Question

Life Insurance Corporation Ltd. is formed under ______________.

• A. Companies Act, 2013
• B. Special Act of Parliament
• C. Both (a) & (b)
• D. None of these

Answer 1

The correct option is B Special Act of Parliament

B.

The public enterprises that are formed by a Special Act of the Parliament are known as Statutory Corporations. The Act defines the powers and the functions of such organizations. It is a financially independent corporate body and has the capacity to act on its own name.

The Life Insurance Corporation of India was created on 1st September, 1956, under the Life Insurance Corporation Act,1956 passed by the Parliament. It was set up with the objective of spreading life insurance more widely and in particular to the rural areas so that it reaches all insurable persons in the country and providing them adequate financial cover at a reasonable cost.