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CS Professional · Banking and Insurance - Laws and Practice · Life Insurance

The Central Government notifies in the Official Gazette a date from which a body called the Life Insurance Corporation of India is to come into being. Under the LIC Act, 1956, what is the legal status of the Corporation once established?

The Corporation is a body corporate with perpetual succession and a common seal. It can acquire, hold and dispose of property and can sue and be sued in its own name, so it is a separate legal entity and not a government department.

  1. AA body corporate with perpetual succession and a common seal, able to sue and be sued by its nameCorrect
  2. BA government department that can sue only through the Union of India
  3. CA statutory trust whose property is held by the Central Government
  4. DA registered company that must be wound up if its members resolve so

Explanation

Section 3(2) makes the Corporation a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property and to sue and be sued by its name. It is not a department or trust, so it does not depend on the Union to litigate, and it is not a registered company subject to ordinary winding up.

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