On 19 January 1956, life insurance in India was nationalized through the promulgation of the Life Insurance (Emergency Provisions) Ordinance, 1956.

At the time of nationalization, about 154 Indian insurance companies, 16 foreign insurance companies, and 75 provident societies were operating in India.

The Parliament of India passed the Life Insurance Corporation Act, 1956, on 19 June 1956.

Life Insurance Corporation of India (LIC) was established and began operations on 1st September 1956.
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