Report No. 112
1.4. Effect of the Life Insurance Corporation Act, 1956.-
The Government of India decided to nationalise life insurance business in India in order 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.1 Accordingly, in 1956, Parliament passed the Life Insurance Corporation Act, and section 43 of the LIC makes section 45 of the Insurance Act applicable to the Life Insurance Corporation as it applied to any other insurer.
1. Statement of Objects and Reasons to the LIC Act, 1956. 112.5