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Roles and Functions of
LIC
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The life insurance
business was nationalized on 19th January, 1956 and the Life Insurance
Corporation of India came into being on 1st September, 1956 to carry on life
business in India with capital of Rs.5 crores contributed by the Central
Government.
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The Corporation is a body
corporate having perpetual succession with a common seal with powers to
acquire, hold and dispose of property and may by its name sue and be sued.
The functions of the Corporation shall be to carry on and develop life
insurance business to the best advantage of the community.
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The
Corporation shall have power –
1· to carry on capital redemption business, annuity certain business or
reinsurance business in so far as such reinsurance business relating to life
insurance business;
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2·
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 any property offered as security for the investment until a
suitable opportunity arises for its disposal;
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3·
to acquire, hold and dispose of any property for the purpose of its business;
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4·
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 interest of the
Corporation it is expedient so to do;
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5·
to advance or lend money upon the security of any movable or immovable
property or otherwise;
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6·
to borrow or raise any money in such manner and upon such security as the
Corporation may think fit;
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7·
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 an
insurer whose controlled business has been transferred to and vested in the
Corporation by this act;
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8·
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; and
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9·
to do all such things as may be incidental or conducive to the proper
exercise of any of the powers of the Corporation.
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10·
In the discharge of any of its functions the Corporation shall act so far as
may be on business principles.
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