers of Corporationās auditor with reference to audit of branch or of ce of the Corporation and its auditor 85
25. Resignation of auditor 85
26. Reservation in favour of and allotment to life insurance policyholders in a public issue 85
27. Use of electronic records and electronic signature 86
28. General meetings 86 SCHEDULE 89
LIFE INSURANCE CORPORATION OF INDIA (AGENTS) REGULATIONS, 2017
1. Short title and commencement
Application
3. De nitions
4. Appointment of Agents
5. Eligibility conditions for appointment of agents
6. Training and examination 98
7. Reappointment of Agents 98
8. Functions of agents
9. Minimum amount of business to be secured by agents 100
10.
14.
15.
16.
17.
18.
19.
Sabka
SABKA BIMA SABKI RAKSHA
Life Insurance Corporation Act, 1956 [31
OF 1956]1
An Act to provide for the nationalisation of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto
BE it enacted by Parliament in the Seventh Year of the Republic of India as follows :ā
CHAPTER I PRELIMINARY
Short title and commencement.
1. (1) This Act may be called the Life Insurance Corporation Act, 19562 (2) It shall come into force on such date3 as the Central Government may, by notification in the Official Gazette, appoint.
Definitions.
2. In this Act, unless the context otherwise requires,ā
(1) āappointed dayā means the date on which the Corporation is established under section 3;
4[(1a) āAudit Committeeā means the Committee constituted under section 19C;
(1b) āBoard of Directorsā or āBoardā means the collective body of the directors appointed or nominated or deemed as such under section 4;
(1c) āChairpersonā means the Chairperson referred to in clause (a) of sub-section (2) of section 4;
1. Dated 18-6-1956.
2. This Act has been extended to Dadra and Nagar Haveli by Reg. 6 of 1963, section 2 and Sch. I, to Goa, Daman and Diu by Reg. 11 of 1963, section 3 and Schedule, and to Pondicherry by Act 26 of 1968, section 3 and Schedule.
3. 1-7-1956 vide Notification No. S.R.O. 1456, dated 26-6-1956.
4. Inserted by the Finance Act, 2021, w.e.f. 30-6-2021.
(1d) āChief Executiveā means,ā
(i) during the initial period, the Chairperson referred to in sub-clause (i) of clause (a) of sub-section (2) of section 4;
(ii) after the initial period, the Chief Executive Officer and Managing Director;
(1e) āChief Executive Officer and Managing Directorā means the Chief Executive Officer and Managing Director referred to in clause (b) of sub-section (2) of section 4;
(1f) āCompanies Actā means the Companies Act, 2013 (18 of 2013);
(1g) ācourtā means āCourtā as defined in clause (29) of section 2 of the Companies Act, 2013 (18 of 2013);]
(2) ācomposite insurerā means an insurer carrying on in addition to controlled business any other kind of insurance business;
(3) ācontrolled businessā meansā
(i) in the case of any insurer specified in sub-clause (a)(ii) or sub-clause (b) of clause (9) of section 2 of the Insurance Act and carrying on life insurance businessā
(a) all his business, if he carries on no other class of insurance business;
(
b) all the business appertaining to his life insurance business, if he carries on any other class of insurance business also;
(c) all his business, if his certificate of registration under the Insurance Act in respect of general insurance business stands wholly cancelled for a period of more than six months on the 19th day of January, 1956;
(ii) in the case of any other insurer specified in clause (9) of section 2 of the Insurance Act and carrying on life insurance businessā
(a) all his business in India, if he carries on no other class of insurance business in India;
(b) all the business appertaining to his life insurance business in India, if he carries on any other class of insurance business also in India;
(c) all his business in India, if his certificate of registration under the Insurance Act in respect of general insurance business in India stands wholly cancelled for a period of more than six months on the 19th day of January, 1956.
Explanation.āAn insurer is said to carry on no class of insurance business other than life insurance business, if, in addition to life insurance business, he carries on only capital redemption business or annuity certain business or both; and the expression ābusiness appertaining to his life insurance businessā in sub-clauses (i) and (ii) shall be construed accordingly;
(iii) 5[***]
(
iv) in the case of the Central Government or a State Government, all life insurance business carried on by it, subject to the exceptions specified in section 44;
(4) āCorporationā means the Life Insurance Corporation of India established under section 3;
6[(4a) ādirectorā means a director appointed or nominated or deemed as such under section 4;
(4b) āfinancial statementā, in relation to the Corporation, includesā
(i) a balance-sheet as at the end of the financial year;
(ii) a profit and loss account for the financial year;
(iii) cash flow statement for the financial year;
(iv) a statement of changes in equity, if applicable; and
(v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv);
(4c) āfully diluted basisā shall mean, in relation to the percentage holding of the Central Government on such basis, the total number of shares held by the Central Government expressed as a percentage of the total number of shares of the Corporation that would be outstanding if all possible sources of conversion are exercised;
(4d) āindependent directorā means an independent director referred to in clause (g) of sub-section (2) of section 4;
(4e) āinitial periodā means the period of three years reckoned from the date on which the provisions of section 130 of the Finance Act, 2021 shall come into force;]
(5) āInsurance Actā means the Insurance Act, 1938 (4 of 1938);
(6) āinsurerā means an insurer as defined in the Insurance Act who carries on life insurance business in India and includes the Government 7[***];
6[(6a) āManaging Directorā means a Managing Director referred to in clause (c) of sub-section (2) of section 4;]
8[(7) āmemberā means every person holding shares of the Corporation and whose name is entered in the register of members maintained under clause (a) of sub-section (1) of section 5B;
5. Omitted by the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, with effect from a date yet to be notified. Prior to its omission, sub-clause (iii) read as under: ā(iii) in the case of a provident society, as defined in section 65 of the Insurance Act, all its business;ā
6. Inserted by the Finance Act, 2021, w.e.f. 30-6-2021.
7. Words āand a provident society as defined in section 65 of the Insurance Actā omitted by the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, with effect from a date yet to be notified.
8. Substituted by the Finance Act, 2021, w.e.f. 30-6-2021 Prior to its substitution, clause (7) read as under: ā(7) āmemberā means a member of the Corporation;ā
(7a) āNomination and Remuneration Committeeā means the Committee constituted under section 19B;
(7b) ānotificationā means a notification published in the Official Gazette, and the expression ānotifyā shall be construed accordingly;]
(8) āprescribedā means prescribed by rules made under this Act;
8a[(8a) āspecial resolutionā means a resolution for which the intention to propose the same as a special resolution has been duly specified in the notice given to members for calling a general meeting, and the votes cast in favour of the resolution by members are not less than three times the number of votes, if any, cast against the resolution;]
(9) āTribunalā means a Tribunal constituted under section 17 and having jurisdiction in respect of any matter under the rules made under this Act;
9[(10) unless there is anything repugnant in the subject or context, all the words and expressions used herein but not defined and defined in the Insurance Act, 1938 (4 of 1938) or in the Companies Act, 2013 (18 of 2013) shall have the meanings respectively assigned to them in the said Acts.]
CHAPTER II
ESTABLISHMENT OF LIFE INSURANCE CORPORATION OF INDIA
Establishment and incorporation of Life Insurance Corporation of India.
3. (1) With effect from such date10 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.
11[Board of Directors.
4. (1) The general superintendence and direction of the affairs and business of the Corporation shall vest in its Board of Directors, which may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation and are not by this Act expressly directed or required to be done by the Corporation in general meeting.
8a. Inserted by the Finance Act, 2021, w.e.f. 30-6-2021.
9. Substituted by the Finance Act, 2021, w.e.f. 30-6-2021. Prior to its substitution, clause (10) read as under:
ā(10) All other words and expressions used herein but not defined and defined in the Insurance Act shall have the meanings respectively assigned to them in that Act.ā
10. 1-9-1956, vide Notification No. S.R.O. 1937, dated 30-8-1956.
11. Substituted by the Finance Act, 2021, w.e.f. 30-6-2021. Prior to its substitution, section 4 as amended by the Public Financial Institutions Laws (Amendment) Act, 1975, w.e.f. 16-2-1976, read as under:
ā4. Constitution of the Corporation.ā (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.
(Contd. on p. 5)
LIFE INSURANCE CORPORATION ACT 1956 WITH RULES ā BARE ACT
AUTHOR : Taxmann's Editorial Board
PUBLISHER : Taxmann
DATE OF PUBLICATION : January 2026
EDITION : 2026 Edition
ISBN NO : 9789375610205
PAGE NO : 136
BINDING TYPE : Paperback
DESCRIPTION
Life Insurance Corporation Act 1956 with Rules [Bare Act] by Taxmann is an authoritative statutory publication that presents the complete and updated legal framework governing the Life Insurance Corporation of India (LIC). This 2026 Edition reproduces the verbatim text of the Act along with all Rules, Regulations, Schedules, and allied statutory material, updated to date. It is designed as a precise Bare Act reference preserving legislative authenticity. This publication is indispensable for a wide range of professionals and institutions, including:
ā¢ Advocates & Legal Practitioners
ā¢ Judges & Judicial Oļ¬cers
ā¢ Insurance Professionals & LIC Oļ¬cials
ā¢ Chartered Accountants, Company Secretaries & Cost Accountants
ā¢ Regulators & Government Oļ¬cials
ā¢ Academics & Students
The Present Publication is the 2026 Edition, covering the amended and updated text of the Life Insurance Corporation Act [Act No. 31 of 1956] and Rules, with the following noteworthy features:
ā¢ [Bare Act Text] Presents the unaltered and authoritative statutory text of the Life Insurance Corporation Act 1956, reproduced verbatim with clear and readable formatting
ā¢ [Updated Law] Incorporates all amendments up to date, including those introduced by the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act 2025
ā¢ [Pre-amendment Provisions] Includes the text of provisions as they stood prior to amendment through amendment footnotes, enabling understanding of the pre-amendment legal position
ā¢ [Allied Rules & Regulations] Consolidates the Life Insurance Corporation (General) Rules 1956, LIC (Agents) Regulations 2017, LIC (Shareholders' Director) Regulations 2023, and other connected statutory instruments
ā¢ [Amendments at a Glance] Provides a snapshot summary of recent amendments for quick reference
ā¢ [Comprehensive Coverage] Covers the complete statutory framework relating to governance, management, ļ¬nance, audit, surplus distribution, and regulatory oversight of LIC
ā¢ [Schedules & Forms] Reproduces all statutory Schedules and prescribed Forms in their oļ¬cial form
ā¢ [Subject Index] Includes a detailed subject index for eļ¬cient navigation and cross-referencing
