The Life Insurance Corporation of India Act was passed by the Parliament in the year ______.
- A.1956
- B.1948
- C.1971
- D.1965
Show answer
Correct answer: A. 1956
Explanation
The correct answer is A, 1956. Parliament passed the Life Insurance Corporation Act in 1956, and the Life Insurance Corporation of India began work on 1 September that year, after the life insurance business of 245 private insurers and provident societies was taken over and merged into it. The aim was to carry insurance into the villages and to give policyholders the security of a sovereign guarantee on their savings. LIC is headquartered in Mumbai and its motto is Yogakshemam Vahamyaham. General insurance was nationalised much later, in 1972, and the regulator IRDAI was set up in 1999. B is wrong because in 1948 life insurance was still entirely in private hands. C is wrong because by 1971 LIC had already been working for fifteen years. D is wrong because 1965 also falls after the Act, not in the year it was passed. Exam tip: LIC Act 1956, LIC began 1 September 1956; general insurance nationalised 1972, IRDAI 1999.