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Union of India - Section
Section 15 in The Life Insurance Corporation Act, 1956
15.
/708Statement of Objects and Reasons.-To ensure absolute security to the policy-holder in the matter of his life insurance protection, to spread insurance much more widely and in particular to the rural areas, and as a further step in the direction of more effective mobilisation of public savings, Government has decided to nationalise life insurance business in India. An Ordinance was promulgated in January, 1956, whereby pending the passing of a Bill to nationalise such business, the management of the life insurance business in India was vested in the Central Government. A Bill has been separately introduced to replace that Ordinance and the present Bill lays down the permanent arrangements for nationalisation. Under this Bill a Life Insurance Corporation of India will be set up, with a share capital provided entirely by the Central Government, which will undertake life insurance business in India as a monopoly and into this Corporation will be integrated all the Insurance Companies now engaged in life business, as also the organisations functioning under the control of State Governments and conducting such business for the benefit of the public.All the contracts for assurance executed by the Corporation will be guaranteed by the Central Government.The Schedules to the Bill lay down the principles governing grant of compensation to the insurers whose business will be taken over by the Corporation.Amendment Act 1 of 1981-Statement of Objects and Reasons.-In order to control the cost of administration in the interest of the Life Insurance Corporation of India and its policy-holders whose premium income the Corporation holds as a Trustee, it became necessary for Government to vest itself with powers to determine the terms and conditions of service of the employees and agents and streamline the salary structure. Hence, the President promulgated on 31st January, 1981, the Life Insurance Corporation (Amendment) Ordinance, 1981 to amend the Life Insurance Corporation Act, 1956 to empower the Central Government to frame rules regarding the terms and conditions of all classes of employees and agents of the Corporation and for matters connected therewith or incidental thereto.[18th June, 1956]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:-| 1. The Act has been extended to the Union Territories of Dadra and Nagar Haveli and Pondicherry by Regulation 6 of 1963 and Act 26 of 1968, respectively.It has been extended to the Union Territories of Goa, Daman and Diu, subject to certain modification by Regulation 11 of 1963. Goa is now a State, see Act 18 of 1987, Section 3 (w.e.f. 30.5.1987). See Section 48-A of the Act.2. Brought into force on 1.7.1956. |